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2023-06-30-accounts

Sherborne House Trust 2018 (A Charitable Company Limited by Guarantee)

Annual Report and Financial Statements

For the Year Ended 30 June 2023

Company Number: 11423527 Charity Registered in England and Wales Number: 1179440

Sherborne House Trust 2018 Contents For the Year Ended 30 June 2023

Page
Reference and Administrative Details 1
Trustee Directors’ Report 2 – 5
Independent Auditors’ Report 7 – 9
Consolidated Statement of Financial Activities 10
Balance Sheet and Consolidated Balance Sheet 11
Statement of Cash Flows and Consolidated Statement
of Cash Flows 12
Notes to Financial Statements 13 – 23

Sherborne House Trust 2018 Reference and Administrative Details For the Year Ended 30 June 2023

Trustees S A T Cannon
E De Blocq Van Kuffeler
Sir R A Fry
T D Hague
S E Healy
A Lucas
R H Miller
C J Mitchell
J J Tiverton Brown
Managing Director J Lee
Charity Number 1179440
Company Number 11423527
Registered Office Hendford Manor
33 Hendford
Yeovil
BA20 1UN
Principal address Sherborne House
Newland
Sherborne
Dorset
DT9 3JG
Auditors CB Reid Limited
Wadebridge House
16 Wadebridge Square
Poundbury
Dorchester
Dorset
DT1 3AQ
Bankers C Hoare & Co
37 Fleet Street
London
EC4P 4DQ

Page 1

Sherborne House Trust 2018 Trustees’ Report For the Year Ended 30 June 2023

The Trustees, who are also directors for the purposes of the Companies Act, present their annual report and the financial statements of the charity for the year ended 30 June 2023. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the Charity’s Memorandum and Articles of Association, the Companies Act 2006, Charities Act 2011 and the requirements of the Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

Structure, Governance and Management

Sherborne House Trust 2018 is a charitable company, incorporated under Memorandum and Articles of Association dated 20 June 2018.

New Trustees are appointed by the existing Trustees. The Articles of Association prescribe a minimum of 3 Trustees and no maximum. Each Trustee is appointed for a term of 3 years, following which they must be reappointed by a vote of the Trustees. Trustees are inducted and trained by receipt of the governing document for the charity, and discussion with current Trustees. This process will be developed as the charity begins to trade.

Following the very sad death of Michael Cannon on 2 June 2023, Jonathan Tiverton Brown was appointed as a trustee on 15 August 2023. Subsequently we were very pleased to welcome Sir Robert Fry, Sheila Healey, Richard Miller, Tim Hague and Eva de Blocq van Kuffeler as trustees on 12 October 2023 and Anya Lucas on 11 January 2024. These appointments were made to add breadth and depth to the skills of the board in preparation for the opening of The Sherborne.

Due to the nature of the charity currently (being construction rather than operation), the Trustees meet as necessary in order to enact charity business.

During the year in review, the Trustees engaged an experienced professional team headed by Spase Limited as architects and Peter Gunning & Partners LLP as quantity surveyors to oversee the building works undertaken by the main contractor, Stonewood Builders Limited.

The charity has one incorporated subsidiary, Sherborne House Enterprises Limited (company number 13270147), which began to trade during the year.

The principal funding for the project has come from very generous charitable donations from The Cannon Foundation and The M R Cannon 1998 Charitable Trust, both of which have links to, or are controlled by, Michael and Sally-Ann Cannon, as well as from Michael and Sally-Ann Cannon themselves.

None of the Trustees receives remuneration or other benefit from work with the charity.

Objectives and activities

The charity’s objects, as set out in the Articles of Association, are to promote, and advance the education of the public in, the arts, in particular, but not exclusively, by:

A further object is to restore, preserve and maintain, for the public benefit, Sherborne House, Sherborne, Dorset, including the Thornhill Mural, situated within Sherborne House. In practice, this has involved painstakingly restoring the building, including the Thornhill Mural and its associated staircase, and adding a stunning contemporary extension at the rear of the main house to create an events and arts venue. It blends the old with the new, fit for purpose for the 21st century and beyond.

