Company registration number NI019950 (Northern Ireland)
OWEY ENTERPRISES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
OWEY ENTERPRISES LIMITED
COMPANY INFORMATION
Directors
Mr George McAlpin
Mrs Jane McAlpin
Mr Matthew McAlpin
Mr Fionn McAlpin
Company number
NI019950
Registered office
248 Upper Newtownards Road
Belfast
BT4 3EU
Auditor
Falconer Stewart  Chartered Accountants
248 Upper Newtownards Road
Belfast
BT4 3EU
Business address
Ramore Restaurant
The Harbour
Portrush
Co Antrim
BT56 8BN
Bankers
Danske Bank
22 The Diamond
Coleraine
Northern Ireland
BT52 1DE
Solicitors
John W. Pinkerton & Sons
5 Linenhall Street
Ballymoney
Antrim
BT53 6DP
OWEY ENTERPRISES LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 7
Profit and loss account
8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 24
OWEY ENTERPRISES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 1 -

The directors present the strategic report for the year ended 31 March 2023.

Review of the business

The results for the year and the financial position at the year end are disappointing. The company has experienced a decrease in sales with customers having less available funds for spending on entertainment with the cost of living crisis. The company has also experienced extremely high utilities bills which have impacted the company's profitability. Results for the current year have improved on 2022 results and the directors are hopeful this trend will continue. The directors are committed to continually looking for opportunities to achieving greater profitability and increasing shareholder value.

Principal risks and uncertainties
Performance in the sector is affected by general economic conditions. The directors carry out regular strategic reviews including assesments of competitor activity, market trends and customer behaviour.  Price fluctuations are sector risks faced.  The security of product supply is monitored by the directors on an ongoing basis with supplier financial strength, product quality and service levels regularly reviewed.
Development and performance

The directors present the strategic report for the year ended 31 March 2023.

Key performance indicators

The directors consider the key performance indicators to be sales and profitability. The past two periods financial performance is summarised below:

 

Turnover: 2023- £10,028.575      2022 £10,696,971

 

Gross Profit Percentage: 2023 - 65.3%      2022 - 66.3%

On behalf of the board

Mr Matthew McAlpin
Director
16 November 2023
OWEY ENTERPRISES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -

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

Principal activities

The principal activity of the company continued to be that of restaurant.

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £150,000. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr George McAlpin
Mrs Jane McAlpin
Mr Matthew McAlpin
Mr Fionn McAlpin
Auditor

The auditor, Falconer Stewart Chartered Accountants, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr Matthew McAlpin
Mr Fionn McAlpin
Director
Director
16 November 2023
OWEY ENTERPRISES LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with 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:

 

 

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.

OWEY ENTERPRISES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF OWEY ENTERPRISES LIMITED
- 4 -
Opinion

We have audited the financial statements of Owey Enterprises Limited (the 'company') for the year ended 31 March 2023 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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:

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 Auditor's 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.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

OWEY ENTERPRISES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF OWEY ENTERPRISES LIMITED
- 5 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's 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 auditor’s 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.

 

 

OWEY ENTERPRISES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF OWEY ENTERPRISES LIMITED
- 6 -

The extent to which the audit was considered capable of detecting irregularies, including fraud

 

Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit.

 

In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit.

 

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conduced in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

 

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:

As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS102 and compliance with Companies Act 2006 and Tax compliance regulations and government grant income. We performed audit procedures to detect non-compliances which may have a material impact on the financial statements which included, reviewing financial statement disclosures, completion of disclosure checklists to identify areas of non-compliance, inspecting correspondence with local tax authorities and evaluating advice obtained from external tax advisors.

 

The most significant laws and regulations that have an indirect impact on the financial statements are those in relation to health and safety and employment law. We performed audit procedures to inquire of management and those charged with governance whether the company is in compliance with these laws and regulations and inspected correspondence with the relevant authorities.

