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Sanderson Weatherall Group Limited
Registered number: 04870380
Annual report and
consolidated financial statements
For the year ended 31 March 2025
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SANDERSON WEATHERALL GROUP LIMITED
COMPANY INFORMATION
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A L Burkinshaw
M B Clarke
R H Cohen
D Downing
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S P Heather
C R Humphreys
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K M Mcgorie
E T Mcloughlin
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SANDERSON WEATHERALL GROUP LIMITED
COMPANY INFORMATION (CONTINUED)
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Chartered Accountants & Statutory Auditor
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SANDERSON WEATHERALL GROUP LIMITED
CONTENTS
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Independent Auditor's Report
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Consolidated Statement of Comprehensive Income
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Consolidated Statement of Financial Position
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Company Statement of Financial Position
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Consolidated Statement of Changes in Equity
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Company Statement of Changes in Equity
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Consolidated Statement of Cash Flows
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Notes to the Financial Statements
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SANDERSON WEATHERALL GROUP LIMITED
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2025
Sanderson Weatherall Group Limited (“the Group”) is wholly owned by the Directors of the business as listed in the Report of Officers. Its principal activity is the provision of surveying and property consultancy services, mainly in the UK.
During the year a new office was opened in the Humber region, which again increased the groups geographical spread. Alongside the office opening the Group has continued to follow its business plan of expanding service lines into all offices during this year.
The group was pleased to acquire the well-established Humber based business of Clark Weightman towards the end of the financial year and closed the acquisition of BDG Sparkes Porter shortly after the financial year end. The group continues to look for suitable corporate addons, we also focussed on investing into developing and strengthening existing teams and offices.
The year ended 31 March 2025 saw Group turnover increasing by just over 17%, due to very strong performances from a number of different departments.
The year ended 31 March 2025 once again ended with the company achieving its highest ever monthly billing total, which capped another turnover record for the year.
I would like to take this opportunity to thank colleagues (again) for their commitment and hard work in delivering this exceptional performance.
The Group remains focussed on growing its turnover and operating profit towards 10% of turnover.
The net liability of the closed Defined Benefit Pension Scheme reduced in the year by £0.76m, driven by changes in underlying assumptions associated with valuing the scheme. The main assumption changes which impacted the scheme were an increase in the assumed discount rate and a reduction in the RPI inflation rate assumption, which impacted inflation linked increases. Alongside assumption changes the underlying scheme assets underperformed in the year as well.
The Group remains on track to discharge the liability on the terms set out in the update 2022 Triennial Valuation.
The Group operated within its bank borrowing limits throughout the year, benefitting from strong working capital management.
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SANDERSON WEATHERALL GROUP LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
Principal risks and uncertainties
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Whilst benefitting from a number of major clients, the Group is not reliant on a small number of large clients for its ongoing business and continues to actively pursue new opportunities. The Group’s policy is to move further toward offering all services from all office locations.
The Group’s perception of an underlying uncertainty in the market driven by the wider performance of the economy, uncertainty on interest rates and the impact of inflation (particularly around salaries). Alongside this there are continuing geopolitical and economic uncertainties. Both of these being factors entirely outside the control of the group.
Conversely, the Group perceives that its own place in its market remains stronger than ever as many similar sized competitors have been absorbed into larger organisations, leaving a gap in the market for those clients demanding a high quality partner lead service which the Group is increasingly able to offer on a UK wide basis.
The wide range of services offered by the Group diminishes risk, as different services exist in contra cyclical relationship.
The Group maintains adequate Professional Indemnity insurance, is not subject to any civil actions which would materially prejudice its financial security and is not unduly vulnerable to any potential interest rate increases due to its relatively low levels of borrowing.
Whilst the Group, via the mechanism of the triennial valuation, has quantified and committed to an affordable annual sum in order to address the closed DB pension fund actuarial liability, it remains acutely aware of the inherent volatility underlying the theoretical valuation and the potential this has to take cash out of the business in the short term, and thus acts as an inhibitor to potential growth.
Financial key performance indicators
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Operating wholly within the professional services area, the relationship between fees, costs, profit, and cash generation within the business is a very direct one, despite the apparent diversity of services offered. Budgets for each profit centre within the business are monitored monthly, with the principal KPI being the ratio of fees to salary costs (which is targeted at 2.5x) within each profit centre, we also monitor the operating margin % of each department with a current target of 10%.