Page 2

Sherborne House Trust 2018 Trustees’ Report For the Year Ended 30 June 2023

The Trustees confirm that they have had due regard to the Charity Commission’s guidance on public benefit and have complied with all prevailing laws and regulations.

Achievements and performance

Stonewood Builders Limited started on site in the autumn of 2021 and the works are now well advanced. Due to procurement and other delays, the Trustees expect The Sherborne to open its doors to the public in late April 2024.

Dorset Visual Arts (DVA) will be based at The Sherborne and as lead visual arts partner will be responsible for creating and managing the visual arts programme there and the initial programme to the end of 2024 is now in place.

Jeremy Lee was appointed as managing director of Sherborne House Enterprises Limited from 6 April 2023. He is an experienced food and drink operator, who will be responsible for the commercial activities at The Sherborne and is now assembling his team to prepare for the opening.

The Friends of Sherborne House have generously agreed to cover the cost of conserving the Thornhill Mural and creating an audio tour of the Mural and the historic parts of the house. International Fine Art Conservation Studios carried out the conservation works for the mural and the staircase, previously undertaking a similar role for Redcliffe Homes.

Financial review

The group received income, or promises of income, amounting to £7,409,431 (2022 - £4,300,980). Almost all of this funding has been spent on capital building works (showing as fixed asset additions in the accounts of £9,725,818, with assets in the course of construction comprising £9,632,834 of this), with expenditure of £276,969 (2022 - £99,313) showing as revenue expenditure. This has resulted in the group reporting a surplus of £7,132,462 (2022 - £4,201,667), and net assets of £13,537,708 (2022 - £6,405,246).

The charity has received assurances from a valued donor that they will support the completion of the building’s restoration and the operations financially for the initial period to allow the commercial activities, particularly the events business, to become established.

The Trustees have examined the major strategic, business and operational risks that the charity faces and confirm that systems have been established to enable regular reports to be produced so that the necessary steps can be taken to lessen these risks.

The charity has no current reserves policy – once the building project has been completed, a reserves policy appropriate for operations will be set.

Plans for future periods

It is a matter of great sadness and regret that Michael Cannon was not able to see the remarkable transformation of Sherborne House through to the end. His vision was not merely to rescue and restore a historic grade 1 listed building that was on the Historic England At Risk Register but to create The Sherborne, a thriving cultural and economic hub – an art space and events venue with a difference. We also commend Michael’s wife, Mrs Sally-Ann Cannon, for her unerring commitment to complete his vision.

Page 3

Sherborne House Trust 2018 Trustees’ Report For the Year Ended 30 June 2023

The focal point of The Sherborne's mission will be to showcase the best of artists and makers from across Wessex and the South West. This commitment will be evident in the array of major art exhibitions carefully curated by DVA to attract a broad audience. In addition to exhibitions, there will be an interactive and engaging arts events and activities programme. From hands-on workshops to thought-provoking talks, it will captivate minds and foster a continuous learning environment, facilitating diverse art forms. At the same time, the educational programme will collaborate with schools and educational institutions across the region.

The Sherborne will encourage active participation and will be equipped to host a myriad of events, from cultural event cinema screenings to live music recitals, literary talks and art house films.

Both the beautiful Thornhill Mural and the decorative staircase that adjoins it will be open for everyone to experience.

Beyond the canvas and sculptures, the Trust, through its trading company, will operate Macready’s, a bistro restaurant and bar, offering a modern British menu that champions locally sourced suppliers. The Trust’s trading company will operate The Sherborne's shop, a curated space filled with handcrafted treasures, seasonal gifts, and everyday indulgences, showcasing the very best of Dorset alongside sustainable brands.

