Caseware UK (AP4) 2022.0.179 2022.0.179 10151698350280691902182413P R Lewin2023-10-3102022-02-01false002023-01-31077821080 07782108 2022-02-01 2023-01-31 07782108 2021-02-01 2022-01-31 07782108 2023-01-31 07782108 2022-01-31 07782108 2021-02-01 07782108 c:CompanySecretary1 2022-02-01 2023-01-31 07782108 c:Director1 2022-02-01 2023-01-31 07782108 c:Director2 2022-02-01 2023-01-31 07782108 c:Director2 2023-01-31 07782108 c:RegisteredOffice 2022-02-01 2023-01-31 07782108 d:Buildings d:LongLeaseholdAssets 2022-02-01 2023-01-31 07782108 d:LandBuildings 2022-02-01 2023-01-31 07782108 d:PlantMachinery 2022-02-01 2023-01-31 07782108 d:FurnitureFittings 2022-02-01 2023-01-31 07782108 d:ComputerEquipment 2022-02-01 2023-01-31 07782108 d:PatentsTrademarksLicencesConcessionsSimilar 2022-02-01 2023-01-31 07782108 d:Goodwill 2022-02-01 2023-01-31 07782108 d:CurrentFinancialInstruments 2023-01-31 07782108 d:CurrentFinancialInstruments 2022-01-31 07782108 d:ShareCapital 2022-02-01 2023-01-31 07782108 d:ShareCapital 2023-01-31 07782108 d:ShareCapital 2021-02-01 2022-01-31 07782108 d:ShareCapital 2022-01-31 07782108 d:ShareCapital 2021-02-01 07782108 d:RetainedEarningsAccumulatedLosses 2022-02-01 2023-01-31 07782108 d:RetainedEarningsAccumulatedLosses 2023-01-31 07782108 d:RetainedEarningsAccumulatedLosses 2021-02-01 2022-01-31 07782108 d:RetainedEarningsAccumulatedLosses 2022-01-31 07782108 c:FullIFRS 2022-02-01 2023-01-31 07782108 c:Audited 2022-02-01 2023-01-31 07782108 c:FullAccounts 2022-02-01 2023-01-31 07782108 c:PrivateLimitedCompanyLtd 2022-02-01 2023-01-31 07782108 13 2022-02-01 2023-01-31 07782108 18 2022-02-01 2023-01-31 07782108 d:CurrentFinancialInstruments d:Secured 2023-01-31 07782108 d:CurrentFinancialInstruments d:Secured 2022-01-31 07782108 30 2022-02-01 2023-01-31 07782108 33 2022-02-01 2023-01-31 iso4217:GBP xbrli:pure

Registered number: 07782108










City Brewery Limited










Financial statements

For the year ended 31 January 2023

 
City Brewery Limited
 

 
Company Information


Directors
P R Lewin 
C R Arthurs (appointed 6 June 2023)




Company secretary
Adauxi Limited



Registered number
07782108



Registered office
B4 Parkside Knowledge Gateway
Nesfield Road

Colchester

CO4 3ZL




Independent auditors
Kreston Reeves LLP
Chartered Accountants & Statutory Auditor

2nd Floor

168 Shoreditch High Street

London

E1 6RA





 
City Brewery Limited
 

 
Contents


Page
Group strategic report
 
 
1 - 2
Directors' report
 
 
3 - 4
Independent auditors' report

 
5 - 8
Consolidated statement of profit or loss and other comprehensive income

 
9
Consolidated statement of financial position
 
 
10
Company statement of financial position
 
 
11
Consolidated statement of changes in equity
 
 
12
Company statement of changes in equity
 
 
13
Consolidated statement of cash flows
 
 
14
Company statement of cash flows
 
 
16
Notes to the consolidated financial statements
 
 
18 - 44

 

 

 
City Brewery Limited
 

 
Group strategic report
For the year ended 31 January 2023

Introduction
 
The directors present their Group Strategic report, Director's report and the audited financial statements for the year ended 31 January 2023.

Business review
 
The Group had record sales in the first full year of operations following lockdown as sales were boosted by strong first half with events postponed due to the pandemic being rescheduled in the year.
The Group generated revenues of £21.6m (2022: £7.5m) which was 16.% ahead of FY20 (the last full year of operations before lockdown). The gross margin was 56.7% (2022: 55.6%) which decreased from 61.3% (FY20) due to cost inflation and pricing lag. Indirect costs were better leveraged as they dropped to 40.1% (2022: 42%) from 43.8% (FY20).
EBITDA rose 121% from £3.3m (FY20) to £7.2m. EBITDA in 2022 was £(473,331).

Financial key performance indicators
 
The key performance indicators of the Group are turnover, gross profit and margin. This information allows management to monitor activity and cost levels. Gross profit for the year ended 31 January 2023 was £12,254,554 (2022: £4,163,855) achieving a margin on sales of 57% (2022: 56%). Restoring gross margins to pre-pandemic levels has been a key focus in the year just finished, given inflationary pressures that affected direct labour and materials costs.

ole541f.png
Page 1

 
City Brewery Limited
 

 
Group strategic report (continued)
For the year ended 31 January 2023

Principal risks and uncertainties
 
Currency risk
All of the Group's revenues and costs are denominated in Sterling. Therefore the directors consider that the Group has no material exposure to currency risk.
Credit risk
The Group's principal financial assets are cash and trade debtors. There is minimal credit risk associated with the Group's cash balances as these are all held with recognised financial institutions. The Group's principal credit risk is the recovery of trade debtor amounts. This risk is managed by the setting of credit limits for customers based on a combination of third party credit reference agency limits or trading experience and payment history. There is a credit control function to actively chase outstanding debts.
Interest and liquidity risk
The Group seeks to manage its financial risk to ensure that sufficient liquidity is available to meet foreseeable needs in both the short and the long term.


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



P R Lewin
Director
Date: 31 October 2023
Page 2

 
City Brewery Limited
 

 
Directors' report
For the year ended 31 January 2023

The directors present their report and the financial statements for the year ended 31 January 2023.

Principal activity

The principal activities during the year were marketing and operating its subsidary, The Brewery on Chiswell Street Limited.

Directors

The director who served during the year was:
 
P R Lewin 

Results and dividends

The profit for the year, after taxation, amounted to £2,214,276 (2022: loss £3,388,049).

An interim dividend was paid during the year of £Nil (2022: £Nil). The directors do not recommend the payment of final dividend.

Directors' responsibilities statement

The directors are responsible for preparing the Group strategic report, Directors' report and the consolidated financial statements, in accordance with applicable law.

Company law requires the directors to prepare consolidated financial statements for each financial year. Under that law they have elected to prepare the consolidated financial statements in accordance with International Financial Reporting Standards (IFRS) as adopted by the UK.

Under company law the directors must not approve the consolidated financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and the Company and of the profit or loss of the Group for that period. In preparing the consolidated financial statements, the directors are required to:

select suitable accounting policies and then apply them consistently;

make judgments and estimates that are reasonable and prudent;

state whether they have been prepared in accordance with IFRS as adopted by the UK, subject to any material departures disclosed and explained in the financial statements;

assess the Group and Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and

use the going concern basis of accounting unless they either intend to liquidate the Group or the Company or to cease operations, or have no realistic alternative but to do so.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the parent Company's transactions and disclose with reasonable accuracy at any time the financial position of the parent Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Group and to prevent and detect fraud and other irregularities.