As can be seen our salary multiple is now stabilising at around our target level. which disguises the fact that some departments still have work to do. The dip in this year was (in part) driven by our ongoing investment in new staff and teams. We continue to focus on our OP%, this was also impacted by our investments.
In addition, professional members of staff are ultimately responsible for cashflow and the collection of debt, and once again this is monitored by profit centre via the reporting of debtor days statistics.
Annual staff reviews are carried out and various grading metrics within this exercise are applied in assessing the group’s principal, and indeed only material, asset.
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SANDERSON WEATHERALL GROUP LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
Financial risk management and policies
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Price risk
Considerable market pressures exist which tend to suppress price inflation with the sector, and the Group perceives that ultimately this position is irreconcilable with the long-term aspiration of an adequately large, well trained and well remunerated professional workforce. The Group is not a large consumer of external goods and services and, other than office rental inflation, does not consider itself to be vulnerable in this regard.
Credit risk
The Group has a first-class credit rating and perceives the risk to operations from denial of credit as being negligible. The customer base tends towards established and blue-chip clients, enabling bad debts to be kept at a minimal level.
Liquidity and cash flow risk
The Group finances its operations though equity capital and bank overdraft and term loan, coupled with limited short-term HP borrowing. Detailed cash flow forecasting coupled with good cash collection rates and low debtor days enable the Group to operate always within bank covenant limits.
This report was approved by the board on 1 December 2025 and signed on its behalf.
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SANDERSON WEATHERALL GROUP 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.
Directors' responsibilities statement
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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.
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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 the Group and of the profit or loss of the Group for that period.
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; and
∙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.
The profit for the year, after taxation, amounted to £395,621 (2024 - loss of £129,433).
No dividends were declared during the year (2024: £Nil).
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SANDERSON WEATHERALL GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
The directors who served during the year were:
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A L Burkinshaw
M B Clarke
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S P Heather
C R Humphreys
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K M Mcgorie
E T Mcloughlin
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P J C Loveday
T L Simmons
Going concern
At the 31 March 2025, the Consolidated Statement of Financial Position shows net assets of £1,288,050 (2024: £391,837). The net assets of the Group as at 31 March 2025 before recognising any theoretical liability in the closed defined benefit pension scheme and movement in the other life contingent annuity are £3,885,821 (2024: £3,806,662). The directors consider that the pension fund liability remains a long-term affordable liability for the Group which will be satisfied over a number of years. The annual instalments required by the Pensions Regulator to fund this shortfall are considered affordable.
The directors consider that the Group is a profitable going concern and has prepared forecasts that show the Group will be able to repay its debts as they fall due. In the period following the year under review the Group continues to trade profitably. The directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. Thus, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
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SANDERSON WEATHERALL GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
The Group continues to expand each of its trading locations with the ultimate strategic objective of providing all services from all offices. Although aiming mainly to achieve expansion through organic growth, the Group remains open to incorporating smaller businesses via acquisition whenever this proves to be desirable or possible.
Qualifying third party indemnity provisions
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The Group has made qualifying third-party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.
Matters covered in the Group Strategic Report
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The Group has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the Group's Strategic Report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the Directors' Report. It has done so in respect of financial instruments.
Disclosure of information to auditor
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Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
∙so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditor is unaware, and
∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditor is aware of that information.
Post balance sheet events
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Sanderson Weatherall LLP acquired the business and assets of BDG Sparkes Porter on 1 May 2025 for a total consideration of £1,185,609.
The auditor, Forvis Mazars LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board on 1 December 2025 and signed on its behalf.
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SANDERSON WEATHERALL GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SANDERSON WEATHERALL GROUP LIMITED
Opinion
We have audited the financial statements of Sanderson Weatherall Group Limited (the ‘Parent Company’) and its subsidiaries (the 'Group') for the year ended 31 March 2025 which comprise the Consolidated Statement of Comprehensive Income, the Consolidated and Company Statement of Financial Positions, the Consolidated and Company Statement of Changes in Equity, the Consolidated 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 FRS 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 and of the Parent Company’s affairs as at 31 March 2025 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 Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Parent Company and 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 Parent Company and Group’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 other information comprises the information included in the annual report, other than the financial statements and our auditor’s 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.
