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REGISTERED NUMBER: 09350734 (England and Wales)















C M RESTAURANTS (HOLDINGS) LIMITED

Strategic Report, Report of the Director and

Financial Statements for the Year Ended 31 December 2022






C M RESTAURANTS (HOLDINGS) LIMITED (REGISTERED NUMBER: 09350734)






Contents of the Financial Statements
for the year ended 31 December 2022




Page

Company Information 1

Strategic Report 2 to 3

Report of the Director 4 to 8

Report of the Independent Auditors 9 to 11

Income Statement 12

Other Comprehensive Income 13

Statement of Financial Position 14

Statement of Changes in Equity 15

Statement of Cash Flows 16

Notes to the Statement of Cash Flows 17

Notes to the Financial Statements 18 to 28


C M RESTAURANTS (HOLDINGS) LIMITED

Company Information
for the year ended 31 December 2022







Director: M Cuthbert





Secretary: S Cuthbert





Registered office: Mcdonald’s Restaurant
Bridge End Road
Grantham
Lincolnshire
NG31 7ES





Registered number: 09350734 (England and Wales)





Auditors: Cooper Parry Group Limited
CUBO Birmingham
Office 401, 4th Floor
Two Chamberlain Square
Birmingham
West Midlands
B3 3AX

C M RESTAURANTS (HOLDINGS) LIMITED (REGISTERED NUMBER: 09350734)

Strategic Report
for the year ended 31 December 2022

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

Review of business
The company operates eleven McDonald's franchised restaurants within the East Midlands and surrounding area, employing over 1,400 members of staff.

Profitability, although strong in the first half of 2022, has been impacted in the second half of the year by amongst other things the increase in VAT within the hospitality sector back to the standard rate of 20% from 1 April 2022, a volatile supply chain and rising costs base.

Given the direct link between our approach to pricing, the external environment, and our success in relation to our customers, we will continue to remain close to understanding this relationship and look constantly to evaluate how our internal actions are impacting our customers.

The financial position of the company is healthy with the balance sheet showing net assets of £2.41 million, decreased from £3.30 million in 2021.

Following the year end, the company sold all of its remaining stores for sales proceeds of £10.835 million and ceased trading.

Key performance indicators
Sales for the year amounted to £51.62 million, an increase of £3.25 million from 2021 giving an overall sales increase of approximately 6.72%. The growth in sales is predominantly due to the continued growth in delivery sales.

The gross profit margin is 64.42% compared to 66.97% in 2021 and is in line with expectations.

Principle risks and uncertainties
The company operates in a highly competitive market. High Street consumer behaviour impacts the company's turnover and the variability of commodity prices impacts profitability.

The company is continually assessing all risks with an aim to mitigate any future threats these may have on the business.

Economic risk
Following some very challenging times, we are optimistic about the economic future. Customer confidence continues to rise and unemployment rates are falling. A cautious approach is still required as real disposable income continues to decline as the Cost of Living and interest rates continue to rise. Principal risks are increasing commodity prices, increased utility costs and labour rates adding pressure to margins with significant upward movements in interest rates that may also increase costs. The first mentioned risk is controlled by McDonald's collective purchasing initiatives.

The level of borrowing is such that interest rate increases are manageable.

Regulatory risks
The company's operations demand a high level of compliance within a wide range of regulatory requirements. In particular -
* Health and safety
* Hygiene procedures
* Employment laws
* Licensing
The above, along with a number of other areas, are monitored in detail by McDonald's, as being in the fast food industry brings a high level of regulatory concerns.


C M RESTAURANTS (HOLDINGS) LIMITED (REGISTERED NUMBER: 09350734)

Strategic Report
for the year ended 31 December 2022

Consumer taste
Any material changes in the way the consumer views the fast food industry could have an adverse effect on the company. However, this can also work in the opposite direction and could assist the company to achieve growth. As a result, the company focuses, in detail, on recognising demographic trends, ensuring innovation and the use of the freshest and highest quality products through its stores. The company has strict policies to ensure that all stores are maintaining the McDonald's ethos.

Competitors
The fast food market is a very competitive market, with a high number of large competitors trading in the sector. In order to remain as one of the main players, McDonald's have dedicated teams who focus on ensuring they remain a leading company within the market. This allows them to compete with other large fast food chains.

With these risks and uncertainties in mind, we are aware that any plans for the future development of the business may be subject to unforeseen future events outside our control, hence we are constantly assessing our plans in line with the current environment.

Section 172(1) statement
The board of directors take into account the likely consequences of long-term decisions; build relationships with stakeholders; understand the importance of engaging with our employees; understand the impact of our operations on the communities within which we operate; and attribute importance to behaving as a responsible business.

The board of directors consider, both individually and together, that they have acted in the way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole (having regard to the stakeholders and matters set out in s172(1)(a-f) of the Act) in the decisions taken during the year ended 31 December 2022. In particular by reference to the approval of our business plan, which is updated on an annual basis. Our business plan was designed to have a long-term beneficial impact on the company and to contribute to its success in delivering high quality quick-service food.

