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Registration number: 06055044

TTSF Ltd

Annual Report and Financial Statements

for the Year Ended 31 December 2022

 

TTSF Ltd

Contents

Company Information

1

Strategic Report

2 to 4

Director's Report

5 to 6

Statement of Director's Responsibilities

7

Independent Auditor's Report

8 to 10

Income Statement

11

Statement of Financial Position

12

Statement of Changes in Equity

13

Statement of Cash Flows

14

Notes to the Financial Statements

15 to 24

 

TTSF Ltd

Company Information

Director

Mr T M Dobbs

Company secretary

Mrs T Dobbs

Registered office

69 Toton Lane
Stapleford
Nottinghamshire
NG9 7HB

Accountants

Munslows Accountants Ltd
Chartered Certified Accountants
32 High Street
Wall Heath
Kingswinford
West Midlands
DY6 0HB

Auditors

Manex Accountants Ltd
Chartered Accountants and Statutory Auditors
9 Castle Court 2
Castlegate Way
Dudley
West Midlands
DY1 4RD

 

TTSF Ltd

Strategic Report for the Year Ended 31 December 2022

The director presents his strategic report for the year ended 31 December 2022.

Principal activity

The principal activity of the company is an operator of a group of McDonald's restaurants.

Fair review of the business

The results for the year and the financial position at the end of the year are shown in the annexed financial statements.

As a franchisee operator of a group of McDonald's restaurants the directors consider the company's key performance indicators to be turnover and gross profit. Turnover for the year increased by 5.3%, although gross profit fell by 8% compared to the previous year. In common with many other similar businesses and industries, the war in Ukraine has had a significant impact on raw product costs and fuel and utility costs, along with other overheads, resulting in a loss before tax for the year of £1,083,995 compared to a profit of £2,595,181 in the previous year.

The directors believe that the trading environment in which the company operates will continue to be challenging but remain optimistic regarding future trading and are committed to increasing both future turnover and profitability and to continuing the company’s reinvestment program. The company has continued to invest in the business and in the development and training of its employees, as well as continued investment in IT and store equipment. In addition, the company fully refurbished two of its restaurants during the year.

 

TTSF Ltd

Strategic Report for the Year Ended 31 December 2022

Principal risks and uncertainties

The company operates in a highly competitive market with high levels of price sensitivity. Consumer behaviour can impact the company's turnover and profitability. The company continually assesses these risks and mitigates them by adopting a policy of constantly reviewing its pricing strategy with ongoing market research.

The company remains exposed to periods of food cost inflation together with the variability of commodity prices, both of which impact on profitability. In addition, the effects of Brexit continue to have the possibility of impacting the business in terms of the access to and costs of both food and labour. The company continually assesses any risks identified, with the aim of mitigating the threats these may have on the company's operations and profitability. The company's supply chain is closely overseen and supported by McDonald's, who endeavour to negotiate effectively on behalf of all franchisees to ensure better purchasing terms. This helps as much as possible to protect the company from risks associated with fluctuating food costs.

The company is also inherently exposed to pressures within the labour market and to wage cost inflation. The company mitigates this risk by a policy of adopting remuneration and benefits packages designed to be competitive within the market as well as ensuring full compliance with labour market regulations, with employment policies to allow fulfilling career opportunities for all employees.
The company’s operations demand a high level of compliance within a wide range of regulatory requirements, in particular –
- health and safety
- hygiene procedures
- employment laws
- licensing

The above, in common with various other areas, are monitored in detail by McDonald’s with assistance being given to all franchisees to help meet the various requirements.

By its very nature, the fast-food market is extremely competitive, with large numbers of companies operating in the sector. In order to remain at the forefront of the industry, McDonald’s have developed dedicated teams whose focus is on ensuring they remain the leading brand in the market.

