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REGISTERED NUMBER: 03283357 (England and Wales)















CASPIAN NETWORKS LIMITED

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 December 2022






CASPIAN NETWORKS LIMITED (REGISTERED NUMBER: 03283357)






Contents of the Financial Statements
for the year ended 31 December 2022




Page

Company Information 1

Strategic Report 2 to 4

Report of the Directors 5 to 9

Report of the Independent Auditors 10 to 12

Income Statement 13

Other Comprehensive Income 14

Balance Sheet 15

Statement of Changes in Equity 16

Cash Flow Statement 17

Notes to the Cash Flow Statement 18

Notes to the Financial Statements 19 to 28


CASPIAN NETWORKS LIMITED

Company Information
for the year ended 31 December 2022







Directors: M D Guerin
A W Guerin





Secretary: A W Guerin





Registered office: McDonalds Restaurant
101-105 The Horsefair
Bristol
BS1 3JR





Registered number: 03283357 (England and Wales)





Auditors: Haines Watts Birmingham LLP
5 - 6 Greenfield Crescent
Edgbaston
Birmingham
B15 3BE

CASPIAN NETWORKS LIMITED (REGISTERED NUMBER: 03283357)

Strategic Report
for the year ended 31 December 2022

The directors present their strategic report for the year ended 31 December 2022.

Review of business
The company operates thirteen McDonald's franchised restaurants, employing over 1,400 people in the Bristol and South Gloucestershire areas.

Store and delivery sales profitability, although strong in the first half of 2022, has been impacted in the second half of the year by amongst other things the increase in VAT within the hospitality sector back to the standard rate of 20% from 1 April 2022, a volatile supply chain and rising costs base.

Given the direct link between our approach to pricing, the external environment, and our success in relation to our customers, we will continue to remain close to understanding this relationship and look constantly to evaluate how our internal actions are impacting our customers.

The financial position of the company is healthy with the balance sheet showing net assets of £9.23 million compared with £10.00 million in 2021.

Key performance indicators
Sales for the year amounted £58.15 million, a decrease of £1.82 million from 2021 giving an overall sales decrease of approximately 3.12%. The decline in sales is predominantly due to the sale of a store during the year.

The gross profit margin is 63.64% compared to 65.78% in 2021 and is in line with expectations.

Future developments
2023 will continue to be impacted from ever-volatile external environments, with consumer trends likely changing ever more frequently due to on-going economic challenges. Consumer confidence remains at record low levels, and it is currently unknown how this will develop in the short term.

It is anticipated that consumers will be hit hardest in Q1 while they continue to adjust to high energy bills alongside higher prices for essential goods. We believe it is likely that consumers will look to reduce spend after the first full festive period since 2019 (Pre Covid-19). Some of the impact from the increased pressure on consumer spending will be masked in January and February as we will be comparable to tail end of Omicron which suppressed Guest Counts ('GC') in Q1 2022.

We will expect strong sales growth as a result of our menu and marketing plans across the year, but will see a significant benefit in Q1, Q2 and Q3 as a result of McCrispy and the permanent launch of McSpicy products.

We anticipate strongest sales throughout the summer of 2023 as we execute higher levels of pricing alongside seeing continued benefit from our digital plans including MyMcDonald's rewards. We anticipate delivery to see softer growth in 2023 as the market continues to normalise after the pandemic and we achieve our new post COVID baseline for the channel, however we expect to continue to grow market share ahead of our competitors, and boost sales through Deliveroo and the further optimisation of our delivery operations.

Given the direct link between our approach to pricing, the external environment, and our success in relation to our customers, we will continue to remain close to understanding this relationship and look to constantly evaluate how our internal actions are impacting our customers.

In 2023, we expect both Instores and Drive Thrus to see similar levels of growth with Instores likely to see a greater GC impact from the Cost of Living Crisis, however this will be slightly offset due to higher proportion of sales flowing through from McDelivery which will have an increased pricing benefit.

The company also plans to acquire more restaurants should the opportunity arise.


CASPIAN NETWORKS LIMITED (REGISTERED NUMBER: 03283357)

Strategic Report
for the year ended 31 December 2022

Principal risks and uncertainties
The company operates in a highly competitive market. High street consumer behaviour impacts the company's turnover and the variability of commodity prices impacts profitability.

The company is continually assessing all risks with an aim to mitigate any future threats these may have on the business.

Economic risk:
Following some very challenging times, we are optimistic about the economic future. Customer confidence continues to rise and unemployment rates are falling. A cautious approach is still required as real disposable income is declining over the longer term as the cost of living continues to rise, despite interest rates remaining at an historical low. Principal risks are increasing commodity prices, adding pressure to margins and significant upward movements in interest rates might also increase costs. The first mentioned risk is controlled by McDonald's collective purchasing initiatives. The level of borrowing is such that interest rate increases are manageable.

Whilst the directors recognise the risks associated with Brexit, they believe that these risks will be mitigated by the strength of the McDonald's brand and the company's strong balance sheet.

