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Registered number: 08838693









85 PICCADILLY LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2022

 
85 PICCADILLY LIMITED
 
 
COMPANY INFORMATION


Directors
T Artemev (resigned 30 March 2023)
E Chichvarkin 
T Fokina 




Registered number
08838693



Registered office
5 White Horse Street

London

W1J 7LQ




Independent auditors
BKL Audit LLP
Chartered Accountants & Statutory Auditors

35 Ballards Lane

N3 1XW





 
85 PICCADILLY LIMITED
 

CONTENTS



Page
Strategic Report
 
 
1 - 2
Directors' Report
 
 
3 - 4
Independent Auditors' Report
 
 
5 - 8
Statement of Income and Retained Earnings
 
 
9
Statement of Financial Position
 
 
10
Notes to the Financial Statements
 
 
11 - 23


 
85 PICCADILLY LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JULY 2022

Introduction
 
85 Piccadilly Ltd ("The Company") has been trading since 2018. The operation at HIDE has undergone a significant transition during 2023. It was recognized that in order to improve performance & gain efficiency HIDE would be better transformed into a single operation.
With this in mind ‘Above’ and ‘HIDE’ (groundfloor) were combined into a single restaurant from August 1st 2023. HIDE continues to enjoy its status as a Michelin-starred restaurant offering fine dining & vintage wines from around the globe with the ‘Below’ bar trading as a destination bar in its own right whilst hosting a formidable subterranean wine cellar.

Business review
 
From the business review conducted by the Board of Directors in Spring 2023 the decision was made to change the business model. With the increase in utility costs as well as food & wine supply costs together with wage inflation exasperated by post Brexit hospitality labour restrictions, the decision to evolve the business was taken with the business’s sustainability in mind.
The transition from two separate, stand-alone restaurants into a single operation has resulted in the reduction of the labour force by approx. 20%. Improved efficiency from running a single kitchen brigade has helped improve the food margin significantly. 
The change has proved popular with the clientele, with Breakfast service in particular seeing a rise in traffic.
The Board of Directors will continue to review the Company’s performance on a regular basis in this highly competitive market & compare its own results to similar businesses within the industry, to ensure that the Company is performing well.
The directors are confident that the changes implemented can help steer the business through the difficulties that the hospitality industry is still experiencing whilst maintaining strong trading levels.
HIDE’S loyal client base ensures the business remains one of the most consistently busy large-scale restaurants in London with a strong & consistently high spend per head for evening diners of over £150.

Page 1

 
85 PICCADILLY LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2022

Principal risks and uncertainties
 
The directors are responsible for developing strategy on managing the risks the business is exposed to & enforcing controls.
Competitors 
The hospitality industry remains highly competitive with numerous outlets in the area. We therefore as a business ensure we offer an excellent fine dining experience with a unique range of wines. The directors are confident that Company’s fine dining menu & exclusive wine offering will continue to increase turnover.
Brexit & Post Covid
Business continues to feel the effects, impacting on the lack of workforce availability following the Covid pandemic with fewer staff returning to the industry & the fallout from the UK’s departure from the European Union still not bridged by home grown talent. The directors are closely monitoring the situation & continue to develop programs for attracting overseas workers to the Company through sponsorship schemes & investing resources to train & retain current employees.
Finance 
The Company is fully funded by the parent company and is dependent on its financial support. 

Financial key performance indicators
 
The main KPIs used by the company are turnover, gross profit and net profit.

Other key performance indicators
 
The main KPIs used by the company are turnover, gross profit and net profit.


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



T Fokina
Director

Date: 28 November 2023

Page 2

 
85 PICCADILLY LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JULY 2022

The directors present their report and the financial statements for the year ended 31 July 2022.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgments 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;

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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Results and dividends

The loss for the year, after taxation, amounted to £290,983 (2021 - loss £1,773,010).

Directors

The directors who served during the year were:

T Artemev (resigned 30 March 2023)
E Chichvarkin 
T Fokina 

Future developments

The Company continues to offer an excellent fine dining experience with a unique range of wines. The directors are confident that Company’s fine dining menu and exclusive wine offering will continue to increase turnover.

Page 3

 
85 PICCADILLY LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2022

Disclosure of information to auditors

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

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

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditors

Under section 487(2) of the Companies Act 2006BKL Audit LLP will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.

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





T Fokina
Director

Date: 28 November 2023

Page 4

 
85 PICCADILLY LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF 85 PICCADILLY LIMITED
 

Opinion


We have audited the financial statements of 85 Piccadilly Limited (the 'Company') for the year ended 31 July 2022, which comprise the Statement of Income and Retained Earnings, the Statement of Financial Position and the related notes, including a summary of significant accounting policiesThe 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 July 2022 and of its loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Material uncertainty related to going concern


We draw attention to note 2.2 in the financial statements, which indicates that the Company is reliant on its ultimate parent for ongoing financial support. As stated in note 2.2, these events or conditions, along with the other matters as set forth in note 2.2, indicate that a material uncertainty exists that may cast significant doubt on the Company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.

