John Gosden Limited - Period Ending 2023-03-31

John Gosden Limited

Contents

John Gosden Limited

Company Information

John Gosden Limited

Strategic Report for the Year Ended 31 March 2023

The directors present their strategic report for the year ended 31 March 2023.

Principal activity

The principal activity of the company is the training of thoroughbred horses.

Fair review of the business

The directors consider that the financial performance of the company was satisfactory.

Turnover reduced by 3.0% from £9.78m in 2022 to £9.50m in 2023.

Training fees remained broadly consistent compared with previous years.

Gross profit in the year was £3.19m (2022: £3.45m).

Overheads and other fixed costs were generally well controlled, increasing from £1.46m to £1.52m, resulting in a net profit before tax of £1.70m (2022: £2.00m).

The balance sheet remains healthy with net current assets of £5.76m (2022: £4.30m) and net assets of £7.75m (2022: £6.37m).

The European racing season included notable wins from the yard's fillies Nashwa, Inspiral, Emily Upjohn amd Commissioning. Overseas both Lord North and Mostahdaf enjoyed considerable sucess.

Since the year end, the Gosdens were recently confirmed as champion UK trainers for 2023, the first licensed training partnership to win the championship.

Principal risks and uncertainties

The principal financial instruments comprise bank balances, trade debtors and trade creditors - all of which combine to provide the funds required to finance the company’s operations in the normal course of business.

The nature of the above financial instruments protects the company from exposure to significant price risk.

Liquidity risk is managed by maintaining credit balances with the company's bankers sufficient to cover all known and committed expenditure for an appropriate period, which also ensures that suppliers are paid in accordance with their terms of trade.

Management of credit risk is given a high priority and trade debtors are regularly reviewed and appropriate action taken when problems are identified.

As indicated in the previous year, the increase in inflation is a principal risk and has been challenging. The directors are continuously monitoring the company’s financial performance and taking action where appropriate.

John Gosden Limited

Strategic Report for the Year Ended 31 March 2023

Key performance indicators

The key performance indicators of particular relevance to the financial statements of the company are:

- Occupancy of the yard

- Number of winners

- Quality of winners

- Liquidity ratio

Approved and authorised by the Board on 15 December 2023 and signed on its behalf by:
 

John Gosden Limited

Directors' Report for the Year Ended 31 March 2023

The directors present their report and the financial statements for the year ended 31 March 2023.

Directors of the company

The directors who held office during the year were as follows:

J H M Gosden

R D S Hood - Company secretary and director

T Gosden-Hood

Disclosure of information to the auditors

Approved and authorised by the Board on 15 December 2023 and signed on its behalf by:
 

John Gosden Limited

Statement of Directors' Responsibilities

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

John Gosden Limited

Independent Auditor's Report to the Members of John Gosden Limited

Opinion

We have audited the financial statements of John Gosden Limited (the 'company') for the year ended 31 March 2023, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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 company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.

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

Other information

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

We have nothing to report in this regard.

Opinion on other matter prescribed by the Companies Act 2006

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

John Gosden Limited

Independent Auditor's Report to the Members of John Gosden Limited

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.

Auditor 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.

John Gosden Limited

Independent Auditor's Report to the Members of John Gosden Limited

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of the company and its industry, we identified that the principal risks of non-compliance with laws and regulations related to UK tax legislation, employment regulation and health and safety regulation, corruption and fraud, and money laundering and we considered the effect to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, such as the Companies Act 2006.

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 related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, and significant one-off or unusual transactions.

Our audit procedures were designed to respond to those identified risks, including non-compliance with laws and regulations (irregularities) and fraud that are material to the financial statements. Our audit procedures included but were not limited to:

• Discussing with the directors and management their policies and procedures regarding compliance with laws and regulations;
• Communicating identified laws and regulations throughout our engagement team and remaining alert to any indications of non-compliance throughout our audit; and
• Considering the risk of acts by the company which were contrary to the applicable laws and regulations, including fraud.

