Three Cheers Pub Company Limited 05415795 false 2022-04-01 2023-03-31 2023-03-31 2023-03-31 The principal activity of the company is a holding company for its subsidiaries which operate public houses Digita Accounts Production Advanced 6.30.9574.0 true true true true false false true false false false false false false false false false false 05415795 2022-04-01 2023-03-31 05415795 2023-03-31 05415795 bus:OrdinaryShareClass1 bus:Consolidated 2023-03-31 05415795 bus:OrdinaryShareClass2 bus:Consolidated 2023-03-31 05415795 bus:OrdinaryShareClass3 bus:Consolidated 2023-03-31 05415795 bus:OrdinaryShareClass4 bus:Consolidated 2023-03-31 05415795 bus:OrdinaryShareClass5 bus:Consolidated 2023-03-31 05415795 bus:Consolidated 2023-03-31 05415795 core:FurtherSpecificReserve1ComponentTotalEquity bus:Consolidated 2023-03-31 05415795 core:OtherMiscellaneousReserve bus:Consolidated 2023-03-31 05415795 core:OtherReservesSubtotal bus:Consolidated 2023-03-31 05415795 core:RetainedEarningsAccumulatedLosses 2023-03-31 05415795 core:RetainedEarningsAccumulatedLosses bus:Consolidated 2023-03-31 05415795 core:ShareCapital 2023-03-31 05415795 core:ShareCapital bus:Consolidated 2023-03-31 05415795 core:TotalEquityAttributableToOwnersParentBeforeNon-controllingInterests bus:Consolidated 2023-03-31 05415795 core:CurrentFinancialInstruments 2023-03-31 05415795 core:CurrentFinancialInstruments bus:Consolidated 2023-03-31 05415795 core:CurrentFinancialInstruments core:WithinOneYear 2023-03-31 05415795 core:CurrentFinancialInstruments core:WithinOneYear bus:Consolidated 2023-03-31 05415795 core:Non-currentFinancialInstruments 2023-03-31 05415795 core:Non-currentFinancialInstruments bus:Consolidated 2023-03-31 05415795 core:Non-currentFinancialInstruments core:AfterOneYear 2023-03-31 05415795 core:Non-currentFinancialInstruments core:AfterOneYear bus:Consolidated 2023-03-31 05415795 core:BetweenTwoFiveYears bus:Consolidated 2023-03-31 05415795 core:MoreThanFiveYears bus:Consolidated 2023-03-31 05415795 core:WithinOneYear bus:Consolidated 2023-03-31 05415795 core:FurnitureFittingsToolsEquipment bus:Consolidated 2023-03-31 05415795 core:LandBuildings bus:Consolidated 2023-03-31 05415795 core:MotorVehicles bus:Consolidated 2023-03-31 05415795 core:DeferredTaxation bus:Consolidated 2023-03-31 05415795 bus:FRS102 bus:Consolidated 2022-04-01 2023-03-31 05415795 bus:Audited bus:Consolidated 2022-04-01 2023-03-31 05415795 bus:FullAccounts bus:Consolidated 2022-04-01 2023-03-31 05415795 bus:RegisteredOffice bus:Consolidated 2022-04-01 2023-03-31 05415795 bus:Director1 2022-04-01 2023-03-31 05415795 bus:Director1 bus:Consolidated 2022-04-01 2023-03-31 05415795 bus:Director2 bus:Consolidated 2022-04-01 2023-03-31 05415795 bus:Director3 bus:Consolidated 2022-04-01 2023-03-31 05415795 bus:OrdinaryShareClass1 2022-04-01 2023-03-31 05415795 bus:OrdinaryShareClass1 bus:Consolidated 2022-04-01 2023-03-31 05415795 bus:OrdinaryShareClass2 2022-04-01 2023-03-31 05415795 bus:OrdinaryShareClass2 bus:Consolidated 2022-04-01 2023-03-31 05415795 bus:OrdinaryShareClass3 2022-04-01 2023-03-31 05415795 bus:OrdinaryShareClass3 bus:Consolidated 2022-04-01 2023-03-31 05415795 bus:OrdinaryShareClass4 2022-04-01 2023-03-31 05415795 bus:OrdinaryShareClass4 bus:Consolidated 2022-04-01 2023-03-31 05415795 bus:OrdinaryShareClass5 2022-04-01 2023-03-31 05415795 bus:OrdinaryShareClass5 bus:Consolidated 2022-04-01 2023-03-31 05415795 bus:OtherShareClass1 2022-04-01 2023-03-31 05415795 bus:Consolidated 2022-04-01 2023-03-31 05415795 bus:PrivateLimitedCompanyLtd bus:Consolidated 2022-04-01 2023-03-31 05415795 bus:ConsolidatedGroupCompanyAccounts 2022-04-01 2023-03-31 05415795 core:Associate1 bus:Consolidated 2022-04-01 2023-03-31 05415795 core:Associate1 countries:AllCountries bus:Consolidated 2022-04-01 2023-03-31 05415795 core:FurtherSpecificReserve1ComponentTotalEquity bus:Consolidated 2022-04-01 2023-03-31 05415795 core:OtherMiscellaneousReserve bus:Consolidated 2022-04-01 2023-03-31 05415795 core:RetainedEarningsAccumulatedLosses 2022-04-01 2023-03-31 05415795 core:RetainedEarningsAccumulatedLosses bus:Consolidated 2022-04-01 2023-03-31 05415795 core:ShareCapital 2022-04-01 2023-03-31 05415795 core:ShareCapital bus:Consolidated 2022-04-01 2023-03-31 05415795 core:TotalEquityAttributableToOwnersParentBeforeNon-controllingInterests bus:Consolidated 2022-04-01 2023-03-31 05415795 core:FurnitureFittingsToolsEquipment bus:Consolidated 2022-04-01 2023-03-31 05415795 core:LandBuildings bus:Consolidated 2022-04-01 2023-03-31 05415795 core:LeaseholdImprovements bus:Consolidated 2022-04-01 2023-03-31 05415795 core:MotorVehicles bus:Consolidated 2022-04-01 2023-03-31 05415795 core:Subsidiary1 2022-04-01 2023-03-31 05415795 core:Subsidiary1 1 2022-04-01 2023-03-31 05415795 core:Subsidiary1 countries:EnglandWales 2022-04-01 2023-03-31 05415795 core:Subsidiary10 2022-04-01 2023-03-31 05415795 core:Subsidiary10 1 2022-04-01 2023-03-31 05415795 core:Subsidiary10 countries:EnglandWales 2022-04-01 2023-03-31 05415795 core:Subsidiary2 2022-04-01 2023-03-31 05415795 core:Subsidiary2 1 2022-04-01 2023-03-31 05415795 core:Subsidiary2 countries:EnglandWales 2022-04-01 2023-03-31 05415795 core:Subsidiary3 2022-04-01 2023-03-31 05415795 core:Subsidiary3 1 2022-04-01 2023-03-31 05415795 core:Subsidiary3 countries:EnglandWales 2022-04-01 2023-03-31 05415795 core:Subsidiary4 2022-04-01 2023-03-31 05415795 core:Subsidiary4 1 2022-04-01 2023-03-31 05415795 core:Subsidiary4 countries:EnglandWales 2022-04-01 2023-03-31 05415795 core:Subsidiary5 2022-04-01 2023-03-31 05415795 core:Subsidiary5 1 2022-04-01 2023-03-31 05415795 core:Subsidiary5 countries:EnglandWales 2022-04-01 2023-03-31 