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SANDERSON WEATHERALL GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SANDERSON WEATHERALL GROUP LIMITED
Other information (continued)
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.
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 the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In light of the knowledge and understanding of the Parent Company and Group and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.
We have nothing to report in respect of the following matters in relation to which 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 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.
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SANDERSON WEATHERALL GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SANDERSON WEATHERALL GROUP LIMITED
Responsibilities of Directors
As explained more fully in the Directors' Responsibilities Statement set out on page 4, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the Group and 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 intend either to liquidate the Group or the Parent Company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our 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.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
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.
Based on our understanding of the Group and its industry, we considered that non-compliance with the following laws and regulations might have a material effect on the financial statements: employment regulation, health and safety regulation, anti-money laundering regulation.
To help us identify instances of non-compliance with these laws and regulations, and in identifying and assessing the risks of material misstatement in respect to non-compliance, our procedures included, but were not limited to:
∙Inquiring of management and, where appropriate, those charged with governance, as to whether the Group and the Parent Company are in compliance with laws and regulations, and discussing their policies and procedures regarding compliance with laws and regulations;
∙Inspecting correspondence, if any, with relevant licensing or regulatory authorities;
∙Communicating identified laws and regulations to the engagement team and remaining alert to any indications of non-compliance throughout our audit; and
∙Considering the risk of acts by the Group and the Parent Company which were contrary to applicable laws and regulations, including fraud.
We also considered those laws and regulations that have a direct effect on the preparation of the financial statements, such as: tax legislation, pension legislation, the Companies Act 2006.
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SANDERSON WEATHERALL GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SANDERSON WEATHERALL GROUP LIMITED
Auditor's responsibilities for the audit of the financial statements (continued)
In addition, we evaluated the directors' and management’s incentives and opportunities for fraudulent manipulation of the financial statements, including the risk of override of controls, and determined that the principal risks were related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, in particular in relation to the valuation of the defined benefit pension scheme, the life contingent annuity, accrued income, revenue recognition (which we pinpointed to the cut-off assertion), and significant one-off or unusual transactions.
Our audit procedures in relation to fraud included but were not limited to:
∙Making enquiries of the directors and management on whether they had knowledge of any actual, suspected or alleged fraud;
∙Gaining an understanding of the internal controls established to mitigate risks related to fraud;
∙Discussing amongst the engagement team the risks of fraud; and
∙Addressing the risks of fraud through management override of controls by performing journal entry testing.
There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.
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 auditor’s report.
Use of the audit report
This report is made solely to the Parent 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 Parent 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 Parent Company and the Parent Company's members as a body for our audit work, for this report, or for the opinions we have formed.
Christopher Hudson (Senior Statutory Auditor)
for and on behalf of
Forvis Mazars LLP
Chartered Accountants and Statutory Auditor
5th Floor
3 Wellington Place
Leeds
LS1 4AP
1 December 2025
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SANDERSON WEATHERALL GROUP LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2025
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Interest receivable and similar income
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Interest payable and similar expenses
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Profit/(loss) for the financial year
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Other comprehensive income for the year
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Actuarial gain/(loss) in respect of defined benefit pension scheme
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Profit/(loss) in respect of life-contingent annuity
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Deferred tax movement on pension scheme adjustment
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Other comprehensive income for the year
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Total comprehensive income for the year
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Profit for the year attributable to:
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The notes on pages 18 to 46 form part of these financial statements.
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SANDERSON WEATHERALL GROUP LIMITED
REGISTERED NUMBER: 04870380
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2025
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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Provisions for liabilities
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Net assets excluding pension liability
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The financial statements were approved and authorised for issue by the board and were signed on its behalf on 1 December 2025.
The notes on pages 18 to 46 form part of these financial statements.
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SANDERSON WEATHERALL GROUP LIMITED
REGISTERED NUMBER: 04870380
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2025
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Provisions for liabilities
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Net assets excluding pension liability
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As permitted by 2408 Companies Act 2006, the Company has not presented its own profit and loss account and related notes as it prepares consolidated financial statements. The Company's profit for the year was £444,305 (2024: £99,931 loss) and total comprehensive income was £944,897 (2024: £323,140 loss).
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 1 December 2025.
The notes on pages 18 to 46 form part of these financial statements.