Regulatory risks:
The companies operations demand a high level of compliance within a wide range of regulatory requirements. In particular -
* health and safety
* hygiene procedures
* employment laws
* licensing
The above, along with a number of other areas, are monitored in detail by McDonalds, as being in the fast food industry brings a high level of regulatory concerns.

Consumer taste:
Any material change in the way the consumer views the fast food industry could have an adverse affect on the company. However, this can also work in the opposite direction and could assist the company to achieve growth. As a result the company focuses, in detail, on recognising demographic trends, ensuring innovation and ensuring that the company only use the freshest and highest quality products through it stores. The company have strict policies to ensure that all stores are maintaining the McDonalds ethos.

Competitors:
The fast food market is a very competitive market, with a high number of large competitors trading in the sector. In order to remain as one of the main players, McDonalds have dedicated teams who focus on ensuring they remain to be the leading company in the market. This will allow them to compete with other large fast food chains.

With these risks and uncertainties in mind, we are aware that any plans for the future development of the business may be subject to unforeseen future events outside our control, hence we are constantly assessing our plans in line with the current environment.


CASPIAN NETWORKS LIMITED (REGISTERED NUMBER: 03283357)

Strategic Report
for the year ended 31 December 2022

Section 172(1) statement
The board of directors take into account the likely consequences of long-term decisions; build relationships with stakeholders; understand the importance of engaging with our employees; understand the impact of our operations on the communities within which we operate; and attribute importance to behaving as a responsible business.

The board of directors consider, both individually and together, that they have acted in the way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole (having regard to the stakeholders and matters set out in s172(1)(a-f) of the Act) in the decisions taken during the year ended 31 December 2022. In particular by reference to the approval of our business plan, which is updated on an annual basis. Our business plan was designed to have a long-term beneficial impact on the company and to contribute to its success in delivering high quality quick-service food.

Our employees are fundamental to the delivery of our plan. We aim to be a responsible employer in our approach the to pay and benefits our employees receive. The health, safety and wellbeing of our employees is one of our primary considerations in the way we do business.

As the Board of directors, our intention is to behave responsibly and ensure that management operate the business in a responsible manner, operating within the high standards of business conduct and good governance expected for a business such as ours, and in doing so, will contribute to the delivery of our plan.

On behalf of the board:





M D Guerin - Director


18 October 2023

CASPIAN NETWORKS LIMITED (REGISTERED NUMBER: 03283357)

Report of the Directors
for the year ended 31 December 2022

The directors present their report with the financial statements of the company for the year ended 31 December 2022.

Principal activity
The principal activity of the company in the year under review was that of the operation of McDonald's franchised restaurants.

Dividends
Interim dividends per share were paid as follows:


Ordinary A £1 shares £1,000.00 - 30 April 2022
Ordinary B £1 shares £3,400.00 - 30 April 2022

The directors recommend that no final dividends be paid.

The total distribution of dividends for the year ended 31 December 2022 will be £160,000 (2021 - £160,000).

Research and development
The company does not carry out any independent research and development. However the franchisor, McDonalds' Restaurants Limited, carries out its own research and development on behalf of all franchisees. The company makes a contribution towards this through its existing payments to the franchisor.

Directors
The directors shown below have held office during the whole of the period from 1 January 2022 to the date of this report.

M D Guerin
A W Guerin

Going concern
The directors have considered the application of the going concern basis of accounting in doing so they have considered the period from the date of this report until 31 December 2024. The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting in preparing the annual financial statements.

Employment of disabled persons
The company operates a policy of giving full & fair consideration to employment applications from disabled persons.

Provision of information to employees
The company has a system for providing employees with information of concern to them. It also consults employees on a regular basis so that their views can be taken into account in making decisions affecting them. It regularly explains to employees the financial and economic factors affecting the performance of the company and makes them aware of the provision of training, career development and employment of disabled employees.

Engagement with employees
Our employees are fundamental to the delivery of our plan. We aim to be a responsible employer in our approach the to pay and benefits our employees receive. The health, safety and wellbeing of our employees is one of our primary considerations in the way we do business.

Engagement with suppliers, customers and others
The board of directors take into account the likely consequences of long-term decisions; build relationships with stakeholders; understand the impact of our operations on the communities within which we operate; and attribute importance to behaving as a responsible business.

Statement of corporate governance arrangements
The company is owned and controlled by a single director. By reference to the Corporate Governance Guidance and Principles for Unlisted Companies in the UK, published by the Institute of Directors, the director has established a framework of company processes and attitudes that add value to the business, help build its reputation and ensure its long-term continuity and success. This framework aligns with the business system and processes established by the franchisor and contributes to the continued success of the company.

Streamlined energy and carbon reporting
In line with the government's streamlined energy and carbon reporting requirements we are required to report our organisation's carbon emissions for the period 1st January 2022 to 31st December 2022 against our 2020 baseline.


