Company registration number 09091595 (England and Wales)
SHORYU LIVERPOOL STREET LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
PAGES FOR FILING WITH REGISTRAR
SHORYU LIVERPOOL STREET LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 8
Detailed profit and loss account
SHORYU LIVERPOOL STREET LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2022
31 December 2022
- 1 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
4
95,429
133,713
Current assets
Stocks
5
11,362
10,777
Debtors
6
171,031
156,661
Cash at bank and in hand
46,921
31,511
229,314
198,949
Creditors: amounts falling due within one year
7
(788,678)
(660,234)
Net current liabilities
(559,364)
(461,285)
Total assets less current liabilities
(463,935)
(327,572)
Provisions for liabilities
(12,510)
-
0
Net liabilities
(476,445)
(327,572)
Capital and reserves
Called up share capital
100
100
Profit and loss reserves
(476,545)
(327,672)
Total equity
(476,445)
(327,572)

The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved and signed by the director and authorised for issue on 13 October 2023
K Tokumine
Director
Company Registration No. 09091595
SHORYU LIVERPOOL STREET LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 2 -
1
Accounting policies
Company information

Shoryu Liverpool Street Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit B, Premier Park Road, Park Royal, Middlesex, United Kingdom, NW10 7NZ.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £1.

The financial statements have been prepared under the historical cost convention. The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

1.2
Going concern

The financial statements have been prepared on a going concern basis. The directors have a reasonable expectation that the company will continue in operational existence for the foreseeable future. However, the directors are aware of certain material uncertainties which may cause doubt on the company's ability to continue as a going concern.

 

The company has net current liabilities of £559,364 (2021: £461,285 and an overall net liabilities position of £476,445 (2021: £327,572) and has made a net loss of £148,873 (2021: £49,866).

 

Included in the amounts falling due within one year is just over £603,583 due to a fellow subsidiary company (which is also wholly owned by the parent company). The fellow subsidiary company has provided assurance via a letter of support that it will not seek repayment of the amounts owed at least on or after 12 months from the audit report date or when the company is in a position to repay the liabilities as this is in the best interest of the group as a whole.

 

Included in the amounts falling due within one year is £26,954 debt owed to connected party with a common director and shareholder which is a key broker for the company. The directors are confident they are able to repay the trade debt and in future if cashflow is tight with support available from the group companies.

 

The company reported in their management accounts for the period to July 2023 draft EBITDA loss of £33,500, and a net loss of £64,300.

 

In common with similar businesses in the hospitality sector, challenging trading environment presented by unforeseen post pandemic events such as the energy crisis, interest rate crisis, change in city working patterns, warmer than usual temperatures etc. have significant impact on footfall and customer spend levels, which in turn has an impact on the overall group results. Whilst it is difficult to predict the longevity and future such occurrences, the directors have implemented measures for the business to mitigate their impact, adopt and sustain profitability and growth in the medium to long term.

 

The group has prepared cash flow forecast until December 2024, under the current economic conditions and based on the key assumption that the restaurants will remain open for the foreseeable future. The forecasts incorporate profit improvement measures including controlling energy costs and securing favourable fixed prices, general cost efficiencies, and marketing campaigns to drive footfall.

SHORYU LIVERPOOL STREET LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 3 -

In 2021, the parent company secured a 5 year CBILS (£1,000,000) and RLS (£750,000) bank loans under the government recovery loan schemes during the pandemic disruption period. At the year ended 31 December 2022, a covenant breach was noted off for the RLS bank loan which resulted in the loan being reclassified to creditors due within one year. Post year end, the bank had issued a letter of comfort for the year ended 31 December 2022. The comfort letter stated that the bank does not intend to take any immediate action as a result of any actual or potential breaches and that the bank currently expects but does not guarantee, to continue to provide the facility to the parent company as per the facility agreement.

 

In the event the restaurants were to severely disrupted in the future, the UK economy falls into a deep recession, all of the financial support measures as noted were not agreed, then the group would need to seek financial support from the shareholders'. The unexpected disruptions may result in further loan covenant breach and potential call back of the RLS loan and or changes to the loan terms and financial support available to the group.

 

The directors are confident regarding the company’s and group's long-term prospects and profitability. It is however difficult to assess the impact of any other unexpected disruptions which may also result in further loan covenant breaches and potential changes to the loan terms and financial support available to the group.

 

Given the associated uncertainty above and therefore within the group's forecast, a material uncertainty exists that may cast a significant doubt on the group's and therefore the company's ability to continue as a going concern

 

The financial statements do not include the adjustments that would result if the company or group were unable to continue as a going concern.