 

The audit engagement team identified the risk of management override of controls, revenue recognition and stock provisioning as areas where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to testing entries and other adjustments and evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business. Audit procedures performed over the revenue recognition included testing the operating effectiveness of controls, performing cut off testing, analytical review and tests of detail to cover all revenue assertions. Procedures performed over stock provisioning included re-calculation of the provision based on the provision methodology for reasonableness, challenging judgements and estimates applied in the methodology adopted in establishing stock provisions.

 

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Councils website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

 

OWEY ENTERPRISES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF OWEY ENTERPRISES LIMITED
- 7 -

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 auditor's 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.

Michael J Crooks (Senior Statutory Auditor)
For and on behalf of Falconer Stewart Chartered Accountants
16 November 2023
Chartered Accountants
Statutory Auditor
248 Upper Newtownards Road
Belfast
BT4 3EU
OWEY ENTERPRISES LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
10,028,575
10,696,971
Cost of sales
(3,486,228)
(3,609,170)
Gross profit
6,542,347
7,087,801
Administrative expenses
(6,196,336)
(6,192,310)
Other operating income
270,636
244,207
Operating profit
4
616,647
1,139,698
Interest receivable and similar income
7
18
529
Interest payable and similar expenses
8
(270,133)
(211,986)
Profit before taxation
346,532
928,241
Tax on profit
9
(131,542)
(120,101)
Profit for the financial year
214,990
808,140

The profit and loss account has been prepared on the basis that all operations are continuing operations.

OWEY ENTERPRISES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023
- 9 -
2023
2022
£
£
Profit for the year
214,990
808,140
Other comprehensive income
-
-
Total comprehensive income for the year
214,990
808,140
OWEY ENTERPRISES LIMITED
BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
15,747,316
16,013,024
Investment property
12
432,373
432,373
16,179,689
16,445,397
Current assets
Stocks
13
439,511
257,173
Debtors
14
192,563
204,165
Cash at bank and in hand
231,917
228,050
863,991
689,388
Creditors: amounts falling due within one year
15
(2,817,685)
(2,483,749)
Net current liabilities
(1,953,694)
(1,794,361)
Total assets less current liabilities
14,225,995
14,651,036
Creditors: amounts falling due after more than one year
16
(3,561,261)
(4,182,638)
Provisions for liabilities
Deferred tax liability
19
935,191
803,845
(935,191)
(803,845)
Net assets
9,729,543
9,664,553
Capital and reserves
Called up share capital
21
47,497
47,497
Revaluation reserve
4,916,036
4,916,036
Capital redemption reserve
47,498
47,498
Profit and loss reserves
4,718,512
4,653,522
Total equity
9,729,543
9,664,553

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.true

The financial statements were approved by the board of directors and authorised for issue on 16 November 2023 and are signed on its behalf by:
Mr Matthew McAlpin
Mr Fionn McAlpin
Director
Director
Company registration number NI019950 (Northern Ireland)
OWEY ENTERPRISES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 11 -
Share capital
Revaluation reserve
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 April 2021
47,497
4,916,036
47,498
4,125,382
9,136,413
Year ended 31 March 2022:
Profit and total comprehensive income
-
-
-
808,140
808,140
Dividends
10
-
-
-
(280,000)
(280,000)
Balance at 31 March 2022
47,497
4,916,036
47,498
4,653,522
9,664,553
Year ended 31 March 2023:
Profit and total comprehensive income
-
-
-
214,990
214,990
Dividends
10
-
-
-
(150,000)
(150,000)
Balance at 31 March 2023
47,497
4,916,036
47,498
4,718,512
9,729,543
OWEY ENTERPRISES LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
- 12 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
22
1,472,600
1,579,875
Interest paid
(270,133)
(211,986)
Income taxes refunded
-
0
1,921
Net cash inflow from operating activities
1,202,467
1,369,810
Investing activities
Purchase of tangible fixed assets
(314,666)
(872,503)
Proceeds from disposal of tangible fixed assets
29,300
-
0
Repayment of loans
-
0
386,238
Interest received
18
529
Net cash used in investing activities
(285,348)
(485,736)
Financing activities
Repayment of borrowings
(609,606)
73,170
Repayment of bank loans
(99,788)
(754,645)
Payment of finance leases obligations
(53,858)
(18,158)
Dividends paid
(150,000)
(280,000)
Net cash used in financing activities
(913,252)
(979,633)
Net increase/(decrease) in cash and cash equivalents
3,867
(95,559)
Cash and cash equivalents at beginning of year
228,050
323,609
Cash and cash equivalents at end of year
231,917
228,050
OWEY ENTERPRISES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 13 -
1
Accounting policies
Company information