Our employees are fundamental to the delivery of our plan. We aim to be a responsible employer in our approach the to pay and benefits our employees receive. The health, safety and wellbeing of our employees is one of our primary considerations in the way we do business.

As the Board of directors, our intention is to behave responsibly and ensure that management operate the business in a responsible manner, operating within the high standards of business conduct and good governance expected for a business such as ours, and in doing so, will contribute to the delivery of our plan.

On behalf of the board:





M Cuthbert - Director


27 November 2023

C M RESTAURANTS (HOLDINGS) LIMITED (REGISTERED NUMBER: 09350734)

Report of the Director
for the year ended 31 December 2022

The director presents his report with the financial statements of the company for the year ended 31 December 2022.

Principal activity
The principal activity of the company in the year under review was that of the operation of McDonald's franchised restaurants.

Dividends
Interim dividends per share were paid as follows:

Ordinary A £1 shares £13.33 - 31 December 2022

Ordinary B £1 shares £40.00 - 31 December 2022


The director recommends that no final dividends be paid.


The total distribution of dividends for the year ended 31 December 2022 will be £4,000.

Research and development
The company does not carry out any independent research and development. However the franchisor, McDonalds' Restaurants Limited, carries out its own research and development on behalf of all franchisees. The company makes a contribution towards this through its existing payments to the franchisor.

Events since the end of the year
Information relating to events since the end of the year is given in the notes to the financial statements.

Director
M Cuthbert held office during the whole of the period from 1 January 2022 to the date of this report.

Going concern
The company is in a net current liabilities position at the balance sheet date, however this is a reflection of the nature of the fast food industry and not a reflection of the strength of the business.

The directors have considered the application of the going concern basis of accounting and in doing so they have considered the period from the date of this report until 31 December 2024. The directors are intending to liquidate the company through a Members Voluntary Liquidation process. Until such event occurs, the company has adequate resources to continue in operational existence and meet it's liabilities as and when they fall due. As a result, the financial statements have been prepared on a basis other than going concern.

The recognition and measurement requirements of FRS102 have continued to be applied, the decision to prepare the financial statements on a basis other than going concern having no material impact compared with if they had been prepared on a going concern basis.

No adjustments were necessary to the amounts at which assets and liabilities are included in the financial statements in respect of the above.

Employment of disabled persons
The company operates a policy of giving full & fair consideration to employment applications from disabled persons.

Provision of information to employees
The company has a system for providing employees with information of concern to them. It also consults employees on a regular basis so that their views can be taken into account in making decisions affecting them. It regularly explains to employees the financial and economic factors affecting the performance of the company and makes them aware of the provision of training, career development and employment of disabled employees.

Engagement with employees
Our employees are fundamental to the delivery of our plan. We aim to be a responsible employer in our approach the to pay and benefits our employees receive. The health, safety and wellbeing of our employees is one of our primary considerations in the way we do business.

Engagement with suppliers, customers and others
The board of directors take into account the likely consequences of long-term decisions; build relationships with stakeholders; understand the impact of our operations on the communities within which we operate; and attribute importance to behaving as a responsible business.

C M RESTAURANTS (HOLDINGS) LIMITED (REGISTERED NUMBER: 09350734)

Report of the Director
for the year ended 31 December 2022


Statement of corporate governance arrangements
The company is owned and controlled by a single director. By reference to the Corporate Governance Guidance and Principles for Unlisted Companies in the UK, published by the Institute of Directors, the director has established a framework of company processes and attitudes that add value to the business, help build its reputation and ensure its long-term continuity and success. This framework aligns with the business system and processes established by the franchisor and contributes to the continued success of the company.

Streamlined energy and carbon reporting
In line with the government's streamlined energy and carbon reporting requirements we are required to report our organisation's carbon emissions for the period 1st January 2022 to 31st December 2022 against our 2020 baseline.

Our emissions are reported using the financial control boundary and the methodology used aligns with Defra's Environmental reporting guidelines (2019) and uses the UK government's greenhouse gas reporting conversion factors (2021) to quantify emissions.

Scope of reporting



Emissions source
1st January 2021-
31st December
2021
1st January 2022-
31st December
2022


Change

%
Change

Direct Emissions from Mobile Combustion
Sources - Franchisee Vehicle Fuel
Consumption


-


-


-


-%
Direct Emissions from Stationary
Combustion - Franchisee Natural Gas
Consumption


109.0


104.8


-4.2


-3.9%
Direct Emissions From Stationary
Combustion - Other Fuel Consumption

15.0

26.5

11.5

76.7%
Total Scope 1 (tCO2e) 124.0 131.3 7.3 5.9%

Indirect Emissions from Franchisee
Purchased Electricity

1,203.0

1,141.9

-61.1

-5.1%
Total Scope 2 (tCO2e) 1,203.0 1,141.9 -61.1 -5.1%

Total Scope 1 & 2 (tCO2e) - Location
Based

1,327.0

1,273.2

-53.8

-4.1%

Fuel Consumed by Personal Vehicles used
for Business Activities - Grey Fleet

14.6

16.5

1.9

13.0.%
Direct Emissions From Stationary
Combustion - Natural Gas Consumption at
Landlord Leased Restaurants