The Sherborne’s stunning spaces will be available for private hire, offering a picturesque setting for parties, conferences and weddings. On the top floor, we will have a flexible co- working space, where desks can be hired regularly or ad hoc.

The intention is that The Sherborne, with its mix of cultural and commercial activities, will become financially sustainable and self-sufficient, without relying on public subsidy. All profits from the commercial activities will be covenanted back to the Trust to support the arts programme and pay for the very high costs of running the building.

Statement of Trustees’ Responsibilities

The Trustees (who are directors of Sherborne House 2018 for the purposes of company law) are responsible for preparing the Trustees’ Report (incorporating the Directors’ Report) and the financial statements in accordance with applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and the group and of the income and expenditure, of the charitable group for that period. In preparing these financial statements, the Trustees are required to:

The trustees are responsible for maintaining proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Page 4

Sherborne House Trust 2018 Trustees’ Report For the Year Ended 30 June 2023

Statement of disclosure to our auditors

In so far as the Trustees are aware:

Small Company

This report has been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006.

Approved by the Trustees on 24 March 2024 and signed on their behalf by:

Sir R A Fry Trustee

Page 5

Sherborne House Trust 2018 Independent Auditors' Report to the Trustees and Members For the Year Ended 30 June 2023

Opinion

We have audited the financial statements of Sherborne House Trust 2018 (the 'parent charitable company') and its subsidiary (the ‘group’) for the year ended 30 June 2023, which comprise the consolidated Statement of Financial Activities, the consolidated and parent charitable company Balance Sheets, the consolidated and parent charitable company 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 Generally Accepted Accounting Practice, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 group and parent charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustee’s use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company’s ability to continue as a going concern for a period of at least 12 months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Trustees’ Report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Page 6

Sherborne House Trust 2018 Independent Auditors' Report to the Trustees and Members For the Year Ended 30 June 2023

Opinion on other matter prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and parent charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the Directors’ Report included within the Trustees’ Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities set out on page 4, the trustees (who are also the directors of the parent charitable company for the purposes of company law) 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 trustees 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 trustees are responsible for assessing the group and parent charitable 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 trustees either intend to liquidate the parent charitable 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.

Page 7

Sherborne House Trust 2018 Independent Auditors' Report to the Trustees and Members For the Year Ended 30 June 2023

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:

We assessed the risk of material misstatement due to non-compliance with laws and regulations by:

Specifically in respect of fraud we discussed with those charged with governance areas in which the Group was susceptible to fraud and whether there were an instances of known, suspected or alleged fraud. We also assessed the ability of internal controls to mitigate the risk of fraud.

We assessed the risk of non-compliance with laws and regulations by:

To address the fraud risk of management override of controls, we:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of noncompliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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.

Page 8

Sherborne House Trust 2018 Independent Auditors' Report to the Trustees and Members For the Year Ended 30 June 2023

Use of our report

This report is made solely to the group and parent charitable 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 group and parent charitable company’s members and trustees 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 group and parent charitable company and the group and parent charitable company’s members as a body and the parent charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Mr P A Cattermole FCA (Senior Statutory Auditor) For and on behalf of CB Reid Limited Chartered Accountants Statutory Auditor

Wadebridge House 16 Wadebridge Square Poundbury Dorchester Dorset DT1 3AQ

Date: 26 March 2024

Page 9

Sherborne House Trust 2018

Consolidated Statement of Financial Activities (including an Income & Expenditure account) For the Year Ended 30 June 2023

----- Start of picture text -----
2023 2022
Unres- Res- Total Unres- Res- Total
tricted tricted tricted tricted
Notes £ £ £ £ £ £
Income from:
Donations and legacies 2 7,409,083 - 7,409,083 4,300,980 - 4,300,980
- - - -
Investments 3 348 348
- -
Total income 7,409,431 7,409,431 4,300,980 4,300,980
Expenditure on:
Charitable activities 4 276,969 - 276,969 99,313 - 99,313
- -
Total expenditure 276,969 276,969 99,313 99,313
- -
Net (expenditure)/income 7,132,462 7,132,462 4,201,667 4,201,667
- - - - - -
Transfer between funds
Net movement in
- -
funds for the year 7,132,462 7,132,462 4,201,667 4,201,667
Reconciliation of funds
- -
Total funds brought forward 6,405,246 6,405,246 2,203,579 2,203,579
- -
Total funds carried forward 13,537,708 13,537,708 6,405,246 6,405,246
----- End of picture text -----

The results for the year derive from continuing activities and there are no gains or losses other than those shown above.