The directors are responsible for the maintenance and integrity of the corporate and financial information included on the Group'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.
Page 3

 
City Brewery Limited
 

 
Directors' report (continued)
For the year ended 31 January 2023

Future developments

As we complete the third quarter of FY24, contractually committed business for the year exceeds £21m and the level of enquiries suggest a further record year.
The rapid and consistent recovery from the pandemic has encouraged the management team to revisit its plans to expand the business and negotiations are at an advanced stage to open another major venue in the City of London.

Disclosure of information to auditors

The directors at the time when this Directors' report is approved has confirmed that:
 
so far as the directors are aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

the directors have taken all the steps that ought to have been taken as directors in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Matters covered in the Strategic report

Items required under Schedule 7 to be disclosed in the directors' report are set out in the group strategic report in accordance with s414C(11) Companies Act 2006.

Auditors

The auditorsKreston Reeves LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

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



P R Lewin
Director
Date: 31 October 2023
Page 4

 
City Brewery Limited
 

 
Independent auditors' report to the members of City Brewery Limited
 

Opinion


We have audited the financial statements of City Brewery Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 January 2023 which comprise the Consolidated statement of profit or loss and other comprehensive incomethe Consolidated statement of financial position, the Company Statement of financial positionthe Consolidated statement of cash flows, the Company Statement of cash flowsthe Consolidated statement of changes in equity, the Company Statement of changes in equity and the related notes, including a summary of significant accounting policies set out on pages 18 - 26. The financial reporting framework that has been applied in the preparation of the financial statements is applicable law and International Financial Reporting Standards (IFRSs) in conformity with the requirements of the Companies Act 2006

In our opinion, the financial statements:

the financial statements give a true and fair view of the state of the Group's and the parent Company's affairs as at 31 January 2023 and of the Group's profit for the year then ended;

the Group financial statements have been properly prepared in accordance with IFRSs in conformity with the requirements of the Companies Act 2006and

the financial statements 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 Group and the parent 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. Our evaluation of the directors' assessment of the Group's and the parent Company's ability to continue to adopt the going concern basis of accounting included:

Examining the post year end performance of the Group, using management accounts which show it has returned to making profits.
Examining forecasts prepared up to 31 January 2025 which detail the Group's continued strong results and high levels of bookings. 

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 Group's or the parent 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.
Page 5

 
City Brewery Limited
 

 
Independent auditors' report to the members of City Brewery Limited (continued)


Other information


The directors are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Auditors' report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

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 Group strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Group 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 Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group strategic report or the Director's 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 by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or

the parent Company 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 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 Group's and the parent 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 Group or the parent Company or to cease operations, or have no realistic alternative but to do so.

Page 6

 
City Brewery Limited
 

 
Independent auditors' report to the members of City Brewery 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:

Capability of the audit in detecting irregularities, including fraud
Based on our understanding of the group and industry, and through discussion with the directors and other management (as required by auditing standards), we identified that the principal risks of non-compliance with laws and regulations related to The Food Safety Act 1990, The Food Safety and Hygiene (England) Regulations 2018, health and safety, anti-bribery and employment law. We considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, taxation and pension legislation. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to increase revenue or reduce expenditure, management bias in accounting estimates and judgemental areas of the financial statements. Audit procedures performed by the engagement team included:
 
Discussions with management and assessment of known or suspected instances of non-compliance with laws and regulations (including health and safety) and fraud; and
Assessment of identified fraud risk factors; and
Identifying and assessing the design effectiveness of controls that management has in place to prevent and detect fraud; and
Testing of internal controls procedures relating to expenditure potentially more susceptible to fraud and other irregularities including cash and payroll expenditure; and
Challenging assumptions and judgements made by management in its significant accounting estimates; and
Confirmation of related parties with management, and review of transactions throughout the period to identify any previously undisclosed transactions with related parties outside the normal course of business; and
Performing analytical procedures with automated data analytics tools to identify any unusual or unexpected relationships, including related party transactions, that may indicate risks of material misstatement due to fraud; and
Reading minutes of meetings of those charged with governance and reviewing correspondence with relevant tax and regulatory authorities; and
Review of internal controls and physical inspection of tangible assets susceptible to fraud or irregularity; and
Review of significant and unusual transactions and evaluation of the underlying financial rationale supporting the transactions; and
Identifying and testing journal entries, in particular any manual entries made at the year end for financial statement preparation.

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.
Page 7

 
City Brewery Limited
 

 
Independent auditors' report to the members of City Brewery Limited (continued)


The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the Group's and the parent Company's internal control.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group and the parent Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors' report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors' report. However, future events or conditions may cause the Group or the parent Company to cease to continue as a going concern.

Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.


Obtains sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statementsWe are responsible for the direction, supervision and performance of the Group audit. We remain solely responsible for the audit opinion.


We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

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 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.


 
 
Stephen Tanner BSc (Econ) FCA (Senior Statutory Auditor)
for and on behalf of
Kreston Reeves LLP
Chartered Accountants
Statutory Auditor
London

1 November 2023
Page 8

 
City Brewery Limited
 

 
Consolidated statement of profit or loss and other comprehensive income
For the year ended 31 January 2023


2023
2022
Note
£
£

  

Revenue
 5 
21,553,928
7,482,889

Cost of sales
  
(9,343,107)
(3,319,034)

Gross profit
  
12,210,821
4,163,855

  

Administrative expenses
  
(6,887,018)
(6,548,907)

Profit/(loss) from operations
  
5,323,803
(2,385,052)

  

Finance income
 8 
446
7,372

Finance expense
 8 
(2,304,523)
(2,256,991)

Profit/(loss) before tax
  
3,019,726
(4,634,671)

  

Tax (expense)/credit
 9 
(805,450)
1,246,622

Profit/(loss) for the year
  
2,214,276
(3,388,049)


Total comprehensive income
  
2,214,276
(3,388,049)

The notes on pages 18 to 44 form part of these financial statements.
The results for the year reflect trading from continuing operations.
Total comprehensive income is allocated in full to the owners of the Company.
Page 9

 
City Brewery Limited
Registered number: 07782108

 
Consolidated statement of financial position
As at 31 January 2023


2023
2022
Note
£
£

Assets

Non-current assets
  

Property, plant and equipment
 10 
15,482,418
17,051,995

Intangible assets
 11 
1,756,176
1,685,805

Trade and other receivables
 14 
29,136
29,136

  
17,267,730
18,766,936

Current assets
  

Inventories
 13 
345,821
237,918

Trade and other receivables
 14 
3,985,649
2,832,878

Cash and cash equivalents
 25 
543,999
138,622

  
4,875,469
3,209,418

Total assets

  

22,143,199
21,976,354

Liabilities

Non-current liabilities
  

Loans and borrowings
 16 
27,950,568
31,027,750

Deferred tax liability
 9 
(236,316)
(1,041,766)

  
27,714,252
29,985,984

Current liabilities
  

Trade and other liabilities
 15 
13,875,960
12,394,318

Loans and borrowings
 16 
3,083,531
4,340,872

  
16,959,491
16,735,190

Total liabilities
  
44,673,743
46,721,174

  

Net liabilities
  
(22,530,544)
(24,744,820)


