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Registered number: 08816866









MFT RESTAURANTS LIMITED







UNAUDITED

FINANCIAL STATEMENTS

INFORMATION FOR FILING WITH THE REGISTRAR

FOR THE YEAR ENDED 31 DECEMBER 2022

 
MFT RESTAURANTS LIMITED
 
 
COMPANY INFORMATION


Director
M F Tahir 




Registered number
08816866



Registered office
236 High Street

London

E15 2JA




Accountants
Haslers
Chartered Accountants

Old Station Road

Loughton

Essex

IG10 4PL





 
MFT RESTAURANTS LIMITED
 

CONTENTS



Page
Balance Sheet
 
1 - 2
Notes to the Financial Statements
 
3 - 11

 
MFT RESTAURANTS LIMITED
REGISTERED NUMBER: 08816866

BALANCE SHEET
AS AT 31 DECEMBER 2022

2022
2021
Note
£
£

Fixed assets
  

Intangible assets
 4 
586,936
683,014

Tangible assets
 5 
1,795,257
1,926,391

  
2,382,193
2,609,405

Current assets
  

Stocks
 6 
42,612
36,127

Debtors: amounts falling due within one year
 7 
861,323
499,761

Cash at bank and in hand
 8 
46,952
309,931

  
950,887
845,819

Creditors: amounts falling due within one year
 9 
(3,874,474)
(2,757,402)

Net current liabilities
  
 
 
(2,923,587)
 
 
(1,911,583)

Total assets less current liabilities
  
(541,394)
697,822

Creditors: amounts falling due after more than one year
 10 
(406,339)
(1,662,495)

  

Net liabilities
  
(947,733)
(964,673)


Capital and reserves
  

Called up share capital 
  
1,000
1,000

Profit and loss account
  
(948,733)
(965,673)

  
(947,733)
(964,673)

Page 1

 
MFT RESTAURANTS LIMITED
REGISTERED NUMBER: 08816866
    
BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2022

The director considers that the Company is entitled to exemption from audit under section 477 of the Companies Act 2006 and members have not required the Company to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.

The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.

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

The Company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 19 October 2023.




M F Tahir
Director

The notes on pages 3 to 11 form part of these financial statements.
Page 2

 
MFT RESTAURANTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

1.


General information

MFT Restaurants Limited is a private company limited by shares, domiciled in England and Wales, registration number 08816866. The address of the registered office is 236 High Street, London, E15 2JA.

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 Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The following principal accounting policies have been applied:

 
2.2

Going concern

The directors have reviewed their business model and projections and are confident that the company can meet its day to day cash flow requirements within its existing facilities. The directors are of the opinion that the company can continue for the forseeable future.
The directors therefore consider it appropriate to prepare the accounts on a going concern basis.

 
2.3

Revenue

Turnover comprises revenue recognised by the company in respect of food and drink supplied through its store outlets which are operated under the KFC brand. Revenue is recognised at the point of sale.

 
2.4

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.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.5

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of Comprehensive Income in the same period as the related expenditure.

 
2.6

Interest income

Interest income is recognised in profit or loss using the effective interest method.

Page 3

 
MFT RESTAURANTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.7

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.8

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.9

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 Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

 
2.10

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Statement of Comprehensive Income over its useful economic life.

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.

 
2.11

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.

Page 4

 
MFT RESTAURANTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)


2.11
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives.

Depreciation is provided on the following basis:

Short-term leasehold property
-
Over the life of the lease
Fixtures and fittings
-
10% Reducing balance

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.

 
2.12

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 balance sheet 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.

 
2.13

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.14

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.15

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.16

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

The Company has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections
Page 5

 
MFT RESTAURANTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)


2.16
Financial instruments (continued)

11 and 12 and the other presentation requirements of FRS 102.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

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

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.


3.


Employees

The average monthly number of employees, including directors, during the year was 144 (2021 - 113).

Page 6

 
MFT RESTAURANTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

4.