The statement of financial activities incorporates the income and expenditure account.

Page 10

Sherborne House Trust 2018 – Company Registration Number: 11423527 Balance Sheet and Consolidated Balance Sheet As at 30 June 2023

Notes
Fixed assets
Tangible fixed assets
7
Investments
8
Current assets
Debtors
9
Cash at bank and in hand
Liabilities:
Creditors: amounts falling due within
10
one year
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after
11
one year
Total net assets
The funds of the charity:
Unrestricted funds:
General funds
Total unrestricted funds
12
Restricted funds
12
Total charity funds		 2023
£
Group
14,505,584
-
14,505,584
694,539
29,792
724,331
(1,526,901)
(802,570)
13,703,014
(165,306)
13,537,708
13,537,708
13,537,708
-
13,537,708		 2023
£
Charity
14,505,584
100
14,505,684
710,089
29,792
739,881
(1,504,435)
(764,554)
13,741,130
(165,306)
13,575,824
13,575,824
13,575,824
-
13,575,824		 2022
£
Group
4,781,766
-
4,781,766
624,376
1,599,845
2,224,221
(600,741)
1,623,480
6,405,246
-
6,405,246
6,405,246
6,405,246
-
6,405,246		 2022
£
Charity
4,781,766
100
4,781,866
624,376
1,599,845
2,224,221
(600,841)
1,623,380
6,405,246
-
6,405,246
6,405,246
6,405,246
-
6,405,246

The trustees have prepared group accounts in accordance with section 398 of the Companies Act 2006 and section 138 of the Charities Act 2011. These accounts are prepared in accordance with the special provisions of Part 15 of the Companies Act relating to small companies and constitute the annual accounts required by the Companies Act 2006 and are for circulation to members of the company. The notes on pages 13 to 23 form part of these accounts.

Approved by the Board for issue on 24 March 2024 and signed on their behalf by:

Sir R A Fry Trustee

Page 11

Sherborne House Trust 2018 Statement of Cash Flows and Consolidated Statement of Cash Flows For the Year Ended 30 June 2023

----- Start of picture text -----
2023 2023 2022 2022
£ £ £ £
Notes Group Charity Group Charity
Cash flows from operating activities
Net income for the year 7,132,462 7,170,578 4,201,667 4,201,667
Adjustments to cash flows from non-cash items:
- -
Interest receivable 3 (348) (348)
7,132,114 7,170,230 4,201,667 4,201,667
Working capital adjustments
(Increase) / decrease in debtors 9 (70,163) (85,713) (236,752) (236,752)
Increase / (decrease) in creditors 10 1,091,466 1,068,900 577,087 577,087
Net cash flow from operations 8,153,417 8,153,417 4,542,002 4,542,002
Cash flows from investing activities
Purchase of tangible fixed assets 7 (9,723,818) (9,723,818) (2,999,431) (2,999,431)
- -
Interest received 3 348 348
(9,723,470) (9,723,470) (2,999,431) (2,999,431)
Net increase in cash and
cash equivalents (1,570,053) (1,570,053) 1,542,571 1,542,571
Cash and cash equivalents at the 1,599,845 1,599,845 57,274 57,274
beginning of the reporting period
Cash and cash equivalents at the 29,792 29,792 1,599,845 1,599,845
end of the reporting period
Cash & Cash equivalents reconciliation:
Cash at bank 29,792 29,792 1,599,845 1,599,845
Total cash & cash equivalents at the 29,792 29,792 1,599,845 1,599,845
end of the reporting period
----- End of picture text -----

