Caseware UK (AP4) 2022.0.179 2022.0.179 2022-12-252022-12-25truetruetruetruetruefalsetrue487false2021-12-27No description of principal activity548 03360039 2021-12-27 2022-12-25 03360039 2022-12-25 03360039 2020-12-28 2021-12-26 03360039 2021-12-26 03360039 1 2021-12-27 2022-12-25 03360039 1 2020-12-28 2021-12-26 03360039 4 2021-12-27 2022-12-25 03360039 4 2020-12-28 2021-12-26 03360039 d:CompanySecretary1 2021-12-27 2022-12-25 03360039 d:Director1 2021-12-27 2022-12-25 03360039 d:Director2 2021-12-27 2022-12-25 03360039 d:RegisteredOffice 2021-12-27 2022-12-25 03360039 e:Buildings 2021-12-27 2022-12-25 03360039 e:Buildings 2022-12-25 03360039 e:Buildings 2021-12-26 03360039 e:Buildings e:OwnedOrFreeholdAssets 2021-12-27 2022-12-25 03360039 e:Buildings e:LongLeaseholdAssets 2021-12-27 2022-12-25 03360039 e:Buildings e:LongLeaseholdAssets 2022-12-25 03360039 e:Buildings e:LongLeaseholdAssets 2021-12-26 03360039 e:MotorVehicles 2021-12-27 2022-12-25 03360039 e:MotorVehicles 2022-12-25 03360039 e:MotorVehicles 2021-12-26 03360039 e:MotorVehicles e:OwnedOrFreeholdAssets 2021-12-27 2022-12-25 03360039 e:FurnitureFittings 2021-12-27 2022-12-25 03360039 e:FurnitureFittings 2022-12-25 03360039 e:FurnitureFittings 2021-12-26 03360039 e:FurnitureFittings e:OwnedOrFreeholdAssets 2021-12-27 2022-12-25 03360039 e:ComputerEquipment 2021-12-27 2022-12-25 03360039 e:ComputerEquipment 2022-12-25 03360039 e:ComputerEquipment 2021-12-26 03360039 e:ComputerEquipment e:OwnedOrFreeholdAssets 2021-12-27 2022-12-25 03360039 e:OwnedOrFreeholdAssets 2021-12-27 2022-12-25 03360039 e:PatentsTrademarksLicencesConcessionsSimilar 2022-12-25 03360039 e:PatentsTrademarksLicencesConcessionsSimilar 2021-12-26 03360039 e:Goodwill 2021-12-27 2022-12-25 03360039 e:Goodwill 2022-12-25 03360039 e:Goodwill 2021-12-26 03360039 e:OtherResidualIntangibleAssets 2021-12-27 2022-12-25 03360039 e:CurrentFinancialInstruments 2022-12-25 03360039 e:CurrentFinancialInstruments 2021-12-26 03360039 e:Non-currentFinancialInstruments 2022-12-25 03360039 e:Non-currentFinancialInstruments 2021-12-26 03360039 e:CurrentFinancialInstruments e:WithinOneYear 2022-12-25 03360039 e:CurrentFinancialInstruments e:WithinOneYear 2021-12-26 03360039 e:Non-currentFinancialInstruments e:AfterOneYear 2022-12-25 03360039 e:Non-currentFinancialInstruments e:AfterOneYear 2021-12-26 03360039 e:ReportableOperatingSegment1 2021-12-27 2022-12-25 03360039 e:ReportableOperatingSegment1 2020-12-28 2021-12-26 03360039 e:UKTax 2021-12-27 2022-12-25 03360039 e:UKTax 2020-12-28 2021-12-26 03360039 e:ShareCapital 2022-12-25 03360039 e:ShareCapital 2021-12-26 03360039 e:SharePremium 2021-12-27 2022-12-25 03360039 e:SharePremium 2022-12-25 03360039 e:SharePremium 2021-12-26 03360039 e:RetainedEarningsAccumulatedLosses 2021-12-27 2022-12-25 03360039 e:RetainedEarningsAccumulatedLosses 2022-12-25 03360039 e:RetainedEarningsAccumulatedLosses 2020-12-28 2021-12-26 03360039 e:RetainedEarningsAccumulatedLosses 2021-12-26 03360039 e:RetainedEarningsAccumulatedLosses 2020-12-28 03360039 d:OrdinaryShareClass1 2021-12-27 2022-12-25 03360039 d:OrdinaryShareClass1 2022-12-25 03360039 d:OrdinaryShareClass1 2021-12-26 03360039 d:FRS102 2021-12-27 2022-12-25 03360039 d:Audited 2021-12-27 2022-12-25 03360039 d:FullAccounts 2021-12-27 2022-12-25 03360039 d:PrivateLimitedCompanyLtd 2021-12-27 2022-12-25 03360039 e:WithinOneYear 2022-12-25 03360039 e:WithinOneYear 2021-12-26 03360039 e:BetweenOneFiveYears 2022-12-25 03360039 e:BetweenOneFiveYears 2021-12-26 03360039 e:MoreThanFiveYears 2022-12-25 03360039 e:MoreThanFiveYears 2021-12-26 03360039 e:HirePurchaseContracts e:WithinOneYear 2022-12-25 03360039 e:HirePurchaseContracts e:WithinOneYear 2021-12-26 03360039 e:HirePurchaseContracts e:BetweenOneFiveYears 2022-12-25 03360039 e:HirePurchaseContracts e:BetweenOneFiveYears 2021-12-26 03360039 e:AcceleratedTaxDepreciationDeferredTax 2022-12-25 03360039 e:AcceleratedTaxDepreciationDeferredTax 2021-12-26 03360039 6 2021-12-27 2022-12-25 03360039 e:Goodwill e:OwnedIntangibleAssets 2021-12-27 2022-12-25 03360039 e:PatentsTrademarksLicencesConcessionsSimilar e:OwnedIntangibleAssets 2021-12-27 2022-12-25 iso4217:GBP xbrli:shares xbrli:pure
Company registration number: 03360039







ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED
25 DECEMBER 2022


FULL HOUSE RESTAURANTS LIMITED






































img74af.png                        

 


FULL HOUSE RESTAURANTS LIMITED
 


 
COMPANY INFORMATION


Directors
Mr B Shedden 
Mr J Shedden 




Company secretary
Mrs C Shedden



Registered number
03360039



Registered office
2nd Floor, Magna House
18-32 London Road

Staines-Upon-Thames

Surrey

TW18 4BP




Independent auditors
Menzies LLP
Chartered Accountants & Statutory Auditor

Magna House

18-32 London Road

Staines-Upon-Thames

TW18 4BP





 


FULL HOUSE RESTAURANTS LIMITED
 



CONTENTS



Page
Strategic Report
1 - 2
Directors' Report
3 - 4
Independent Auditors' Report
5 - 8
Statement of Income and Retained Earnings
9
Statement of Financial Position
10
Notes to the Financial Statements
11 - 26


 


FULL HOUSE RESTAURANTS LIMITED
 


 
STRATEGIC REPORT
FOR THE PERIOD ENDED 25 DECEMBER 2022

Introduction
 
The directors present the Strategic Report for the period ended 25 December 2022.

Business review
 
The company continued its existing strategy of identifying and investing in new stores where there is potential for growth, to supplement its current sites.
There continued to be a strategy of identifying and investing in new stores, and one new store was opened in the period, Bracknell – Birch Hill.
Revenue fell to £18.8m (2021 - £19.8m), a decline of 5.3% and gross margins fell to 33.8% (2021 - 39.2%) resulting in a reduced profit before tax of £2.3m (2021 - £4.0m). The net assets at the year-end were £7.4m (2021 - £6.8m). The directors remain satisfied with the company's financial position at the year-end and believe it is well placed to meet any challenges ahead.

Principal risks and uncertainties
 
The company, as part of the Full House Restaurant Holdings Group continuously reviews risks and uncertainties.
A key challenge to the business continues to be aggregators within the marketplace, offering discounted introductions and driving customer traffic away from traditional take away sites. This is a contributing factor to the decline seen in gross margins in the year. The Franchisor entered into an agreement to work with one provider collaboratively “Just Eat” during the year. 
The company continues to be subject to variable wholesale food prices, anticipated to continue in the medium term. It is working closely to manage these costs and related supply chain issues, activity switching to UK based suppliers where feasible.
 
There remains the threat of higher gas prices, which was a global issue throughout 2022, although the majority of sites are currently fixed until 2026.
As the company continues to grow and open new sites – there are increased resourcing challenges for both store staff and delivery drivers. The management are actively recruiting and training staff to optimally run the operations.

