REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements |
for the Year Ended 28 February 2023 |
for |
Stange & Co. Limited |
REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements |
for the Year Ended 28 February 2023 |
for |
Stange & Co. Limited |
Stange & Co. Limited (Registered number: 00639690) |
Contents of the Financial Statements |
for the year ended 28 February 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Income Statement | 9 |
Other Comprehensive Income | 10 |
Balance Sheet | 11 |
Statement of Changes in Equity | 12 |
Cash Flow Statement | 13 |
Notes to the Cash Flow Statement | 14 |
Notes to the Financial Statements | 16 |
Stange & Co. Limited |
Company Information |
for the year ended 28 February 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
& Statutory Auditors |
14 Grosvenor Court |
Foregate Street |
Chester |
Cheshire |
CH1 1HG |
Stange & Co. Limited (Registered number: 00639690) |
Strategic Report |
for the year ended 28 February 2023 |
The directors present their strategic report for the year ended 28 February 2023. |
REVIEW OF BUSINESS |
This year saw trade returning to something resembling normality and we experienced reassuring growth in sales, from £10.7m to £13.7m. This increase was partly the result of the refurbishment of The Glengower and The Ship (circa £1m) and the tail end of Covid restrictions in the prior year. This financial year only saw the first six weeks impacted by Covid restrictions in Wales. Comparing this years performance with that of the year ending 28th February 2020 (pre-covid) when we had sales of £11.7m sales, this represents sales growth of £2m (17%). EBITDA has fallen from £1,732,018 to £1,363,202 with costs on all fronts rising dramatically. |
Costs have without doubt been the headline of this year. The group's electricity and gas costs for the year nearly doubled from £238k to £430k. Our main products, food and drink, have both seen double digit inflation. The National Living Wage increase of 9.7% places a significant upwards pressure on pay rates across the industry and at all levels inside and outside the company. We have managed to pass some of these price increases onto our customers, whom so far appear to have accommodated them without damaging demand, and the remainder of the increase we have attempted to mitigate through tighter controls. We have maintained gross margin through better purchasing and menu design. The extra staff it was necessary to employ during Covid for hosting and table service have now been deployed elsewhere meaning we have managed efficiencies in pub rotas and achieved an improved wage % for the group, this also been helped by the significant growth in sales. |
Our two refurbishments, The Glengower in Aberystwyth and The Ship in Parkgate on the Wirral have both performed strongly since reopening with sales up 22% and 60% respectively. |
The Ring O'Bells which we acquired in January 2020 remained mothballed during the year but I am pleased to report that, at the time of writing, the refurbishment has begun in earnest and is on track to open in December 2023. We are confident this has all the credentials to create a cracking pub when it comes on stream. Some costs were incurred this year for holding and in preparation of redevelopment. |
No government Covid related support was received in the year, against £467k last year. |
Recruitment also appears to have eased a little during the year but remains challenging particularly in popular tourist areas that have traditionally relied upon seasonal European staff. For obvious reasons, such staff are no longer so readily able to work in the UK. |
PRINCIPAL RISKS AND UNCERTAINTIES |
Inflation is on ongoing concern. Initially driven by bottlenecks in supply and a spike in energy costs due to Russia's invasion of Ukraine, it now appears to be baked in for the medium to long term. This we believe has not been helped by the minimum wage increase which only serves to embed inflation further. Following the recent budget announcement of an increase to £11+ per hour for the National Living Wage next year, this will mean it has gone up by over 40% since 2018. |
Interest rates look set to remain higher for longer given the persistence of price increases across the economy. Fortunately our loans were fixed a number of years ago at favourable rates and remain fixed until 2030. |
The wider economy remains in poor health with anaemic growth, slowing labour markets, high interest rates and high inflation, all creating a squeeze on household incomes. Although we have yet to see this reflected in falling sales, we do not expect any record-breaking real term increases in the near future. |