1.3
Turnover

Turnover represents net invoiced sales of food and drinks, excluding value added tax and tips. Turnover is recognised when payment is rendered at the time of sale, and is all recognised in the United Kingdom.

1.4
Tangible fixed assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

 

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Leasehold land and buildings
Over the remaining period of the lease
Fixtures and fittings
25% reducing balance
1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

1.6
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises all costs of purchase, costs of conversion and other costs incurred in bringing the stocks to their present location and condition. Cost is calculated using the first-in, first-out formula. Provision is made for damaged, obsolete and slow-moving stock where appropriate.

SHORYU LIVERPOOL STREET LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 4 -
1.7
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company 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 debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

1.8
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

Current tax

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 operates and generates taxable income.

Deferred tax

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements. Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

 

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date that are expected to apply to the reversal of timing differences.

SHORYU LIVERPOOL STREET LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 5 -
1.9
Retirement benefits

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

 

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

1.10
Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

 

In line with the recent amendments to FRS 102, the company has early adopted the amendments affecting accounting periods commencing on or after 1 January 2021 and recognised any changes in lease payments, arising from qualifying rent concessions, through the income statement on a systematic basis over the periods the change in lease payments is intended to compensate.

1.11
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

 

The company recognises an unconditional government grant related to Coronavirus Job Retention Scheme as other income when the grant becomes receivable. Such grants are recognised on an accrual basis in line with when the expenses would have been incurred.

 

The company also recognises small business grants as other income when the grant becomes receivable.

SHORYU LIVERPOOL STREET LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 6 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the director is required to make judgements, 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.

Critical judgements
Going concern

As indicated in note 1.2 it is the directors' assessment that the company continues to be a going concern however a material uncertainty does exist as a result of the impact of the future operations due to the post pandemic macro-economic factors.

 

Accordingly, the assets and liabilities have been valued on the basis that the company will continue in business.

 

If this presumption is proven to be mistaken, the carrying value of assets and liabilities would need to be reappraised to reflect the impact of cessation.

Assessing indicators of impairment

In assessing whether there have been any indicators of impairment of the company's asset, the director has considered both external and internal sources of information such as market conditions and experience of recoverability. There have been no material indicators of impairments identified during the current financial year

3
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2022
2021
Number
Number
Total
22
13
SHORYU LIVERPOOL STREET LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 7 -
4
Tangible fixed assets
Short leasehold land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 January 2022
316,857
143,231
460,088
Additions
-
0
3,866
3,866
At 31 December 2022
316,857
147,097
463,954
Depreciation and impairment
At 1 January 2022
219,150
107,225
326,375
Depreciation charged in the year
32,568
9,582
42,150
At 31 December 2022
251,718
116,807
368,525
Carrying amount
At 31 December 2022
65,139
30,290
95,429
At 31 December 2021
97,707
36,006
133,713

Included within the net book value of land and buildings above is £65,138 (2021: £97,707) in respect of short leasehold improvements on land and buildings.

5
Stocks
2022
2021
£
£
Stocks
11,362
10,777
6
Debtors
2022
2021
Amounts falling due within one year:
£
£
Amounts owed by group undertakings
187
1,441
Other debtors
115,343
103,469
Prepayments and accrued income
55,501
51,751
171,031
156,661
SHORYU LIVERPOOL STREET LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 8 -
7
Creditors: amounts falling due within one year
2022
2021
£
£
Trade creditors
56,665
62,034
Amounts owed to group undertakings
630,537
490,238
Corporation tax
-
0
22,507
Other taxation and social security
41,710
25,282
Other creditors
219
315
Accruals and deferred income
59,547
59,858
788,678
660,234
8
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

Senior Statutory Auditor:
Trusha Bhanderi FCCA
Statutory Auditor:
Sobell Rhodes Audit Limited
9
Financial commitments, guarantees and contingent liabilities

The company was party to a multilateral cross guarantee and debenture dated 3 June 2015 given by subsidiary companies of Shoryu Holdings Limited to secure group borrowings.

10
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

2022
2021
£
£
305,315
445,315

In addition, the company had certain operating lease commitments to pay additional amounts based on performance.

11
Parent company

The company's parent and ultimate parent is Shoryu Holdings Limited, incorporated in United Kingdom.

 

The parent of the largest group in which these financial statements are consolidated is Shoryu Holdings Limited, a company incorporated in England and Wales. A copy of the consolidated financial statements can be obtained from companies house using the company's registration number 08251749 or its registered office Unit B, Premier Park, Premier Park Road, London, United Kingdom, NW10 7NZ .

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