Financial key performance indicators
 
Retaining market share continues to be the key KPI – and this is tracked by growth in revenue, by individual site and region. The company's revenue decreased by 5.3% (2021 - increased by 9.1%) from prior year due to the end to the temporary reduced rate of VAT introduced by the Government during the pandemic and slow down in consumer spending.
The gross margin is monitored and was 33.8% (2021 - 39.2%) for the year due to the general increase in food and other operational costs. The franchisor has had to provide better offers to customers due to the competition faced from aggregators and reduced consumer spending from the inflationary pressures within the economy.

Other key performance indicators
 
The company is committed to ensuring the highest standards and regularly monitors customer feedback and where arising customer complaints are tracked and appropriately followed up.

Page 1

 


FULL HOUSE RESTAURANTS LIMITED
 



STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 25 DECEMBER 2022


This report was approved by the board and signed on its behalf.



................................................
Mr B Shedden
Director

Date: 13 October 2023

Page 2

 


FULL HOUSE RESTAURANTS LIMITED
 


 
DIRECTORS' REPORT
FOR THE PERIOD ENDED 25 DECEMBER 2022

The Directors present their report and the financial statements for the period ended 25 December 2022.

Directors' responsibilities statement

The Directors are responsible for preparing the Strategic Report, the Directors' Report and the 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 of the profit or loss of the company for that period.

 In preparing these financial statements, the Directors are required to:


select suitable accounting policies for the company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements and other information included in Directors' Reports may differ from legislation in other jurisdictions.

Results and dividends

The profit for the period, after taxation, amounted to £1,906,261 (2021 - £3,181,292).

A final dividend for 2021 of £750,000 plus an interim dividend for 2022 of £600,000 were paid during the financial year. A final dividend has been proposed and paid 10 April 2023 of £600,000 (2021: £750,000).

Directors

The Directors who served during the period were:

Mr B Shedden 
Mr J Shedden 

Future developments

The overall business outlook remains positive; the directors are experienced in the takeaway business and are well aware of the challenges that require consistently applied, high quality procedures to minimise risks. The company contributes to invest in its operations and maintains high standards in product quality and staff training.

Page 3

 


FULL HOUSE RESTAURANTS LIMITED
 


 
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 25 DECEMBER 2022

Engagement with employees

The company's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.
Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.
There is no employee share scheme at present.

Disabled employees

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Disclosure of information to auditors

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's auditors are 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's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the company since the year end.

Auditors

Under section 487(2) of the Companies Act 2006Menzies LLP will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.

This report was approved by the board and signed on its behalf.
 





................................................
Mr B Shedden
Director

Date: 13 October 2023

Page 4

 


FULL HOUSE RESTAURANTS LIMITED
 

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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FULL HOUSE RESTAURANTS LIMITED

Opinion


We have audited the financial statements of Full House Restaurants Limited (the 'company') for the period ended 25 December 2022, which comprise the Statement of Income and Retained Earnings, the Statement of Financial Position and the related notes, including a summary of significant accounting policiesThe 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:


give a true and fair view of the state of the company's affairs as at 25 December 2022 and of its profit for the period 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 Auditors' 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 United Kingdom, including the Financial Reporting Council'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 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 Auditors' 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. 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.


Page 5

 


FULL HOUSE RESTAURANTS LIMITED


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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FULL HOUSE RESTAURANTS LIMITED (CONTINUED)

Opinion 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 period 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 the light of the 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 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, 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.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 3, 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 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 either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.


Page 6

 


FULL HOUSE RESTAURANTS LIMITED


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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FULL HOUSE RESTAURANTS LIMITED (CONTINUED)

Auditors' 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 Auditors' 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.


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:

The Company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation. We determined that the following laws and regulations were most significant including UK Companies Act, employment law and tax legislation. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

We understood how the Company is complying with those legal and regulatory frameworks by, making inquiries to management, those responsible for legal and compliance procedures and the company secretary.

The engagement partner assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations. The assessment did not identify any issues in this area.

We assessed the susceptibility of the Company’s financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:

°Identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud;

°Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process; and

°Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.

As a result of the above procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:

°Posting of unusual journals, and;

°Risk of fictitious employees.


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 non-compliance.  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 Auditors' Report.


Page 7

 


FULL HOUSE RESTAURANTS LIMITED


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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FULL HOUSE RESTAURANTS LIMITED (CONTINUED)

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 2006Our 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 Auditors' 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.