Utility costs in the medium to long term remain a risk, with relations with Russia showing no signs of improvement and the Middle-East now looking increasingly unsettled. In addition, government support for business energy has been dramatically reduced and effectively withdrawn. We are currently on short term fixed rates for gas and a very favourable fixed rate for electricity until 2025, which was signed prior to the price shocks we have experienced in recent years. We continue to invest in more energy efficient kitchens, which will hopefully negate some of the increases but can cost considerably more initially. |
Competitive risk - We are relatively lucky that we operate from buildings with individual character, in fairly unique locations that have limited prospects for entry by competitors. We aim to challenge the risk from existing competitors by striving to deliver the highest of standards of food & drink and by recruiting, retaining and training the best hospitality teams in the industry. We ensure our offer differentiates sufficiently from local independent businesses and national chains, and we do this by keeping our menus seasonal and changing them regularly, with the sites having significant autonomy to reflect local requirements and tastes. |
CURRENT TRADING |
Trading in the current year remains strong, with both established and recently refurbished pubs trading ahead of prior year. |
Costs continue to increase but are certainly slowing from where they were and continued efficiencies have allowed us to mitigate some of that cost. We are currently maintaining gross margin and wage percentages. Forecast EBITDA for the year is well ahead of prior year. |
Stange & Co. Limited (Registered number: 00639690) |
Strategic Report |
for the year ended 28 February 2023 |
FUTURE |
With the headwinds identified above, the hospitality sector remains challenging. It is likely that more pubs will come to the market as some people move out the industry or businesses fail, creating opportunities for us to expand, presenting opportunities for the development for our teams and reducing competition for those talented individuals in our industry. Whilst we do not have a magic number of premises that we wish to get to, from a financial and central support point of view, the addition of one or two pubs a year feels comfortable. |
Customer demand remains remarkably resilient. The desire to meet up with friends and family seems to be as strong as ever and is being prioritised above other forms of discretionary spending. We therefore remain optimistic for our pubs and the group in the years ahead. |
ON BEHALF OF THE BOARD: |
Stange & Co. Limited (Registered number: 00639690) |
Report of the Directors |
for the year ended 28 February 2023 |
The directors present their report with the financial statements of the company for the year ended 28 February 2023. |
DIVIDENDS |
No dividends will be distributed for the year ended 28 February 2023. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 March 2022 to the date of this report. |
ENGAGEMENT WITH EMPLOYEES |
Disabled employees |
The company is committed to employment policies which follow best practice, based on equal opportunities for all employees regardless of race, sex, colour, disability or marital status. The company gives full and fair consideration to applications for employment from disabled persons, having regard to their aptitudes and abilities. Appropriate arrangements are made for the continued employment and training, career development and promotion of disabled employees. If members of staff become disabled the company continues employment, either in the same or an alternative role, with provides appropriate retraining if necessary. |
Employee involvement |
The company provides employees with information on matters of concern to them so that their views can be taken into account when making decisions that are likely to affect their interests. Employee involvement in the company is encouraged via regular meetings to update employees on performance and developments. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), 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 and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are 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 each director 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. |
Stange & Co. Limited (Registered number: 00639690) |
Report of the Directors |
for the year ended 28 February 2023 |