Issued capital and reserves attributable to owners of the parent
 19 

Share capital
  
5
5

Retained earnings
  
(22,530,549)
(24,744,825)

  

Total equity
  
(22,530,544)
(24,744,820)

The financial statements on pages 17 to 44 were approved and authorised for issue by the board of directors and were signed on its behalf by:



P R Lewin
Director
Date: 31 October 2023
Page 10

 
City Brewery Limited
Registered number: 07782108

 
Company statement of financial position
As at 31 January 2023


2023
2022
Note
£
£

Assets

Non-current assets
  

Other non-current investments
  
2,355,005
2,355,005

Current assets
  

Trade and other receivables
 14 
1,913,482
1,884,010

Cash and cash equivalents
 25 
127
117

  
1,913,609
1,884,127

  

Total assets

  

4,268,614
4,239,132

Liabilities

Current liabilities
  

Trade and other liabilities
 15 
5,117,784
4,566,603

Loans and borrowings
 16 
-
400,000

Total liabilities
  
5,117,784
4,966,603

  

Net liabilities
  
(849,170)
(727,471)


Issued capital and reserves attributable to owners of the parent
 19 

Share capital
  
5
5

Retained earnings
  
(849,175)
(727,476)

Total equity
  
(849,170)
(727,471)

The Company's loss for the year was £121,699 (2022: loss of £102,985).

The financial statements on pages 17 to 44 were approved and authorised for issue by the board of directors and were signed on its behalf by:



P R Lewin
Director
Date: 31 October 2023
Page 11

 
City Brewery Limited


 
Consolidated statement of changes in equity
For the year ended 31 January 2023



Share capital
Retained earnings
Total attributable to equity holders of parent 
Total equity 


£
£
£
£

At 1 February 2021
5
(6,746,439)
(6,746,434)
(6,746,434)

Prior year adjustment - change in accounting policy
-
(14,610,337)
(14,610,337)
(14,610,337)

At 1 February 2021 (as restated)
5
(21,356,776)
(21,356,771)
(21,356,771)

Comprehensive income for the year



Loss for the year
-
(3,388,049)
(3,388,049)
(3,388,049)

Total comprehensive income for the year
-
(3,388,049)
(3,388,049)
(3,388,049)

Contributions by and distributions to owners





At 31 January 2022
5
(24,744,825)
(24,744,820)
(24,744,820)

At 1 February 2022
5
(24,744,825)
(24,744,820)
(24,744,820)

Comprehensive income for the year



Profit for the year
-
2,214,276
2,214,276
2,214,276

Total comprehensive income for the year
-
2,214,276
2,214,276
2,214,276

Contributions by and distributions to owners





At 31 January 2023
5
(22,530,549)
(22,530,544)
(22,530,544)
Page 12

 
City Brewery Limited


 
Company statement of changes in equity
For the year ended 31 January 2023



Share capital
Retained earnings
Total equity


£
£
£

At 1 February 2021
5
(624,491)
(624,486)

Loss for the year
-
(102,985)
(102,985)

Total comprehensive income for the year
-
(102,985)
(102,985)

At 31 January 2022
5
(727,476)
(727,471)

At 1 February 2022
5
(727,476)
(727,471)

Profit for the year
-
(121,699)
(121,699)

Total comprehensive income for the year
-
(121,699)
(121,699)

At 31 January 2023
5
(849,175)
(849,170)
Page 13

 
City Brewery Limited


 
Consolidated statement of cash flows
For the year ended 31 January 2023


2023
2022
Note
£
£

Cash flows from operating activities
  

Profit/(loss) for the year
  
2,214,276
(3,388,049)

Adjustments for
  

Depreciation of property, plant and equipment
 10 
1,876,888
1,911,721

Amortisation of intangible fixed assets
 11 
23,669
-

Adjustment to amortisation on reclassifcation of website costs to intangible assets
 11 
(20,134)
-

Finance income
 8 
(446)
(7,372)

Finance expense
 8 
2,304,523
2,256,990

  
6,398,776
773,290

Movements in working capital:
  

Decrease in trade and other receivables
  
1,481,642
383,964

Increase in inventories
  
(107,903)
(84,598)

(Decrease)/increase in trade and other payables
  
(1,152,771)
4,509,645

Movement in deferred tax
  
805,450
(1,246,622)

Cash generated from operations
  
7,425,194
4,335,679

  

Net cash from operating activities

  
7,425,194
4,335,679

Cash flows from investing activities
  

Purchases of property, plant and equipment
  
(381,217)
(39,818)

Interest received
  
446
7,372

Net cash used in investing activities

  
(380,771)
(32,446)

Cash flows from financing activities
  

Repayment of bank borrowings
  
(2,256,621)
(2,209,355)

Payments of finance lease creditors
  
(4,051,955)
(3,828,937)

Interest paid
  
(330,470)
(147,338)

Net cash used in financing activities
  
(6,639,046)
(6,185,630)

Net increase/(decrease) in cash and cash equivalents
  
405,377
(1,882,397)

  

Cash and cash equivalents at the beginning of year
  
138,622
2,021,019

Cash and cash equivalents at the end of the year
 25 
543,999
138,622

The notes on pages 18 to 44 form part of these financial statements.

Page 14

 
City Brewery Limited


 
Consolidated statement of cash flows (continued)
For the year ended 31 January 2023

 
Consolidated net debt reconciliation
As at 31 January 2023

 
2023
2022
£
£

Net debt


Overdrafts
-
-

Borrowings repayable within one year

Bank loan
920,344
2,262,871

Borrowings repayable greater than one year

Bank loan
3,051,180
3,965,274

3,971,524
6,228,145

 

 







Page 15

 
City Brewery Limited


 
Company statement of cash flows
For the year ended 31 January 2023


2023
2022
Note
£
£

Cash flows from operating activities
  

Loss for the year
  
(121,699)
(102,985)

Adjustments for
  

Finance expense
 8 
6,019
19,926

  
(115,680)
(83,059)

Movements in working capital:
  

Increase in trade and other receivables
  
(29,472)
(930,374)

(Decrease)/increase in trade and other payables
  
(33,088)
1,033,372

Increase in amounts owed to related parties
  
584,269
-

Cash generated from operations
  
406,029
19,939

  

Net cash from operating activities

  
406,029
19,939

Cash flows from investing activities
  

Cash flows from financing activities
  

Repayment of bank borrowings
  
(400,000)
-

Interest paid on convertible loan notes
  
(6,019)
(19,926)

Net cash used in financing activities
  
(406,019)
(19,926)

Net increase in cash and cash equivalents
  
10
13

  

Cash and cash equivalents at the beginning of year
  
117
104

Cash and cash equivalents at the end of the year
 25 
127
117

The notes on pages 18 to 44 form part of these financial statements.

Page 16

 
City Brewery Limited


 
Company statement of cash flows (continued)
For the year ended 31 January 2023

 
Net debt reconciliation
As at 31 January 2023

 
2023
2022
£
£

Net debt


Borrowings repayable within one year

Bank loan
-
400,000

Borrowings repayable greater than one year

Bank loan
-
-

-
400,000

 

 

Page 17

 
City Brewery Limited
 

 
Notes to the consolidated financial statements
For the year ended 31 January 2023

1.