Andrew Cook FCA (Senior Statutory Auditor)
  
for and on behalf of
Menzies LLP
 
Chartered Accountants
Statutory Auditor
  
Magna House
18-32 London Road
Staines-Upon-Thames
TW18 4BP

15 October 2023
Page 8

 


FULL HOUSE RESTAURANTS LIMITED
 


 
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE PERIOD ENDED 25 DECEMBER 2022

Period from 27 December 2021 to
25 December
Period from 28 December 2020 to
26 December
2022
2021
Note
£
£

  

Turnover
 4 
18,756,949
19,803,058

Cost of sales
  
(12,426,164)
(12,043,688)

Gross profit
  
6,330,785
7,759,370

Administrative expenses
  
(4,028,330)
(3,792,490)

Other operating income
 5 
50,000
-

Operating profit
 6 
2,352,455
3,966,880

Interest payable and similar expenses
 10 
(4,275)
(3,810)

Profit before tax
  
2,348,180
3,963,070

Tax on profit
 11 
(441,919)
(781,778)

Profit after tax
  
1,906,261
3,181,292

  

  

Retained earnings at the beginning of the period
  
6,646,212
4,814,920

  
6,646,212
4,814,920

Profit for the period
  
1,906,261
3,181,292

Dividends declared and paid
  
(1,350,000)
(1,350,000)

Retained earnings at the end of the period
  
7,202,473
6,646,212
The notes on pages 11 to 26 form part of these financial statements.

Page 9

 


FULL HOUSE RESTAURANTS LIMITED
REGISTERED NUMBER:03360039



STATEMENT OF FINANCIAL POSITION
AS AT 25 DECEMBER 2022

25 December
26 December
2022
2021
Note
£
£

Fixed assets
  

Intangible assets
 13 
340,150
432,723

Tangible assets
 14 
1,700,620
1,285,229

  
2,040,770
1,717,952

Current assets
  

Stocks
 16 
102,306
65,731

Debtors: amounts falling due within one year
 17 
6,840,181
6,264,568

Cash at bank and in hand
  
8,340
21,811

  
6,950,827
6,352,110

Creditors: amounts falling due within one year
 18 
(1,141,404)
(929,159)

Net current assets
  
 
 
5,809,423
 
 
5,422,951

Total assets less current liabilities
  
7,850,193
7,140,903

Creditors: amounts falling due after more than one year
 19 
(251,018)
(145,059)

Provisions for liabilities
  

Deferred tax
  
(191,112)
(144,042)

Net assets
  
7,408,063
6,851,802


Capital and reserves
  

Called up share capital 
 23 
1,000
1,000

Share premium account
 24 
204,590
204,590

Profit and loss account
 24 
7,202,473
6,646,212

  
7,408,063
6,851,802


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




................................................
Mr B Shedden
Director

Date: 13 October 2023

The notes on pages 11 to 26 form part of these financial statements.

Page 10

 


FULL HOUSE RESTAURANTS LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 25 DECEMBER 2022

1.


General information

Full House Restaurants Limited is a company limited by shares incorporated in England and Wales. The registered office is disclosed on the company information page of these financial statements. The trading address is Unit 5, The Forum, Hanworth Lane, Chertsey, Surrey, KT16 9JX. 

2.Accounting policies

 
2.1

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 management to exercise judgment in applying the company's accounting policies (see note 3).

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 4 Statement of Financial Position paragraph 4.12(a)(iv);
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 11 Financial Instruments paragraphs 11.41(b), 11.41(c), 11.41(e), 11.41(f), 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Full House Restaurants Holdings Limited as at 25 December 2022 and these financial statements may be obtained from Companies House.

 
2.3

Exemption from preparing consolidated financial statements

The company is a parent company that is also a subsidiary included in the consolidated financial statements of a larger group by a parent undertaking established under the law of any part of the United Kingdom and is therefore exempt from the requirement to prepare consolidated financial statements under section 400 of the Companies Act 2006.

 
2.4

Turnover

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the company and the turnover can be reliably measured. Turnover is generated via the operation of fast food outlets and is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Page 11

 


FULL HOUSE RESTAURANTS LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 25 DECEMBER 2022

2.Accounting policies (continued)

 
2.5

Leased assets: the company as lessee

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

 
2.6

Pensions

Defined contribution pension plan

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company 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 company in independently administered funds.