05415795 core:Subsidiary6 2022-04-01 2023-03-31 05415795 core:Subsidiary6 1 2022-04-01 2023-03-31 05415795 core:Subsidiary6 countries:EnglandWales 2022-04-01 2023-03-31 05415795 core:Subsidiary7 2022-04-01 2023-03-31 05415795 core:Subsidiary7 1 2022-04-01 2023-03-31 05415795 core:Subsidiary7 countries:EnglandWales 2022-04-01 2023-03-31 05415795 core:Subsidiary8 2022-04-01 2023-03-31 05415795 core:Subsidiary8 1 2022-04-01 2023-03-31 05415795 core:Subsidiary8 countries:EnglandWales 2022-04-01 2023-03-31 05415795 core:Subsidiary9 2022-04-01 2023-03-31 05415795 core:Subsidiary9 1 2022-04-01 2023-03-31 05415795 core:Subsidiary9 countries:EnglandWales 2022-04-01 2023-03-31 05415795 core:UKTax bus:Consolidated 2022-04-01 2023-03-31 05415795 countries:EnglandWales bus:Consolidated 2022-04-01 2023-03-31 05415795 2022-03-31 05415795 bus:Consolidated 2022-03-31 05415795 core:FurtherSpecificReserve1ComponentTotalEquity bus:Consolidated 2022-03-31 05415795 core:OtherMiscellaneousReserve bus:Consolidated 2022-03-31 05415795 core:RetainedEarningsAccumulatedLosses 2022-03-31 05415795 core:RetainedEarningsAccumulatedLosses bus:Consolidated 2022-03-31 05415795 core:ShareCapital 2022-03-31 05415795 core:ShareCapital bus:Consolidated 2022-03-31 05415795 core:TotalEquityAttributableToOwnersParentBeforeNon-controllingInterests bus:Consolidated 2022-03-31 05415795 core:CostValuation 2022-03-31 05415795 core:FurnitureFittingsToolsEquipment bus:Consolidated 2022-03-31 05415795 core:LandBuildings bus:Consolidated 2022-03-31 05415795 core:MotorVehicles bus:Consolidated 2022-03-31 05415795 core:DeferredTaxation bus:Consolidated 2022-03-31 05415795 2021-04-01 2022-03-31 05415795 2022-03-31 05415795 bus:OrdinaryShareClass1 bus:Consolidated 2022-03-31 05415795 bus:OrdinaryShareClass2 bus:Consolidated 2022-03-31 05415795 bus:OrdinaryShareClass3 bus:Consolidated 2022-03-31 05415795 bus:OrdinaryShareClass4 bus:Consolidated 2022-03-31 05415795 bus:OrdinaryShareClass5 bus:Consolidated 2022-03-31 05415795 bus:Consolidated 2022-03-31 05415795 core:FurtherSpecificReserve1ComponentTotalEquity bus:Consolidated 2022-03-31 05415795 core:OtherMiscellaneousReserve bus:Consolidated 2022-03-31 05415795 core:OtherReservesSubtotal bus:Consolidated 2022-03-31 05415795 core:RetainedEarningsAccumulatedLosses 2022-03-31 05415795 core:RetainedEarningsAccumulatedLosses bus:Consolidated 2022-03-31 05415795 core:ShareCapital 2022-03-31 05415795 core:ShareCapital bus:Consolidated 2022-03-31 05415795 core:TotalEquityAttributableToOwnersParentBeforeNon-controllingInterests bus:Consolidated 2022-03-31 05415795 core:CurrentFinancialInstruments 2022-03-31 05415795 core:CurrentFinancialInstruments bus:Consolidated 2022-03-31 05415795 core:CurrentFinancialInstruments core:WithinOneYear 2022-03-31 05415795 core:CurrentFinancialInstruments core:WithinOneYear bus:Consolidated 2022-03-31 05415795 core:Non-currentFinancialInstruments 2022-03-31 05415795 core:Non-currentFinancialInstruments bus:Consolidated 2022-03-31 05415795 core:Non-currentFinancialInstruments core:AfterOneYear 2022-03-31 05415795 core:Non-currentFinancialInstruments core:AfterOneYear bus:Consolidated 2022-03-31 05415795 core:BetweenTwoFiveYears bus:Consolidated 2022-03-31 05415795 core:MoreThanFiveYears bus:Consolidated 2022-03-31 05415795 core:WithinOneYear bus:Consolidated 2022-03-31 05415795 core:FurnitureFittingsToolsEquipment bus:Consolidated 2022-03-31 05415795 core:LandBuildings bus:Consolidated 2022-03-31 05415795 core:MotorVehicles bus:Consolidated 2022-03-31 05415795 bus:OrdinaryShareClass1 2021-04-01 2022-03-31 05415795 bus:OrdinaryShareClass2 2021-04-01 2022-03-31 05415795 bus:OrdinaryShareClass3 2021-04-01 2022-03-31 05415795 bus:OrdinaryShareClass4 2021-04-01 2022-03-31 05415795 bus:OrdinaryShareClass5 2021-04-01 2022-03-31 05415795 bus:OtherShareClass1 2021-04-01 2022-03-31 05415795 bus:Consolidated 2021-04-01 2022-03-31 05415795 core:Associate1 bus:Consolidated 2021-04-01 2022-03-31 05415795 core:FurtherSpecificReserve1ComponentTotalEquity bus:Consolidated 2021-04-01 2022-03-31 05415795 core:OtherMiscellaneousReserve bus:Consolidated 2021-04-01 2022-03-31 05415795 core:RetainedEarningsAccumulatedLosses 2021-04-01 2022-03-31 05415795 core:RetainedEarningsAccumulatedLosses bus:Consolidated 2021-04-01 2022-03-31 05415795 core:ShareCapital 2021-04-01 2022-03-31 05415795 core:ShareCapital bus:Consolidated 2021-04-01 2022-03-31 05415795 core:TotalEquityAttributableToOwnersParentBeforeNon-controllingInterests bus:Consolidated 2021-04-01 2022-03-31 05415795 core:Subsidiary1 1 2021-04-01 2022-03-31 05415795 core:Subsidiary10 1 2021-04-01 2022-03-31 05415795 core:Subsidiary2 1 2021-04-01 2022-03-31 05415795 core:Subsidiary3 1 2021-04-01 2022-03-31 05415795 core:Subsidiary4 1 2021-04-01 2022-03-31 05415795 core:Subsidiary5 1 2021-04-01 2022-03-31 05415795 core:Subsidiary6 1 2021-04-01 2022-03-31 05415795 core:Subsidiary7 1 2021-04-01 2022-03-31 05415795 core:Subsidiary8 1 2021-04-01 2022-03-31 05415795 core:Subsidiary9 1 2021-04-01 2022-03-31 05415795 core:UKTax bus:Consolidated 2021-04-01 2022-03-31 05415795 2021-03-31 05415795 bus:Consolidated 2021-03-31 05415795 core:FurtherSpecificReserve1ComponentTotalEquity bus:Consolidated 2021-03-31 05415795 core:OtherMiscellaneousReserve bus:Consolidated 2021-03-31 05415795 core:RetainedEarningsAccumulatedLosses 2021-03-31 05415795 core:RetainedEarningsAccumulatedLosses bus:Consolidated 2021-03-31 05415795 core:ShareCapital 2021-03-31 05415795 core:ShareCapital bus:Consolidated 2021-03-31 05415795 core:TotalEquityAttributableToOwnersParentBeforeNon-controllingInterests bus:Consolidated 2021-03-31 iso4217:GBP xbrli:pure xbrli:shares