Section 172(1) statement

The success of the Company is the driving factor behind all decisions made by the Director. Decision making processes are structured to enable the Director to evaluate the merit of proposed business activities and the likely consequences of decisions taken over the short, medium and long term. The director remains mindful that any strategic decisions taken can have long term implications for the business and its stakeholders, and these implications are carefully assessed. An example of this is in decisions taken relating to capital investment in terms of possible new store acquisitions and equipment upgrades.

Our people are fundamental to our success. We continually endeavour to create opportunities for all our people, regardless of gender, age, or life stage that enhance their work experience. Understanding how our employees feel about McDonald’s is vital. The director takes active steps to ensure that the suggestions, views and interests of the workforce are incorporated and considered as part of any decision-making process, helping to ensure that our employees are given the right support to help achieve their potential. We have developed various employee communication channels such as the “Big Conversation”, “MyStuff” and “Love to Listen”, together with regular performance reviews, employee assistance programs and providing a means for employees to share ideas and feedback. We also conduct regular surveys into our employee’s job satisfaction and how they feel about their role in the company. We encourage and provide access to online learning and development, as well as providing our people with a mobile friendly platform to manage their own data, holidays, time off and access to view their wage slips.

 

TTSF Ltd

Strategic Report for the Year Ended 31 December 2022

Our customers are the reason for our existence, and we therefore strive to provide high quality food with superior service in a clean and welcoming environment, all at an exceptional value. McDonald’s have set high standards globally and it is our obligation and desire to maintain these high standards with regular customer feedback through operating and monitoring an external customer satisfaction programme “Food for Thought” that collects customer comments.

Long term commitments with our suppliers has enabled them to grow with us and drive positive change within their own businesses. The company recognises that the strength of our relationships with our suppliers are important to our long-term success. The directors are regularly briefed on supplier feedback and issues.

The directors carefully consider the impact of the business on communities and the environments in which the company operates. We ensure that the locality surrounding our restaurants is litter free through initiatives implemented to collect litter. Recycling units are installed around our restaurants and our paper cups are sent to specialist recycling centres in the UK. We endeavour to help our customers build communities, support charitable organisations, and use our size, scope and resources to help make local communities and the environment a better place.

In all our activities the director requires that employees and suppliers conduct business with the highest ethical and professional standards by adhering to our Standards of Business Conduct set by McDonald’s Corporation.

The majority shareholder is also the director of the company and exercises day to day control over the company.

The directors believe that they have always acted in ways they consider, in good faith, to promote the success of the company for the benefit of its members as a whole (having regard to the stakeholders and matters set out in s172(1) (a-f) of the Companies Act).

The success of the company is the driving factor behind the decisions made by the directors. Decision making processes are structured to enable the directors to evaluate the merit of proposed business activities and the likely consequences of its decisions over the short, medium and long term.

Engagement with employees

Our workforce is our most valuable asset and is one of the main reasons for the success of the company and brand. The company invests strongly in training, coaching, and skills acquisition. The personal development and improvement of our employees is a key aim of the Company’s strategy. We strive to be a responsible employer in our approach to the pay and benefits of employees and the health, safety and wellbeing of our employees is one of the primary considerations in the way we do business.

Engagement with suppliers, customers and other relationships

As a company we endeavour to build long-term commitments with our suppliers which has enabled them to grow with us and drive positive change within their own businesses. The company recognises that relationships with suppliers are important to its long-term success and is briefed on supplier feedback and issues on a regular basis.
We also endeavour to forge positive relationships with our customers by providing high quality food and an excellent service in a clean and welcoming environment at a competitive price.

Approved and authorised by the director on 24 November 2023
 

.........................................
Mr T M Dobbs
Director

 

TTSF Ltd

Director's Report for the Year Ended 31 December 2022

The director presents his report and the financial statements for the year ended 31 December 2022.

Director of the company

The director who held office during the year was as follows:

Mr T M Dobbs

Financial instruments

Objectives and policies

The company’s principle financial instruments comprise bank balances, trade creditors and bank loans. The main purpose of these instruments is to finance the company’s operations and to ensure the smooth running of the company’s operations.