Reporting entity

City Brewery Limited (the 'Company') is a private company, limited by shares, incorporated in England. The Company's registered office is at B4 Parkside Knowledge Gateway, Nesfield Road, Colchester, CO34 3ZL. These consolidated financial statements comprise the Company and its subsidiaries (collectively the 'Group' and individually 'Group companies'). The Group is primarily involved in the provision of conferencing and banqueting services. The Group's principal place of business is The Brewery, 52 Chiswell Street, London, EC1Y 4SD.

2.Accounting policies

 
2.1

Basis of consolidation

The consolidated financial statements incorporate the financial statements of the Company and entities (including structured entities) controlled by the Company and its subsidiaries. Control is achieved when the Company:
has power over the investee;
is exposed, or has rights, to variable returns from its involvement with the investee; and
has the ability to use its power to affect its returns.

The Company reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control listed above.

When the Company has less than a majority of the voting rights of an investee, it has power over the investee when the voting rights are sufficient to give it the practical ability to direct the relevant activities of the investee unilaterally. The Company considers all relevant facts and circumstances in assessing whether or not the Company's voting rights in an investee are sufficient to give it power, including:
the size of the Company's holding of voting rights relative to the size and dispersion of holdings of the other vote holders;
potential voting rights held by the Company, other vote holders or other parties;
rights arising from other contractual arrangements; and
any additional facts and circumstances that indicate that the Company has, or does not have, the current ability to direct the relevant activities at this time that decisions need to be made, including voting patterns at previous shareholders' meetings.

Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ceases when the Company loses control of the subsidiary. Specifically, income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated statement of profit or loss and other comprehensive income from the date the Company gains control until the date when the Company ceases to control the subsidiary.

Profit or loss and each component of other comprehensive income are attributed to the owners of the Company and to the non-controlling interests. Total comprehensive income of subsidiaries is attributed to the owners of the Company and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.

When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with the Group's accounting policies.

All intragroup assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Group are eliminated in full on consolidation.

Page 18

 
City Brewery Limited
 

 
Notes to the consolidated financial statements
For the year ended 31 January 2023

2.Accounting policies (continued)


2.2

Basis of preparation

On 31 December 2020, IFRS as adopted by the European Union at that date was brought into UK law and became UK-adopted International Accounting Standards, with future changes being subject to endorsement by the UK Endorsement Board. The financial statements of the Company have been prepared in accordance with UK-adopted International Accounting Standards and with the requirements of the Companies Act 2006 as applicable to companies reporting under those standards.
The financial statements have been prepared on a going concern basis under the historical cost basis except for derivative financial instruments which are stated at fair value. The directors believe that preparing the accounts on the going concern is appropriate.

The Company has taken advantage of the exemption available under section 408 of the Companies Act 2006 and elected not to present its own Statement of comprehensive income in these financial statements.

The financial statements of the Group are for the year ended 31 January 2022. The financial statements were authorised for issue by the directors on the date specified on the Statement of financial position.

Details of the accounting policies applied, including changes in the year, are as follows: 


2.3

 Adoption of new and revised standards

a)New standards, interpretations and amendments adopted from 1 January 2023

New standards that have been adopted in the annual financial statements for the year ended 31 January 2023, but have not had a significant effect on the Group are:
 
Onerous Contracts - Cost of Fulfilling a Contract (Amendments to IAS37);Property, Plant and Equipment: Proceeds before Intended Use (Amendments to IAS 16);
Annual Improvments to IFRS Standards 2018-2020 (Amendments to IFRS 1, IFRS 9, IFRS 16 and IAS 41) and;
References to Conceptual Framework (Amendments to IFRS 3).

These amendments to various IFRS standards are mandatorily effective for reporting periods beginning on or after 1 January 2022.

The Group does not expect any other standards issued by the IASB, but not yet effective, to have a material impact on the Group.



2.4

Going concern

The financial statements have been prepared on a going concern basis the Group is reporting profit after tax in the year to 31 January 2023 of £2,214,276 (2022 loss: £3,388,049). As at the Statement of Financial Position date, the Group is also in a net liability position of £22,530,544 (2022: £24,744,820). However removing the right of use asset and its associated liability as mandated by IFRS 16, the Group is in a net liability position at the balance sheet date of £8,488,096 (2022: £10,239,119).
In 2021, the Group's leasehold interest was valued at £32.5m post pandemic by independent hospitality real estate experts, engaged by the Company's bankers. This asset, which has not been recognised for accounting purposes due to the historical cost convention, comfortably exceeds the Group's net liability position referred to above.
Page 19

 
City Brewery Limited
 

 
Notes to the consolidated financial statements
For the year ended 31 January 2023

2.Accounting policies (continued)


2.4
Going concern (continued)

The directors have, at the time of approving the financial statements, a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. Since re-opening in August 2021, revenues have exceeded 2019 levels, before the UK lockdown took place. The Group's current order book is ahead of the order book at this stage for FY20, which was the last completed year before lockdown. Management accounts show the Group made a substantial profit for the year ended 31 January 2023 and contractually committed business for the current year exceeds £17m.
Thus, the directors believe that preparing the accounts on the going concern basis is appropriate.


2.5

Foreign currency transactions

In preparing the financial statements of each individual group entity, transactions in currencies other than the entity's functional currency (foreign currencies) are recognised at the rates of exchange prevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the date when the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated.

 
2.6

Goodwill

Goodwill arising on an acquisition of a business is carried at cost as established at the date of acquisition of the business less accumulated impairment losses, if any.

For the purposes of impairment testing, goodwill is allocated to each of the Group's cash-generating units (or groups of cash-generating units) that is expected to benefit from the synergies of the combination.

A cash-generating unit to which goodwill has been allocated is tested for impairment annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than its carrying amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro rata based on the carrying amount of each asset in the unit. Any impairment loss for goodwill is recognised directly in profit or loss. An impairment loss recognised for goodwill is not reversed in subsequent periods.
On disposal of the relevant cash-generating unit, the attributable amount of goodwill is included in the determination of the profit or loss on disposal.
Page 20

 
City Brewery Limited
 

 
Notes to the consolidated financial statements
For the year ended 31 January 2023

2.Accounting policies (continued)


2.7

Revenue

The Group recognises revenue from room hire and associated services on the day the event takes place.
Revenue from the sale of food and drink is recognised in the statement of comprehensive income when the significant risk and rewards have been transferred to the buyer, which is on the day of the relevant event that the food and drink was sold.

 
2.8

Government grants

Government grants are not recognised until there is reasonable assurance that the Group will comply with the conditions attaching to them and that the grants will be received.

Government grants are recognised in profit or loss on a systematic basis over the periods in which the Group recognises as expenses the related costs for which the grants are intended to compensate. Specifically, government grants whose primary condition is that the Group should purchase, construct or otherwise acquire non-current assets are recognised as deferred revenue in the consolidated statement of financial position and transferred to profit or loss on a systematic and rational basis over the useful lives of the related assets.

Government grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the Group with no future related costs are recognised in profit or loss in the period in which they become receivable.

The benefit of a government loan at a below-market rate of interest is treated as a government grant, measured as the difference between proceeds received and the fair value of the loan based on prevailing market interest rates.
Page 21

 
City Brewery Limited
 

 
Notes to the consolidated financial statements
For the year ended 31 January 2023

2.Accounting policies (continued)

  
2.9

Leasing

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.