Registration number: 05415795

Three Cheers Pub Company Limited

Annual Report and Consolidated Financial Statements

for the Year Ended 31 March 2023

 

Three Cheers Pub Company Limited

Contents

Company Information

1

Strategic Report

2 to 3

Directors' Report

4 to 5

Statement of Directors' Responsibilities

6

Independent Auditor's Report

7 to 10

Consolidated Profit and Loss Account

11

Consolidated Statement of Comprehensive Income

12

Consolidated Balance Sheet

13

Balance Sheet

14

Consolidated Statement of Changes in Equity

15

Statement of Changes in Equity

16

Consolidated Statement of Cash Flows

17

Statement of Cash Flows

18

Notes to the Financial Statements

19 to 34

 

Three Cheers Pub Company Limited

Company Information

Directors

NM Fox

THW Peake

MEL Reynolds

Registered office

165 Stonhouse Street
London
SW4 6BJ

Auditors

Carbon Accountancy Limited
Chartered Accountants and Statutory Auditors
80-83 Long Lane
London
EC1A 9ET

 

Three Cheers Pub Company Limited

Strategic Report for the Year Ended 31 March 2023

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

Principal activity

The principal activity of the group is a holding company for its subsidiaries which operate public houses

Fair review of the business

The Group reported revenue of £12.2 million in the year ended 31 March 2023 (2022: £10.9 million), an increase of 12%. Operating profit before depreciation for the year ended 31 March 2023 is £1.67 million (2022: £2.48 million), a drop of 32% which is directly linked to inflationary rise in direct and indirect costs. The profit before tax for the year amounted to £1.11 million (2022: £1.88 million).

During the period sales have continued to grow however the current cost of living crisis, exacerbated by the war in Ukraine which has driven up energy and food prices in particular, has continued pressure on consumers and the trading environment. Additional costs are being offset as much as possible by price rises, menu engineering and operational productivity.

The group's key financial and other performance indicators during the year were as follows:

Financial KPIs

Unit

2023

2022

Revenue

£

12,246,253

10,924,992

Operating profit before depreciation

£

1,676,866

2,484,786


Principal risks and uncertainties
The principal risks affecting the Group are discussed below.

General economic conditions
The cost of living crisis, exacerbated by the war in Ukraine driving up energy and food prices in particular, has put continued pressure on consumers and the trading environment. Additional costs are being offset as much as possible by price rises. However, the industry as a whole will undoubtedly feel the impact of increased costs in the short to medium term.