Due to the nature of the financial instruments used by the company there is no exposure to price risk.

In respect of bank balances, the liquidity risk is managed by maintaining a balance to ensure the continuity of trading, through the use of detailed cash flow analysis, forecasts and projections which are regularly updated. In addition, the company has access to overdraft facilities from its bankers which are repayable on demand, should the business require them.

In respect of bank loans, these are provided by financial institutions. The interest rate on these loans is variable, although usually the monthly repayments are fixed. The company manages the liquidity risk by ensuring that there are sufficient funds to meet the payments through the constant review and updating of cashflow forecasts. The interest rate is managed through regular reviews of current and expected future interest rates.

Trade creditor liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

Price risk, credit risk, liquidity risk and cash flow risk

The main risks arising from the company’s financial instruments are interest risk and liquidity risk. The board reviews and agrees policies for managing each of these risks as summarised below –

Interest rate risk – the company’s exposure to market risk for changes in interest rates is limited to bank loans. Additional requirements for medium to long term debt are reviewed by the directors based on the company’s forecast requirements.

Liquidity risk – the company’s objective is to maintain a balance between continuity of funding and flexibility, by the utilisation of cash and bank loans.

Employment of disabled persons

The company operates an equal opportunities policy in all areas of recruitment and seeks to offer suitable work and training wherever practicable to persons with disabilities. The policy of the company is to ensure that disabled applicants are given full and fair consideration having regards to their particular aptitudes and abilities. Existing disabled employees are given equal access to appropriate training, career development and promotion opportunities within the company. In the event of employees becoming disabled while in the employment of the company, all reasonable means are explored to achieve retention in employment in the same or an alternative capacity.

 

TTSF Ltd

Director's Report for the Year Ended 31 December 2022

Employee involvement

The company aims to promote a working environment free from harassment, victimisation, bullying and discrimination. The company regards all employees as members of a team, where opinions are valued, and everyone is regarded as equal in status and treated with fairness and respect.

The company's recruitment procedures are intended to ensure that employees are selected, promoted, and treated according to their ability and that everyone has an equal opportunity to receive training and development. The company communicates regularly with all employees on matters relating to its performance, with employees encouraged to contribute to the decision-making process through regular staff meetings. In addition, there is a bulletin board in each restaurant where memoranda relating to company policy are displayed. There is also an online portal known as Workplace, which contains news and information for McDonald's employees.

Disclosure of information to the auditors

The director has taken steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. The director confirms that there is no relevant information that he knows of and of which he knows the auditors are unaware.

Reappointment of auditors

The auditors Manex Accountants Ltd are deemed to be reappointed under section 487(2) of the Companies Act 2006.

Approved and authorised by the director on 24 November 2023
 

.........................................
Mr T M Dobbs
Director

 

TTSF Ltd

Statement of Director's Responsibilities

The director acknowledges his responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The director is 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 him to ensure that the financial statements comply with the Companies Act 2006 and in accordance with FRS 102. He is 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.

 

TTSF Ltd

Independent Auditor's Report to the Members of TTSF Ltd

Opinion

We have audited the financial statements of TTSF Ltd (the 'company') for the year ended 31 December 2022, which comprise the Income Statement, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the company's affairs as at 31 December 2022 and of its loss for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor 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 director's 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 original financial statements were authorised for issue.

Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.

Other information

The director are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s 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.

 

TTSF Ltd

Independent Auditor's Report to the Members of TTSF Ltd

Opinion on other matter prescribed by the Companies Act 2006

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

the information given in the Strategic Report and Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Director's Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our 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 and the Director's Report.