 
2.7

Intangible assets

Goodwill

Goodwill arising on the acquisition of branches, represents any excess of the fair value of the consideration given over the fair value of the identifiable assets and liabilities acquired.
Goodwill is being written off over twenty years on the basis that the company has the option, as stipulated in its franchise agreements, to renew the existing franchises for further ten year terms at the end of the initial ten year term. As the directors are likely to take up the option and due to the company being in a good standing with regards to the terms of the franchise agreement, the directors believe amortisation over the full 20 years reflects the likely consumption of economic benefits.

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:

Franchise rights
-
10
years straight line

Page 12

 


FULL HOUSE RESTAURANTS LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 25 DECEMBER 2022

2.Accounting policies (continued)

 
2.8

Tangible fixed assets

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.

At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

Land is not depreciated. Depreciation on other assets is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Freehold property
-
Nil
Long-term leasehold property
-
10 years straight line
Motor vehicles
-
4 years straight line
Plant and machinery
-
10 years straight line
Computer equipment
-
5 years straight line

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.

The depreciable value of the freehold property is £nil because the estimated amount that the entity would expect to obtain from the disposal of the asset, if the property were already of the age and in the condition expected at the end of its useful economic life, is in excess of the current carrying value. As such no depreciation charge is included within the financial statements. 

 
2.9

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.10

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.11

Financial instruments

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 other third parties, loans to related parties and investments in non-puttable ordinary shares.

Page 13

 


FULL HOUSE RESTAURANTS LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 25 DECEMBER 2022

2.Accounting policies (continued)

 
2.12

Current and deferred taxation

The tax expense for the period 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 operates and generates 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; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

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.

 
2.13

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

 
2.14

Operating leases: the company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.


3.


Estimates and Judgments

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Key sources of estimation uncertainty
Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows:
Useful economic life of fixed assets. 

Page 14

 


FULL HOUSE RESTAURANTS LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 25 DECEMBER 2022

4.


Turnover

An analysis of turnover by class of business is as follows:


Period from 27 December 2021 to
25 December
Period from 28 December 2020 to
26 December
2022
2021
£
£

Sale of Pizzas
18,756,949
19,803,058

18,756,949
19,803,058


All turnover arose within the United Kingdom.


5.


Other operating income

Period from 27 December 2021 to
25 December
Period from 28 December 2020 to
26 December
2022
2021
£
£

Trading incentive
50,000
-

50,000
-



6.


Operating profit

The operating profit is stated after charging:

Period from 27 December 2021 to
25 December
Period from 28 December 2020 to
26 December
2022
2021
£
£

Depreciation of tangible fixed assets
294,526
237,567

Amortisation of intangible fixed assets
92,573
92,573

Other operating lease rentals
394,041
388,289


7.


Auditors' remuneration

Auditors' remuneration is paid by Full House Restaurant Holdings Limited, the Company's immediate parent company. The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.

Page 15

 


FULL HOUSE RESTAURANTS LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 25 DECEMBER 2022

8.


Employees

Staff costs were as follows:


Period from 27 December 2021 to
25 December
Period from 28 December 2020 to
26 December
2022
2021
£
£

Wages and salaries
4,886,759
4,738,115

Social security costs
235,262
213,540

Cost of defined contribution scheme
55,557
55,269

5,177,578
5,006,924


The average monthly number of employees, including the Directors, during the period was as follows:


     25 December
      26 December
        2022
        2021
            No.
            No.







Employees
546
485



Directors
2
2

548
487


9.


Directors Remuneration

The directors of the company are remunerated through the parent Company, Full House Restaurants Holdings Limited. Their remuneration is disclosed in the consolidated financial statements. 


10.


Interest payable and similar expenses

Period from 27 December 2021 to
25 December
Period from 28 December 2020 to
26 December
2022
2021
£
£


Bank interest payable
4,275
3,810

4,275
3,810

Page 16

 


FULL HOUSE RESTAURANTS LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 25 DECEMBER 2022

11.