Page 12

Sherborne House Trust 2018 Notes to the Financial Statements For the Year Ended 30 June 2023

1 Accounting Policies

The principal accounting policies adopted in the preparation of the financial statements are:

1.1 Basis of accounting

Sherborne House Trust 2018 is a company limited by guarantee incorporated in the United Kingdom under the Companies Act. The address of the registered office is given on page 1. The nature of the charity’ operations and its principal activities are set out in the Trustees Report on pages 2 - 5.

The financial statements have been prepared in £ sterling and in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The charity meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

These financial statements consolidate the results of the Charity and its wholly owned subsidiary, Sherborne House Enterprises Limited, on a line by line basis. The “Group” heading within the balance sheet refers to the consolidated accounts of Sherborne House Trust 2018 and Sherborne House Enterprises Limited.

In the parent company financial statements the investment in the trading subsidiary is accounted for at cost less impairment.

A separate Statement of Financial Activities or income and expenditure account, for the Charity itself has not been presented because the Charity has taken advantage of the exemptions afforded by Section 408 of the Companies Act 2006.

1.2 Legal status of the Trust

The Trust is a company limited by guarantee and has no share capital. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £10 per member of the charity.

The company is incorporated in England and Wales and the company registered office is detailed on page 1, reference and administration details.

1.3 Going Concern

The trustees assess whether the use of going concern is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the Trust to continue as a going concern.

The trustees have obtained assurances that sufficient funding is available from viable sources to complete the development work and open the venue as an operational arts centre.

The trustees have made an assessment of going concern in respect of a period of at least one year from the date of authorisation for issue of the financial statements and have concluded that the charity has adequate resources to continue in operational existence for at least this period and there are no material uncertainties about the charity's ability to continue as a going concern, thus they continue to adopt the going concern basis of accounting when preparing the financial statements.

Page 13

Sherborne House Trust 2018 Notes to the Financial Statements For the Year Ended 30 June 2023

1.4 Income

All income is recognised once the charity has entitlement to the resources, it is certain that the resources will be received, and the monetary value of incoming resources can be measured with sufficient reliability.

1.5 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the Bank.

1.6 Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings, they have been allocated to activities on a basis consistent with the use of resources.

1.7 Tangible fixed assets

The Charity owns the freehold of Sherborne House, Sherborne, Dorset, which the trustees intend to renovate and subsequently use to support the arts.

During the year, work has continued on the House, which has been capitalised within the financial statements. Associated purchases by way of equipment, plant and equipment and fixtures and fittings have also been capitalised. Depreciation will be provided once the House is completed and operational.

1.8 Debtors

Trade debtors are amounts due from customers for services performed in the ordinary course of business. Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the Charity will not be able to collect all amounts due to according to the original terms of the receivables.

Other debtors comprise amounts due from funders, prepayments and accrued income. Amounts due from funders are recognised when the Charity is entitled to the money, prepayments arise from the payments for services prior to benefit from those services, and accrued income is amounts due for services provided, recognised at the point of provision of the services.

1.9 Cash at bank and in hand

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

1.10 Fund accounting

Unrestricted funds are available to spend on activities that further any of the purposes of Trust.

Restricted funds are from donations and grants in which the donor or funder has specified are to be solely used for particular areas of the Trust’s work or for specific projects being undertaken by the Trust.

1.11 Creditors

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are recognised at their settlement amount.

Page 14

Sherborne House Trust 2018 Notes to the Financial Statements For the Year Ended 30 June 2023

1.12 Taxation

As a registered charity, the charity is not liable to corporation tax to the extent that income and gains are applied to charitable objectives.

1.13 Financial Instruments

The charity only holds basic financial instruments as defined in FRS 102. The financial assets and liabilities of the charity and their measurements are as follows:

Financial assets - trade and other debtors are basic financial instruments and are debt instruments measured at amortised cost. Investment portfolios are basic financial instruments measured at fair value through the income and expenditure account. Prepayments are not financial instruments.