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


Other information


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


We have nothing to report in this regard.


Page 5

 
85 PICCADILLY LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF 85 PICCADILLY LIMITED (CONTINUED)


Opinion on other matters prescribed by the Companies Act 2006
 

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


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


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.


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


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the 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.


Page 6

 
85 PICCADILLY LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF 85 PICCADILLY LIMITED (CONTINUED)


Auditors' responsibilities for the audit of the financial statements
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
 
Enquiring of management and those charged with governance around actual and potential litigation and claims;
Reviewing the general ledger in detail for all transactions with related parties;
Performing walkthrough testing to ensure systems and controls are operating as recorded where appropriate;
Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.


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.


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


Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the Company's internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Auditors' Report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Auditors' Report. However, future events or conditions may cause the Company to cease to continue as a going concern.
 
Page 7

 
85 PICCADILLY LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF 85 PICCADILLY LIMITED (CONTINUED)


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


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


Use of our report
 

This report is made solely to the Company's directors, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the Company's directors those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's directors, as a body, for our audit work, for this report, or for the opinions we have formed.





Geeta Morgan FCA (Senior Statutory Auditor)
  
for and on behalf of
BKL Audit LLP
 
Chartered Accountants
Statutory Auditors
  
London

28 November 2023
Page 8

 
85 PICCADILLY LIMITED
 
 
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 JULY 2022

2022
2021
Note
£
£

  

Turnover
 4 
13,401,386
6,729,203

Cost of sales
  
(5,204,730)
(2,149,474)

Gross profit
  
8,196,656
4,579,729

Administrative expenses
  
(8,306,253)
(6,801,759)

Other operating income
 5 
91,286
940,393

Operating loss
 6 
(18,311)
(1,281,637)

Interest receivable and similar income
  
30
129

Interest payable and similar expenses
  
(94,849)
(157,721)

Loss before tax
  
(113,130)
(1,439,229)

Tax on loss
 10 
(177,853)
(333,781)

Loss after tax
  
(290,983)
(1,773,010)

  

Retained earnings at the beginning of the year
  
(15,335,994)
(13,562,984)

Loss for the year
  
(290,983)
(1,773,010)

Retained earnings at the end of the year
  
(15,626,977)
(15,335,994)
The notes on pages 11 to 23 form part of these financial statements.

Page 9

 
85 PICCADILLY LIMITED
REGISTERED NUMBER: 08838693

STATEMENT OF FINANCIAL POSITION
AS AT 31 JULY 2022

2022
2021
Note
£
£

Fixed assets
  

Tangible assets
 11 
11,877,211
12,359,241

  
11,877,211
12,359,241

Current assets
  

Stocks
 12 
103,844
107,908

Debtors
 13 
788,671
680,786

Cash at bank and in hand
  
7,102
59,364

  
899,617
848,058

Creditors: amounts falling due within one year
 14 
(26,899,519)
(27,216,860)

Net current liabilities
  
 
 
(25,999,902)
 
 
(26,368,802)

Total assets less current liabilities
  
(14,122,691)
(14,009,561)

Provisions for liabilities
  

Deferred tax
 15 
(1,504,285)
(1,326,432)

  
 
 
(1,504,285)
 
 
(1,326,432)

Net liabilities
  
(15,626,976)
(15,335,993)


Capital and reserves
  

Called up share capital 
 16 
1
1

Profit and loss account
 17 
(15,626,977)
(15,335,994)

  
(15,626,976)
(15,335,993)


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




T Fokina
Director

Date: 28 November 2023

The notes on pages 11 to 23 form part of these financial statements.

Page 10

 
85 PICCADILLY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2022

1.


General information

85 Piccadilly Ltd ("The Company") operates two fine dining restaurants and a bar from its location in Mayfair. 
The Company is a private company limited by guarantee and is incorporated in England and Wales. 
The Registered Office address is 5 White Horse Street, London, England, W1J 7LQ.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Going concern

The financial statements show a loss for the year after tax of £290,983  (2021: £1,773,010) and net liabilities of £15,626,976 (2021: £15,335,993). At 31 July 2022, Mr Chichvarkin, a director and the ultimate controlling owner, was owed £8,434,873 (2021: £8,448,456) and the parent company ('Hedonism Drinks Limited') was owed £15,884,355 (2021: £16,370,600).
The directors have assessed whether the Company has adequate resources to meet its obligations as they fall due and beyond the 12 months from the date of the approval of these financial statements, considering in particular the challenges that the past 2 years have posed for the the Company and the wider Group's activities (Hedonism Group), upon which the Company is reliant to generate working capital to fund its financial overheads.
The Company is reliant on the continued support of its parent and of the ultimate controlling owner. Hedonism Drinks Limited and Mr Chichvarkin have pledged this ongoing support and have confirmed that they will not call any debts in at any time that would prejudice the Company to make the repayments.
As a result of the above confirmations, the director considers that the Company can meet its debts as
they fall due and beyond 12 months from the date of signing of these financial statements.