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SANDERSON WEATHERALL GROUP LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2025
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Comprehensive income for the year
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Other comprehensive expense in respect of defined benefit pension scheme
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Other comprehensive income in respect of life contingent annuity
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Deferred tax in respect of defined benefit pension scheme
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Total comprehensive expense for the year
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Comprehensive income for the year
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Other comprehensive income in respect of defined benefit pension scheme
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Other comprehensive expense in respect of life-contingent annuity
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Deferred tax in respect of defined benefit pension scheme
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Total comprehensive income for the year
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The notes on pages 18 to 46 form part of these financial statements.
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SANDERSON WEATHERALL GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2025
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Comprehensive income for the year
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Other comprehensive expense in respect of defined benefit pension scheme
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Other comprehensive income in respect of life-contingent annuity
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Deferred tax in respect of defined benefit pension scheme
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Total comprehensive expense for the year
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Comprehensive income for the year
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Other comprehensive income in respect of defined benefit pension scheme
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Other comprehensive expense in respect of life-contingent annuity
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Deferred tax in respect of defined benefit pension scheme
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Total comprehensive expense for the year
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The notes on pages 18 to 46 form part of these financial statements.
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SANDERSON WEATHERALL GROUP LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2025
Cash flows from operating activities
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Profit/(loss) for the financial year
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Amortisation of intangible assets
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Depreciation of tangible assets
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Profit on disposal of tangible assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Increase)/decrease in debtors
|
|
|
Increase/(decrease) in creditors
|
|
|
|
|
|
|
|
|
|
|
Net cash generated from operating activities
|
|
|
|
|
|
|
Cash flows from investing activities
|
|
|
Purchase of intangible fixed assets
|
|
|
Purchase of tangible fixed assets
|
|
|
Sale of tangible fixed assets
|
|
|
Sale of listed investments
|
|
|
|
|
|
|
Net cash used in investing activities
|
|
|
- 16 -
|
|
SANDERSON WEATHERALL GROUP LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
|
|
|
|
Cash flows from financing activities
|
|
|
|
|
|
|
Repayment of finance leases
|
|
|
Loans advanced by/(repaid) to directors
|
|
|
Bank and other interest paid
|
|
|
|
|
|
|
Payments to holders of life contingent annuity
|
|
|
Net cash generated from/(used in) financing activities
|
|
|
Net increase/(decrease) in cash and cash equivalents
|
|
|
Cash and cash equivalents at beginning of year
|
|
|
Cash and cash equivalents at the end of year
|
|
|
|
|
|
|
Cash and cash equivalents at the end of year comprise:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The notes on pages 18 to 46 form part of these financial statements.
|
- 17 -
|
|
SANDERSON WEATHERALL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
Sanderson Weatherall Group Limited ("the Company") is a private company limited by shares and is registered and incorporated in England and Wales, registered number 04870380.
The address of the Company's registered office and principal place of business is 6th Floor, Central Square, 29 Wellington Street, Leeds, LS1 4DL.
The Group consists of Sanderson Weatherall Group Limited and all of its subsidiaries.
The Company's and the Group's principal activities and nature of their operations are disclosed in the Directors' Report.
2.Accounting policies
|
|
|
Basis of preparation of financial statements
|
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of Financial Position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.
- 18 -
|
|
SANDERSON WEATHERALL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
At the 31 March 2025, the Consolidated Statement of Financial Position shows net assets of £1,288,050 (2024: £391,837). The net assets of the Group as at 31 March 2025 before recognising any theoretical liability in the closed defined benefit pension scheme and movement in the other life contingent annuity are £3,885,821 (2024: £3,806,662). The directors consider that the pension fund liability remains a long-term affordable liability for the Group which will be satisfied over a number of years. The annual instalments required by the Pensions Regulator to fund this shortfall are considered affordable.
The directors consider that the Group is a profitable going concern and has prepared forecasts that show the Group will be able to repay its debts as they fall due. In the period following the year under review the Group continues to trade profitably. The directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. Thus, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue 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 revenue is recognised:
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 Group 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.
|
|
|
Operating leases: the Group as lessee
|
Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
Interest income is recognised in profit or loss using the effective interest method.
- 19 -
|
|
SANDERSON WEATHERALL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
All borrowing costs are recognised in profit or loss in the year in which they are incurred.
|
|
|
Life-contingent annuities
|
The liability for providing life-contingent annuities (being the income rights attaching to the B shares) is determined as the present discounted value of the future cash flows.