The Group as a lessee

The Group assesses whether a contract is or contains a lease, at inception of a contract. The Group recognises a right-of-use asset and a corresponding lease liability with respect to all lease agreements in which it is the lessee, except for short-term leases (defined as leases with a lease term of 12 months or less) and leases of low-value assets (defined as leases valued at less than £5,000). For these leases, the Group recognises the lease payments as an operating expense on a straight-line basis over the term of the lease unless another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the Group uses its incremental borrowing rate. The Group has assessed its incremental borrowing rate using a series of inputs including: government gilt rates between now and the end of the lease term and considering other borrowing rates within the market for similar companies.

Lease payments included in the measurement of the lease liability comprise:

fixed lease payments (including in-substance fixed payments), less any lease incentives;


The lease liability is included in the 'Loans and borrowings' line in the Consolidated statement of financial position.

The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability (using the effective interest method) and by reducing the carrying amount to reflect the lease payments made.

The right-of-use assets comprise the initial measurement of the corresponding lease liability, lease payments made at or before the commencement day and any initial direct costs. They are subsequently measured at cost less accumulated depreciation and impairment losses.

Right-of-use assets are depreciated on a straight line basis over the shorter period of lease term and useful life of the underlying asset. If a lease transfers ownership of the underlying asset or the cost of the right-of-use asset reflects that the Group expects to exercise a purchase option, the related right-of-use asset is depreciated over the useful life of the underlying asset. The depreciation starts at the commencement date of the lease.

The right-of-use assets are included in the 'Property, Plant and Equipment' line in the Consolidated statement of financial position.

The Group applies IAS 36 to determine whether a right-of-use asset is impaired and accounts for any identified impairment loss as described in note 2.13.
 
As a practical expedient, IFRS 16 permits a lessee not to separate non-lease components, and instead account for any lease and associated non-lease components as a single arrangement. The Group has not used this practical expedient.
Page 22

 
City Brewery Limited
 

 
Notes to the consolidated financial statements
For the year ended 31 January 2023

2.Accounting policies (continued)

 
2.10

Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.


(i) Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from ‘profit before tax’ as reported in the consolidated Consolidated statement of profit or loss and other comprehensive income because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Group's current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.


(ii) Deferred tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the consolidated financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. Such deferred tax assets and liabilities are not recognised if the temporary difference arises from the initial recognition (other than in a business combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. In addition, deferred tax liabilities are not recognised if the temporary difference arises from the initial recognition of goodwill.

Deferred tax liabilities are recognised for taxable temporary differences associated with investments in subsidiaries and associates, and interests in joint ventures, except where the Group is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments and interests are only recognised to the extent that it is probable that there will be sufficient taxable profits against which to utilise the benefits of the temporary differences and they are expected to reverse in the foreseeable future.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Group expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Page 23

 
City Brewery Limited
 

 
Notes to the consolidated financial statements
For the year ended 31 January 2023

2.Accounting policies (continued)


2.10
Taxation (continued)


(ii) Deferred tax (continued)

For the purposes of measuring deferred tax liabilities and deferred tax assets for investment properties that are measured using the fair value model, the carrying amounts of such properties are presumed to be recovered entirely through sale, unless the presumption is rebutted. The presumption is rebutted when the investment property is depreciable and is held within a business model whose objective is to consume substantially all of the economic benefits embodied in the investment property over time, rather than through sale. The directors of the Group reviewed the Group's investment property portfolios and concluded that none of the Group's investment properties are held under a business model whose objective is to consume substantially all of the economic benefits embodied in the investment properties over time, rather than through sale. Therefore, the directors have determined that the ‘sale’ presumption set out in the amendments to IAS 12 is not rebutted. As a result, the Group has not recognised any deferred taxes on changes in fair value of the investment properties as the Group is not subject to any income taxes on the fair value changes of the investment properties on disposal.

 
2.11

Intangible assets


Intangible assets acquired separately

Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated amortisation and accumulated impairment losses. Amortisation is recognised on a straight-line basis over their estimated useful lives. The estimated useful life and amortisation method are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis. Intangible assets with indefinite useful lives that are acquired separately are carried at cost less accumulated impairment losses.

Website costs
20%
straight line basis


2.12

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and demand deposits, together with other short-term, highly liquid investments maturing within 90 days from the date of acquisition that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value.

 
2.13

Property, plant and equipment

Items of property, plant and equipment are measured at cost less accumulated depreciation and any accumulated impairment losses.

If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as separate items (major components) of property, plant and equipment. Any gain or loss on disposal of an item of property, plant and equipment is recognised in profit or loss. Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the expenditure will flow to the Group.

Depreciation is provided on all other items of property, plant and equipment so as to write off their carrying value over their expected useful economic lives. It is provided at the following rates:

Freehold property
See note 2.9
Right-of-use assets
straight line basis over life of the lease
Plant and machinery
15% straight line basis
Fixtures and fittings
15% straight line basis
Computer equipment
33% straight line basis

Page 24

 
City Brewery Limited
 

 
Notes to the consolidated financial statements
For the year ended 31 January 2023

2.Accounting policies (continued)

 
2.14

Inventories

Inventories are stated at the lower of cost and net realisable value. Costs of inventories are determined on a first in, first out basis. Net realisable value represents the estimated selling price for inventories less all estimated costs of completion and costs necessary to make the sale.

 
2.15

Financial instruments

Financial assets and financial liabilities are recognised when a Group entity becomes a party to the contractual provisions of the instruments.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in profit or loss.

 
2.16

Financial assets

All regular way purchases or sales of financial assets are recognised and derecognised on a trade date basis. Regular way purchases or sales are purchases or sales of financial assets that require delivery of assets within the time frame established by regulation or convention in the marketplace.

All recognised financial assets are subsequently measured in their entirety at either amortised cost or fair value, depending on the classification of the financial assets.


(i) Classification of financial assets

Debt instruments that meet the following conditions are subsequently measured at amortised cost:

the financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and

the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Debt instruments that meet the following conditions are subsequently measured at fair value through other comprehensive income (FVOCI):

the financial asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling the financial assets; and

the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

By default, all other financial assets are subsequently measured at fair value through profit or loss (FVTPL).

Despite the aforegoing, the Group may make the following irrevocable election/designation at initial recognition of a financial asset:

the Group may irrevocably elect to present subsequent changes in fair value of an equity instrument in other comprehensive income if certain criteria are met; and

the Group may irrevocably designate a debt investment that meets the amortised cost or FVOCI criteria as measured at FVTPL if doing so eliminates or significantly reduces an accounting mismatch.
Page 25

 
City Brewery Limited
 

 
Notes to the consolidated financial statements
For the year ended 31 January 2023

2.Accounting policies (continued)

 
2.17

Financial liabilities and equity instruments


Financial liabilities

All financial liabilities are subsequently measured at amortised cost using the effective interest method or at FVTPL.

However, financial liabilities that arise when a transfer of a financial asset does not qualify for derecognition or when the continuing involvement approach applies, financial guarantee contracts issued by the Group, and commitments issued by the Group to provide a loan at below-market interest rate are measured in accordance with the specific accounting policies set out below.

Financial liabilities subsequently measured at amortised cost

Financial liabilities that are not (i) contingent consideration of an acquirer in a business combination, (ii) held for trading, or (iii) designated as at FVTPL, are subsequently measured at amortised cost using the effective interest method.