Industry specific
The Group operates in the leisure industry which is sensitive to economic conditions and pressures on disposable income. The market is also enduring inflationary cost pressures relating to food prices, business rates, utility costs, and the national living wage which has a direct impact on the Group.

The fundamental need for the UK consumer to socialise will always remain, however changes in consumer behaviour are often rapid. Therefore, there is a risk to market share if the Group is not positioned to quickly react to these changes. The Group’s Segment Strategy teams, involving marketers, operators, and finance, meet regularly to ensure segments respond quickly.

The Board regularly reviews results and forecasts to assess the impact of economic conditions on its budget and strategic plans. The Group is well placed to react to additional competition for leisure spending by being able to respond quickly in our pubs to adapt offers.

Although the cost inflationary pressures have a direct impact on the Group, this is a growing business and therefore, we can design operations to best mitigate increasing costs. We also continue to foster mutually beneficial relationships with key suppliers to ensure the impact of any price increases is minimised wherever possible.

 

Three Cheers Pub Company Limited

Strategic Report for the Year Ended 31 March 2023


Principal risks and uncertainties continued

The Group is subject to various areas of regulation, particularly with regards to the sale of alcohol. This can include licenses, permits, late night levies and various restriction orders. The Group works closely with the Police, Local Authorities, and trade bodies to ensure we remain compliant with legislation.

The Group's employees are subject to the Working Time Regulations, which controls the hours they are legally allowed to work. In addition, a large portion of the Group's staff are employed at the minimum wage and so the Group is impacted by increases in the minimum wage. The Directors expect that increases will result in an increase in the Group's labour costs, however they expect increases to be mitigated to a certain extent by revenue growth as well as certain measures introduced by the Group to optimise staff scheduling.

Group specific
A large proportion of the Group's managed pub revenues are collected in cash across its pubs and bars, which exposes the Group to potential cash loss. Strict cash control procedures are followed to ensure that cash collected is promptly reconciled and banked and due to the nature of the operations the directors have a strong presence in the pubs and promote a good control environment.

The Group places reliance on key suppliers and distributors to ensure there is a continuous supply of both food, drink, and other products to its managed pubs. The Group is exposed to the risk of failure by these suppliers to deliver in the required time frames or to the standards expected. The Group works closely with its key suppliers and distribution partners to ensure good working relationships.

Approved and authorised by the Board on 28 November 2023 and signed on its behalf by:
 

.........................................
NM Fox
Director

 

Three Cheers Pub Company Limited

Directors' Report for the Year Ended 31 March 2023

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

Directors of the group

The directors who held office during the year were as follows:

NM Fox

THW Peake

MEL Reynolds

Dividends

The Directors declared dividends of £708,671 (2022: £795,398).

Information included in the Strategic Report

The Group has chosen in accordance with Section 414C(11) of the Companies Act 2006 to include certain disclosures required under Section 416 of the Companies Act 2006 within the Strategic Report.

Financial instruments
At the period end the Group’s financial instruments include bank & intercompany loans and cash. The main purpose of these financial instruments is to raise finance for the Group’s operations. The main risks arising from the Group’s financial instruments are liquidity risks and interest risks. There is no currency exposure as all transactions are in Sterling Pound. The Board reviews and agrees policies for managing each of these risks on a Group basis and they are summarised below, including the impact of cashflow risk for the Group.

Liquidity risk
The Group has exposure to liquidity risk, being the risk that payments cannot be made when they fall due. The Group’s current objective is to maintain a balance between continuity of funding and flexibility using intercompany debt.

Interest risk
Interest risk is driven by continued pressure from increase in lending rates. The Group’s objective is to plan non-operating capital expenditure in a phased manner to ensure debts are serviced when they fall due.

Price risk
Price risk is primarily driven by fluctuation in the price of goods for both sale and purchase. For further details, please refer to “General economic conditions” section of the Strategic report.

Cash flow risk
Cash flow risk is driven by the fact that cash flow could fluctuate throughout the period due to a range of different factors such as working capital, investment and financing, payment management, employee management and the industry environment. The Group carry out regular cash flow forecasting with regular review of cash position in conjunction with cash requirements at component level.

Disclosure of information to the auditor

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.

 

Three Cheers Pub Company Limited

Directors' Report for the Year Ended 31 March 2023

Approved and authorised by the Board on 28 November 2023 and signed on its behalf by:
 

.........................................
NM Fox
Director

 

Three Cheers Pub Company Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities 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 group and the company and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK 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 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 and in accordance with FRS 102 The Financial Reporting Standard. 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.

 

Three Cheers Pub Company Limited

Independent Auditor's Report to the Members of Three Cheers Pub Company Limited

Opinion

We have audited the financial statements of Three Cheers Pub Company Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2023, which comprise the Consolidated Profit and Loss Account, Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated Statement of Cash Flows, 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 group's and the parent company's affairs as at 31 March 2023 and of the group's profit 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 group 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 group'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 directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our 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.

 

Three Cheers Pub Company Limited

Independent Auditor's Report to the Members of Three Cheers Pub Company Limited

We have nothing to report in this regard.

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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

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

Matters on which we are required to report by exception

In the light of 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 Directors' 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

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

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

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities [set out on page 6], 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 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.

 

Three Cheers Pub Company Limited

Independent Auditor's Report to the Members of Three Cheers Pub Company Limited

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud was as follows:

• The engagement partner ensured that the engagement team collectively had the appropriate competence,capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
• We identified the laws and regulations applicable to the company through discussions with directors and other anagement, and from our commercial knowledge and experience of the sector in which the company operates;
• We focused on specific laws and regulations which we considered may have a direct impact material effect on the financial statements, or the operations of the company which included the Companies Act 2006, taxation legislation, data protection, anti-bribery, fire and safety, landlord and tenant act, and health and safety legislation;
• We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
• Identified laws and regulations were communicated within the audit team and the team remained alert to instances of non-compliance throughout the audit.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to involve the completeness and timing of income recognition and the override of controls by management.