-


-


-


-%
Direct Emissions From Stationary
Combustion - Other Fuel Consumption at
Landlord Leased Restaurants


-


-


-


-%
Indirect Emissions From Purchased
Electricity of Landlord Leased Restaurants

90.0

90.7

0.7

0.8%
Total Scope 3 (tCO2e) 104.6 107.2 2.6 2.4%

Total Scope 1, 2 & 3 (tCO2e) 1,431.6 1380.4 -51.2 -3.6%

Intensity Metrics
Annual Turnover (£M) 48 52 4 8.3%
Scope 1 & 2 emissions per unit
(tCO2e/£M Turnover)

27.6

24.5

-3.1

-11.2.%

Energy Consumption by source (kWh)
Electricity 6,089,827 6,373,947 284,120 4.7%
Gas 591,111 574,035 -17,076 -2.9%

Purchased Fuel

68,593

118,972

50,379

73.4%
Company Car - - - -%
Grey Fleet Vehicle 60,572 64,589 4,017 6.6%

C M RESTAURANTS (HOLDINGS) LIMITED (REGISTERED NUMBER: 09350734)

Report of the Director
for the year ended 31 December 2022

Total 6,810,103 7,131,543 321,440 4.7%

Absolute emissions compared to our baseline have increased this year due to an increase in business activity. Covid 19 restrictions limited our operations during the baseline as restaurants were required to close for part of the year. This increase broadly falls in line with the amount of time the restaurants were closed or operating at limited capacity. Overall total scope 1 and 2 emissions fell by 4.1% and scope 3 emissions rose by 2.4%, total emissions decreased by 3.6%.

Our largest source of emissions is a direct result of electricity consumption, followed by natural gas and purchased fuels used for our restaurant kitchens and heating. As the United Kingdom moves towards reducing their energy use to meet the requirements of Net Zero Carbon Emissions by 2050. Our overall strategy is to pursue a program of energy efficiency combined with carbon mitigation measures such as the utilisation of renewable electricity, this will be bolstered with programs to reduce and decarbonise heat across our estate.

Notable initiatives carried out this year include:

- Engaging with InstaVolt regarding the installation of EV chargers in our stores car parks.

Further information on our calculations can be found in our GHG Methodology statement.

Greenhouse Gas (GHG) Reporting Methodology Statement

Reporting Period

Emissions are reported against accounting year covering the period 1 January to 31 December 2022.

Reporting Boundary

Financial Control Approach - McDonalds reports any emissions from its operations for which it can directly influence financial and operating policies to gain economic benefit. This is focussed on energy consumed in buildings where McDonalds Franchisee occupy and/or are the bill payer, this includes vacant units where they pay the bill until it is reoccupied or disposed of. This is restricted to the UK (United Kingdom) where we have full financial control over our operations.

Greenhouse Gases Reported

All greenhouse gas emissions are reported in tonnes of carbon dioxide equivalent (tCO2e) to account for all six of the Kyoto Protocol GHG's.

Emissions Factors

Government's Greenhouse gas reporting conversion factors for 2020 (for baseline year's energy use), 2021 (for 2021-year's energy use) and 2022 (for 2022-year's energy use).

Baseline Year

Covers the period 1st January 2020 to 31st December 2020, as this is the first year required to report emissions under the SECR (Streamlined Energy & Carbon Reporting) legislation.

Intensity Ratio

McDonalds uses annual turnover (tCO2e/£) to normalise and compare its emissions over time. McDonalds also uses an average cheque per site for an intensity metric figure.

Exclusions

McDonalds do not currently report fugitive emissions (refrigerant leakage) from refrigeration and air conditioning systems in leased properties or fleet. This is due to the difficulty in obtaining centralised data on refrigerant top-ups and the fact most of our buildings are out of scope as franchisees manage the HVAC (Heating, Ventilation and Air Conditioning) systems. Given the size and types of emission sources listed by McDonalds, fugitive emissions are expected to be a small proportion of total emissions and are therefore considered immaterial.





C M RESTAURANTS (HOLDINGS) LIMITED (REGISTERED NUMBER: 09350734)

Report of the Director
for the year ended 31 December 2022



Scope of Emissions

Scope 1 - Direct Emissions Scope 2 - Indirect Emissions Scope 3 - Other Indirect
Emissions

On-site Fuel Combustion: Purchased Electricity: Upstream Leased Assets
Gas and fuel directly purchased for
heating or generation across property
managed by the McDonald's franchisee.
Electricity directly purchased
across property managed by the
McDonald's franchisee.
Gas and electricity recharges
across leased property
managed by the landlord.



Company Vehicles: Grey Fleet
Fuel purchased for fleet vehicles
managed and owned by the McDonald's
franchisee.
Fuel purchased for staff
personal vehicles used for
business activities.
Fugitive Emissions 1:
Refrigerant leaks from air-conditioning (RAC) equipment in leased assets and fleet vehicles managed and owned by the McDonald's franchisee.