The rate used to discount the obligations to their present value is based on the Company's cost of capital and the risk and uncertainty relating to the timing and amounts of the future cash flows.
The change in the liability arising from the unwinding of the discount during the year is recognised as an interest charge and payments made to beneficiaries are recognised as a reduction in the liability.
- 20 -
|
|
SANDERSON WEATHERALL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
Defined contribution pension plan
The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Group in independently administered funds.
Defined benefit pension plan
The Group operates a defined benefit plan for certain employees. A defined benefit plan defines the pension benefit that the employee will receive on retirement, usually dependent upon several factors including but not limited to age, length of service and remuneration. A defined benefit plan is a pension plan that is not a defined contribution plan.
The liability recognised in the Statement of Financial Position in respect of the defined benefit plan is the present value of the defined benefit obligation at the end of the reporting date less the fair value of plan assets at the reporting date (if any) out of which the obligations are to be settled.
The defined benefit obligation is calculated using the projected unit credit method. Annually the company engages independent actuaries to calculate the obligation. The present value is determined by discounting the estimated future payments using market yields on high quality corporate bonds that are denominated in sterling and that have terms approximating to the estimated period of the future payments ('discount rate').
The fair value of plan assets is measured in accordance with the FRS102 fair value hierarchy and in accordance with the Group's policy for similarly held assets. This includes the use of appropriate valuation techniques.
Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to other comprehensive income. These amounts together with the return on plan assets, less amounts included in net interest, are disclosed as 'Remeasurement of net defined benefit liability'.
The cost of the defined benefit plan, recognised in profit or loss as employee costs, except where included in the cost of an asset, comprises:
a) the increase in net pension benefit liability arising from employee service during the period; and
b) the cost of plan introductions, benefit changes, curtailments and settlements.
The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is recognised in profit or loss as a 'finance expense'.
- 21 -
|
|
SANDERSON WEATHERALL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
|
|
|
Current and deferred taxation
|
The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
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 and the Group operate and generate income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
∙Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
- 22 -
|
|
SANDERSON WEATHERALL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
Goodwill
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated Statement of Comprehensive Income over its useful economic life.
Other intangible assets
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
The estimated useful lives range as follows:
|
|
|
|
|
|
|
|
10-33% per annum on a straight line basis
|
|
|
|
|
|
|
|
|
25% per annum on a straight line basis
|
Tangible fixed assets under the cost model 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 their residual value over their estimated useful lives, as stated below.
Depreciation is provided on the following basis:
|
|
|
|
|
|
|
over the life of the lease
|
|
|
|
|
|
|
|
20% - 25% per annum on a straight line basis
|
The assets' 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.
Investments in subsidiaries are measured at cost less accumulated impairment.
The investment is valued at the Company's interest in Sanderson Weatherall LLP as a member.
- 23 -
|
|
SANDERSON WEATHERALL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
|
|
|
Cash and cash equivalents
|
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
In the Consolidated Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.
The LLP operates a number of client bank accounts, the LLP is not entitled to any interest income, cannot use the funds for any other purpose than client purposes, bear no credit risk associated with the bank accounts and the funds would be ring fenced in the event of a liquidation of the LLP. As such the bank accounts do not meet the recognition criteria of an asset under Financial Reporting Standard 102 and are not presented on the LLP’s Statement of Financial Position.
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
|
|
|
Provisions for liabilities
|
Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
Increases in provisions are generally charged as an expense to profit or loss.
- 24 -
|
|
SANDERSON WEATHERALL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
The Group has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.
Financial instruments are recognised in the Group's Statement of Financial Position when the Group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.
Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.
Other financial assets
Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.
- 25 -
|
|
SANDERSON WEATHERALL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
|
|
|
Financial instruments (continued)
|
Impairment of financial assets
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
Basic financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Group after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other creditors, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Other financial instruments
Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.
Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.
- 26 -
|
|
SANDERSON WEATHERALL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
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|
|
Financial instruments (continued)
|
Derecognition of financial instruments
Derecognition of financial assets
Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Group will continue to recognise the value of the portion of the risks and rewards retained.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled.