Taxation


Period from 27 December 2021 to
25 December
Period from 28 December 2020 to
26 December
2022
2021
£
£

Corporation tax


Current tax on profits for the year
394,849
739,156

Total current tax
394,849
739,156

Deferred tax


Origination and reversal of timing differences
35,774
8,052

Changes to tax rates
11,296
34,570

Total deferred tax
47,070
42,622


Taxation on profit on ordinary activities
441,919
781,778
Page 17

 


FULL HOUSE RESTAURANTS LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 25 DECEMBER 2022
 
11.Taxation (continued)


Factors affecting tax charge for the period

The tax assessed for the period is lower than (2021 - higher than) the standard rate of corporation tax in the UK of 19% (2021 - 19%). The differences are explained below:

Period from 27 December 2021 to
25 December
Period from 28 December 2020 to
26 December
2022
2021
£
£


Profit on ordinary activities before tax
2,348,180
3,963,070


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2021 - 19%)
446,154
752,983

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
2,745
1,091

Enhanced capital allowances
(22,122)
(4,990)

Ineligible differences on fixed assets
3,846
-

Effect of change in deferred tax rate
11,296
34,570

Group relief
-
(1,876)

Total tax charge for the period
441,919
781,778


Factors that may affect future tax charges

The tax rate increased to 25% from 1 April 2023. A marginal relief is available if profits fall below £250,000, apportioned across the group, to reduce the rate of tax applied with the lowest boundary being 19%.


12.


Dividends

Period from 27 December 2021 to 25 December
Period from 28 December 2020 to 26 December
2022
2021
£
£


Dividends paid
1,350,000
1,350,000

1,350,000
1,350,000

Page 18

 


FULL HOUSE RESTAURANTS LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 25 DECEMBER 2022

13.


Intangible assets






Franchise rights
Goodwill
Total

£
£
£



Cost


At 27 December 2021
70,689
2,765,937
2,836,626



At 25 December 2022

70,689
2,765,937
2,836,626



Amortisation


At 27 December 2021
60,189
2,343,714
2,403,903


Charge for the period on owned assets
1,500
91,073
92,573



At 25 December 2022

61,689
2,434,787
2,496,476



Net book value



At 25 December 2022
9,000
331,150
340,150



At 26 December 2021
10,500
422,223
432,723



Page 19

 


FULL HOUSE RESTAURANTS LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 25 DECEMBER 2022

14.


Tangible fixed assets







Freehold property
Long-term leasehold property
Motor vehicles
Fixtures and fittings
Computer equipment

£
£
£
£
£



Cost or valuation


At 27 December 2021
354,774
392,822
345,937
3,387,945
275,797


Additions
-
170,000
222,367
312,826
45,064


Disposals
-
-
(97,228)
-
-



At 25 December 2022

354,774
562,822
471,076
3,700,771
320,861



Depreciation


At 27 December 2021
-
392,822
106,998
2,712,939
259,287


Charge for the period on owned assets
-
17,000
95,558
161,020
20,948


Disposals
-
-
(56,888)
-
-



At 25 December 2022

-
409,822
145,668
2,873,959
280,235



Net book value



At 25 December 2022
354,774
153,000
325,408
826,812
40,626



At 26 December 2021
354,774
-
238,939
675,006
16,510
Page 20

 


FULL HOUSE RESTAURANTS LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 25 DECEMBER 2022

           14.Tangible fixed assets (continued)


Total

£



Cost or valuation


At 27 December 2021
4,757,275


Additions
750,257


Disposals
(97,228)



At 25 December 2022

5,410,304



Depreciation


At 27 December 2021
3,472,046


Charge for the period on owned assets
294,526


Disposals
(56,888)



At 25 December 2022

3,709,684



Net book value



At 25 December 2022
1,700,620



At 26 December 2021
1,285,229

Included in the above are assets held under hire purchase arrangements with a net book value of £158,960 (2021: £216,142). 
The prior year disclosure for assets held under hire purchase agreements has been restated from £99.793 to £216,142.

Page 21

 


FULL HOUSE RESTAURANTS LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 25 DECEMBER 2022

15.


Fixed asset investments








Investments in subsidiary companies

£



Cost or valuation


At 27 December 2021
12,577



At 25 December 2022

12,577



Impairment


At 27 December 2021
12,577



At 25 December 2022

12,577



Net book value



At 25 December 2022
-



At 26 December 2021
-

The investment is in Surrey Pizzas Limited, a 100% owned subsidiary. The registered office of the company is 36 Station Road, Egham, Surrey, TW20 9LF.


16.


Stocks

25 December
26 December
2022
2021
£
£

Raw materials and consumables
102,306
65,731

102,306
65,731


Page 22

 


FULL HOUSE RESTAURANTS LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 25 DECEMBER 2022

17.


Debtors

25 December
26 December
2022
2021
£
£


Trade debtors
66,000
7,446

Amounts owed by group undertakings
6,239,982
5,743,382

Prepayments and accrued income
534,199
513,740

6,840,181
6,264,568



18.