Fugitive emissions are currently not reported as outlined in the exclusions statement.

Process

McDonald's follow the reporting approach set out in the UK Government's Environmental Reporting Guidance (2019) to ensure that reporting standards are robust and transparent.

For most of its major emissions sources primary data from AMR meter readings, utility bills and expensed claims. Emissions data is collated centrally by Mitie Energy's Sustainability team who have overall responsibility for ensuring the calculations and methodology are correct.


Data Sources

Scope 1 and 2:
Gas Consumption Utility bills are verified through Mitie's bureau service.
Any billing data is cross referenced against half hourly
and meter read data where available.

Company Vehicles Fleet Fuel Card data records provide the amount of fuel
purchased for business purposes.

Purchased Electricity Utility bills are verified through Mitie's bureau service.
Any billing data is cross referenced against half hourly
and meter read data where available.

Scope 3:
Grey Fleet Mileage claims are provided.

Upstream Leased Assets Landlord statements are used where available (and
applicable). Where unavailable (and applicable) landlord
recharge data is estimated based on a typical
restaurant's consumption profile.

Estimations

Where building utility data is unavailable, estimations are made based on an average restaurant (or site) type of consumption for McDonalds' whole portfolio. For sites where invoice data is only available for a partial period, the available data is apportioned using an average kWh/day figure.


C M RESTAURANTS (HOLDINGS) LIMITED (REGISTERED NUMBER: 09350734)

Report of the Director
for the year ended 31 December 2022

Statement of director's responsibilities
The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the director is required to:

- select suitable accounting policies and then apply them consistently;
- make judgements and accounting estimates that are reasonable and prudent;
- state whether applicable 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 director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement as to disclosure of information to auditors
So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

Auditors
The audit business of Haines Watts Birmingham LLP was acquired by Cooper Parry Group Limited on 14 November 2023. Haines Watts Birmingham LLP has resigned as auditor and Cooper Parry Group Limited has been appointed in its place.

The auditors, Cooper Parry Group Limited, are deemed to be re-appointed under Section 487(2) of the Companies Act 2006.

On behalf of the board:





M Cuthbert - Director


27 November 2023

Report of the Independent Auditors to the Members of
C M Restaurants (Holdings) Limited

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

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 December 2022 and of its loss for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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 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 use of a basis other than going concern in the preparation of the financial statements is appropriate.

The company sold all of its remaining stores in July 2023 and ceased trading. We acknowledge and agree that the accounts should be prepared on a basis other than going concern.

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

Emphasis of matter
We draw attention to note 24 to the financial statements which explains that following the year end the company sold its four remaining stores and has ceased trading. Therefore, the director does not consider it appropriate to adopt the going concern basis of accounting. Accordingly, the accounts have been prepared on a basis other than going concern, as described in note 2.

Other information
The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors 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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
C M Restaurants (Holdings) Limited


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 Report of the Director.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of director's remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

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

In preparing the financial statements, the director is responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

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

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

Based on our understanding of the industry, we identified that the principal risks of non-compliance related to breaches of health and safety, including food hygiene. We considered the extent to which non-compliance might have a material affect on the financial statements. We also considered those laws and regulations that have a direct impact on preparation of the financial statements, such as the Companies Act 2006. We examined management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of overriding of controls) and determined that the principal risks were relating to management bias in accounting estimates, in particular those of accrued liabilities and the useful life of tangible assets. We also discussed with management the possibility of non-compliance with health and safety and food hygiene regulations and reviewed the management controls in place to detect such irregularities. Audit procedures included challenging assumptions made by management in their significant accounting estimates. There are inherent limitations in the Audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions described in the financial statements, the less likely we would become aware of it. Also the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one due to error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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 Report of the Auditors.

Report of the Independent Auditors to the Members of
C M Restaurants (Holdings) 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 a Report of the Auditors 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.




Andrew Hughes FCA (Senior Statutory Auditor)
for and on behalf of Cooper Parry Group Limited
CUBO Birmingham
Office 401, 4th Floor
Two Chamberlain Square
Birmingham
West Midlands
B3 3AX

27 November 2023

C M RESTAURANTS (HOLDINGS) LIMITED (REGISTERED NUMBER: 09350734)

Income Statement
for the year ended 31 December 2022

2022 2021
Notes £ £

Turnover 51,621,678 48,372,588

Cost of sales (18,366,333 ) (15,978,692 )
Gross profit 33,255,345 32,393,896

Administrative expenses (34,634,642 ) (30,230,359 )
(1,379,297 ) 2,163,537

Other operating income 336,708 1,004,543
Operating (loss)/profit 4 (1,042,589 ) 3,168,080

Interest receivable and similar income 14,367 714
(1,028,222 ) 3,168,794

Interest payable and similar expenses 5 (70,583 ) (93,130 )
(Loss)/profit before taxation (1,098,805 ) 3,075,664

Tax on (loss)/profit 6 216,118 (1,016,116 )
(Loss)/profit for the financial year (882,687 ) 2,059,548