- 27 -
|
|
SANDERSON WEATHERALL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
|
|
Judgments in applying accounting policies and key sources of estimation uncertainty
|
In the application of the Group's accounting policies, the directors are required to make judgments, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Judgments
The directors consider there to be no judgments which have a material impact on the financial statements.
Key sources of estimation uncertainty
Defined benefit pension scheme
The Group has an obligation to pay pension benefits to certain current and former employees. The cost of these benefits and the present value of the obligation depend on a number of factors, including; life expectancy, salary increases, asset valuations and the discount rate on corporate bonds. Management engages an Actuary to determine the net pension obligation at the balance sheet date. The assumptions reflect historical experience and current trends, and the levelling off of actuarial life expectancies. See note 26 for the disclosures relating to the defined benefit pension scheme.
Life-contingent annuities
The liability for life-contingent annuities is determined as the present discounted value of the future net cash flows. This liability is subject to management estimation of the discount rate to be applied in calculating the present value as well as assumptions relating to RPI and the mortality of the instrument holders (see note 22).
Accrued income
The members of the LLP make an estimate of accrued income at the year end. To do this, the members make an estimate relating to unbilled revenue based on the contractual right to revenue. At each year end, the members estimate the value of accrued income by considering stage of completion and total contract value. At the year end accrued income was £909k (2024: £882k).
|
|
|
|
|
An analysis of turnover by class of business is as follows:
|
|
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|
|
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|
|
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|
Chartered surveying and property consulting
|
|
|
|
|
|
|
|
|
|
All turnover arose within the United Kingdom.
|
- 28 -
|
|
SANDERSON WEATHERALL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
|
|
|
|
|
The operating profit is stated after charging/(crediting):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other operating lease rentals
|
|
|
|
|
Depreciation of tangible fixed assets
|
|
|
|
|
Profit on disposal of tangible fixed assets
|
|
|
|
|
Amortisation of intangible assets
|
|
|
|
|
|
|
|
During the year, the Group obtained the following services from the Company's auditor:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fees payable to the Company's auditor and its subsidiary for the audit of the Group's annual financial statements
|
|
|
- 29 -
|
|
SANDERSON WEATHERALL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
|
|
|
|
|
Staff costs were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of defined contribution scheme
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The average monthly number of employees, including the directors, during the year was as follows:
|
|
|
|
|
|
|
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|
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|
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|
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|
Caretakers and building managers
|
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|
|
|
|
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|
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|
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|
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|
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|
|
The Company has no employees other than the directors, who did not receive any remuneration (2024 - £NIL)
|
|
|
The highest paid director received remuneration of £274,993 (2024 - £202,505).
|
|
|
Other interest receivable
|
|
|
- 30 -
|
|
SANDERSON WEATHERALL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
|
|
Interest payable and similar expenses
|
|
|
|
|
|
|
|
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|
|
|
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|
|
|
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|
|
|
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|
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|
Other loan interest payable
|
|
|
|
|
Finance leases and hire purchase contracts
|
|
|
|
|
Other interest payable - Pension
|
|
|
|
|
|
|
|
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|
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|
|
Current tax on profits for the year
|
|
|
|
|
Adjustments in respect of previous periods
|
|
|
|
|
|
|
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Origination and reversal of timing differences
|
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|
|
|
|
Taxation on profit on ordinary activities
|
|
|
- 31 -
|
|
SANDERSON WEATHERALL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
11.Taxation (continued)
|
|
Factors affecting tax charge for the year
|
|
|
The tax assessed for the year is higher than (2024 - higher than) the standard rate of corporation tax in the UK of 25% (2024 - 25%). The differences are explained below:
|
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Profit on ordinary activities before tax
|
|
|
|
|
Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024 - 25%)
|
|
|
|
|
|
|
|
|
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|
|
|
Adjustments to tax charge in respect of prior periods
|
|
|
|
|
Other differences leading to an increase in the tax charge
|
|
|
|
|
Total tax charge for the year
|
|
|
- 32 -
|
|
SANDERSON WEATHERALL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
|
|
On 5 March 2025, certain business and assets of Clark Weightman Limited were acquired for consideration of £235,000 leading to goodwill of £254,238.
|
- 33 -
|
|
SANDERSON WEATHERALL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
|
|
The depreciation charge in respect of assets held under finance leases, or hire purchase contracts, at the year end amounted to £13,809 (2024: £17,439).