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 and analytical review procedures to identify any unusual or unexpected relationships

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

John Gosden Limited

Independent Auditor's Report to the Members of John Gosden Limited

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

......................................
Dean Blunden BFP FCA (Senior Statutory Auditor)
For and on behalf of UHY Ross Brooke, Statutory Auditor

2 Old Bath Road
Newbury
Berkshire
RG14 1QL

22 December 2023

John Gosden Limited

Profit and Loss Account for the Year Ended 31 March 2023

The above results were derived from continuing operations.

The company has no recognised gains or losses for the year other than the results above.

John Gosden Limited

Statement of Comprehensive Income for the Year Ended 31 March 2023

John Gosden Limited

(Registration number: 10767434)
Balance Sheet as at 31 March 2023

Approved and authorised by the Board on 15 December 2023 and signed on its behalf by:
 

John Gosden Limited

Statement of Changes in Equity for the Year Ended 31 March 2023

John Gosden Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Clarehaven Stables
Bury Road
Newmarket
Suffolk
CB8 7BY
England

The principal place of business is:
Clarehaven Stables
Bury Road
Newmarket
Suffolk
CB8 7BY
England

These financial statements were authorised for issue by the Board on 15 December 2023.

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

Basis of preparation

Summary of disclosure exemptions

The company is a qualifying entity for the purposes of FRS102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including the company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

- Section 7 ‘Statement of Cash Flows’ – Presentation of a statement of cash flow and related notes and disclosures.

Revenue recognition

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currency are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date.

John Gosden Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

Judgements

Key sources of estimation uncertainty

Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values. The carrying amount is £2,054,900 (2022 - £2,177,993).

Government grants

Tax

Tangible assets

John Gosden Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

Depreciation

Business combinations

Investments

Cash and cash equivalents

Trade debtors

Stocks

Trade creditors

John Gosden Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

Borrowings

Leases

Share capital

Dividends

Defined contribution pension obligation

John Gosden Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

Financial instruments

Classification
The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and third parties and investments in non-puttable ordinary shares. They are classified according to the substance of the contractual arrangements entered into.

 Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs) unless the arrangement constitutes a financing arrangement. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Financial assets are only offset in the Balance Sheet when there exists a legally enforceable right to set off the recognised amounts and the company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled; or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party; or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

 Impairment
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been effected. 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.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

John Gosden Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

The analysis of the company's other operating income for the year is as follows:

The analysis of the company's other gains and losses for the year is as follows:

Arrived at after charging/(crediting)

John Gosden Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

The aggregate payroll costs (including directors' remuneration) were as follows:

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

The directors' remuneration for the year was as follows:

During the year the number of directors who were receiving benefits and share incentives was as follows:

John Gosden Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

Tax charged/(credited) in the profit and loss account

The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2022 - the same as the standard rate of corporation tax in the UK) of 19% (2022 - 19%).

The differences are reconciled below:

John Gosden Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

Assets held under finance leases and hire purchase contracts

The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:

John Gosden Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

All of the provision for deferred tax relates to timing differences arising between capital allowances and depreciation.

There are no unused tax losses or unused tax credits.

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £147,418 (2022 - £144,431).

Allotted, called up and fully paid shares

Rights, preferences and restrictions

John Gosden Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

The above hire purchase contracts are secured on the assets to which they relate.

The company has taken advantage of the exemption available under Section 33 of FRS 102 and has not disclosed related party transactions with wholly owned members of the group.

The company's immediate parent is John Gosden Holdings Limited, incorporated in England and Wales.

  These financial statements are available upon request from Clarehaven Stables, Bury Road, Newmarket, Suffolk, CB8 7BY.

 

The parent of the largest group in which these financial statements are consolidated is John Gosden Holdings Limited, incorporated in England and Wales.

The address of John Gosden Holdings Limited is:
Clarehaven Stables, Bury Road, Newmarket, Suffolk, CB8 7BY.