C M RESTAURANTS (HOLDINGS) LIMITED (REGISTERED NUMBER: 09350734)

Other Comprehensive Income
for the year ended 31 December 2022

2022 2021
Notes £ £

(Loss)/profit for the year (882,687 ) 2,059,548


Other comprehensive income - -
Total comprehensive (loss)/income for the
year

(882,687

)

2,059,548

C M RESTAURANTS (HOLDINGS) LIMITED (REGISTERED NUMBER: 09350734)

Statement of Financial Position
31 December 2022

2022 2021
Notes £ £ £ £
Fixed assets
Intangible assets 9 592,701 615,320
Tangible assets 10 5,980,618 7,360,429
Investments 11 13,950 13,950
6,587,269 7,989,699

Current assets
Stocks 12 231,762 166,664
Debtors 13 1,605,165 1,107,134
Cash at bank and in hand 2,128,554 2,911,487
3,965,481 4,185,285
Creditors
Amounts falling due within one year 14 7,441,871 5,229,913
Net current liabilities (3,476,390 ) (1,044,628 )
Total assets less current liabilities 3,110,879 6,945,071

Creditors
Amounts falling due after more than one
year

15

-

(2,741,407

)

Provisions for liabilities 19 (702,113 ) (908,211 )
Net assets 2,408,766 3,295,453

Capital and reserves
Called up share capital 20 200 200
Other reserves 21 100 100
Retained earnings 21 2,408,466 3,295,153
Shareholders' funds 2,408,766 3,295,453

The financial statements were approved by the director and authorised for issue on 27 November 2023 and were signed by:





M Cuthbert - Director


C M RESTAURANTS (HOLDINGS) LIMITED (REGISTERED NUMBER: 09350734)

Statement of Changes in Equity
for the year ended 31 December 2022

Called up
share Retained Other Total
capital earnings reserves equity
£ £ £ £
Balance at 1 January 2021 200 1,435,605 100 1,435,905

Changes in equity
Dividends - (200,000 ) - (200,000 )
Total comprehensive income - 2,059,548 - 2,059,548
Balance at 31 December 2021 200 3,295,153 100 3,295,453

Changes in equity
Dividends - (4,000 ) - (4,000 )
Total comprehensive loss - (882,687 ) - (882,687 )
Balance at 31 December 2022 200 2,408,466 100 2,408,766

C M RESTAURANTS (HOLDINGS) LIMITED (REGISTERED NUMBER: 09350734)

Statement of Cash Flows
for the year ended 31 December 2022

2022 2021
Notes £ £
Cash flows from operating activities
Cash generated from operations 1 1,625,685 4,432,452
Interest paid (70,583 ) (93,130 )
Tax paid (613,462 ) (84,180 )
Net cash from operating activities 941,640 4,255,142

Cash flows from investing activities
Purchase of intangible fixed assets (30,000 ) (86,514 )
Purchase of tangible fixed assets (222,644 ) (702,928 )
Interest received 14,367 714
Net cash from investing activities (238,277 ) (788,728 )

Cash flows from financing activities
Loan repayments in year (974,026 ) (2,092,930 )
Amount introduced by directors 4,000 200,000
Amount withdrawn by directors (512,123 ) (236,403 )
Equity dividends paid (4,000 ) (200,000 )
Net cash from financing activities (1,486,149 ) (2,329,333 )

(Decrease)/increase in cash and cash equivalents (782,786 ) 1,137,081
Cash and cash equivalents at beginning
of year

2

2,911,340

1,774,259

Cash and cash equivalents at end of year 2 2,128,554 2,911,340

C M RESTAURANTS (HOLDINGS) LIMITED (REGISTERED NUMBER: 09350734)

Notes to the Statement of Cash Flows
for the year ended 31 December 2022

1. Reconciliation of (loss)/profit before taxation to cash generated from operations
2022 2021
£ £
(Loss)/profit before taxation (1,098,805 ) 3,075,664
Depreciation charges 1,655,074 1,604,182
Finance costs 70,583 93,130
Finance income (14,367 ) (714 )
612,485 4,772,262
(Increase)/decrease in stocks (65,098 ) 11,168
Decrease in trade and other debtors 181,617 332,504
Increase/(decrease) in trade and other creditors 896,681 (683,482 )
Cash generated from operations 1,625,685 4,432,452

2. Cash and cash equivalents

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 December 2022
31/12/22 1/1/22
£ £
Cash and cash equivalents 2,128,554 2,911,487
Bank overdrafts - (147 )
2,128,554 2,911,340
Year ended 31 December 2021
31/12/21 1/1/21
£ £
Cash and cash equivalents 2,911,487 1,774,259
Bank overdrafts (147 ) -
2,911,340 1,774,259


3. Analysis of changes in net debt

At 1/1/22 Cash flow At 31/12/22
£ £ £
Net cash
Cash at bank and in hand 2,911,487 (782,933 ) 2,128,554
Bank overdrafts (147 ) 147 -
2,911,340 (782,786 ) 2,128,554
Debt
Debts falling due within 1 year (1,015,706 ) (1,276,516 ) (2,292,222 )
Debts falling due after 1 year (2,250,542 ) 2,250,542 -
(3,266,248 ) 974,026 (2,292,222 )
Total (354,908 ) 191,240 (163,668 )

C M RESTAURANTS (HOLDINGS) LIMITED (REGISTERED NUMBER: 09350734)

Notes to the Financial Statements
for the year ended 31 December 2022

1. Statutory information

C M Restaurants (Holdings) Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. Accounting policies

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Going concern
The company is in a net current liabilities position at the balance sheet date, however this is a reflection of the nature of the fast food industry and not a reflection of the strength of the business.