Page 11

 
85 PICCADILLY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2022

2.Accounting policies (continued)

 
2.3

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Hedonism Drinks Limited as at 31 July 2022 and these financial statements may be obtained from Companies House.

 
2.4

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Income and Retained Earnings within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

 
2.5

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. 
Revenue comprises both income arising from the sale of food and drink net of value added tax and income arising as a result of service charges relating to the sale of this food and drink.
Revenue is recognised when food and drink is provided to the customer.

Page 12

 
85 PICCADILLY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2022

2.Accounting policies (continued)

 
2.6

Operating leases: the Company as lessor

Rental income from operating leases is credited to profit or loss on a straight-line basis over the lease term.

 
2.7

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to the Statement of Comprehensive Income on a straight-line basis over the lease term.

 
2.8

Coronavirus Job Retention Scheme income and expenditure

Furlough income is receivable as compensation for salary expenses already incurred and to give immediate financial support to the Company with no future related costs. This income is recognised in the Statement of Comprehensive Income in the same period as the related expenditure.

 
2.9

Finance costs

Finance costs are charged to the Statement of Comprehensive Income over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.10

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

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 income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

Page 13

 
85 PICCADILLY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2022

2.Accounting policies (continued)

  
2.11

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in the Statement of Comprehensive Income when they fall due. Amounts not paid are shown in accruals as a liability on the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.

 
2.12

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Long-term leasehold property
-
4%
Plant and machinery
-
33%
Fixtures and fittings
-
33%
Computer equipment
-
33%

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.13

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.


 
2.14

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

Page 14

 
85 PICCADILLY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2022

2.Accounting policies (continued)

 
2.15

Provisions for liabilities

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the reporting date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Statement of Financial Position.

 
2.16

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
(i) Financial assets
Basic financial assets, including trade and other debtors, cash and bank balances are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Such assets are subsequently carried at amortised cost using the effective interest method. At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in the Statement of Comprehensive Income.
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.
(ii) Financial liabilities
Basic financial liabilities, including trade and other creditors and accruals, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

 
Page 15

 
85 PICCADILLY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2022

2.Accounting policies (continued)


2.16
Financial instruments (continued)

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.
(iii) Offsetting
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgments, estimates and assumptions that affect the amounts reported for assets and liabilities as at the Statement of Financial Position date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates.
Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
(i) Tangible fixed assets
Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values may vary depending on a number of factors.
Fixed assets are considered for impairment when events or circumstances indicate that there may be adjustments required to their carrying value. This review requires an assessment of the recoverable amount of the asset, and where the carrying value exceeds its estimated recoverable amount, the asset is written down to that value. The recoverable amount is the greater of its fair value less costs to sell and value in use.  
The outcome of such an assessment is subjective and the result is sensitive to the assumed future cashflows for the value in use.


4.


Turnover

An analysis of turnover by class of business is as follows:


2022
2021
£
£

Sales
13,401,386
6,729,203


All turnover arose within the United Kingdom.

Page 16

 
85 PICCADILLY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2022

5.


Other operating income

2022
2021
£
£

Labour Recharges
12,953
-

Rental income
67,878
163,524

Income received under the Coronovirus Job Retention Scheme
10,455
776,869

91,286
940,393



6.


Operating loss

The operating loss is stated after charging:

2022
2021
£
£

Exchange differences
(19,710)
20,763

Other operating lease rentals
901,076
802,377

Depreciation
639,030
831,595


7.


Auditors' remuneration

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


2022
2021
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
17,500
10,250

The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.

Page 17

 
85 PICCADILLY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2022

8.


Employees

Staff costs were as follows:


2022
2021
£
£

Wages and salaries
4,082,840
3,394,703

Social security costs
320,124
289,918

Cost of defined contribution scheme
58,874
53,677

4,461,838
3,738,298


The average monthly number of employees, including the directors, during the year was as follows:


        2022
        2021
            No.
            No.







Employees
152
125



Directors
3
3

155
128


9.


Directors' remuneration

The directors are paid remuneration through the parent company, Hedonism Drinks Limited.




Page 18

 
85 PICCADILLY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2022

10.