CASPIAN NETWORKS LIMITED (REGISTERED NUMBER: 03283357)

Report of the Directors
for the year ended 31 December 2022

Our emissions are reported using the financial control boundary and the methodology used aligns with Defra's Environmental reporting guidelines (2019) and uses the UK government's greenhouse gas reporting conversion factors (2021) to quantify emissions.

Scope of reporting



Emissions source
1st January 2021-
31st December
2021
1st January 2022-
31st December
2022


Change

%
Change

Direct Emissions from Mobile Combustion
Sources - Franchisee Vehicle Fuel
Consumption


3.6


8.8


5.2


144.4%
Direct Emissions from Stationary
Combustion - Franchisee Natural Gas
Consumption


85.1


66.7


-18.4


-21.6%
Direct Emissions From Stationary
Combustion - Other Fuel Consumption

-

-

-

-%
Total Scope 1 (tCO2e) 88.7 75.5 -13.2 -14.9%

Indirect Emissions from Franchisee
Purchased Electricity

1,412.1

1,321.7

-90.4

-6.4%
Total Scope 2 (tCO2e) 1,412.1 1,321.7 -90.4 -6.4%

Total Scope 1 & 2 (tCO2e) - Location
Based

1,500.8

1,397.2

-103.6

-6.9%

Fuel Consumed by Personal Vehicles used
for Business Activities - Grey Fleet

8.2

8.9

0.7

8.5%
Direct Emissions From Stationary
Combustion - Natural Gas Consumption at
Landlord Leased Restaurants


-


-


-


-%
Direct Emissions From Stationary
Combustion - Other Fuel Consumption at
Landlord Leased Restaurants


-


-


-


-%
Indirect Emissions From Purchased
Electricity of Landlord Leased Restaurants

-

-

-

-%
Total Scope 3 (tCO2e) 8.2 8.9 0.7 8.5%

Total Scope 1, 2 & 3 (tCO2e) 1,509.0 1,406.1 -102.9 -6.8%

Intensity Metrics
Annual Turnover (£M) 60 58 -2 -3.3%
Scope 1 & 2 emissions per unit
(tCO2e/£M Turnover)

25.1

24.0

-1.1

-4.4%

Energy Consumption by source (kWh)
Electricity 6,650,347 6,834,790 184,443 2.8%
Gas 461,448 365,434 -96,014 -20.8%

Purchased Fuel

-

-

-

-%
Company Car 14,678 34,396 19,718 134.3%
Grey Fleet Vehicle 33,494 34,954 1,460 4.4%
Total 7,159,967 7,269,574 109,607 1.5%

Absolute emissions compared to our baseline have increased this year due to an increase in business activity, Covid 19 restrictions limited our operations during the baseline as restaurants were required to close for part of the year. This increase broadly falls in line with the amount of time the restaurants were closed or operating at limited capacity. Overall total scope 1 and 2 emissions fell by 6.9% and scope 3 emissions rose by 8.5%, total emission fell by 6.8%, this can be mainly attributed to a 20.8% decrease in gas use.


CASPIAN NETWORKS LIMITED (REGISTERED NUMBER: 03283357)

Report of the Directors
for the year ended 31 December 2022

Our largest source of emissions is a direct result of electricity consumption, followed by natural gas and purchased fuels used for our restaurant kitchens and heating. As the United Kingdom moves towards reducing their energy use to meet the requirements of Net Zero Carbon Emissions by 2050. Our overall strategy is to pursue a program of energy efficiency combined with carbon mitigation measures such as the utilisation of renewable electricity, this will be bolstered with programs to reduce and decarbonise heat across our estate.

Notable initiatives carried out this year include:

- Implementing a plan to achieve a significant reduction in energy consumption across our group stores, ranging from on average a 8-25% reduction, by analysing equipment usage, following a fire up/down schedule and general reviews of consumption with each group of stores.

- Engaging with InstaVolt regarding the installation of EV chargers in our stores car parks.

- Installation of bike racks to encourage our employees to cycle to work.

Further information on our calculations can be found in our GHG Methodology statement.

Greenhouse Gas (GHG) Reporting Methodology Statement

Reporting Period

Emissions are reported against accounting year covering the period 1 January to 31 December 2022.

Reporting Boundary

Financial Control Approach - McDonalds reports any emissions from its operations for which it can directly influence financial and operating policies to gain economic benefit. This is focussed on energy consumed in buildings where McDonalds Franchisee occupy and/or are the bill payer, this includes vacant units where they pay the bill until it is reoccupied or disposed of. This is restricted to the UK (United Kingdom) where we have full financial control over our operations.

Greenhouse Gases Reported

All greenhouse gas emissions are reported in tonnes of carbon dioxide equivalent (tCO2e) to account for all six of the Kyoto Protocol GHG's.

Emissions Factors

Government's Greenhouse gas reporting conversion factors for 2020 (for baseline year's energy use), 2021 (for 2021-year's energy use) and 2022 (for 2022-year's energy use).