The directors have considered the application of the going concern basis of accounting and in doing so they have considered the period from the date of this report until 31 December 2024. The directors are intending to liquidate the company through a Members Voluntary Liquidation process. Until such event occurs, the company has adequate resources to continue in operational existence and meet it's liabilities as and when they fall due. As a result, the financial statements have been prepared on a basis other than going concern.

The recognition and measurement requirements of FRS102 have continued to be applied, the decision to prepare the financial statements on a basis other than going concern having no material impact compared with if they had been prepared on a going concern basis.

No adjustments were necessary to the amounts at which assets and liabilities are included in the financial statements in respect of the above.

Preparation of consolidated financial statements
The financial statements contain information about C M Restaurants (Holdings) Limited as an individual company and do not contain consolidated financial information as the parent of the group. The company has taken the option under Section 402, sub section 405 (2) of the Companies Act 2006 not to prepare consolidated financial statements. The exemption applies as neither of the two subsidiary undertakings are deemed to be material as individuals or as a whole. Both companies are dormant.

Turnover
Turnover is measured at the fair value of the consideration received or receivable for goods at its restaurants in the ordinary course of the company's activities. Turnover is shown net of discount and Value Added Tax.

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

Franchise rights and fees
Franchise rights and fees are initially recognised at cost and are subsequently measured at cost less accumulated amortisation and impairment losses. They are amortised over their useful lives, which is taken as the twenty year term specified in the franchise agreements.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Short leasehold - 5% on cost
Plant and machinery - at varying rates on cost
Motor vehicles - 25% on reducing balance
Computer equipment - 33% on cost

C M RESTAURANTS (HOLDINGS) LIMITED (REGISTERED NUMBER: 09350734)

Notes to the Financial Statements - continued
for the year ended 31 December 2022

2. Accounting policies - continued

Government grants
Grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received.

Grants are recognised using the accrual model.

Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income and not deducted from the carrying amount of the asset.

Investments in subsidiaries
Investments in subsidiary undertakings are recognised at cost.

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

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

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

C M RESTAURANTS (HOLDINGS) LIMITED (REGISTERED NUMBER: 09350734)

Notes to the Financial Statements - continued
for the year ended 31 December 2022

2. Accounting policies - continued

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

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to each asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Holiday pay accrual
A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the Balance Sheet date and carried forward to future periods. This is measured at the undiscounted cost of the future holiday entitlement so accrued at the Balance Sheet date.

C M RESTAURANTS (HOLDINGS) LIMITED (REGISTERED NUMBER: 09350734)

Notes to the Financial Statements - continued
for the year ended 31 December 2022

2. Accounting policies - continued

Financial instruments
The Company only enters into basic financial instruments 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 non-puttable ordinary shares.

For financial assets measured at amortised cost, the impairment cost is measured at the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the assets effective interest rate. If the financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the balance sheet date.

Creditors
Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Finance costs
Finance costs are charged to the Profit and Loss Account 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.

Dividends
Equity dividends are recognised when they legally become payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Judgements in applying accounting policies and key sources of estimation uncertainty
In the process of applying the company's accounting policies, management are required to make certain estimates and judgements. The key estimates and judgements are as follows:

Depreciation and residual values
The director has reviewed the asset lives and associated residual values of all fixed asset classes, and has concluded that asset lives and residual values are appropriate.

Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

Holiday pay accrual
A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the Balance Sheet date and carried forward to future periods. This is measured at the undiscounted cost of the future holiday entitlement so accrued at the Balance Sheet date.

3. Employees and directors
2022 2021
£ £
Wages and salaries 14,605,983 12,544,881
Social security costs 697,096 619,007
Other pension costs 250,633 229,679
15,553,712 13,393,567

C M RESTAURANTS (HOLDINGS) LIMITED (REGISTERED NUMBER: 09350734)

Notes to the Financial Statements - continued
for the year ended 31 December 2022

3. Employees and directors - continued

The average number of employees during the year was as follows:
2022 2021

Crew 1,362 1,213
Management 44 41
1,406 1,254

2022 2021
£ £
Director's remuneration 28,857 25,200
Director's pension contributions to money purchase schemes 40,000 40,000

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 1 1

4. Operating (loss)/profit

The operating loss (2021 - operating profit) is stated after charging:

2022 2021
£ £
Other operating leases 7,063,212 6,472,822
Depreciation - owned assets 1,602,455 1,547,227
Franchise rights amortisation 39,055 39,055
Franchise fees amortisation 13,564 12,564
Stamp duty amortisation - 5,336
Audit services 16,500 15,000
Taxation compliance services 12,022 19,183
Other non- audit services 2,750 2,500