Owey Enterprises Limited is a private company limited by shares incorporated in Northern Ireland. The registered office is 248 Upper Newtownards Road, Belfast, BT4 3EU.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

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

The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

 

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Land and buildings Freehold
0% per annum
Plant and machinery
10% per annum reducing balance
Fixtures, fittings & equipment
10% per annum reducing balance
Motor vehicles
25% per annum reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.5
Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

OWEY ENTERPRISES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 14 -
1.6
Impairment of fixed assets

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

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future 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 the 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.

1.7
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.8
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9
Financial instruments

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

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

OWEY ENTERPRISES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 15 -
Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

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

Basic financial liabilities

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

 

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

 

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

OWEY ENTERPRISES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 16 -
Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.10
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.11
Derivatives

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

 

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.

1.12
Taxation

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

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax
Deferred taxation is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes.  The deferred tax balance had not been discounted.
1.13
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

OWEY ENTERPRISES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 17 -
1.14
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.15
Leases

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

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.16
Government grants

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

 

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

1.17
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
Restaurant sales
10,028,575
10,696,971
OWEY ENTERPRISES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
3
Turnover and other revenue
(Continued)
- 18 -
2023
2022
£
£
Turnover analysed by geographical market
UK
10,028,575
10,696,971
2023
2022
£
£
Other revenue
Interest income
18
529
Grants received
72,000
240,853
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
(72,000)
(240,853)
Fees payable to the company's auditor for the audit of the company's financial statements
19,200
18,000
Depreciation of owned tangible fixed assets
519,700
509,169
Loss on disposal of tangible fixed assets
31,374
-
Operating lease charges
63,391
51,745
5
Employees

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

2023
2022
Number
Number
Total employee average
222
240

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
3,374,761
3,274,101
Social security costs
228,035
220,629
Pension costs
43,992
50,185
3,646,788
3,544,915
OWEY ENTERPRISES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 19 -
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
97,696
119,559
Company pension contributions to defined contribution schemes
6,908
4,695
104,604
124,254
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
18
62
Other interest income
-
0
467
Total income
18
529
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
18
62
8
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
193,377
157,817
Other interest on financial liabilities
65,290
40,875
258,667
198,692
Other finance costs:
Interest on finance leases and hire purchase contracts
11,466
10,906
Other interest
-
0
2,388
270,133
211,986
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
196
-
0
OWEY ENTERPRISES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
9
Taxation
2023
2022
£
£
(Continued)
- 20 -
Deferred tax
Origination and reversal of timing differences
131,346
120,101
Total tax charge
131,542
120,101

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
346,532
928,241
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
65,841
176,366
Tax effect of expenses that are not deductible in determining taxable profit
-
0
8,208
Tax effect of utilisation of tax losses not previously recognised
(54,017)
(18,465)
Permanent capital allowances in excess of depreciation
(116,332)
(262,851)
Depreciation on assets not qualifying for tax allowances
104,704
96,742
Deferred tax
131,346
120,101
Taxation charge for the year
131,542
120,101
10
Dividends
2023
2022
£
£
Final paid
150,000
280,000
OWEY ENTERPRISES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 21 -
11
Tangible fixed assets
Land and buildings Freehold
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 April 2022
11,052,009
1,240,525
7,298,612
-
0
19,591,146
Additions
-
0
46,289
240,382
27,995
314,666
Disposals
-
0
(82,999)
-
0
-
0
(82,999)
At 31 March 2023
11,052,009
1,203,815
7,538,994
27,995
19,822,813
Depreciation and impairment
At 1 April 2022
-
0
416,950
3,161,172
-
0
3,578,122
Depreciation charged in the year
-
0
80,919
431,782
6,999
519,700
Eliminated in respect of disposals
-
0
(22,325)
-
0
-
0
(22,325)
At 31 March 2023
-
0
475,544
3,592,954
6,999
4,075,497
Carrying amount
At 31 March 2023
11,052,009
728,271
3,946,040
20,996
15,747,316
At 31 March 2022
11,052,009
823,575
4,137,440
-
0
16,013,024
12
Investment property
2023
£
Fair value
At 1 April 2022 and 31 March 2023
432,373