|
|
|
The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:
|
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Furniture, fittings and equipment
|
|
|
- 34 -
|
|
SANDERSON WEATHERALL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
|
|
Investments in subsidiary companies
|
Investment in Sanderson Weatherall LLP
|
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The following were subsidiary undertakings of the Company:
|
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|
6th Floor, Central Square, 29 Wellington Street, Leeds, LS1 4DL
|
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Sanderson Townend & Gilbert Limited*
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Sanderson Weatherall Management Limited*
|
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|
Weatherall Green & Smith North Limited*
|
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|
Weatherall Sanderson Limited* (**)
|
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|
Weatheralls Auctions Limited* (**)
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Weatherall Green & Smith Plant & Machinery Limited* (**)
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Weatheralls Plant & Machinery Limited* (**)
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PNF Surveyors Limited* (**)
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The Company also has a controlling interest in Sanderson Weatherall LLP, a limited liability partnership with a registered office address of 6th Floor, Central Square, 29 Wellington Street, Leeds, LS1 4DL. The principal activity of the LLP is chartered surveying and property consulting.
The investments marked with an asterisk (*) all have the same registered address, 6th Floor, Central Square, 29 Wellington Street, Leeds, LS1 4DL.
The investments marked (**) are indirectly held.
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- 35 -
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SANDERSON WEATHERALL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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Prepayments and accrued income
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Cash and cash equivalents
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Other taxation and social security
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Obligations under finance lease and hire purchase contracts
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Accruals and deferred income
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Share capital treated as debt
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- 36 -
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SANDERSON WEATHERALL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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Creditors: Amounts falling due after more than one year
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The bank loan is secured by way of a fixed and floating charge over certain assets of the LLP.
The existing bank loan is repayable by 48 monthly repayments of £7,000. Interest is charged on the loan at 1.84% above base rate per annum.
On 6 May 2020 the LLP agreed a £1,000,000 Coronavirus Business Interruption Loan facility with Barclays. The loan is repayable over 60 instalments after an initial 12-month capital repayment holiday from the drawdown. Interest is charged on a floating rate basis, under which the interest rate will never be less than the margin rate of 3.00%.
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Analysis of the maturity of loans is given below:
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Amounts falling due within one year
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Amounts falling due 1-2 years
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Amounts falling due 2-5 years
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- 37 -
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SANDERSON WEATHERALL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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Hire purchase and finance leases
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Minimum lease payments under hire purchase fall due as follows:
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Obligations under hire purchase agreements are secured against the assets to which they relate.
Finance lease payments represent rentals payable by the Group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The lease terms range from 3 to 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
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Charged to profit or loss
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Credited to other comprehensive income
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- 38 -
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SANDERSON WEATHERALL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
21.Deferred taxation (continued)
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Charged to profit or loss
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Credited to other comprehensive income
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The deferred tax asset is made up as follows:
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Defined benefit pension scheme
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- 39 -
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SANDERSON WEATHERALL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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Life-contingent annuities
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Interest charged to profit or loss
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Charged to other comprehensive income
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The other life-contingent annuity is in relation to the income stream payable on the ordinary £1 B shares, the terms of which are disclosed in note 23. The shares were issued as deferred consideration for the acquisition of Weatherall Green Smith & North Limited and Sanderson Townend & Gilbert on 1 May 2004. The shares are governed by the articles and the latest available articles describe the income rights attached the B shares. These apply a proportional percentage as being payable which is determined by reference to the status of the present holder or his family as follows:
• "Initial Holder" (100% of indexed equivalent of £22,500);
• "Qualifying Spouse with dependents" (100% of indexed equivalent of £22,500);
• "Qualifying Spouse without dependents"(67% of indexed equivalent of £22,500); or
• "Dependants" (25% of indexed equivalent of £22,500)
Given that no further obligation exists once the holder and a qualifying spouse is deceased, and there are no dependants, the income stream is akin to a pension promise. Therefore the cost of providing benefits is determined as the present discounted value of the expected future net cash flows. The liability represents the present value of the life-contingent annuity obligation.
Adjustment to the valuation at the year-end has been made based on the following assumptions:
Group Group Company Company
2025 2024 2025 2024
% % % %
Discount rate 13.00 13.00 13.00 13.00
Rate of inflation 2.85 3.40 2.85 3.40
The mortality assumption used in the valuation is the last survivor basis derived from National Life Tables for England & Wales.