The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial liability, or (where appropriate) a shorter period, to the amortised cost of a financial liability.

Derecognition of financial liabilities

The Group derecognises financial liabilities when, and only when, the Group's obligations are discharged, cancelled or have expired. The difference between the carrying amount of the financial liability derecognised and the consideration paid and payable, including any non-cash assets transferred or liabilities assumed, is recognised in profit or loss.

  
2.18

Defined contribution schemes

Contributions to defined contribution pension schemes are charged to the consolidated statement of comprehensive income in the year to which they relate.

 
2.19

Dividends

Dividends are recognised when they become legally payable. In the case of interim dividends to equity shareholders, this is when declared by the directors. In the case of final dividends, this is when approved by the shareholders at the AGM.


3.


Functional and presentation currency

These consolidated financial statements are presented in pound sterling, which is the Company's functional currency. All amounts have been rounded to the nearest pound, unless otherwise indicated.

Page 26

 
City Brewery Limited
 

 
Notes to the consolidated financial statements
For the year ended 31 January 2023

4.


Accounting estimates and judgments

The preparation of financial statements in conformity with IFRS requires management to make judgements, estimate and assumptions that affect the application of policies and reported amounts in the financial statements.  Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognised prospectively.
The principle areas of judgements in preparing these financial statements are set out below. Information about critical judgements in applying accounting policies that have the most significant effect on the amounts recognised in the financial statements is included in the following notes:
 
Note 2.4: Going concern, the Directors' going concern assessment is based upon future forecasts of the Group's trading. These forecasts are based upon committed bookings to date, the venues capacity, managements' experience of the costs of running these events and there not being any reintroduction of Covid restrictions by the government, that would impact on the Group's ability to continue to trade as normal.
Note 12: Property, plant and equipment, as part of the right of use asset and its associated liability, management have considered the length of the lease. There is a revisionary lease however management haven't included this in the lease term, as part of the calculation, as there is no certainty that this will be exercised.
Note 18: Lease liabilities have been recognised using an effective interest rate. This has been calculated from the gilt market and other external factors.


5.


Revenue


The following is an analysis of the Group's revenue for the year from continuing operations:


2023
2022
£
£


Revenue from core services
21,428,681
7,382,463

Other income
125,247
100,426

21,553,928
7,482,889


Analysis of revenue by country of destination:

2023
2022
£
£


United Kingdom
21,553,928
7,482,889

Page 27

 
City Brewery Limited
 

 
Notes to the consolidated financial statements
For the year ended 31 January 2023

6.


Auditors' remuneration

During the year, the Group obtained the following services from the Company's auditors:


2023
2022
£
£

Fees payable to the Group's auditors for the audit of the consolidated and parent Company's financial statements
9,400
7,000

2023
2022
£
£



Audit of the subsidiary's financial statements
20,000
17,000

Tax compliance services for the Group and subsidiaries
3,090
3,000

Preparation of the financial statements of the Group and subsidiaries
6,900
6,500

29,990
26,500


7.


Employee benefit expenses

Group


2023
2022
£
£

Employee benefit expenses (including directors) comprise:

Wages and salaries
5,735,589
3,090,443

National insurance
416,874
271,036

Defined benefit scheme cost
100,815
71,493

6,253,278
3,432,972


The monthly average number of persons, including the directors, employed by the Group during the year was as follows:


2023
2022
No.
No.

Management and administration
54
48

Operatives
60
24

114
72

Page 28

 
City Brewery Limited
 

 
Notes to the consolidated financial statements
For the year ended 31 January 2023

8.


Finance income and expense

Recognised in profit or loss


2023
2022
£
£
Finance income

Interest on:
- Bank deposits
446
7,372


Total finance income

446
7,372

Finance expense

Bank interest payable
324,451
127,412

Interest on lease liabilities
1,974,053
2,109,653

Other loan interest payable
6,019
19,926

Total finance expense
2,304,523
2,256,991


Net finance expense recognised in profit or loss
2,304,077
2,249,619





Page 29

 
City Brewery Limited
 

 
Notes to the consolidated financial statements
For the year ended 31 January 2023

9.


Tax expense

9.1 Income tax recognised in profit or loss



2023
2022
£
£


Deferred tax expense

Origination and reversal of timing differences
805,450
(1,246,622)


The reasons for the difference between the actual tax charge for the year and the standard rate of corporation tax in the United Kingdom applied to losses for the year are as follows:


2023
2022
£
£


Profit/(loss) for the year
2,214,276
(3,388,049)

Income tax credit/expense (including income tax on associate, joint venture and discontinued operations)
805,450
(1,246,622)

Profit/(loss) before income taxes
3,019,726
(4,634,671)


Tax using the Company's domestic tax rate of 19% (2022: 19%)
566,206
(880,587)

Expenses not deductible for tax purposes, other than goodwill, amortisation and impairment
6,325
7,151

Capital allowances for the year in excess of depreciation
240,395
343,393

Deferred tax
805,450
(1,246,622)

Capitalised revenue expenditure allowable on accounts basis
(969)
-

Changes in provisions leading to an increase/(decrease) in the tax charge
(5,798)
(9,073)

Unutilised tax losses carried forward/(losses utilised)
(815,117)
539,116

Other non taxable adjustments
8,958
-

Total tax expense
805,450
(1,246,622)

Changes in tax rates and factors affecting the future tax changes
Since 1 April 2017 there has been a single rate of corporation tax of 19% in place. From 1 April 2023, the main rate of corporation tax will rise up to 25% for companies with profits over £250,000. For companies with profits of £50,000 or less, they will pay corporation tax at the small profits rate of 19%. Where a Group's profits fall between £50,000 and £250,000 they will pay corporation tax at a marginal rate. The upper and lower limits will be proportionally reduced for short accounting periods and where there are associated companies.

Page 30

 
City Brewery Limited
 

 
Notes to the consolidated financial statements
For the year ended 31 January 2023

9.Tax expense (continued)

9.2 Deferred tax balances

The following is the analysis of deferred tax assets/(liabilities) presented in the consolidated statement of financial position:


2023
2022
£
£


Deferred tax assets
236,316
1,041,766




Opening balance
Recognised in profit or loss
Closing balance
        £
        £
        £
2023
Fixed asset timing differences

(220,589)

304,476

83,887

Short term timing differences

10,057

(7,629)

2,428

Tax losses carried forward

1,252,298

(1,102,297)

150,001



1,041,766


(805,450)


236,316

Page 31

 


 
City Brewery Limited


 

 
Notes to the consolidated financial statements
For the year ended 31 January 2023

9.Tax expense (continued)


9.2 Deferred tax balances (continued)










Opening balance
Recognised in profit or loss
Recognised in other comprehensive income
Recognised directly in equity
Reclassified from equity to profit or loss
Acquisitions/ disposals
Other
Utilised in the year
Closing balance
        £
        £
        £
        £
        £
        £
        £
        £
        £
2022
Fixed asset timing differences

(221,572)

983

-

-

-

-

-

-

(220,589)

Intangible assets

16,716

(6,659)

-

-

-

-

-

-

10,057

Tax losses carried forward

-

1,252,298

-

-

-

-

-

-

1,252,298



(204,856)


1,246,622


-


-


-


-


-


-


1,041,766


Page 32

 


 
City Brewery Limited


 

 
Notes to the consolidated financial statements
For the year ended 31 January 2023

10.