To address the risk of fraud in relation to revenue recognition, we:

• Performed detailed substantive testing to address completeness and accuracy of sales;
• Assessed the appropriateness and application of the accounting policy concerning income recognition; and
• Performed detailed cut-off testing either side of the balance sheet date.

To address the risk of fraud through management bias and override of controls, we:

• Performed analytical procedures to identify any unusual or unexpected relationships;
• Tested journal entries to identify unusual transactions;
• Assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias;
• Investigated the rationale behind significant or unusual transactions.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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

 

Three Cheers Pub Company Limited

Independent Auditor's Report to the Members of Three Cheers Pub Company Limited

Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in 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.

......................................
John Leyden FCA (Senior Statutory Auditor)
For and on behalf of Carbon Accountancy Limited, Statutory Auditor

Chartered Accountants and Statutory Auditors
80-83 Long Lane
London
EC1A 9ET

28 November 2023

 

Three Cheers Pub Company Limited

Consolidated Profit and Loss Account for the Year Ended 31 March 2023

Note

2023
£

2022
£

Turnover

3

12,246,253

10,924,992

Cost of sales

 

(3,562,371)

(3,025,753)

Gross profit

 

8,683,882

7,899,239

Administrative expenses

 

(7,591,446)

(6,397,316)

Other operating income

97,370

616,832

Operating profit

5

1,189,806

2,118,755

Income from participating interests

 

147,479

(32,949)

Other interest receivable and similar income

7

1,079

193

Interest payable and similar expenses

8

(224,966)

(202,122)

   

(76,408)

(234,878)

Profit before tax

 

1,113,398

1,883,877

Tax on profit

11

(253,014)

(424,013)

Profit for the financial year

 

860,384

1,459,864

Profit/(loss) attributable to:

 

Owners of the company

 

860,384

1,459,864

 

Three Cheers Pub Company Limited

Consolidated Statement of Comprehensive Income for the Year Ended 31 March 2023

2023
£

2022
£

Profit for the year

860,384

1,459,864

Surplus on property, plant and equipment revaluation

-

2,341,513

Total comprehensive income for the year

860,384

3,801,377

Total comprehensive income attributable to:

Owners of the company

860,384

3,801,377

 

Three Cheers Pub Company Limited

(Registration number: 05415795)
Consolidated Balance Sheet as at 31 March 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

12

10,556,032

9,188,478

Investments

13

433,616

286,131

 

10,989,648

9,474,609

Current assets

 

Stocks

14

145,411

155,095

Debtors

15

742,120

1,282,132

Cash at bank and in hand

 

451,310

1,615,001

 

1,338,841

3,052,228

Creditors: Amounts falling due within one year

17

(4,014,759)

(4,157,426)

Net current liabilities

 

(2,675,918)

(1,105,198)

Total assets less current liabilities

 

8,313,730

8,369,411

Creditors: Amounts falling due after more than one year

17

(2,775,064)

(2,982,458)

Provisions for liabilities

18

(780,505)

(780,505)

Net assets

 

4,758,161

4,606,448

Capital and reserves

 

Called up share capital

20

3,003

3,003

Other reserves

2,351,418

2,351,418

Profit and loss account

2,403,740

2,252,027

Equity attributable to owners of the company

 

4,758,161

4,606,448

Total equity

 

4,758,161

4,606,448

Approved and authorised by the Board on 28 November 2023 and signed on its behalf by:
 

.........................................
NM Fox
Director

 

Three Cheers Pub Company Limited

(Registration number: 05415795)
Balance Sheet as at 31 March 2023

Note

2023
£

2022
£

Fixed assets

 

Investments

13

3,004

3,004

Current assets

 

Debtors

15

147,003

147,003

Creditors: Amounts falling due within one year

17

(147,004)

(147,004)

Net current liabilities

 

(1)

(1)

Net assets

 

3,003

3,003

Capital and reserves

 

Called up share capital

20

3,003

3,003

Shareholders' funds

 

3,003

3,003

The company made a profit after tax for the financial year of £708,671 (2022 - profit of £795,398).

Approved and authorised by the Board on 28 November 2023 and signed on its behalf by:
 

.........................................
NM Fox
Director

 

Three Cheers Pub Company Limited

Consolidated Statement of Changes in Equity for the Year Ended 31 March 2023
Equity attributable to the parent company

Share capital
£

Non-distributable reserve
£

Other reserves
£

Retained earnings
£

Total
£

Total equity
£

At 1 April 2022

3,003

2,341,513

9,905

2,252,027

4,606,448

4,606,448

Profit for the year

-

-

-

860,384

860,384

860,384

Dividends

-

-

-

(708,671)

(708,671)

(708,671)

At 31 March 2023

3,003

2,341,513

9,905

2,403,740

4,758,161

4,758,161

Share capital
£

Non-distributable reserve
£

Other reserves
£

Retained earnings
£

Total
£

Total equity
£

At 1 April 2021

3,003

-

9,905

1,587,561

1,600,469

1,600,469

Profit for the year

-

-

-

1,459,864

1,459,864

1,459,864

Other comprehensive income

-

2,341,513

-

-

2,341,513

2,341,513

Total comprehensive income

-

2,341,513

-

1,459,864

3,801,377

3,801,377

Dividends

-

-

-

(795,398)

(795,398)

(795,398)

At 31 March 2022

3,003

2,341,513

9,905

2,252,027

4,606,448

4,606,448

 

Three Cheers Pub Company Limited

Statement of Changes in Equity for the Year Ended 31 March 2023

Share capital
£

Retained earnings
£

Total
£

At 1 April 2022

3,003

-

3,003

Profit for the year

-

708,671

708,671

Dividends

-

(708,671)