Cash at bank and deposit accounts- is classified as a basic financial instrument and is measured at face value.

Financial liabilities - trade creditors, accruals and other creditors are financial instruments, and are measured at amortised cost. Deferred income is not deemed to be a financial liability, as the cash settlement has already taken place and there is an obligation to deliver services rather than cash or another financial instrument.

2 Donations and legacies

----- Start of picture text -----
Unres- Res- Unres- Res-
tricted tricted 2023 tricted tricted 2022
funds funds Total funds funds Total
£ £ £ £ £ £
- -
Donations and bequests 7,409,083 7,409,083 4,300,980 4,300,980
- -
7,409,083 7,409,083 4,300,980 4,300,980
----- End of picture text -----

3 Investment income

Unres-
tricted
funds
£		 Res-
tricted
funds
£		 2023
Total
£		 Unres-
tricted
funds
£		 Res-
tricted
funds
£		 2022
Total
£
Bank interest 348 - 348 - - -

Page 15

Sherborne House Trust 2018 Notes to the Financial Statements For the Year Ended 30 June 2023

4 Expenditure on charitable activities

Charitable activities
Wages and salaries
Staff welfare and subsistence
Promotional expenses
Donations		 Staff
costs
£
17,086
1,498
-
-		 Other
Direct
costs
£
-
-
27,940
5,000		 2023
Total
£
17,086
1,498
27,940
5,000		 Staff
costs
£
-
-
-
-		 Other
Direct
costs
£
-
-
-
-		 2022
Total
£
-
-
-
-
Rates and water - 2,163 2,163 - 258 258
Insurance
Light and heat
Telephone
Travel
Bank charges
Advertising and marketing
Postage, printing and stationery
Consulting
Sundry
Repairs and maintenance
Accountancy
Audit
Legal fees		 -
-
-
-
-
-
-
-
-
-
-
-
-		 102,698
31,258
567
128
579
35,520
578
12,088
496
5,140
18,969
6,000
9,261		 102,698
31,258
567
128
579
35,520
578
12,088
496
5,140
18,969
6,000
9,261
276,969		 -
-
-
-
-
-
-
-
-
-
-
-
-		 70,283
6,891
511
-
87
9,285
375
-
-
2,680
4,743
4,200
-		 70,283
6,891
511
-
87
9,285
375
-
-
2,680
4,743
4,200
-
18,584 258,385 - 99,313 99,313

5 Trustee directors

The charity trustees were not paid or received any other benefits from employment with the Trust or its subsidiary in the year (2022: £nil).

No charity trustee received payment for professional or other services supplied to the charity (2022: £none)

Page 16

Sherborne House Trust 2018 Notes to the Financial Statements For the Year Ended 30 June 2023

6 Employees

Number of employees

The average monthly head count and FTE was 1 staff (2022: 0 staff).

Employment costs
Wages and salaries
Social security costs
Pension costs		 2023
£
15,000
1,756
330
17,086		 2022
£
-
-
-
-

No employee earned more than £60,000 (2022 – none).

The key management personnel of the group comprise those of the Trust and the key management personnel of its wholly owned subsidiary Sherborne House Enterprises Limited. The key management personnel of the group comprises the Managing Director of Sherborne House Enterprises Limited. The total employee benefits (includes gross pay, employer pension and employer national insurance) of the key management personnel of the Trust were £17,086 (2022: £nil).

Pension costs

The company operates a defined contribution pension scheme. The charge to the Statement of Financial Activities for the year is shown above.

Contributions totalling £257 (2022 - £nil) were payable to the schemes at the end of the year and are included in creditors.