AUDITORS |
The auditors, Bennett Brooks & Co Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Stange & Co. Limited |
Opinion |
We have audited the financial statements of Stange & Co. Limited (the 'company') for the year ended 28 February 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 28 February 2023 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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 directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, 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 Directors 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 Directors 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 Report of the Directors. |
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 directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Report of the Independent Auditors to the Members of |
Stange & Co. Limited |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 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. |
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 company and industry, we identified that the principal risk of non-compliance with laws and regulations related to UK tax legislation and regulations which govern the preparation of financial statements, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the financial statements such as the Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of management override of controls), and determined that the principal risks were related to posting inappropriate journals to increase revenue, through management bias in manipulation of accounting estimates or accounting for significant transactions outside the normal course of business. Audit procedures performed included: |
- Enquiry of management around actual and potential litigation and claims and instances of non-compliance with laws and regulations; |
- Auditing the risk of management override of controls, through testing journal entries and other adjustments for appropriateness, testing accounting estimates (because of the risk of management bias), and evaluating the business rationale of significant transactions outside the normal course of business; |
- Reviewing financial statement disclosures and agreeing to supporting documentation to assess compliance with applicable laws and regulations. |
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, of 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 |
Stange & Co. 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. |
for and on behalf of |
Chartered Accountants |
& Statutory Auditors |
14 Grosvenor Court |
Foregate Street |
Chester |
Cheshire |
CH1 1HG |
Stange & Co. Limited (Registered number: 00639690) |
Income Statement |
for the year ended 28 February 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER |
Cost of sales | ( |
) | ( |
) |
GROSS PROFIT |
Administrative expenses | ( |
) | ( |
) |
856,274 | 582,668 |
Other operating income |
OPERATING PROFIT | 4 |
Interest receivable and similar income |
863,390 | 1,433,295 |
Interest payable and similar expenses | 5 | ( |
) | ( |
) |
PROFIT BEFORE TAXATION |
Tax on profit | 6 | ( |
) | ( |
) |
PROFIT FOR THE FINANCIAL YEAR |
Stange & Co. Limited (Registered number: 00639690) |
Other Comprehensive Income |
for the year ended 28 February 2023 |
2023 | 2022 |
Notes | £ | £ |
PROFIT FOR THE YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
Stange & Co. Limited (Registered number: 00639690) |
Balance Sheet |
28 February 2023 |
2023 | 2022 |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 7 |
Tangible assets | 8 |
Investments | 9 |
CURRENT ASSETS |
Stocks | 10 |
Debtors | 11 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 12 | ( |
) | ( |
) |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 13 | ( |
) | ( |
) |
PROVISIONS FOR LIABILITIES | 17 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 18 |
Revaluation reserve | 19 |
Retained earnings | 19 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
Stange & Co. Limited (Registered number: 00639690) |
Statement of Changes in Equity |
for the year ended 28 February 2023 |
Called up |
share | Retained | Revaluation | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 March 2021 |
Changes in equity |
Total comprehensive income | - |
Total transactions with owners, recognised directly in equity |
- |
- |
- |
- |
Balance at 28 February 2022 | 219,250 | 3,892,397 | 153,833 | 4,265,480 |
Changes in equity |
Total comprehensive income | - |
Total transactions with owners, recognised directly in equity |
- |
- |
- |
- |
Balance at 28 February 2023 | 153,833 |