(708,671)

At 31 March 2023

3,003

-

3,003

Share capital
£

Retained earnings
£

Total
£

At 1 April 2021

3,003

-

3,003

Profit for the year

-

795,398

795,398

Dividends

-

(795,398)

(795,398)

At 31 March 2022

3,003

-

3,003

 

Three Cheers Pub Company Limited

Consolidated Statement of Cash Flows for the Year Ended 31 March 2023

Note

2023
£

2022
£

Cash flows from operating activities

Profit for the year

 

860,384

1,459,864

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

5

487,059

532,541

Loss on disposal of tangible assets

4

14,000

-

Finance income

7

(1,079)

(193)

Finance costs

8

224,966

202,122

Share of profit/loss of equity accounted investees

 

(147,479)

32,949

Income tax expense

11

253,014

424,013

 

1,690,865

2,651,296

Working capital adjustments

 

Decrease/(increase) in stocks

14

9,684

(34,177)

Decrease in debtors

15

540,012

426,127

Increase in creditors

17

1,381,350

23,213

Cash generated from operations

 

3,621,911

3,066,459

Income taxes paid

 

(516,385)

(20,331)

Net cash flow from operating activities

 

3,105,526

3,046,128

Cash flows from investing activities

 

Interest received

1,079

193

Acquisitions of tangible assets

(1,868,614)

(452,147)

Net cash flows from investing activities

 

(1,867,535)

(451,954)

Cash flows from financing activities

 

Interest paid

8

(224,966)

(202,122)

Repayment of bank borrowing

 

(1,468,045)

(666,059)

Dividends paid

(708,671)

(795,398)

Net cash flows from financing activities

 

(2,401,682)

(1,663,579)

Net (decrease)/increase in cash and cash equivalents

 

(1,163,691)

930,595

Cash and cash equivalents at 1 April

 

1,615,001

684,406

Cash and cash equivalents at 31 March

 

451,310

1,615,001

 

Three Cheers Pub Company Limited

Statement of Cash Flows for the Year Ended 31 March 2023

Note

2023
£

2022
£

Cash flows from operating activities

Profit for the year

 

708,671

795,398

Adjustments to cash flows from non-cash items

 

Finance income

(708,671)

(795,398)

Net cash flow from operating activities

 

-

-

Cash flows from investing activities

 

Interest received

708,671

795,398

Cash flows from financing activities

 

Dividends paid

(708,671)

(795,398)

Net increase/(decrease) in cash and cash equivalents

 

-

-

Cash and cash equivalents at 1 April

 

-

-

Cash and cash equivalents at 31 March

 

-

-

 

Three Cheers Pub Company Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

1

General information

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

The address of its registered office is:
165 Stonhouse Street
London
SW4 6BJ

These financial statements were authorised for issue by the Board on 28 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.

 

Three Cheers Pub Company Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

Basis of consolidation

The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 March 2023.

No Profit and Loss Account is presented for the company as permitted by section 408 of the Companies Act 2006. The company made a profit after tax for the financial year of £708,671 (2022 - profit of £795,398).

A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.

The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.

Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.

Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.

Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.

Going concern

In preparing these financial statements, the directors have considered the appropriateness of the going concern basis. In forming their view, management have prepared and reviewed cash flow forecasts for the Group, covering a period of 12 months from the date of approval of these financial statements.

At the balance sheet date, the Group has net assets of £4.7 million and on the basis of the current financial position and the forecast trading performance of the business, the directors consider it appropriate to prepare the financial statements on a going concern basis.

 

Three Cheers Pub Company Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

Judgements

Going concern - The directors have used judgement in determining that the entity is a going concern (see note 2 for details)

Key sources of estimation uncertainty

Depreciation and amortisation - The Company estimates the useful economic life and residual value of property, plant and equipment and these estimates influence the depreciation and amortisation charged each year. For details of these estimates, see the detailed accounting policies. The carrying amount is £10,556,032 (2022 -£9,188,478).

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 group’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the group.

The group 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 group's activities.

Government grants

Money received in the form of a government grant is treated as a revenue grant. Therefore, grant income is recorded within other income in the income statement on a systematic basis in the same periods as the related expenses occurred.

Tax

The tax expense for the period comprises current 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.

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 group operates and generates taxable income.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets 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

Fixtures, fittings and equipments

10% straight line

Leaseholds and leasehold improvements

over the term of the lease

Freehold buildings

2% straight line

 

Three Cheers Pub Company Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

Business combinations

Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at 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.

Trade debtors

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

Trade debtors 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 trade debtors is established when there is objective evidence that the group will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Trade creditors

Trade creditors 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 group 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.

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

 

Three Cheers Pub Company Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

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 profit and loss account 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 group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

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 group’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 group 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.

 

Three Cheers Pub Company Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

3

Turnover

The analysis of the group's Turnover for the year from continuing operations is as follows:

2023
£

2022
£

Sale of food, drinks and accommodation

12,246,253

10,924,992

4

Other gains and losses

The analysis of the group's other gains and losses for the year is as follows:

2023
£

2022
£

Loss on disposal of tangible assets

(14,000)

-

5

Operating profit

Arrived at after charging/(crediting)

2023
£

2022
£

Depreciation expense

487,059

532,541

Loss on disposal of property, plant and equipment

14,000

-

6

Government grants

Grants recognised in the accounts include support received under the Government's Coronavirus Job Retention Scheme, business rates relief and Wet Pubs Business Support Scheme.

The amount of grants recognised in the financial statements was £Nil (2022 - £498,928).