- 40 -
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SANDERSON WEATHERALL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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Shares classified as equity
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Allotted, called up and fully paid
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688,723 (2024 - 688,723) Ordinary shares of £1.00 each
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Shares classified as debt
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Allotted, called up and fully paid
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5 (2024 - 5) B shares of £1.00 each
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Rights of shares
The rights, ownership and management of the Group belong to the holders of the ordinary shares. The holders of other classes of shares in the Group are entitled to the rights set out in the articles and in the shareholders' agreement.
The B shares have the right in priority to any payment by way of dividend to the holders of the ordinary shares to receive a fixed cumulative preference dividend. The holders of the B shares receive an annual dividend of £22,500 per share, increasing by the retail price index from their initial issue date of 1 May 2010.
The B shares do not entitle the holders to vote at any general meeting of the Group save in respect of matters relating to the amendment of the articles of association, or in relation to a winding up of the Company.
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Share premium account
Consideration received for shares issued above their nominal value net of transaction costs.
Profit & loss account
The profit and loss account represents the cumulative profits and losses of the Group less dividends paid.
- 41 -
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SANDERSON WEATHERALL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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Repayment of bank loans/
finance leases
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- 42 -
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SANDERSON WEATHERALL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £388,248 (2024: £347,144). Contributions totaling £12,004 (2024: £10,554) were payable to the fund at the balance sheet date and are included within accruals.
The Group operates a Defined Benefit Pension Scheme.
The company sponsors a funded defined benefit pension plan for qualifying UK employees, the Weatheralls North Final Salary Pension Scheme.
The level of benefits provided by the scheme depends on a member’s length of service and their salary at their date of leaving the scheme. The scheme closed to new entrants, future accrual of benefit and no longer provides additional benefits on ill-health and death in service.
Funding requirements
UK legislation requires that pension schemes are funded prudently. The last funding valuation of the scheme was carried out by a qualified actuary as at 1 May 2022 and showed a deficit of £3.3m. The company has agreed to pay deficit contributions of £200,000 p.a. from 1 August 2023 to 28 February 2033, increasing by 5% p.a. compound each subsequent 1 May, with the first increase on 1 May 2024. Contributions to be paid into the Scheme in the year ending 31 March 2026 are expected to be £219,625. The funding will be reviewed at the next valuation due to be carried out with an effective date of 1 May 2025.
Reporting at 31 March 2025
The results of the latest funding valuation at 1 May 2022 have been adjusted to the new balance sheet date, taking account of experience over the period since 1 May 2022, changes in market conditions, and differences in the financial and demographic assumptions. The present value of the Defined Benefit Obligation was measured using the projected unit credit method.
The principal assumptions used to calculate the liabilities under FRS 102 as follows:
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Reconciliation of present value of plan liabilities:
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Reconciliation of present value of plan liabilities
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At the beginning of the year
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- 43 -
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SANDERSON WEATHERALL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
26.Pension commitments (continued)
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Reconciliation of present value of plan assets:
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At the beginning of the year
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Composition of plan assets:
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Fair value of plan assets
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Present value of plan liabilities
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Net pension scheme liability
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- 44 -
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SANDERSON WEATHERALL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
26.Pension commitments (continued)
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The amounts recognised in profit or loss are as follows:
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Net interest on defined benefit liability
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Actual return on scheme assets
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The Group expects to contribute £219,625 to its Defined Benefit Pension Scheme in 2026.
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Analysis of actuarial loss recognised in Other Comprehensive Income
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Liability (gains)/losses arising during the year
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Principal actuarial assumptions at the reporting date (expressed as weighted averages):
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Principle Increase (in deferment)
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Principle Increase (in payment CPI (0,5))
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- at 64 for a male aged 50 now
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- 45 -
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SANDERSON WEATHERALL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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Commitments under operating leases
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At 31 March 2025 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
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Later than 1 year and not later than 5 years
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Related party transactions
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Included in creditors falling due within one year, is a balance of £2,481,737 (2024: £1,550,141) owed to directors. The balances are interest free, unsecured and repayable on demand.
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Post balance sheet events
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Sanderson Weatherall LLP acquired the business and assets of BDG Sparkes Porter on 1 May 2025 for a total consideration of £1,185,609.
- 46 -
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