Baseline Year

Covers the period 1st January 2020 to 31st December 2020, as this is the first year required to report emissions under the SECR (Streamlined Energy & Carbon Reporting) legislation.

Intensity Ratio

McDonalds uses annual turnover (tCO2e/£) to normalise and compare its emissions over time. McDonalds also uses an average cheque per site for an intensity metric figure.

Exclusions

McDonalds do not currently report fugitive emissions (refrigerant leakage) from refrigeration and air conditioning systems in leased properties or fleet. This is due to the difficulty in obtaining centralised data on refrigerant top-ups and the fact most of our buildings are out of scope as franchisees manage the HVAC (Heating, Ventilation and Air Conditioning) systems. Given the size and types of emission sources listed by McDonalds, fugitive emissions are expected to be a small proportion of total emissions and are therefore considered immaterial.

Scope of Emissions

Scope 1 - Direct Emissions Scope 2 - Indirect Emissions Scope 3 - Other Indirect
Emissions


CASPIAN NETWORKS LIMITED (REGISTERED NUMBER: 03283357)

Report of the Directors
for the year ended 31 December 2022

On-site Fuel Combustion: Purchased Electricity: Upstream Leased Assets
Gas and fuel directly purchased for
heating or generation across property
managed by the McDonald's franchisee.
Electricity directly purchased
across property managed by the
McDonald's franchisee.
Gas and electricity recharges
across leased property
managed by the landlord.
Company Vehicles: Grey Fleet
Fuel purchased for fleet vehicles
managed and owned by the McDonald's
franchisee.
Fuel purchased for staff
personal vehicles used for
business activities.
Fugitive Emissions 1:
Refrigerant leaks from air-conditioning (RAC) equipment in leased assets and fleet vehicles managed and owned by the McDonald's franchisee.

Fugitive emissions are currently not reported as outlined in the exclusions statement.

Process

McDonald's follow the reporting approach set out in the UK Government's Environmental Reporting Guidance (2019) to ensure that reporting standards are robust and transparent.

For most of its major emissions sources primary data from AMR meter readings, utility bills and expensed claims. Emissions data is collated centrally by Mitie Energy's Sustainability team who have overall responsibility for ensuring the calculations and methodology are correct.


Data Sources

Scope 1 and 2:
Gas Consumption Utility bills are verified through Mitie's bureau service.
Any billing data is cross referenced against half hourly
and meter read data where available.

Company Vehicles Fleet Fuel Card data records provide the amount of fuel
purchased for business purposes.

Purchased Electricity Utility bills are verified through Mitie's bureau service.
Any billing data is cross referenced against half hourly
and meter read data where available.

Scope 3:
Grey Fleet Mileage claims are provided.

Upstream Leased Assets Landlord statements are used where available (and
applicable). Where unavailable (and applicable) landlord
recharge data is estimated based on a typical
restaurant's consumption profile.

Estimations

Where building utility data is unavailable, estimations are made based on an average restaurant (or site) type of consumption for McDonalds' whole portfolio. For sites where invoice data is only available for a partial period, the available data is apportioned using an average kWh/day figure.

Disclosure in the strategic report
The Strategic Report includes a statement by the directors in performance of their statutory duties in accordance with s172(1) Companies Act 2006.


CASPIAN NETWORKS LIMITED (REGISTERED NUMBER: 03283357)

Report of the Directors
for the year ended 31 December 2022

Statement of directors' responsibilities
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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 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:

- select suitable accounting policies and then apply them consistently;
- make judgements and accounting estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and
explained in the financial statements;
- 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 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.

Statement as to disclosure of information to auditors
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

Auditors
The auditors, Haines Watts Birmingham LLP, are deemed re-appointed under Section 487(2) of the Companies Act 2006.

On behalf of the board:





M D Guerin - Director


18 October 2023

Report of the Independent Auditors to the Members of
Caspian Networks Limited

Opinion
We have audited the financial statements of Caspian Networks Limited (the 'company') for the year ended 31 December 2022 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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:
-give a true and fair view of the state of the company's affairs as at 31 December 2022 and of its loss for the year 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 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 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.

Emphasis of matter
We draw attention to note 16 'Loans' within the financial statements which states that, whilst the company was able to fulfil all of its loan repayment obligations, it was unable to meet the debt servicing requirements during the year ended 31 December 2022.

The breach was reported to HSBC following the year end and, on 16 October 2023, HSBC indicated that it will not take any action pursuant to an Event of Default but reserves its right to take any action if they deem appropriate to do so. Management accounts to 31 August 2023 indicate that the company remains in breach of its debt servicing requirements.

Our opinion is not modified in respect of this matter.

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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.

In connection with our audit of the financial statements, 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 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.

Opinions 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 Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
Caspian Networks Limited


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 Report of the Directors.

We have nothing to report in respect of the following matters where 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 Statement of Directors' Responsibilities set out on page nine, 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 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.