Stange & Co. Limited (Registered number: 00639690) |
Cash Flow Statement |
for the year ended 28 February 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( |
) | ( |
) |
Tax refund |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
New loans in year |
Loan repayments in year | ( |
) | ( |
) |
Capital repayments in year | ( |
) | ( |
) |
Amount withdrawn by directors | (6,000 | ) | (32,076 | ) |
Net cash from financing activities | ( |
) | ( |
) |
Increase in cash and cash equivalents |
Cash and cash equivalents at beginning of year | 2 | (187,536 | ) |
Cash and cash equivalents at end of year | 2 | 321,034 | 215,826 |
Stange & Co. Limited (Registered number: 00639690) |
Notes to the Cash Flow Statement |
for the year ended 28 February 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation |
Depreciation charges |
Finance costs | 291,989 | 312,413 |
Finance income | (3 | ) | (166 | ) |
1,363,201 | 1,732,017 |
Increase in stocks | ( |
) | ( |
) |
(Increase)/decrease in trade and other debtors | ( |
) |
Increase in trade and other creditors |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 28 February 2023 |
28.2.23 | 1.3.22 |
£ | £ |
Cash and cash equivalents | 321,034 | 215,826 |
Year ended 28 February 2022 |
28.2.22 | 1.3.21 |
£ | £ |
Cash and cash equivalents | 215,826 | 10,448 |
Bank overdrafts | ( |
) |
215,826 | (187,536 | ) |
Stange & Co. Limited (Registered number: 00639690) |
Notes to the Cash Flow Statement |
for the year ended 28 February 2023 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
Other |
non-cash |
At 1.3.22 | Cash flow | changes | At 28.2.23 |
£ | £ | £ | £ |
Net cash |
Cash at bank |
and in hand | 215,826 | 105,208 | 321,034 |
215,826 | 321,034 |
Debt |
Hire purchase and |
finance leases | (47,690 | ) | 133,576 | (245,198 | ) | (159,312 | ) |
Debts falling due |
within 1 year | (553,361 | ) | 154,506 | - | (398,855 | ) |
Debts falling due |
after 1 year | (4,377,926 | ) | 417,996 | - | (3,959,930 | ) |
(4,978,977 | ) | 706,078 | (245,198 | ) | (4,518,097 | ) |
Total | (4,763,151 | ) | 811,286 | (245,198 | ) | (4,197,063 | ) |
Stange & Co. Limited (Registered number: 00639690) |
Notes to the Financial Statements |
for the year ended 28 February 2023 |
1. | STATUTORY INFORMATION |
Stange & Co. Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Preparation of consolidated financial statements |
The company is also a parent entity and holds the entire share capital of Stange Inn & Co Limited, which is dormant and has share capital and net assets of £100. Consolidated accounts have not been prepared as the Directors consider that it is not material for the purposes of giving a true and fair view, in the context of the group. |
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Turnover |
Turnover represents sales (excluding taxes) of goods and services net of discounts. Turnover principally consists of sales of food, drink and accommodation which are recognised at the point at which goods and services are provided. |
Goodwill |
Goodwill, being the amount paid in connection with acquisitions, is initially measured at cost. After initial recognition goodwill is measured at cost less any accumulated amortisation and any accumulated impairment losses. Goodwill is being amortised evenly over its estimated useful life of 10 years. |
Tangible fixed assets |
Freehold property are stated at cost (or frozen at deemed cost held at valuation at the date of transition to FRS 102) less accumulated depreciation. |
Freehold properties owned by the company and long leaseholds have not been depreciated because, in the opinion of the directors, the programme of the refurbishment and repair maintains the properties to a standard whereby the total residual value will be maintained. Consequently, the amount of any depreciation would not be material. |
Brought forward freehold property improvement costs totalling £710,352 have been reclassified from 'freehold property' to 'improvements to property' within these financial statements. |
Other fixed assets are stated at cost less accumulated depreciation. Cost includes the original purchase price of the asset and the costs attributable to bringing the asset to its working condition for its intended use. |
Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows: |
Fixtures and fittings | 15% reducing balance |
Motor vehicles | 25% reducing balance |
Improvements to property | 10% straight line |
Stocks |
Stock is valued at the lower of cost and net realisable value. Cost includes the purchase cost of the item. Provision is made for slow moving items. |