Creditors: Amounts falling due within one year

25 December
26 December
2022
2021
£
£

Bank loans
34,555
34,555

Other loans
17,000
-

Trade creditors
568,317
360,347

Corporation tax
253,842
272,156

Obligations under finance lease and hire purchase contracts
29,550
24,131

Accruals and deferred income
238,140
237,970

1,141,404
929,159



19.


Creditors: Amounts falling due after more than one year

25 December
26 December
2022
2021
£
£

Bank loans
64,532
94,992

Other loans
150,167
-

Net obligations under finance leases and hire purchase contracts
36,319
50,067

251,018
145,059


Page 23

 


FULL HOUSE RESTAURANTS LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 25 DECEMBER 2022

20.

Loans

Analysis of the maturity of loans is given below:

25 December
26 December
2022
2021
        £
        £
Amounts falling due within one year

51,555

34,555
 
Amounts falling due within 1-2 years

51,555

34,555
 
Amounts falling due within 2-5 years

80,977

60,437
 
Amounts falling due within over 5 years

82,167

-
 

266,254

129,547
 

The bank loans are primarily secured by fixed and floating charges over all the assets and undertakings of this company including all present and future freehold and leasehold property, book and other debts, chattels, goodwill and uncalled capital.


21.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

25 December
26 December
2022
2021
£
£


Within one year
29,550
24,131

Between 1-5 years
36,319
50,067

65,869
74,198

Finance lease payments represent amounts paid by the company under hire purchase agreements for motor vehicles. Ownership of the vehicles transfers to the company at the end of the lease period, and no restrictions are placed on the use of the assets. 

Page 24

 


FULL HOUSE RESTAURANTS LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 25 DECEMBER 2022

22.


Deferred taxation






2022


£






At beginning of year
144,042


Charged to profit or loss
47,070



At end of year
191,112

The provision for deferred taxation is made up as follows:

25 December
26 December
2022
2021
£
£


Accelerated capital allowances
191,112
144,042

191,112
144,042


23.


Share capital

25 December
26 December
2022
2021
£
£
Allotted, called up and fully paid



1,000 (2021 - 1,000) Ordinary shares of £1.00 each
1,000
1,000

The Company has one class of ordinary share which carry no right to fixed income.



24.


Reserves

Share premium account

This reserve records amounts received in excess of par value of shares. 

Profit and loss account

This reserve records retained earnings and accumulated losses.

Page 25

 


FULL HOUSE RESTAURANTS LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 25 DECEMBER 2022

25.


Commitments under operating leases

At 25 December 2022 the company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

25 December
26 December
2022
2021
£
£


Not later than 1 year
431,815
412,232

Later than 1 year and not later than 5 years
1,594,736
1,484,816

Later than 5 years
2,248,625
2,161,277

4,275,176
4,058,325


26.


Guarantees

There is in place a Composite Company Unlimited Unilateral Guarantee in place, dated 7 February 2012, given to
HSBC plc by this company, Full House Restaurants Holdings Limited, House Special Limited, Classic Crust Limited, The Woodpecker Inn Limited, Sunmead Limited, Sherston Limited and Surrey Pizzas Limited.


27.


Related party transactions

At the year end this company owed the Franchisor, Dominos Pizza UK & Ireland Limited who own 49% of share capital in Full House Restaurant Holdings Limited, £404,431 in relation to trading activities (2021 - £132,429). The total amount paid to Dominos Pizza UK & Ireland Limited and its fellow group entity, DP Realty Limited, in relation to trading activities was £7,955,185 (2021 - £7,366,479). Trading activities are comprised of the following: cost of sales, store development, rent and service charges, advertising, administration costs and loan interest payments.
The company entered into a deferred payment agreement with DP Realty Limited, a fellow related company through Dominos Pizza UK & Ireland Limited. The agreement related to funding of lease premium for a new store premises. There is no interest appicable on the loan as per the agreement and the loan is repayable monthly over 10 years. The total amount owing at the period end in total was £167,167 of which £17,000 is due within 1 year. This loan is shown within 'other loans'. 


28.


Controlling Party

The parent of the Company is Full House Restaurants Holdings Limited, which owns 100% of the issued share
capital of the Company. The registered office of Full House Restaurants Holdings Limited is 2nd Floor, Magna House, 18-32 London Road, Staines-upon-Thames, Surrey, TW18 4BP. The ultimate controlling parties are J Shedden and B Shedden.

 
Page 26