Page 17

Sherborne House Trust 2018 Notes to the Financial Statements For the Year Ended 30 June 2023

7

----- Start of picture text -----
Tangible fixed assets
Assets in the course Computer Plant & Fixtures Total
of construction equipment Machinery & fittings
£ £ £ £ £
Cost
- - -
At 1 July 2022 4,781,766 4,781,766
Additions 9,632,834 1,791 80,973 8,220 9,723,818
At 30 June 2023 14,414,600 1,791 80,973 8,220 14,505,584
Depreciation
- - - - -
At 1 July 2022
- - - - -
Charge for the year
- - - - -
At 30 June 2023
Net book value
At 30 June 2023 14,414,600 1,791 80,973 8,220 14,505,584
- - -
At 30 June 2022 4,781,766 4,781,766
----- End of picture text -----

The above assets are all held by the charity.

The assets in the course of construction are not complete at the year end, and a valuation will be undertaken when the property is complete.

8 Investments

Sherborne House Enterprises Limited
Ordinary shares of £1 each		 Charity
Total
Total
2023
2022
£
£
100
100		 Charity
Total
Total
2023
2022
£
£
100
100

Page 18

Sherborne House Trust 2018 Notes to the Financial Statements For the Year Ended 30 June 2023

Sherborne House Enterprises Limited (company no 13270147) was incorporated on 16 March 2021 as a wholly owned trading subsidiary of Sherborne House Trust 2018. The parent charity holds 100% of the issued share capital and 100% of the voting rights of the subsidiary trading company.

The principal activities of the company are the trade of Sherborne House. The registered office is the same as that of the Trust, detailed on page 1. The subsidiary gift aids its taxable profits to Sherborne House Trust 2018, and files accounts with the Registrar of Companies.

A summary of the trading results is shown below:

Turnover
Cost of sales
Gross profit
Administrative expenses
Operating profit
Investment income
Profit before tax & profit for the financial year
Retained earnings brought forward in subsidiary
Gift aid to Sherborne House Trust 2018
Retained earnings carried forward in subsidiary
The assets and liabilities were:
Fixed assets
Current assets
Current liabilities
Total net assets
Called up share capital
Profit and loss reserve		 2023
£
-
(17,940)
(17,940)
(20,174)
(38,114)
-
(38,114)
-
-
(38,114)
-
43,412
(81,426)
(38,014)
100
(38,114)
(38,014)		 2022
£

Page 19

Sherborne House Trust 2018 Notes to the Financial Statements For the Year Ended 30 June 2023

9 Debtors

----- Start of picture text -----
2023 2022
Group Charity Group Charity
£ £ £ £
Prepayments and accrued income 694,539 651,227 624,376 624,376
- - -
Amounts owed by group undertakings 58,862
694,539 710,089 624,376 624,376
10 Creditors: Amounts falling due within one year
2023 2022
Group Charity Group Charity
£ £ £ £
Trade creditors 135,003 117,294 489,826 489,826
- -
Other creditors 100 100
Accruals and deferred income 1,391,641 1,387,041 110,915 110,915
- - -
Taxation and social security 257
1,526,901 1,504,435 600,741 600,841
----- End of picture text -----

11 Creditors: Amounts falling due after one year

----- Start of picture text -----
2023 2022
Group Charity Group Charity
£ £ £ £
- -
Accruals 165,306 165,306
- -
165,306 165,306
----- End of picture text -----

12 Summary of movement in funds - Group

Unrestricted funds - Group
General		 Opening
balance
£
6,405,246		 Income
£
7,409,431		 Expenditure
£
(276,969)		 Transfers
& losses
£
-		 Closing
balance
£
13,537,708
6,405,246 7,409,431 (276,969) - 13,537,708

Page 20

Sherborne House Trust 2018 Notes to the Financial Statements For the Year Ended 30 June 2023

Summary of movement in funds - Charity

----- Start of picture text -----
Opening Transfers Closing
balance Income Expenditure & losses balance
£ £ £ £ £
Unrestricted funds - Charity
-
General 6,405,246 7,409,431 (238,853) 13,575,824
-
6,405,246 7,409,431 (238,853) 13,575,824
----- End of picture text -----