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 a Report of the Auditors 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:

Based on our understanding of the industry, we identified that the principal risks of non-compliance related to
breaches of health and safety, including food hygiene. We considered the extent to which non-compliance might have a material affect on the financial statements. We also considered those laws and regulations that have a direct impact on preparation of the financial statements, such as the Companies Act 2006. We examined management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of overriding of controls) and determined that the principal risks were relating to management bias in accounting estimates, in particular those of accrued liabilities and the useful life of tangible assets. We also discussed with management the possibility of non-compliance with health and safety and food hygiene regulations and reviewed the management controls in place to detect such irregularities. Audit procedures included challenging assumptions made by management in their significant accounting estimates. 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 described 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 due to error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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 Report of the Auditors.

Report of the Independent Auditors to the Members of
Caspian Networks 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 a Report of the Auditors 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.




Nichola Venables ACA (Senior Statutory Auditor)
for and on behalf of Haines Watts Birmingham LLP
5 - 6 Greenfield Crescent
Edgbaston
Birmingham
B15 3BE

18 October 2023

CASPIAN NETWORKS LIMITED (REGISTERED NUMBER: 03283357)

Income Statement
for the year ended 31 December 2022

2022 2021
Notes £ £

Turnover 58,154,215 59,979,845

Cost of sales (21,141,720 ) (20,525,171 )
Gross profit 37,012,495 39,454,674

Administrative expenses (37,842,327 ) (36,182,098 )
(829,832 ) 3,272,576

Other operating income - 606,452
Operating (loss)/profit 4 (829,832 ) 3,879,028

Interest receivable and similar income 15,637 -
(814,195 ) 3,879,028

Interest payable and similar expenses 5 (41,475 ) (32,590 )
(Loss)/profit before taxation (855,670 ) 3,846,438

Tax on (loss)/profit 6 243,203 (1,006,069 )
(Loss)/profit for the financial year (612,467 ) 2,840,369

CASPIAN NETWORKS LIMITED (REGISTERED NUMBER: 03283357)

Other Comprehensive Income
for the year ended 31 December 2022

2022 2021
Notes £ £

(Loss)/profit for the year (612,467 ) 2,840,369


Other comprehensive income - -
Total comprehensive (loss)/income for the
year

(612,467

)

2,840,369

CASPIAN NETWORKS LIMITED (REGISTERED NUMBER: 03283357)

Balance Sheet
31 December 2022

2022 2021
Notes £ £ £ £
Fixed assets
Intangible assets 9 1,512,937 1,640,848
Tangible assets 10 5,986,419 6,454,248
Investments 11 16,250 16,250
7,515,606 8,111,346

Current assets
Stocks 12 272,986 197,124
Debtors 13 966,802 844,563
Cash at bank and in hand 7,698,759 8,116,498
8,938,547 9,158,185
Creditors
Amounts falling due within one year 14 6,609,923 5,254,610
Net current assets 2,328,624 3,903,575
Total assets less current liabilities 9,844,230 12,014,921

Creditors
Amounts falling due after more than one
year

15

-

(1,166,518

)

Provisions for liabilities 19 (619,076 ) (850,782 )
Net assets 9,225,154 9,997,621

Capital and reserves
Called up share capital 20 100 100
Retained earnings 21 9,225,054 9,997,521
Shareholders' funds 9,225,154 9,997,621

The financial statements were approved by the Board of Directors and authorised for issue on 18 October 2023 and were signed on its behalf by:





M D Guerin - Director


CASPIAN NETWORKS LIMITED (REGISTERED NUMBER: 03283357)

Statement of Changes in Equity
for the year ended 31 December 2022

Called up
share Retained Total
capital earnings equity
£ £ £

Balance at 1 January 2021 100 7,317,152 7,317,252

Changes in equity
Dividends - (160,000 ) (160,000 )
Total comprehensive income - 2,840,369 2,840,369
Balance at 31 December 2021 100 9,997,521 9,997,621

Changes in equity
Dividends - (160,000 ) (160,000 )
Total comprehensive loss - (612,467 ) (612,467 )
Balance at 31 December 2022 100 9,225,054 9,225,154

CASPIAN NETWORKS LIMITED (REGISTERED NUMBER: 03283357)

Cash Flow Statement
for the year ended 31 December 2022

2022 2021
Notes £ £
Cash flows from operating activities
Cash generated from operations 1 1,423,216 5,104,602
Interest paid (41,475 ) (32,590 )
Tax paid (430,886 ) (589,759 )
Net cash from operating activities 950,855 4,482,253

Cash flows from investing activities
Purchase of intangible fixed assets (30,000 ) (90,000 )
Purchase of tangible fixed assets (1,703,944 ) (1,026,613 )
Purchase of fixed asset investments (1,250 ) -
Sale of intangible fixed assets 592,658 -
Sale of tangible fixed assets 557,342 -
Sale of fixed asset investments 1,250 -
Interest received 15,637 -
Net cash from investing activities (568,307 ) (1,116,613 )