7

Other interest receivable and similar income

2023
£

2022
£

Other finance income

1,079

193

8

Interest payable and similar expenses

2023
£

2022
£

Interest expense on other finance liabilities

224,966

202,122

 

Three Cheers Pub Company Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

9

Staff costs

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

2023
£

2022
£

Wages and salaries

3,777,258

3,398,527

Pension costs, defined contribution scheme

138,033

107,936

3,915,291

3,506,463

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

2023
No.

2022
No.

Administration and support

214

179

214

179

10

Auditors' remuneration

2023
£

2022
£

Audit of these financial statements

25,950

25,950

Other fees to auditors

All other non-audit services

3,500

3,500


 

 

Three Cheers Pub Company Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

11

Taxation

Tax charged/(credited) in the consolidated profit and loss account

2023
£

2022
£

Current taxation

UK corporation tax

253,014

424,013

The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2022 - higher than the standard rate of corporation tax in the UK) of 19% (2022 - 19%).

The differences are reconciled below:

2023
£

2022
£

Profit before tax

1,113,398

1,883,877

Corporation tax at standard rate

211,546

357,937

(Decrease)/increase from effect of joint-ventures and associates results reported net of tax

(28,021)

6,260

Decrease in UK and foreign current tax from adjustment for prior periods

-

(805)

Tax increase from effect of capital allowances and depreciation

69,489

60,621

Total tax charge

253,014

424,013

 

Three Cheers Pub Company Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

12

Tangible assets

Group

Land and buildings
£

Furniture, fittings and equipment
 £

Motor vehicles
 £

Total
£

Cost or valuation

At 1 April 2022

8,036,181

1,384,474

15,490

9,436,145

Revaluations

3,122,018

-

-

3,122,018

Additions

1,770,000

98,614

-

1,868,614

Disposals

(70,000)

-

-

(70,000)

At 31 March 2023

12,858,199

1,483,088

15,490

14,356,777

Depreciation

At 1 April 2022

2,418,490

948,099

3,098

3,369,687

Charge for the year

401,651

82,309

3,098

487,058

Eliminated on disposal

(56,000)

-

-

(56,000)

At 31 March 2023

2,764,141

1,030,408

6,196

3,800,745

Carrying amount

At 31 March 2023

10,094,058

452,680

9,294

10,556,032

At 31 March 2022

8,739,711

436,375

12,392

9,188,478

Included within the net book value of land and buildings above is £9,038,000 (2022 - £7,373,335) in respect of freehold land and buildings, £778,148 (2022 - £1,055,331) in respect of long leasehold land and buildings and £277,910 (2022 - £311,045) in respect of short leasehold land and buildings.

The valuation for the freehold land and buildings was done in May 2022 by Fleurets Limited, a firm of Estate Agents and Chartered Surveyors.

 

Three Cheers Pub Company Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

13

Investments

Group

Details of undertakings

Details of the investments in which the group holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

     

2023

2022

Associates

Six Cheers Limited

Ordinary

49%

49%

 

England and Wales

     

Its financial period end is 30 September 2022.

Aggregate financial information of associates

2023
£

2022
£

Group's share of in associates

147,479

(32,949)

Associate undertakings

Six Cheers Limited

The principal activity of Six Cheers Limited is operating public houses .
 

 

Company

2023
£

2022
£

Investments in subsidiaries

3,004

3,004

Subsidiaries

£

Cost or valuation

At 1 April 2022

3,004

Provision

Carrying amount

At 31 March 2023

3,004

At 31 March 2022

3,004

 

Three Cheers Pub Company Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

Details of undertakings

Details of the investments in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

     

2023

2022

Subsidiary undertakings

The Abbeville Pub Limited

England and Wales

Ordinary shares

100%

100%

The Avalon Clapham Limited

England and Wales

Ordinary shares

100%

100%

The Bolingbroke Pub Limited

England and Wales

Ordinary shares

100%

100%

The Latchmere Pub Limited

England and Wales

Ordinary shares

100%

100%

The Rosendale Pub Limited

England and Wales

Ordinary shares

100%

100%

The Stonhouse Pub Limited

England and Wales

Ordinary shares

100%

100%

The Tommyfield Pub Limited

England and Wales

Ordinary shares

100%

100%

The Rosendale Freehold Limited

England and Wales

Ordinary shares

100%

100%

The Stonhouse Freehold Limited

England and Wales

Ordinary shares

100%

100%

Three Cheers Management Company Limited

England and Wales

Ordinary shares

100%

100%

Subsidiary undertakings

The Abbeville Pub Limited

The principal activity of The Abbeville Pub Limited is Operating a public house.

The Avalon Clapham Limited

The principal activity of The Avalon Clapham Limited is Operating a public house.

The Bolingbroke Pub Limited

The principal activity of The Bolingbroke Pub Limited is Operating a public house.

The Latchmere Pub Limited

The principal activity of The Latchmere Pub Limited is Operating a public house.

 

Three Cheers Pub Company Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

The Rosendale Pub Limited

The principal activity of The Rosendale Pub Limited is Operating a public house.

The Stonhouse Pub Limited

The principal activity of The Stonhouse Pub Limited is Operating a public house.

The Tommyfield Pub Limited

The principal activity of The Tommyfield Pub Limited is Operating a public house.

The Rosendale Freehold Limited

The principal activity of The Rosendale Freehold Limited is Property ownership and management.

The Stonhouse Freehold Limited

The principal activity of The Stonhouse Freehold Limited is Property ownership and management.

Three Cheers Management Company Limited

The principal activity of Three Cheers Management Company Limited is Management services.