5. Interest payable and similar expenses
2022 2021
£ £
Bank interest 3,701 4,347
Bank loan interest 66,882 87,286
HMRC interest - 1,497
70,583 93,130

C M RESTAURANTS (HOLDINGS) LIMITED (REGISTERED NUMBER: 09350734)

Notes to the Financial Statements - continued
for the year ended 31 December 2022

6. Taxation

Analysis of the tax (credit)/charge
The tax (credit)/charge on the loss for the year was as follows:
2022 2021
£ £
Current tax:
UK corporation tax - 611,651
Prior year corporation tax (10,020 ) -
Total current tax (10,020 ) 611,651

Deferred tax (206,098 ) 404,465
Tax on (loss)/profit (216,118 ) 1,016,116

UK corporation tax has been charged at 19% (2021 - 19%).

Reconciliation of total tax (credit)/charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2022 2021
£ £
(Loss)/profit before tax (1,098,805 ) 3,075,664
(Loss)/profit multiplied by the standard rate of corporation tax in the UK of
19% (2021 - 19%)

(208,773

)

584,376

Effects of:
Expenses not deductible for tax purposes - (237 )
Depreciation in excess of capital allowances 173,228 27,512
Utilisation of tax losses 36,205 -
Adjustments to tax charge in respect of previous periods (10,020 ) -
Deferred tax charge (206,098 ) 404,465
Allowable expenses for tax purposes (660 ) -
Total tax (credit)/charge (216,118 ) 1,016,116

The Finance Act 2021 introduced an increase to the UK's main corporation tax rate to 25%, which is due to be effective from 1 April 2023.

Deferred tax has been calculated at 25% (2021 - 25%).

7. Dividends
2022 2021
£ £
Ordinary A shares of £1 each
Interim 2,000 100,000
Ordinary B shares of £1 each
Interim 2,000 100,000
4,000 200,000

8. Government grants

During the period the company received a total grant of £nil (2021 - £532,155) under the Coronavirus Job Retention Scheme. This is shown in the profit and loss account under the heading other income.

C M RESTAURANTS (HOLDINGS) LIMITED (REGISTERED NUMBER: 09350734)

Notes to the Financial Statements - continued
for the year ended 31 December 2022

9. Intangible fixed assets
Franchise Franchise
Goodwill rights fees Totals
£ £ £ £
Cost
At 1 January 2022 95,123 525,158 193,282 813,563
Additions - - 30,000 30,000
At 31 December 2022 95,123 525,158 223,282 843,563
Amortisation
At 1 January 2022 95,123 78,116 25,004 198,243
Amortisation for year - 39,055 13,564 52,619
At 31 December 2022 95,123 117,171 38,568 250,862
Net book value
At 31 December 2022 - 407,987 184,714 592,701
At 31 December 2021 - 447,042 168,278 615,320

10. Tangible fixed assets
Short Plant and Motor Computer
leasehold machinery vehicles equipment Totals
£ £ £ £ £
Cost
At 1 January 2022 128,375 10,230,678 10,093 4,350 10,373,496
Additions 7,003 215,641 - - 222,644
At 31 December 2022 135,378 10,446,319 10,093 4,350 10,596,140
Depreciation
At 1 January 2022 32,332 2,972,442 4,416 3,877 3,013,067
Charge for year 7,211 1,593,352 1,419 473 1,602,455
At 31 December 2022 39,543 4,565,794 5,835 4,350 4,615,522
Net book value
At 31 December 2022 95,835 5,880,525 4,258 - 5,980,618
At 31 December 2021 96,043 7,258,236 5,677 473 7,360,429

.

11. Fixed asset investments
Shares in
group Unlisted
undertakings investments Totals
£ £ £
Cost
At 1 January 2022
and 31 December 2022 200 13,750 13,950
Net book value
At 31 December 2022 200 13,750 13,950
At 31 December 2021 200 13,750 13,950

C M RESTAURANTS (HOLDINGS) LIMITED (REGISTERED NUMBER: 09350734)

Notes to the Financial Statements - continued
for the year ended 31 December 2022

11. Fixed asset investments - continued

Fixed asset investments consists of 13,750 (2021 - 13,750) ordinary shares of £1 each in Fries Holding Company Limited, a company registered in Guernsey. The investments are included in the accounts at cost.

