Any play about Sherlock Holmes will draw an audience. Simon Reade’s latest one, being performed at the Oxford Playhouse this week, is a respectful, fun and at times sad tale, which draws cleverly on one of Conan Doyle’s short stories (The Lion’s Mane) and then twists it to the service of his narrative.

John Watson is again the storyteller, but in this case he is telling his tale to a radio audience (of the newly formed BBC in 1922). Holmes is in retirement by the seaside, hiding rather ineffectually behind the pseudonym of Sherlock Smith. But when a dead body turns up on his private beach, he cannot resist the temptation to solve the crime and show off his detecting skills to Detective Inspector Newman. Immediately after that Mary Watson, the wife of John turns up and asks him for help.

So far, so typical Sherlock Holmes. But this is towards the end of all their lives. Thirty years have passed since the Reichenbach Falls incident, and in that time John and Mary have raised a son and lost him to the First World War, as well as losing touch with Sherlock. The Watsons live in 221b Baker Street, but they are estranged, living in separate rooms. All around them, thing are changing. John Watson is a consultant in psychoanalysis and records sessions on the new technology, and spiritualism, a huge interest of Conan Doyle, is in the air.

It is a beautifully paced story with some genuinely alarming moments. 221b is lovingly created and the music which separates each scene evokes images of Holmes playing his Stradivarius violin. But it is the actors who bring the sparkling dialogue to life. Robert Powell is superb as Holmes, analytical and selfish and yet sometimes vulnerable as he acknowledges his waning physical and mental powers. Liza Goddard, who has often played opposite Powell, is convincing too as the tough Mary, happy to wear trousers, talk about women’s suffrage and challenge Holmes. Timothy Kightley is excellent too, as the bluff, amiable John, determined to stay in touch with the modern world but still nostalgic for his times with Sherlock. Mrs Hudson is no longer, but Anna O’Grady sparkles as her daughter, the down-to-earth, and cheeky Miss Hudson. And of course, where there is Sherlock, lurking somewhere in the shadows is his elder brother Mycroft (Roy Sampson), retired from the civil service, but still well connected. The scene in which the two brothers meet and argue in the way that siblings often do ('You always were your mother’s favourite') was a highlight of a delightful evening.

Finally, credit to Simon Reade for a witty and knowing script, replete with plenty of one-liners. There is plenty with which our actors can have fun.