Summary of movement in funds – Group (2022)

----- Start of picture text -----
Opening Transfers Closing
balance Income Expenditure & losses balance
£ £ £ £ £
Unrestricted funds - Group
-
General 2,203,579 4,300,980 (99,313) 6,405,246
-
2,203,579 4,300,980 (99,313) 6,405,246
----- End of picture text -----

Summary of movement in funds – Charity (2022)

Opening
balance
£
Unrestricted funds - Charity
General
2,203,579
2,203,579
Analysis of assets between funds – Group		 Opening
balance
£
2,203,579		 Income
£
4,300,980		 Expenditure
£
(99,313)		 Transfers
& losses
£
-		 Closing
balance
£
6,405,246
2,203,579 4,300,980 (99,313) - 6,405,246

Unrestricted funds
As at 30 June 2023
Tangible
fixed
assets
£
14,505,584		 Cash at
bank and
in hand
£
29,792		 Other net
current
assets/
(liabilities)
£
(832,362)		 Creditors
more than
one year
£
(165,306)		 Total
£
13,537,708
14,505,584 29,792 (832,362) (165,306) 13,537,708

13 Analysis of assets between funds – Group

Page 21

Sherborne House Trust 2018 Notes to the Financial Statements For the Year Ended 30 June 2023

Analysis of assets between funds – Charity

----- Start of picture text -----
Other net
Tangible Cash at current Creditors
fixed bank and assets/ more than
assets in hand (liabilities) one year Total
£ £ £ £ £
Unrestricted funds 14,505,684 29,792 (794,346) (165,306) 13,575,824
As at 30 June 2023 14,505,684 29,792 (794,346) (165,306) 13,575,824
----- End of picture text -----

Analysis of assets between funds – Group (2022)

Tangible
Cash at
fixed
bank and
assets
in hand
£
£
Unrestricted funds
4,781,766
1,599,845
As at 30 June 2022
4,781,766
1,599,845
Analysis of assets between funds – Charity (2022)		 Tangible
fixed
assets
£
4,781,766		 Cash at
bank and
in hand
£
1,599,845		 Other net
current
assets/
(liabilities)
£
23,635		 Creditors
more than
one year
£
-		 Total
£
6,405,246
4,781,766 1,599,845 23,635 6,405,246
Unrestricted funds
As at 30 June 2022		 Tangible
fixed
assets
£
4,781,866		 Cash at
bank and
in hand
£
1,599,845		 Other net
current
assets/
(liabilities)
£
23,535		 Creditors
more than
one year
£
-		 Total
£
6,405,246
4,781,866 1,599,845 23,535 - 6,405,246

14 Income and expenditure account of the Trust

The company has taken advantage of Section 408 of the Companies Act 2006 and has not included its own Income and Expenditure Account or separate Statement of Financial Activities.

Prior to gift aid amounts received from the subsidiary, Sherborne House Trust 2018 has net income for the year of £7,132,462 (2022 - £4,201,667) based on income of £7,409,431 (2022 - £4,300,980).

Page 22

Sherborne House Trust 2018 Notes to the Financial Statements For the Year Ended 30 June 2023

15 Related party transactions

The charity has taken advantage of the exemption in FRS 102 “Related Party Disclosures” from disclosing transactions with other members of the group.

During the year, Sherborne House Trust 2018 received donations totalling £3,676,671 from The Cannon Foundation (2022 - £nil), £100,000 from The M R Cannon 1998 Charitable Trust (2022 - £4,175,000), and £800,000 from Canprop I Limited (2022 - £nil).

The Cannon Foundation, The M R Cannon 1998 Charitable Trust and Canprop I Limited are all charities or companies under the control of individuals who are Trustees of Sherborne House Trust 2018.

In addition, Trustees (past and current) gave donations to the charity in the year totalling £2,465,030 (2022 - £nil).

Page 23