Stange & Co. Limited (Registered number: 00639690) |
Notes to the Financial Statements - continued |
for the year ended 28 February 2023 |
2. | ACCOUNTING POLICIES - continued |
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 balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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 |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
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. |
Subsidiary investment |
The subsidiary investment is stated in the parent company’s balance sheet at cost less any provisions for impairment. |
Share capital |
Ordinary shares are classed as equity. |
Short term debtors and creditors |
Short term debtors and creditors with no stated interest rate are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account. |
Distributions to equity holders |
Dividends are recognised as a liability in the financial statements in the period in which the dividends are approved by the company's shareholders. These amounts are recognised in the statement of changes in equity. |
Cash and cash equivalents |
Cash and cash equivalents includes cash in hand, cash held with banks and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. |
Loans and borrowings |
Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measure at amortised cost using the effective interest rate method, less impairment. |
Operating leases |
Rentals payable under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease. |
Stange & Co. Limited (Registered number: 00639690) |
Notes to the Financial Statements - continued |
for the year ended 28 February 2023 |
3. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | 5,549,504 | 4,883,713 |
Social security costs | 464,659 | 352,926 |
Pension costs | 144,992 | 124,288 |
6,159,155 | 5,360,927 |
The average number of employees during the year was as follows: |
2023 | 2022 |
Directors | 2 | 2 |
Administration | 5 | 5 |
Management | 60 | 51 |
Service staff | 262 | 249 |
329 | 307 |
2023 | 2022 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
4. | OPERATING PROFIT |
The operating profit is stated after charging: |
2023 | 2022 |
£ | £ |
Hire of plant & machinery |
Depreciation - owned assets |
Depreciation - assets on hire purchase contracts and finance leases |
Goodwill amortisation |
Auditors' remuneration |
Government grant - furlough |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank interest |
Bank loan interest |
HMRC interest |
Other interest |
Stange & Co. Limited (Registered number: 00639690) |
Notes to the Financial Statements - continued |
for the year ended 28 February 2023 |
6. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax |
Tax on profit |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Amortisation of goodwill | 9,787 | 9,787 |
undertakings |
Impact of rate change | 25,114 | 116,603 |
Impact of super-deduction | (38,281 | ) | (22,375 | ) |
Total tax charge | 124,485 | 319,918 |
Factors that may affect future tax charges |
In the Spring Budget 2021, the UK Government announced that from 1 April 2023 the corporation tax rate would increase to 25% (rather than remaining reducing at 19%, as previously enacted). This new law was substantively enacted on 24 May 2021. Deferred taxes at the balance sheet date have been measured using these enacted tax rates and reflected in these financial statements. |
7. | INTANGIBLE FIXED ASSETS |
Goodwill |
£ |
COST |
At 1 March 2022 |
and 28 February 2023 |
AMORTISATION |
At 1 March 2022 |
Amortisation for year |
At 28 February 2023 |
NET BOOK VALUE |
At 28 February 2023 |
At 28 February 2022 |
The goodwill relates to the previous acquisition of The Queen's Head in 2019 and the acquisition of Ring O Bells in 2020. |
Stange & Co. Limited (Registered number: 00639690) |
Notes to the Financial Statements - continued |
for the year ended 28 February 2023 |
8. | TANGIBLE FIXED ASSETS |
Freehold | Long | Improvements |
property | leasehold | to property |
£ | £ | £ |
COST |
At 1 March 2022 |
Additions |
Reclassification/transfer | ( |
) |
At 28 February 2023 |
DEPRECIATION |
At 1 March 2022 |
Charge for year |
At 28 February 2023 |
NET BOOK VALUE |
At 28 February 2023 |
At 28 February 2022 |
Fixtures |
and | Motor |
fittings | vehicles | Totals |
£ | £ | £ |
COST |
At 1 March 2022 |
Additions |
Reclassification/transfer |
At 28 February 2023 |
DEPRECIATION |
At 1 March 2022 |
Charge for year |
At 28 February 2023 |
NET BOOK VALUE |
At 28 February 2023 |
At 28 February 2022 |
Following the transition to FRS 102, the freehold property is held at deemed cost. |