Intangible assets




Licence Fee
Goodwill
Total

£
£
£



Cost


At 1 January 2022
28,776
932,000
960,776



At 31 December 2022

28,776
932,000
960,776



Amortisation


At 1 January 2022
21,462
256,300
277,762


Charge for the year on owned assets
2,878
93,200
96,078



At 31 December 2022

24,340
349,500
373,840



Net book value



At 31 December 2022
4,436
582,500
586,936



At 31 December 2021
7,314
675,700
683,014



Page 7

 
MFT RESTAURANTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

5.


Tangible fixed assets





Short-term leasehold property
Fixtures and fittings
Total

£
£
£



Cost or valuation


At 1 January 2022
585,956
2,150,714
2,736,670


Additions
-
42,173
42,173



At 31 December 2022

585,956
2,192,887
2,778,843



Depreciation


At 1 January 2022
93,077
717,202
810,279


Charge for the year on owned assets
27,742
145,565
173,307



At 31 December 2022

120,819
862,767
983,586



Net book value



At 31 December 2022
465,137
1,330,120
1,795,257



At 31 December 2021
492,879
1,433,512
1,926,391


6.


Stocks

2022
2021
£
£

Stock
42,612
36,127

42,612
36,127


Page 8

 
MFT RESTAURANTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

7.


Debtors

2022
2021
£
£


Other debtors
692,717
456,533

Called up share capital not paid
1,000
1,000

Prepayments and accrued income
167,606
42,228

861,323
499,761



8.


Cash and cash equivalents

2022
2021
£
£

Cash at bank and in hand
46,952
309,931

Less: bank overdrafts
(1,461)
-

45,491
309,931



9.


Creditors: Amounts falling due within one year

2022
2021
£
£

Bank overdrafts
1,461
-

Bank loans
-
243,427

Trade creditors
247,698
419,341

Other taxation and social security
551,350
79,840

Other creditors
2,813,692
1,906,327

Accruals and deferred income
260,273
108,467

3,874,474
2,757,402


Page 9

 
MFT RESTAURANTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

10.


Creditors: Amounts falling due after more than one year

2022
2021
£
£

Bank loans
-
1,662,495

Other creditors
406,339
-

406,339
1,662,495



11.


Loans


Analysis of the maturity of loans is given below:


2022
2021
£
£

Amounts falling due within one year

Bank loans
-
243,427


-
243,427


Amounts falling due 2-5 years

Bank loans
-
973,709


-
973,709

Amounts falling due after more than 5 years

Bank loans
-
688,785

-
688,785

-
1,905,921


The loans detailed above are secured by a fixed charge over the assets of the entity.


12.


Contingent liabilities

During the year FT Foods Limited, an entity under common control, refinanced their loan facilities. The new loan facilities are secured via a debenture which contains a fixed charge over the assets of TAFS Foods Limited, MFT Restaurants Limited, FT Foods Limited and its subsidiaries.

Page 10

 
MFT RESTAURANTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

13.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held
separately from those of the Company in an independently administered fund. The pension cost charge
represents contributions payable by the Company to the fund and amounted to £19,352 (2021 - £239).
Contributions totalling £8,195 (2021 - £695) were payable to the fund at the balance sheet date and are
included in creditors.


14.


Commitments under operating leases

At 31 December 2022 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2022
2021
£
£


Not later than 1 year
253,000
285,000

Later than 1 year and not later than 5 years
1,042,000
1,170,000

Later than 5 years
3,306,000
3,559,000

4,601,000
5,014,000


15.


Related party transactions

During the year, various loans were advanced (to)/by the company and at the year-end the following
amounts were due from/(to) the related parties:


2022
2021
£
£

Key management personnel
(27,164)
(2,390)
Entities under common control
(2,505,651)
(1,477,309)
(2,532,815)
(1,479,699)


16.


Controlling party

The ultimate controlling party for the year was M F Tahir.

 
Page 11