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

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

the financial statements are not in agreement with the accounting records and returns; or

certain disclosures of director's remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

Responsibilities of the director

As explained more fully in the Statement of Director's Responsibilities [set out on page 7], the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

 

TTSF Ltd

Independent Auditor's Report to the Members of TTSF Ltd

We obtained an understanding of the legal and regulatory frameworks applicable to the company and the industry in which it operates. We determined that the following laws and regulations were most significant: The Companies Act 2006/FRS 102, Employment Law and Waste, Health and Safety. We enquired of management and those responsible for legal and compliance procedures to obtain an understanding of how the company is complying with those legal and regulatory frameworks and whether they had any knowledge of actual or suspected fraud. We corroborated the results of our enquiries through our discussions with the directors and management. We did not identify any matters relating to non-compliance with laws and regulations or matters in relation to fraud.

In assessing the potential risks of material misstatements, we obtained an understanding of the company’s operations, including its objectives and strategies to understand the expected financial statement disclosures and business risks that may result in risks of material misstatement;

In assessing the appropriateness of the collective competence and capabilities of the engagement team the engagement partner considered the engagement team’s :
 Understanding of, and practical experience with, audit engagements of a similar nature and complexity through appropriate training and participation,
 The specialist skills required and
 Knowledge of the industry in which the client operates.

We assessed the susceptibility of the company’s financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:
 Assessing the design effectiveness of controls management has in place to prevent and detect fraud;
 Challenging assumptions and judgements made by management in its significant accounting estimates;
 Identifying and testing journal entries, in particular manual journal entries made at year end for financial statement preparation; and
 Assessing the extent of compliance with the relevant laws and regulations as part of our procedures on the related financial statement item.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

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.

......................................
Clinton Meehan BSc FCA (Senior Statutory Auditor)
For and on behalf of Manex Accountants Ltd, Statutory Auditor

9 Castle Court 2
Castlegate Way
Dudley
West Midlands
DY1 4RD

24 November 2023

 

TTSF Ltd

Income Statement for the Year Ended 31 December 2022

Note

2022
£

2021
£

Turnover

3

39,566,182

37,564,670

Cost of sales

 

(23,552,588)

(20,148,527)

Gross profit

 

16,013,594

17,416,143

Administrative expenses

 

(17,038,236)

(14,948,812)

Other operating income

4

-

176,689

Operating (loss)/profit

5

(1,024,642)

2,644,020

Interest payable and similar expenses

7

(63,763)

(48,839)

(Loss)/profit before tax

 

(1,088,405)

2,595,181

Tax on (loss)/profit

11

289,234

(592,179)

(Loss)/profit for the financial year

 

(799,171)

2,003,002

The above results were derived from continuing operations.

The company has no recognised gains or losses for the year other than the results above.

 

TTSF Ltd

(Registration number: 06055044)
Statement of Financial Position as at 31 December 2022

Note

2022
£

2021
£

Fixed assets

 

Intangible assets

12

791,281

851,530

Property, plant and equipment

13

3,637,419

3,629,146

Other financial assets

14

11,250

10,000

 

4,439,950

4,490,676

Current assets

 

Inventories

15

202,422

161,554

Debtors

16

108,391

54,122

Cash at bank and in hand

17

2,255,208

3,206,162

 

2,566,021

3,421,838

Creditors: Amounts falling due within one year

18

(4,007,600)

(3,124,037)

Net current (liabilities)/assets

 

(1,441,579)

297,801

Total assets less current liabilities

 

2,998,371

4,788,477

Creditors: Amounts falling due after more than one year

18

(1,645,256)

(2,156,957)

Provisions for liabilities

19

(312,126)

(601,360)

Net assets

 

1,040,989

2,030,160

Capital and reserves

 

Called up share capital

21

100

100

Retained earnings

1,040,889

2,030,060

Shareholders' funds

 

1,040,989

2,030,160

Approved and authorised by the director on 24 November 2023
 

.........................................
Mr T M Dobbs
Director

 

TTSF Ltd

Statement of Changes in Equity for the Year Ended 31 December 2022

Share capital
£

Retained earnings
£

Total
£

At 1 January 2022

100

2,030,060

2,030,160

Loss for the year

-

(799,171)