Property, plant and equipment


Group





Right of use assets
Improvement to leasehold property
Plant & machinery
Fixtures & fittings
Computer equipment
Total

£
£
£
£
£
£



Cost or valuation








At 1 February 2021
38,948,715
2,263,428
1,136,701
944,124
212,574
43,505,542


Additions
-
-
22,979
10,163
940
34,082



At 31 January 2022
38,948,715
2,263,428
1,159,680
954,287
213,514
43,539,624


Additions
-
10,843
123,463
151,377
95,534
381,217


Transferred to intangible assets
-
-
-
-
(123,078)
(123,078)



At 31 January 2023
38,948,715
2,274,271
1,283,143
1,105,664
185,970
43,797,763

Page 33

 


 
City Brewery Limited


 

 
Notes to the consolidated financial statements
For the year ended 31 January 2023

10.Property, plant and equipment (continued)


Right of use assets
Improvement to leasehold property
Plant & machinery
Fixtures & fittings
Computer equipment
Total

£
£
£
£
£
£



Accumulated depreciation and impairment








At 1 February 2021 
22,699,290
408,255
743,747
567,449
157,167
24,575,908


Charge owned for the year
1,614,649
104,925
56,454
98,123
37,570
1,911,721



At 31 January 2022
24,313,939
513,180
800,201
665,572
194,737
26,487,629


Charge owned for the year
1,614,649
101,735
42,440
105,361
12,703
1,876,888


Transferred to intangible assets
-
-
-
-
(49,172)
(49,172)



At 31 January 2023
25,928,588
614,915
842,641
770,933
158,268
28,315,345



Net book value


At 1 February 2021 
16,249,425
1,855,173
392,954
376,675
55,407
18,929,634


At 31 January 2022 
14,634,776
1,750,248
359,479
288,715
18,777
17,051,995


At 31 January 2023
13,020,127
1,659,356
440,502
334,731
27,702
15,482,418

Page 34

 
City Brewery Limited
 

 
Notes to the consolidated financial statements
For the year ended 31 January 2023

11.


Intangible assets

Group





Goodwill
Website costs
Total

£
£
£



Cost





At 1 February 2021
1,685,805
-
1,685,805



At 31 January 2022
1,685,805
-
1,685,805


Transferred from tangible assets
-
123,078
123,078



At 31 January 2023
1,685,805
123,078
1,808,883


Goodwill
Website costs
Total

£
£
£



Accumulated amortisation and impairment





Transferred from tangible assets
-
29,038
29,038


Charge for the year - owned assets
-
23,669
23,669


At 31 January 2023
-
52,707
52,707



Net book value


At 1 February 2021
1,685,805
-
1,685,805


At 31 January 2022
1,685,805
-
1,685,805


At 31 January 2023
1,685,805
70,371
1,756,176


12.


Subsidiaries

Details of the Group's material subsidiaries at the end of the reporting period are as follows:

Name of subsidiary

Principal activity
Place of incorporation and operation
Proportion of ownership interest and voting power held by the Group (%)



2023
2022








1The Brewery On Chiswell Street

Provision of conferencing

UK
 
100

100

2Instant Covid Tests London Limited

Dormant company

UK
 
100

100

3Instant London Covid Tests Limited

Dormant company

UK
 
100

100


Page 35

 
City Brewery Limited
 

 
Notes to the consolidated financial statements
For the year ended 31 January 2023

Company

2023
2022
£
£

Investments in subsidiary companies
2,355,005
2,355,005


13.


Inventories

Group


2023
2022
£
£



Food and beverages
345,821
237,918


14.


Trade and other receivables



Group

2023
2022
£
£

Non-current

Other receivables
29,136
29,136

Total non-current trade and other receivables
29,136
29,136


Current

Trade receivables
948,342
805,438

Trade receivables - net
948,342
805,438

Prepayments and accrued income
709,392
57,526

Other receivables
2,327,915
1,969,914

Total current trade and other receivables
3,985,649
2,832,878

Amounts receivable from customers are non-interest bearing and are generally on 60 day payment terms before the date of the event. The Group believes the credit quality of these trade receivables to be good. The ageing of the Group's receivables which are over 60 days or more but are not impaired are as follows: £75k (2022: £41k).

Page 36

 
City Brewery Limited
 

 
Notes to the consolidated financial statements
For the year ended 31 January 2023

Company

2023
2022
£
£


Current

Prepayments and accrued income
-
179

Other receivables
1,913,482
1,883,831

Total current trade and other receivables
1,913,482
1,884,010

Amounts receivable from customers are non-interest bearing and are generally on 60 day payment terms before the date of the event. The Group believes the credit quality of these trade receivables to be good. The ageing of the Group's receivables which are over 60 days or more but are not impaired are as follows: £Nil (2022: £Nil).


15.


Trade and other payables



Group

2023
2022
£
£

Non-current


Current

Trade payables
4,673,680
2,433,480

Other payables
71,996
91,330

Accruals
1,095,062
1,665,831

Total financial liabilities, excluding loans and borrowings, classified as financial liabilities measured at amortised cost
5,840,738
4,190,641

Other payables - tax and social security payments
2,342,474
2,028,285

Deferred income
5,692,748
6,175,392

Total current trade and other payables
13,875,960
12,394,318


Company

2023
2022
£
£


Current

Trade payables
13,620
614

Payables to related parties
5,086,814
4,502,545

Other payables
-
500

Accruals
17,350
62,944

Total current trade and other payables
5,117,784
4,566,603

Page 37

 
City Brewery Limited
 

 
Notes to the consolidated financial statements
For the year ended 31 January 2023

16.


Loans and borrowings


Group

2023
2022
£
£

Non-current

Bank loans - secured
3,051,180
3,965,274

Lease liabilities
24,899,388
27,062,476

Current

Bank loans - secured
920,344
2,262,871

Lease liabilities
2,163,187
2,078,001

Total loans and borrowings
31,034,099
35,368,622

The Group's loan with AIB Group (UK) PLC is secured by way of a fixed and floating charge over the property assets of the Group.

The carrying value of loans and borrowings classified as financial liabilities measured at amortised cost approximates fair value.


Maturity analysis

The undiscounted maturity analysis of lease liabilities at 31 January is as follows:

2023
2022
£
£

Minimum lease payments due - Lease liabilities


Within 1 year
3,988,431
3,828,938

1-2 years
3,967,257
4,051,955

2-3 years
3,967,257
3,988,431

3-4 years
4,256,213
3,967,257

4-5 years
4,471,893
3,967,257

5-10 years
15,683,376
24,374,844

Total
36,334,427
44,178,682


Company

2023
2022
£
£

Current

Bank loans - secured
-
400,000

The carrying value of loans and borrowings classified as financial liabilities measured at amortised cost approximates fair value.

Page 38

 
City Brewery Limited
 

 
Notes to the consolidated financial statements
For the year ended 31 January 2023

17.


Share capital

2023
2022
£
£

Shares treated as equity


Ordinary shares of £1 each
5
5

The holders of the ordinary shares are entitled to dividends as declared from time to time and all shares have equal voting rights at meetings of the Company, and rank equally with regards to the Company's residual assets on winding up.