Taxation


2022
2021
£
£



Total current tax
-
-

Deferred tax


Origination and reversal of timing differences
177,853
333,781

Total deferred tax
177,853
333,781


Taxation on profit on ordinary activities
177,853
333,781

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2021 - higher than) the standard rate of corporation tax in the UK of 19% (2021 - 19%). The differences are explained below:

2022
2021
£
£


Loss on ordinary activities before tax
(113,130)
(1,439,229)


Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2021 - 19%)
(21,495)
(273,453)

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
(31,760)
62,830

Capital allowances for year in excess of depreciation
(7,886)
(37,003)

Remeasurement of deferred tax for change in tax rates
89,400
272,007

Group relief
343,041
262,953

Movement in deferred tax not recognised
(193,447)
46,447

Total tax charge for the year
177,853
333,781

Page 19

 
85 PICCADILLY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2022
 
10.Taxation (continued)


Factors that may affect future tax charges

The UK Government announced its intention to increase the rate of UK corporation tax from 19% to 25% with effect from 1 April 2023. The increase in the rate of UK corporation tax was enacted in the Finance Act 2021 which received Royal Assent on 10 June 2021. 
The Company has taxable losses carried forward of £NIL (2021: £1.25m) that can be offset against future trading taxable profits. A deferred tax asset in respect of some of these losses has been recognised to the extent that future projections and forecasts indicate that it will be used in the foreseeable future.


11.


Tangible fixed assets





Long-term leasehold property
Plant and machinery
Fixtures and fittings
Computer equipment
Total

£
£
£
£
£



Cost or valuation


At 1 August 2021
14,510,903
140,126
948,875
257,607
15,857,511


Additions
-
148,377
-
8,623
157,000



At 31 July 2022

14,510,903
288,503
948,875
266,230
16,014,511



Depreciation


At 1 August 2021
2,218,409
99,954
923,910
255,997
3,498,270


Charge for the year on owned assets
580,436
34,948
20,141
3,505
639,030



At 31 July 2022

2,798,845
134,902
944,051
259,502
4,137,300



Net book value



At 31 July 2022
11,712,058
153,601
4,824
6,728
11,877,211



At 31 July 2021
12,292,494
40,172
24,965
1,610
12,359,241

The parent company, Hedonism Drinks Limited, has taken out a bank loan to finance the refurbishment of the restaurant and has passed this funding onto the Company through the intercompany balance. 
The lender holds a fixed and floating charge over the assets of the Company.

Page 20

 
85 PICCADILLY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2022

12.


Stocks

2022
2021
£
£

Goods for resale
103,844
107,908



13.


Debtors

2022
2021
£
£



Trade debtors
325,484
311,213

Amounts owed by group undertakings
32,732
-

Other debtors
17,153
43,322

Prepayments and accrued income
413,302
326,251

788,671
680,786


Amounts owed by group undertakings are interest free and repayable on demand.


14.


Creditors: Amounts falling due within one year

2022
2021
£
£

Trade creditors
1,123,615
869,230

Amounts owed to group undertakings
16,200,566
16,378,602

Other taxation and social security
676,917
1,115,998

Other creditors
8,796,353
8,763,855

Accruals and deferred income
102,068
89,175

26,899,519
27,216,860


Included within other creditors is an amount of £8,434,873 (2021: £8,448,546) owed to a director. This amount is interest free and repayable on demand.
Amounts owed to group undertakings are interest free and repayable on demand.

Page 21

 
85 PICCADILLY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2022

15.


Deferred taxation




2022


£






At beginning of year
(1,326,432)


Charged to profit or loss
(177,853)



At end of year
(1,504,285)

The provision for deferred taxation is made up as follows:

2022
2021
£
£


Accelerated capital allowances
(1,513,695)
(1,455,103)

Losses and other deductions
2,953
131,964

Short term timing differences
6,457
(3,293)

(1,504,285)
(1,326,432)


16.


Share capital

2022
2021
£
£
Allotted, called up and fully paid



1 (2021 - 1) Ordinary share of £1.00
1
1



17.


Reserves

Profit and loss account

The profit and loss account is the Company's accumulated retained profits and losses at the year end.


18.


Pension commitments

The Company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The total pension cost for the Company was £58,874 (2021: £53,677). Contributions totalling £25,827 (2021: £33,267) were payable to the fund at the balance sheet date.

Page 22

 
85 PICCADILLY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2022

19.


Commitments under operating leases

The Company had no commitments under non-cancellable operating leases at the reporting date.


20.


Related party transactions

The Company has not disclosed transactions between group companies on the grounds that these companies are wholly owned within the group. Consolidated accounts can be obtained from the registered office address.


21.


Controlling party

The immediate parent Company is Hedonism Drinks Limited, a Company registered in England and Wales.
The ultimate controlling party is E Chichvarkin.

 
Page 23