Cash flows from financing activities
Loan repayments in year (663,581 ) (670,369 )
Amount introduced by directors 160,000 160,209
Amount withdrawn by directors (136,706 ) (616,515 )
Equity dividends paid (160,000 ) (160,000 )
Net cash from financing activities (800,287 ) (1,286,675 )

(Decrease)/increase in cash and cash equivalents (417,739 ) 2,078,965
Cash and cash equivalents at beginning
of year

2

8,116,498

6,037,533

Cash and cash equivalents at end of year 2 7,698,759 8,116,498

CASPIAN NETWORKS LIMITED (REGISTERED NUMBER: 03283357)

Notes to the Cash Flow Statement
for the year ended 31 December 2022

1. Reconciliation of (loss)/profit before taxation to cash generated from operations
2022 2021
£ £
(Loss)/profit before taxation (855,670 ) 3,846,438
Depreciation charges 1,760,969 1,803,810
Profit on disposal of fixed assets (581,283 ) -
Finance costs 41,475 32,590
Finance income (15,637 ) -
349,854 5,682,838
Increase in stocks (75,862 ) (987 )
Increase in trade and other debtors (85,801 ) (195,701 )
Increase/(decrease) in trade and other creditors 1,235,025 (381,548 )
Cash generated from operations 1,423,216 5,104,602

2. Cash and cash equivalents

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2022
31/12/22 1/1/22
£ £
Cash and cash equivalents 7,698,759 8,116,498
Year ended 31 December 2021
31/12/21 1/1/21
£ £
Cash and cash equivalents 8,116,498 6,037,533


3. Analysis of changes in net funds

At 1/1/22 Cash flow At 31/12/22
£ £ £
Net cash
Cash at bank and in hand 8,116,498 (417,739 ) 7,698,759
8,116,498 (417,739 ) 7,698,759
Debt
Debts falling due within 1 year (664,467 ) (502,936 ) (1,167,403 )
Debts falling due after 1 year (1,166,518 ) 1,166,518 -
(1,830,985 ) 663,582 (1,167,403 )
Total 6,285,513 245,843 6,531,356

CASPIAN NETWORKS LIMITED (REGISTERED NUMBER: 03283357)

Notes to the Financial Statements
for the year ended 31 December 2022

1. Statutory information

Caspian Networks Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. Accounting policies

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Going concern
The directors have considered the application of the going concern basis of accounting in doing so they have considered the period from the date of this report until 31 December 2024. The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting in preparing the annual financial statements.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Intangible assets
Franchise rights & fees, being the amounts paid on acquisition of restaurants are being written off evenly over the terms of the franchise agreements or, in the case of restaurants acquired mid term, written off over 20 years. The 20 year write off period for any restaurants purchased mid term is on the basis that, on expiry of the existing 20 year franchise agreements, the company will be granted further 20 year franchises. The franchisor operates a formal "new term process" which sets out requirements for granting of a new term and the director does not anticipate any difficulty in meeting these requirements.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Short leasehold - at varying rates on cost
Plant and machinery - 15% on reducing balance and at varying rates on cost
Fixtures and fittings - 25% on reducing balance
Motor vehicles - 25% on reducing balance

Government grants
Grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received.

Grants are recognised using the accrual model.

Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income and not deducted from the carrying amount of the asset.

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

CASPIAN NETWORKS LIMITED (REGISTERED NUMBER: 03283357)

Notes to the Financial Statements - continued
for the year ended 31 December 2022

2. Accounting policies - continued

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Impairment of fixed assets
At each reporting end date, the company reviews the carrying amounts of its tangible and intangible 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.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to each asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Holiday pay accrual
A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the Balance Sheet date and carried forward to future periods. This is measured at the undiscounted cost of the future holiday entitlement so accrued at the Balance Sheet date.

CASPIAN NETWORKS LIMITED (REGISTERED NUMBER: 03283357)

Notes to the Financial Statements - continued
for the year ended 31 December 2022

2. Accounting policies - continued

Financial instruments
The Company only enters into basic financial instruments 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.

For financial assets measured at amortised cost, the impairment cost is measured at the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the assets effective interest rate. If the financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the balance sheet date.

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.

Finance costs
Finance costs are charged to the Profit and Loss Account 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.

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

Judgements in applying accounting policies and key sources of estimation uncertainty
In the process of applying the company's accounting policies, management are required to make certain estimates and judgements. The key estimates and judgements are as follows:

Depreciation and residual values
The director has reviewed the asset lives and associated residual values of all fixed asset classes, and has concluded that asset lives and residual values are appropriate.

Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

Holiday pay accrual
A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the Balance Sheet date and carried forward to future periods. This is measured at the undiscounted cost of the future holiday entitlement so accrued at the Balance Sheet date.