(799,171)

Dividends

-

(190,000)

(190,000)

At 31 December 2022

100

1,040,889

1,040,989

Share capital
£

Retained earnings
£

Total
£

At 1 January 2021

100

272,058

272,158

Profit for the year

-

2,003,002

2,003,002

Dividends

-

(245,000)

(245,000)

At 31 December 2021

100

2,030,060

2,030,160

 

TTSF Ltd

Statement of Cash Flows for the Year Ended 31 December 2022

Note

2022
£

2021
£

Cash flows from operating activities

(Loss)/profit for the year

 

(799,171)

2,003,002

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

5

945,585

813,935

Finance costs

7

63,763

48,839

Income tax expense

11

(289,234)

592,179

 

(79,057)

3,457,955

Working capital adjustments

 

Increase in inventories

15

(40,868)

(36,249)

Increase in receivables

16

(54,269)

(26,228)

Increase/(decrease) in payables

18

1,256,870

(224,609)

Cash generated from operations

 

1,082,676

3,170,869

Income taxes paid

11

(297,509)

-

Net cash flow from operating activities

 

785,167

3,170,869

Cash flows from investing activities

 

Acquisitions of property, plant and equipment

(893,609)

(1,154,464)

Acquisition of intangible assets

12

-

(30,000)

FA investment - unlisted other shares additions

 

(1,250)

-

Net cash flows from investing activities

 

(894,859)

(1,184,464)

Cash flows from financing activities

 

Interest paid

7

(63,763)

(48,839)

Repayment of bank borrowing

 

(587,499)

(921,348)

Dividends paid

24

(190,000)

(245,000)

Net cash flows from financing activities

 

(841,262)

(1,215,187)

Net (decrease)/increase in cash and cash equivalents

 

(950,954)

771,218

Cash and cash equivalents at 1 January

 

3,206,162

2,434,944

Cash and cash equivalents at 31 December

17

2,255,208

3,206,162

 

TTSF Ltd

Notes to the Financial Statements for the Year Ended 31 December 2022

1

General information

The company is a private company limited by share capital, incorporated in England.

The address of its registered office is:
69 Toton Lane
Stapleford
Nottinghamshire
NG9 7HB

These financial statements were authorised for issue by the director on 24 November 2023.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Going concern

The financial statements have been prepared on a going concern basis.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Government grants

Government grants are recognised in the financial statements when there is reasonable assurance that the company has complied with all applicable conditions and that the grants will be received. Under FRS 102 the company accounts for government grants using the accrual model. Under the accrual model government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grants are intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred, or for the purpose of giving immediate financial support to the entity with no future related costs, are recognised in income in the period in which it becomes receivable.

Tax

The tax expense for the period comprises deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

 

TTSF Ltd

Notes to the Financial Statements for the Year Ended 31 December 2022

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

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

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Property, plant and equipment

Property, plant and equipment are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of property, plant and equipment includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Plant & equipment

between 3 and 12 years straight line

Motor vehicles

5 years straight line

Goodwill

Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

Intangible assets

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the Company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date.

Licences have a finite useful life and are carried at cost less accumulated amortisation and any accumulated
impairment losses.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Licence fees

straight line over the remaining life of the licence

Stamp duty

straight line over the shorter of the remaining life of the lease and 20 years

Goodwill

straight line over the remaining life of the licence

 

TTSF Ltd

Notes to the Financial Statements for the Year Ended 31 December 2022

Investments

Investments in unlisted Company shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Statement of comprehensive income for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Receivables

Receivables are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Receivables are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of receivables is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Inventories

Stocks are stated at the lower of average cost and net realisable value. Net realisable value is based on estimated selling price less further costs expected to be incurred prior to completion and disposal.