14

Stocks

 

Group

Company

2023
£

2022
£

2023
£

2022
£

Stock

145,411

155,095

-

-

15

Debtors

 

Group

Company

Current

2023
£

2022
£

2023
£

2022
£

Trade debtors

14,764

29,124

-

-

Amounts owed by related parties

-

-

147,000

147,000

Other debtors

630,701

1,176,465

3

3

Prepayments

96,655

76,543

-

-

 

742,120

1,282,132

147,003

147,003

16

Cash and cash equivalents

 

Group

Company

2023
£

2022
£

2023
£

2022
£

Cash on hand

13,780

1,780

-

-

Cash at bank

437,530

1,613,221

-

-

451,310

1,615,001

-

-

 

Three Cheers Pub Company Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

17

Creditors

   

Group

Company

Note

2023
£

2022
£

2023
£

2022
£

Due within one year

 

Loans and borrowings

21

1,666,149

2,926,795

-

-

Trade creditors

 

387,295

416,489

-

-

Amounts due to related parties

 

-

-

147,001

147,001

Social security and other taxes

 

328,304

355,452

-

-

Other payables

 

1,445,607

1,915

3

3

Accruals

 

29,450

35,450

-

-

Income tax liability

11

157,954

421,325

-

-

 

4,014,759

4,157,426

147,004

147,004

Due after one year

 

Loans and borrowings

21

2,775,064

2,982,458

-

-

18

Provisions for liabilities

Group

Deferred tax
£

Total
£

At 1 April 2022

780,505

780,505

At 31 March 2023

780,505

780,505

19

Pension and other schemes

Defined contribution pension scheme

The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £138,033 (2022 - £107,936).

 

Three Cheers Pub Company Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

20

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

'A' Ordinary Shares of £1 each

1,000

1,000

1,000

1,000

'B' Ordinary Shares of £1 each

1,000

1,000

1,000

1,000

'C' Ordinary Shares of £1 each

1,000

1,000

1,000

1,000

'D' Ordinary Shares of £1 each

1

1

1

1

'E' Ordinary Shares of £1 each

1

1

1

1

'F' Ordinary Shares of £1 each

1

1

1

1

 

3,003

3,003

3,003

3,003

21

Loans and borrowings

 

Group

Company

2023
£

2022
£

2023
£

2022
£

Non-current loans and borrowings

Bank borrowings

2,775,064

2,982,458

-

-

 

Group

Company

2023
£

2022
£

2023
£

2022
£

Current loans and borrowings

Bank borrowings

141,149

651,795

-

-

Other borrowings

1,525,000

2,275,000

-

-

1,666,149

2,926,795

-

-

22

Obligations under leases and hire purchase contracts

Group

Operating leases

The total of future minimum lease payments is as follows:

2023
£

2022
£

Not later than one year

619,546

620,283

Later than one year and not later than five years

1,967,665

2,490,632

Later than five years

741,094

3,505,011

3,328,305

6,615,926

 

Three Cheers Pub Company Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

The amount of non-cancellable operating lease payments recognised as an expense during the year was £444,509 (2022 - £397,690).

As a direct result of the Covid-19 pandemic, the lease payments recognised in the profit and loss account reduced by £Nil (2022 - £162,190).

23

Dividends

Interim dividends paid

   

2023
£

 

2022
£

Interim dividend of £118.11 (2022 - £132.57) per each 'A' Ordinary Shares

 

118,111

 

132,567

Interim dividend of £118.11 (2022 - £132.57) per each 'B' Ordinary Shares

 

118,111

 

132,567

Interim dividend of £118.11 (2022 - £132.57) per each 'C' Ordinary Shares

 

118,110

 

132,567

Interim dividend of £118,112.00 (2022 - £132,566.00) per each 'D' Ordinary Shares

 

118,113

 

132,566

Interim dividend of £118,112.00 (2022 - £132,566.00) per each 'E' Ordinary Shares

 

118,113

 

132,566

Interim dividend of £118,112.00 (2022 - £132,566.00) per each 'F' Ordinary Shares

 

118,113

 

132,566

   

708,671

 

795,398

24

Financial commitments, guarantees and contingencies

HSBC Bank plc has the right to set-off bank balances of the group companies against other group companies bank debts. The group companies have provided intercompany guarantees to HSBC Bank plc in respect of all debts due.

 

Three Cheers Pub Company Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

25

Related party transactions

Other related party transactions
During the year the company made the following related party transactions:

Nicholas Fox
(Director of the company)
Interest rate - 2% above Bank of England base rate or 5% whichever is higher.
At the balance sheet date the amount due to Nicholas Fox was £300,000 (2022 - £300,000).

Gail Fox
(Related to Nicholas Fox, who is a director of the Company)
Interest rate - 2% above Bank of England base rate or 5% whichever is higher.
During the year, the Group repaid £200,000 of the loaned amount and consequently at the balance sheet date the amount due to Gail Fox was £150,000 (2022 - £350,000).

Andrew Gregg
(Andrew Gregg is related to Mark Reynolds, who is a director of the Company)
Interest rate - 2% above Bank of England base rate or 5% whichever is higher.
At the balance sheet date the amount due to Andrew Gregg was £1,075,000 (2022 - £1,075,000).

Bruce Lundie
(Bruce Lundie is related to Nicholas Fox, who is a director of the Company)
Interest rate - 2% above Bank of England base rate or 5% whichever is higher.
During the year, the Group repaid the entire loaned amount and consequently at the balance sheet date the amount due to Bruce Lundie was £Nil (2022 - £200,000).

John Brodie
(Related to Nicholas Fox, who is a director of the Company)
Interest rate - 2% above Bank of England base rate or 5% whichever is higher.
During the year, the Group repaid the entire loaned amount and consequently at the balance sheet date the amount due to John Brodie was £Nil (2022 - £25,000).

Flic Brodie
(Related to Nicholas Fox, who is a director of the Company)
Interest rate - 2% above Bank of England base rate or 5% whichever is higher.
During the year, the Group repaid the entire loaned amount and consequently at the balance sheet date the amount due to Flic Brodie was £Nil (2022 - £25,000).

Jemma Eadie
(Related to Nicholas Fox, who is a director of the Company)
Interest rate - 2% above Bank of England base rate or 5% whichever is higher.
During the year, the Group repaid the entire loaned amount and consequently at the balance sheet date the amount due to Jemma Eadie was £Nil (2022 - £100,000).