3. Employees and directors
2022 2021
£ £
Wages and salaries 16,096,425 15,457,093
Social security costs 759,781 749,600
Other pension costs 192,945 187,375
17,049,151 16,394,068

CASPIAN NETWORKS LIMITED (REGISTERED NUMBER: 03283357)

Notes to the Financial Statements - continued
for the year ended 31 December 2022

3. Employees and directors - continued

The average number of employees during the year was as follows:
2022 2021

Crew labour 1,393 1,259
Management labour 54 51
1,447 1,310

2022 2021
£ £
Directors' remuneration 27,000 27,000

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 2 2

4. Operating (loss)/profit

The operating loss (2021 - operating profit) is stated after charging/(crediting):

2022 2021
£ £
Other operating leases 6,778,653 6,572,004
Depreciation - owned assets 1,629,431 1,667,957
Profit on disposal of fixed assets (581,283 ) -
Franchise rights & fees amortisation 131,536 135,853
Auditors' remuneration 7,000 7,000
Other non- audit services 6,563 10,306

5. Interest payable and similar expenses
2022 2021
£ £
Bank interest 41,475 32,590

6. Taxation

Analysis of the tax (credit)/charge
The tax (credit)/charge on the loss for the year was as follows:
2022 2021
£ £
Current tax:
UK corporation tax - 688,204
Prior year adjustment (11,497 ) -
Total current tax (11,497 ) 688,204

Deferred tax (231,706 ) 317,865
Tax on (loss)/profit (243,203 ) 1,006,069

UK corporation tax has been charged at 19% (2021 - 19%).

CASPIAN NETWORKS LIMITED (REGISTERED NUMBER: 03283357)

Notes to the Financial Statements - continued
for the year ended 31 December 2022

6. Taxation - continued

Reconciliation of total tax (credit)/charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2022 2021
£ £
(Loss)/profit before tax (855,670 ) 3,846,438
(Loss)/profit multiplied by the standard rate of corporation tax in the UK of
19% (2021 - 19%)

(162,577

)

730,823

Effects of:
Expenses not deductible for tax purposes 756 2,335
Capital allowances in excess of depreciation (142,517 ) (44,954 )
Adjustments to tax charge in respect of previous periods (11,497 ) -
Deferred tax charge (231,706 ) 317,865
Profit/loss on disposal of fixed assets (2,850 ) -
Profit/loss on disposal of intangible assets (1,355 ) -
Losses carried forward 308,543 -
Total tax (credit)/charge (243,203 ) 1,006,069

The Finance Act 2022 introduced an increase to the UK's main corporation tax rate to 25%, which is due to be effective from 1 April 2023.

Deferred tax has been calculated at 25% (2021 - 25%).

7. Dividends
2022 2021
£ £
Ordinary A shares of £1 each
Interim 75,000 75,000
Ordinary B shares of £1 each
Interim 85,000 85,000
160,000 160,000

8. Government grants

During the period the company received a total grant of £nil (2021 - £606,452) under the Coronavirus Job Retention Scheme. This is shown in the profit and loss account under the heading other income.

CASPIAN NETWORKS LIMITED (REGISTERED NUMBER: 03283357)

Notes to the Financial Statements - continued
for the year ended 31 December 2022

9. Intangible fixed assets
Franchise
rights &
fees
£
Cost
At 1 January 2022 3,643,834
Additions 30,000
Disposals (30,000 )
At 31 December 2022 3,643,834
Amortisation
At 1 January 2022 2,002,986
Amortisation for year 131,536
Eliminated on disposal (3,625 )
At 31 December 2022 2,130,897
Net book value
At 31 December 2022 1,512,937
At 31 December 2021 1,640,848

10. Tangible fixed assets
Fixtures
Short Plant and and Motor
leasehold machinery fittings vehicles Totals
£ £ £ £ £
Cost
At 1 January 2022 123,350 16,735,527 170,067 60,000 17,088,944
Additions 15,490 1,626,454 - 62,000 1,703,944
Disposals (17,621 ) (813,819 ) - (60,000 ) (891,440 )
At 31 December 2022 121,219 17,548,162 170,067 62,000 17,901,448
Depreciation
At 1 January 2022 38,417 10,414,224 168,056 13,999 10,634,696
Charge for year 5,040 1,611,855 503 12,033 1,629,431
Eliminated on disposal (2,129 ) (321,969 ) - (25,000 ) (349,098 )
At 31 December 2022 41,328 11,704,110 168,559 1,032 11,915,029
Net book value
At 31 December 2022 79,891 5,844,052 1,508 60,968 5,986,419
At 31 December 2021 84,933 6,321,303 2,011 46,001 6,454,248

CASPIAN NETWORKS LIMITED (REGISTERED NUMBER: 03283357)

Notes to the Financial Statements - continued
for the year ended 31 December 2022

11. Fixed asset investments
Unlisted
investments
£
Cost
At 1 January 2022 16,250
Additions 1,250
Disposals (1,250 )
At 31 December 2022 16,250
Net book value
At 31 December 2022 16,250
At 31 December 2021 16,250

Fixed asset investments consists of 16,250 (2021 - 16,250) ordinary shares of £1 each in Fries Holding Company Limited, a company registered in Guernsey. The investments are included in the accounts at cost.