Payables

Payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Payables are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the income statement over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

 

TTSF Ltd

Notes to the Financial Statements for the Year Ended 31 December 2022

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3

Turnover

The analysis of the company's revenue for the year from continuing operations is as follows:

2022
£

2021
£

Sale of goods

39,566,182

37,564,670

4

Other operating income

The analysis of the company's other operating income for the year is as follows:

2022
£

2021
£

Government grants

-

170,594

Miscellaneous other operating income

-

6,095

-

176,689

5

Operating (loss)/profit

Arrived at after charging/(crediting)

2022
£

2021
£

Depreciation expense

885,336

755,062

Amortisation expense

60,249

58,873

Operating lease expense - property

5,415,818

5,067,076

6

Government grants

Grants recognised in the financial statements relate to government grants in respect of the Coronavirus Job Retention Scheme in response to the Covid-19 pandemic.

The amount of grants recognised in the financial statements was £Nil (2021 - £170,594).

 

TTSF Ltd

Notes to the Financial Statements for the Year Ended 31 December 2022

7

Interest payable and similar expenses

2022
£

2021
£

Interest on bank overdrafts and borrowings

63,156

48,839

Interest expense on other finance liabilities

607

-

63,763

48,839

8

Staff costs

The aggregate payroll costs (including director's remuneration) were as follows:

2022
£

2021
£

Wages and salaries

10,529,897

9,414,496

Social security costs

440,297

406,709

Pension costs, defined contribution scheme

369,357

120,411

Other employee expense

37,475

31,243

11,377,026

9,972,859

The average number of persons employed by the company (including the director) during the year, analysed by category was as follows:

2022
No.

2021
No.

Crew labour

1,038

842

Management labour

34

28

1,072

870

9

Director's remuneration

The director's remuneration for the year was as follows:

2022
£

2021
£

Remuneration

12,000

7,000

Contributions paid to money purchase schemes

110,467

-

122,467

7,000

10

Auditors' remuneration

2022
£

2021
£

Audit of the financial statements

2,500

2,350


 

 

TTSF Ltd

Notes to the Financial Statements for the Year Ended 31 December 2022

11

Taxation

Tax charged/(credited) in the income statement

2022
£

2021
£

Current taxation

UK corporation tax

-

297,509

Deferred taxation

Arising from origination and reversal of timing differences

(289,234)

294,670

Tax (receipt)/expense in the income statement

(289,234)

592,179

The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2021 - the same as the standard rate of corporation tax in the UK) of 19% (2021 - 19%).

The differences are reconciled below:

2022
£

2021
£

(Loss)/profit before tax

(1,088,405)

2,595,181

Corporation tax at standard rate

(206,797)

493,084

Effect of expense not deductible in determining taxable profit (tax loss)

7,762

11,503

Effect of tax losses

(72,394)

-

Tax (decrease)/increase from effect of capital allowances and depreciation

(17,805)

87,592

Total tax (credit)/charge

(289,234)

592,179

Deferred tax

Deferred tax assets and liabilities

2022

Asset
£

Liability
£

-

613,768

301,642

-

301,642

613,768

2021

Asset
£

Liability
£

-

601,360

-

601,360

 

TTSF Ltd

Notes to the Financial Statements for the Year Ended 31 December 2022

12

Intangible assets

Goodwill
 £

Licence fees
 £

Stamp duty
 £

Total
£

Cost or valuation

At 1 January 2022

982,694

150,000

55,485

1,188,179

At 31 December 2022

982,694

150,000

55,485

1,188,179

Amortisation

At 1 January 2022

259,787

56,413

20,449

336,649

Amortisation charge

49,595

7,565

3,089

60,249

At 31 December 2022

309,382

63,978

23,538

396,898

Carrying amount

At 31 December 2022

673,312

86,022

31,947

791,281

At 31 December 2021

722,907

93,587

35,036

851,530

13

Property, plant and equipment

Plant and equipment
£

Motor vehicles
 £

Total
£

Cost or valuation

At 1 January 2022

6,610,024

86,330

6,696,354

Additions

837,619

55,990

893,609

At 31 December 2022

7,447,643

142,320

7,589,963

Depreciation

At 1 January 2022

3,056,910

10,298

3,067,208

Charge for the year

863,404

21,932

885,336

At 31 December 2022

3,920,314

32,230

3,952,544

Carrying amount

At 31 December 2022

3,527,329

110,090

3,637,419

At 31 December 2021

3,553,114

76,032

3,629,146

14

Other financial assets (current and non-current)