18.


Pension commitments

The Group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £100,815 (2022: £71,493). Outstanding contributions totalling £21,897 (2022: £67,143) were payable to the fund at the balance sheet date.

Page 39

 
City Brewery Limited
 

 
Notes to the consolidated financial statements
For the year ended 31 January 2023

19.


Reserves


Retained earnings

This reserve comprises all current and prior period retained profits and losses after deducting any distributions made to the company's shareholders.


20.


Leases


Group




(i) Leases as a lessee



At the balance sheet date the Group had outstanding commitments for future minimum lease payments under non-cancellable operating leases.


Lease liabilities are due as follows:

2023
2022
£
£

Contractual undiscounted cash flows due

Not later than one year
5,423
36,876

Between one year and five years
-
5,423

5,423
42,299


Lease liabilities included in the Consolidated statement of financial position at 31 January
27,062,575
29,140,477


Non-current
24,899,388
27,062,476

Current
2,163,187
2,078,001

Leases where the lessor retains substantially all the risks and benefits of ownership of the asset are classified as operating leases. 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.
Operating lease payments are recognised as an expense in the statement of comprehensive income on a straight line basis over the lease term, with any deferred lease payments recorded in the statement of financial position as an asset or liability until released to the profit and loss. The Group leases equipment under operating leases.


The following amounts in respect of leases have been recognised in profit or loss:

2023
2022
£
£

Interest expense on lease liabilities
1,974,426
2,109,653

Expenses relating to short-term leases
-
7,269

Expenses relating to leases of low-value assets, excluding short-term leases of low-value assets
152,739
29,608

Page 40

 
City Brewery Limited
 

 
Notes to the consolidated financial statements
For the year ended 31 January 2023

20.Leases (continued)

Extension options and termination options




Future cash outflows in periods after the date on which an extension option or termination option may be exercised are only included in lease liabilities if it is reasonably certain that a lease will be extended or will not be terminated. Lease liabilities recognised and potential future lease payments not included in lease liabilities by type of leased asset are as follows:


Potential future lease payments not included in lease liabilities (discounted)
Historical rate of exercise of extension options and termination options
£


Leasehold properties
29,140,477
-%

The Group has the option to extend one of its leases, however as the extension option isn't until 2031, management are unable to confirm currently whether this option will be exercised however as the Group approaches this date, they will reassess this option.


21.


Financial instruments by category

Group
As restated Group
Company
As restated Company
2023
2022
2023
2022
£
£
£
£

Assets per Statement of financial position

Trade and other receivables at amortised cost

10,592,404
2,802,778
1,920,934
1,883,831

Short term liabilities as per Statement of financial position

Trade and other payables at amortised cost

21,188,900
8,531,513
5,117,779
4,966,603

Long term liabilities as per Statement of financial position

Trade and other payables at amortised cost

28,864,763
31,027,750
-
200,000

Financial assets measured at amortised cost comprise of trade debtors, other debtors and amounts owing to group undertakings.
Financial liabilities measured at amortised cost comprise of trade creditors, other creditors, loans and accruals.
Page 41

 
City Brewery Limited
 

 
Notes to the consolidated financial statements
For the year ended 31 January 2023

22.


Finance risk management

Treasury risk management policy
The Group's treasury risk management policy are detailed below. City Brewery, as parent company, has responsibility for the identification and management of the Group's financial risks and conducts the Group's treasury activities in accordance with the Group's treasury policy. Group treasury policy sets out the policies with respect to the internal controls (including segregation of duties), organisational relationships, functions, delegated authority levels, interest rate exposures and counterparty credit limits and requires regular reporting to the board of directors of exposures to derivative financial instruments.
The Group's board of directors have an oversight role which involves ratification of Group treasury policy, delegation of authorities and consideration of reports on implementation, effectiveness and compliance.
The Group's treasury policy manages the following financial risks:
- Liquidity risk;
- Interest rate risk:
- Counterparty credit risk.
The Group's policy towards risk management is to take an active approach to identify and manage financial risks and ensure that adequate risk management systems exist within the Group such that risks are identified and appropriately managed. Financial asset and liability transactions are to be structured to enable the achievement of planned outcomes, reduce volatility and provide increased certainty.
The objectives relating to management of financial risks are as follows:
Liquidity risk
Liquidity risk is identified across the entire Group.
The aim of liquidity risk management is to ensure that the Group has an appropriate level of liquidity and access to sufficient cash resources (including reserves, banking facilities and standby borrowing facilities) to maintain normal operations, meet its financial obligations as they fall due, pay dividends, meet capital expenditure commitments and undertake investment strategic opportunities as they arise. To do this, debt maturity profile must be appropriately structured, taking into account the Group's core assets and working capital funding requirements, asset and liability matching and refinancing risks.
I
nterest rate risk
Interest rate risk is the risk of a reduction in earnings and cashflow as a consequence of adverse movements in interest rates. This includes exposures that may arise if the Group was to fix interest rates in a falling interest rate environment. Interest rate risk is measured by the effect of interest rate movements on the total portfolio of current and forecast debt, interest rate hedging transactions and financial market risks.
The majority of the Group's interest rate risk arises from borrowings. The Group's objective is to ensure that it is not exposed to interest rate movements to the extent that interest expense adversely impacts the Group's ability to meet operating obligations as they arise.




 
Page 42

 
City Brewery Limited
 

 
Notes to the consolidated financial statements
For the year ended 31 January 2023

Finance risk management (continued)
Counterparty credit risk
Counterparty credit risk represents the potential loss which the Group could incur if counterparties failed to meet their obligations under their respective contracts or arrangement with the Group. Credit risk for financial assets which have been recognised in the Statement of financial position is generally the carrying amount, net of any provisions for doubtful debts.
Trade receivables consist of a number of customers. If there is no independent rating, management assesses the credit quality of the customer taking into account its financial position, past experience and other factors. Individual risk limits are set based on internal ratings. Management monitors the utilisation of credit limits regularly.


23.


Related party transactions

Balances and transactions between the Company and its subsidiaries, which are related parties of the Company, have been eliminated on consolidation and are not disclosed in this note. Details of transactions between the Group and other related parties are disclosed below.

Details of transactions between the Company and its related parties are disclosed below.

23.1 Loans to related parties




Rupert Lewin Racing Limited
1,894,424
1,882,121

Rupert Lewin Racing Limited is under common control with City Brewery Limited with P R Lewing owning 100% of the share capital in both companies.
The loan balance owing to Rupert Lewing Racing Limited is non-interest bearing and is repayable on demand.

23.2 Loans from related parties




The Brewery on Chiswell Street Limited
5,086,809
4,502,540

The Brewery on Chiswell Street Limited is a wholly owned subsidiary of City Brewery Limited.
The loan balance owing to the subsidiary company is repayable on demand. During the year, the parent charged a management fee to subsidiary of £Nil (2022: £Nil). During the year the subsidiary paid expenses of £12,882 on behalf of the parent company.


24.


Controlling party

P R Lewin is the ultimate controlling party as he owns 100% of the Ordinary share capital.
Page 43

 
City Brewery Limited
 

 
Notes to the consolidated financial statements
For the year ended 31 January 2023

25.

Notes supporting statement of cash flows

Group


2023
2022
£
£


Cash at bank available on demand
543,999
138,622


Page 44