12. Stocks
2022 2021
£ £
Food 197,151 155,205
Paper 56,694 38,990
Non product 19,141 2,929
272,986 197,124

13. Debtors: amounts falling due within one year
2022 2021
£ £
Trade debtors 372 994
Other debtors 379,108 354,385
Directors' current accounts 315,314 338,608
Corporation tax 59,733 -
Prepayments 212,275 150,576
966,802 844,563

14. Creditors: amounts falling due within one year
2022 2021
£ £
Bank loans and overdrafts (see note 16) 1,167,403 664,467
Trade creditors 1,884,445 1,452,716
Corporation tax - 382,650
Social security and other taxes 172,949 210,776
VAT 1,575,412 893,793
Other creditors 772,159 867,373
Accrued expenses 1,037,555 782,835
6,609,923 5,254,610

15. Creditors: amounts falling due after more than one year
2022 2021
£ £
Bank loans (see note 16) - 1,166,518

CASPIAN NETWORKS LIMITED (REGISTERED NUMBER: 03283357)

Notes to the Financial Statements - continued
for the year ended 31 December 2022

16. Loans

An analysis of the maturity of loans is given below:

2022 2021
£ £
Amounts falling due within one year or on demand:
Bank loans 1,167,403 664,467

Amounts falling due between one and two years:
Bank loans - 1-2 years - 664,467

Amounts falling due between two and five years:
Bank loans - 2-5 years - 502,051

The loans are due for repayment in equal monthly instalments with terms as stated above. They are unsecured with interest charged at 1.2% above the Bank of England base rates.

The loan balance includes two loans from HSBC which contain a covenant in respect of debt service coverage. If adjusted cashflow falls below 110% of debt service, the bank has the right to default the loan.

Whilst the company was able to fulfill all of its loan repayment obligations, it was unable to meet the debt servicing requirements during the year ended 31 December 2022. The breach was reported to HSBC following the year end and, on 16 October 2023, HSBC indicated that it will not take any action pursuant to an Event of Default but reserves its right to take any action if they deem appropriate to do so. The covenant has been calculated on the 31 August 2023 management accounts which has indicated the company remains in breach of its debt servicing requirement.

17. Leasing agreements

Minimum lease payments under non-cancellable operating leases fall due as follows:
2022 2021
£ £
Within one year 1,507,872 1,507,872
Between one and five years 5,662,356 5,907,102
In more than five years 14,318,588 15,608,204
21,488,816 23,023,178

Lease payments recognised as an expense in the year totalled £6,778,653 (2021 - £6,572,004).

The Company's restaurant premises are leased from McDonalds Restaurants Limited under non-cancellable operating leases with expiry terms of more than five years. Rent is calculated as a percentage of sales above base, the above operating lease commitment only relates to base rent. Each restaurant pays its own unique base rent based on its circumstances, with the remainder of the rent being based on the performance of the restaurant.

CASPIAN NETWORKS LIMITED (REGISTERED NUMBER: 03283357)

Notes to the Financial Statements - continued
for the year ended 31 December 2022

18. Financial instruments


Financial Assets

2022

2021
£ £
Financial assets as an equity instrument 16,250 16,250
Financial assets that are debt instruments measured at amortised cost 8,393,553 8,810,485
8,411,825 8,826,735


Financial Liabilities 4,861,562 4,933,909
4,861,562 4,933,909

19. Provisions for liabilities
2022 2021
£ £
Deferred tax 619,076 850,782

Deferred tax
£
Balance at 1 January 2022 850,782
Credit to Income Statement during year (231,706 )
Balance at 31 December 2022 619,076

20. Called up share capital

Allotted, issued and fully paid:
Number: Class: Nominal 2022 2021
value: £ £
75 Ordinary A £1 75 75
25 Ordinary B £1 25 25
100 100

21. Reserves
Retained
earnings
£

At 1 January 2022 9,997,521
Deficit for the year (612,467 )
Dividends (160,000 )
At 31 December 2022 9,225,054

CASPIAN NETWORKS LIMITED (REGISTERED NUMBER: 03283357)

Notes to the Financial Statements - continued
for the year ended 31 December 2022

22. Directors' advances, credits and guarantees

The following advances and credits to a director subsisted during the years ended 31 December 2022 and 31 December 2021:

2022 2021
£ £
M D Guerin
Balance outstanding at start of year 338,608 (117,698 )
Amounts advanced 136,706 616,306
Amounts repaid (160,000 ) (160,000 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 315,314 338,608

The company has charged interest on the overdrawn amount at HMRC approved rates and is repayable on demand.

23. Related party disclosures

During the year, total dividends of £160,000 (2021 - £160,000) were paid to the directors .

24. Ultimate controlling party

The controlling party is M D Guerin.