2022
£

2021
£

Non-current financial assets

Financial assets at cost less impairment

11,250

10,000

 

TTSF Ltd

Notes to the Financial Statements for the Year Ended 31 December 2022

15

Inventories

2022
£

2021
£

Closing stocks of food, paper and non-products

202,422

161,554

16

Debtors

Current

2022
£

2021
£

Other debtors

18,479

-

Prepayments

89,912

54,122

 

108,391

54,122

17

Cash and cash equivalents

2022
£

2021
£

Cash on hand

16,000

16,000

Cash at bank

2,239,208

3,190,162

2,255,208

3,206,162

18

Creditors

Note

2022
£

2021
£

Due within one year

 

Loans and borrowings

22

497,854

573,652

Payables

 

1,662,600

1,151,376

Amounts due to related parties

53,959

57,728

Social security and other taxes

 

1,277,931

523,105

Outstanding defined contribution pension costs

 

23,862

24,097

Other payables

 

1,414

3,632

Accruals

 

489,980

492,938

Income tax liability

11

-

297,509

 

4,007,600

3,124,037

Due after one year

 

Loans and borrowings

22

1,645,256

2,156,957

 

TTSF Ltd

Notes to the Financial Statements for the Year Ended 31 December 2022

19

Provisions for liabilities

Deferred tax
£

Total
£

At 1 January 2022

601,360

601,360

Increase (decrease) in existing provisions

(289,234)

(289,234)

At 31 December 2022

312,126

312,126

20

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £369,357 (2021 - £120,411).

Contributions totalling £23,862 (2021 - £24,097) were payable to the scheme at the end of the year and are included in creditors.

21

Share capital

Allotted, called up and fully paid shares

 

2022

2021

 

No.

£

No.

£

Ordinary A shares of £1 each

75

75

75

75

Ordinary B shares of £1 each

25

25

25

25

 

100

100

100

100

22

Loans and borrowings

2022
£

2021
£

Non-current loans and borrowings

Bank borrowings

1,645,256

2,156,957

2022
£

2021
£

Current loans and borrowings

Bank borrowings

497,854

573,652

 

TTSF Ltd

Notes to the Financial Statements for the Year Ended 31 December 2022

23

Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

2022
£

2021
£

Not later than one year

1,639,464

1,639,464

Later than one year and not later than five years

6,554,310

6,557,856

Later than five years

15,882,557

17,518,475

24,076,331

25,715,795

The amount of non-cancellable operating lease payments recognised as an expense during the year was £5,415,818 (2021 - £5,067,076).

24

Dividends

Interim dividends paid

   

2022
£

 

2021
£

Interim dividend of £1,266.67 (2021 - £1,633.33) per each Ordinary A shares

 

95,000

 

122,500

Interim dividend of £3,800.00 (2021 - £4,900.00) per each Ordinary B shares

 

95,000

 

122,500

   

190,000

 

245,000

25

Analysis of changes in net debt

At 1 January 2022
£

Financing cash flows
£

At 31 December 2022
£

Cash and cash equivalents

Cash

3,206,162

(950,954)

2,255,208

Borrowings

Long term borrowings

(2,734,524)

1,089,268

(1,645,256)

Short term borrowings

(917,433)

419,579

(497,854)

Directors loan account

(57,728)

3,769

(53,959)

(3,709,685)

1,512,616

(2,197,069)

 

(503,523)

561,662

58,139