The company's investments at the Balance Sheet date in the share capital of subsidiary companies include the following:

C.M. Restaurants Limited
Country of incorporation: England & Wales
Nature of business: Dormant
Class of shares: Ordinary
Holding: 100%


2022 2021
£ £
Aggregate capital and reserves 100 100





C.M. Restaurants (Midlands) Limited
Country of incorporation: England & Wales
Nature of business: Dormant
Class of shares: Ordinary
Holding: 100%

2022 2021
£ £
Aggregate capital and reserves 100 100

12. Stocks
2022 2021
£ £
Stocks 231,762 166,664

20222021
£   £   
Food172,903128,857
Paper46,56733,573
Non-product12,2924,234
231,762166,664

13. Debtors
2022 2021
£ £
Amounts falling due within one year:
Trade debtors 3,278 2,510
Other debtors 588,636 424,305
Directors' current accounts 686,871 178,748
S455 tax debtor 229,586 58,061
Prepayments 96,794 81,252
1,605,165 744,876

C M RESTAURANTS (HOLDINGS) LIMITED (REGISTERED NUMBER: 09350734)

Notes to the Financial Statements - continued
for the year ended 31 December 2022

13. Debtors - continued
2022 2021
£ £
Amounts falling due after more than one year:
Prepayments and accrued income - 362,258

Aggregate amounts 1,605,165 1,107,134

14. Creditors: amounts falling due within one year
2022 2021
£ £
Bank loans and overdrafts (see note 16) 2,292,222 1,015,853
Trade creditors 2,090,190 1,808,813
Corporation tax 171,525 623,482
Social security and other taxes 155,423 130,259
VAT 977,993 511,182
Other creditors 489,067 341,692
Accrued expenses 1,265,451 798,632
7,441,871 5,229,913

15. Creditors: amounts falling due after more than one year
2022 2021
£ £
Bank loans (see note 16) - 2,250,542
Accruals and deferred income - 490,865
- 2,741,407

16. Loans

An analysis of the maturity of loans is given below:

2022 2021
£ £
Amounts falling due within one year or on demand:
Bank overdrafts - 147
Bank loans 2,292,222 1,015,706
2,292,222 1,015,853

Amounts falling due between one and two years:
Bank loans - 1-2 years - 969,845

Amounts falling due between two and five years:
Bank loans - 2-5 years - 1,280,697

The bank loans are secured by an unlimited inter-company guarantee between the company, C.M. Restaurants Limited and C.M. Restaurants (Midlands) Limited and a charge over a keyman policy taken out in the name of C.M. Restaurants Limited on the life of the director.

The loans are due for repayment in equal monthly instalments with terms as stated above. The rate of interest charged on one of the loans is a fixed percentage above 'London Interbank Offered Rate'; the other loans are on a fixed interest rate for a minimum period of 60 months and at a fixed percentage above base rate varying from 1.4% to 1.7% thereafter.

C M RESTAURANTS (HOLDINGS) LIMITED (REGISTERED NUMBER: 09350734)

Notes to the Financial Statements - continued
for the year ended 31 December 2022

17. Leasing agreements

Minimum lease payments under non-cancellable operating leases fall due as follows:
2022 2021
£ £
Within one year 1,340,755 1,255,786
Between one and five years 4,995,836 4,645,896
In more than five years 11,931,005 10,837,958
18,267,596 16,739,640

Lease payments recognised as an expense in the year totalled £7,063,212 (2021 - £6,472,822).

The Company's restaurant premises are leased from McDonalds Restaurants Limited under non-cancellable operating leases with expiry terms of more than five years. Rent is calculated as a percentage of sales above base, the above operating lease commitment only relates to base rent. Each restaurant pays its own unique base rent based on its circumstances, with the remainder of the rent being based on the performance of the restaurant.

18. Financial instruments

Financial Assets 2022 2021
£    £   
Financial assets as an equity instrument 13,750 13,750
Financial assets that are debt instruments measured at amortised cost 3,307,966 3,242,605
3,321,716 3,256,355


Financial Liabilities 6,136,928 6,706,397
6,136,928 6,706,397

19. Provisions for liabilities
2022 2021
£ £
Deferred tax 702,113 908,211

Deferred tax
£
Balance at 1 January 2022 908,211
Provided during year (206,098 )
Balance at 31 December 2022 702,113

20. Called up share capital

Allotted, issued and fully paid:
Number: Class: Nominal 2022 2021
value: £ £
150 Ordinary A £1 150 150
50 Ordinary B £1 50 50
200 200

C M RESTAURANTS (HOLDINGS) LIMITED (REGISTERED NUMBER: 09350734)

Notes to the Financial Statements - continued
for the year ended 31 December 2022

21. Reserves
Retained Other
earnings reserves Totals
£ £ £

At 1 January 2022 3,295,153 100 3,295,253
Deficit for the year (882,687 ) (882,687 )
Dividends (4,000 ) (4,000 )
At 31 December 2022 2,408,466 100 2,408,566

22. Director's advances, credits and guarantees

The following advances and credits to a director subsisted during the years ended 31 December 2022 and 31 December 2021:

2022 2021
£ £
M Cuthbert
Balance outstanding at start of year 178,648 142,245
Amounts advanced 512,223 36,403
Amounts repaid (4,000 ) -
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 686,871 178,648

The loan is provided with a rate of interest being the approved HMRC rate of 2%.

23. Related party disclosures

During the year, total dividends of £2,000 (2021 - £100,000) were paid to the director .

24. Post balance sheet events

During July 2023, the company sold all restaurants achieving sales proceeds of £10.835million.

25. Ultimate controlling party

The ultimate controlling party is M Cuthbert.