Investment property comprises properties held at their original cost. The directors consider the value to be an approximate estimate of their fair value.

13
Stocks
2023
2022
£
£
Raw materials and consumables
439,511
257,173
14
Debtors
2023
2022
Amounts falling due within one year:
£
£
Corporation tax recoverable
125,527
125,527
Other debtors
20,797
66,156
Prepayments and accrued income
46,239
12,482
192,563
204,165
OWEY ENTERPRISES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 22 -
15
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans
17
763,317
783,313
Obligations under finance leases
18
50,387
62,450
Other borrowings
17
78,936
188,752
Trade creditors
961,328
853,547
Corporation tax
59,193
58,997
Other taxation and social security
402,292
196,098
Other creditors
203,544
78,065
Accruals and deferred income
298,688
262,527
2,817,685
2,483,749

 

 

16
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
17
3,184,691
3,264,483
Obligations under finance leases
18
38,096
79,891
Other borrowings
17
338,474
838,264
3,561,261
4,182,638
17
Loans and overdrafts
2023
2022
£
£
Bank loans
3,948,008
4,047,796
Other loans
417,410
1,027,016
4,365,418
5,074,812
Payable within one year
842,253
972,065
Payable after one year
3,523,165
4,102,747

The bank loans and overdrafts are secured by way of legal mortgage over the land and buildings and investment properties, by fixed and floating charges over the assets of the company and the assignment of two life policies by the directors.

Other loans are interest free but have been discounted to reflect a current rate of interest of 4.7% the terms of the loan depend upon trading activity.

OWEY ENTERPRISES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 23 -
18
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
68,254
88,175
In two to five years
38,096
79,891
106,350
168,066
Less: future finance charges
(17,867)
(25,725)
88,483
142,341

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

19
Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2023
2022
Balances:
£
£
ACAs
697,514
613,971
Revaluations
237,677
177,469
FRS 102 Transition adjustments
-
12,405
935,191
803,845
20
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
43,992
50,185

The company operates a defined contribution pension scheme for all qualifying employees.

The assets of the scheme are held separately from those of the company in an independently administered fund.

21
Share capital
2023
2022
Ordinary share capital
£
£
Issued and fully paid
Ordinary of 1p each
47,497
47,497
OWEY ENTERPRISES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
21
Share capital
(Continued)
- 24 -

During the year the £1 ordinary shares were subdivided into £0.01 shares.

 

22
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
214,990
808,140
Adjustments for:
Taxation charged
131,542
120,101
Finance costs
270,133
211,986
Investment income
(18)
(529)
Loss on disposal of tangible fixed assets
31,374
-
Depreciation and impairment of tangible fixed assets
519,700
509,169
Movements in working capital:
(Increase)/decrease in stocks
(182,338)
13,815
Decrease/(increase) in debtors
11,602
(11,532)
Increase/(decrease) in creditors
475,615
(71,275)
Cash generated from operations
1,472,600
1,579,875
23
Analysis of changes in net debt
1 April 2022
Cash flows
31 March 2023
£
£
£
Cash at bank and in hand
228,050
3,867
231,917
Borrowings excluding overdrafts
(5,074,812)
709,394
(4,365,418)
Obligations under finance leases
(142,341)
53,858
(88,483)
(4,989,103)
767,119
(4,221,984)
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