Brought forward freehold property improvement costs totalling £710,352 have been reclassified from 'freehold property' to 'improvements to property' within these financial statements. |
Stange & Co. Limited (Registered number: 00639690) |
Notes to the Financial Statements - continued |
for the year ended 28 February 2023 |
8. | TANGIBLE FIXED ASSETS - continued |
Fixed assets, included in the above, which are held under hire purchase contracts and finance leases are as follows: |
Fixtures |
and |
fittings |
£ |
COST |
At 1 March 2022 |
Additions |
At 28 February 2023 |
DEPRECIATION |
At 1 March 2022 |
Charge for year |
At 28 February 2023 |
NET BOOK VALUE |
At 28 February 2023 |
At 28 February 2022 |
9. | FIXED ASSET INVESTMENTS |
Unlisted |
investments |
£ |
COST |
At 1 March 2022 |
and 28 February 2023 |
NET BOOK VALUE |
At 28 February 2023 |
At 28 February 2022 |
The company's investments at the Balance Sheet date in the share capital of companies include the following: |
Registered office: 19 Trinity Square, Llandudno, Gwynedd, LL30 2RD |
Nature of business: |
% |
Class of shares: | holding |
In a prior year, the investment was written down to its recoverable amount accordingly, being £100. |
10. | STOCKS |
2023 | 2022 |
£ | £ |
Trading stock |
Stange & Co. Limited (Registered number: 00639690) |
Notes to the Financial Statements - continued |
for the year ended 28 February 2023 |
11. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Other debtors |
Corporation tax debtor | - | 10,449 |
Directors' current accounts | 38,151 | 32,151 |
Accrued income |
Prepayments |
12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans and overdrafts (see note 14) |
Other loans (see note 14) |
Hire purchase contracts and finance leases (see note 15) |
Trade creditors |
Amounts owed to group undertakings |
Corporation tax |
Social security & other taxes |
VAT | 826,399 | 277,830 |
Other creditors |
Due to related parties | 200,000 | 200,000 |
Directors' current accounts | 113 | 113 |
Accrued expenses |
13. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans (see note 14) |
Other loans (see note 14) |
Hire purchase contracts and finance leases (see note 15) |
14. | LOANS |
An analysis of the maturity of loans is given below: |
2023 | 2022 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
Other loans |
Stange & Co. Limited (Registered number: 00639690) |
Notes to the Financial Statements - continued |
for the year ended 28 February 2023 |
14. | LOANS - continued |
2023 | 2022 |
£ | £ |
Amounts falling due between one and two years: |
Bank loans - 1-2 years |
Other loans - 1-2 years | - |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
Amounts falling due in more than five years: |
Repayable by instalments |
Bank loans - 5+ years | 2,471,063 | 2,811,857 |
Included in bank loans is an amount of £3,872,190 (2022: £4,113,250) which is payable in 145 monthly instalments and carries an interest rate of 4.1% per annum. |
The remainder of the loan balance relates to two CBILS loans. The first CBILS loan had a balance of £460,206 (2022: £601,236) at year end, this is payable in 41 monthly instalments and carries an interest rate of 6% pa annum over Bank of England base rate. The second CBILS loan had a balance of £17,989 (2021: £200,000) at year end, this is payable in one monthly instalment. |
15. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase contracts | Finance leases |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
16. | SECURED DEBTS |
The following secured debts are included within creditors: |
2023 | 2022 |
£ | £ |
Bank loans |
Other loans |
Bank loans are secured by first legal mortgages over the company's freehold property and by a fixed and floating charge over all current and future assets of the company. |
17. | PROVISIONS FOR LIABILITIES |
2023 | 2022 |
£ | £ |
Deferred tax | 590,487 | 485,846 |
Stange & Co. Limited (Registered number: 00639690) |
Notes to the Financial Statements - continued |
for the year ended 28 February 2023 |
17. | PROVISIONS FOR LIABILITIES - continued |
Deferred tax |
£ |
Balance at 1 March 2022 |
Charged to income statement | 104,641 |
Balance at 28 February 2023 |
The deferred tax charge/(credit) in the year relates to accelerated capital allowances. |
18. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £1 | 219,250 | 219,250 |
19. | RESERVES |
Retained | Revaluation |
earnings | reserve | Totals |
£ | £ | £ |
At 1 March 2022 | 4,046,230 |
Profit for the year |
At 28 February 2023 | 4,493,146 |
20. | PENSION COMMITMENTS |
Stange & Co. Limited provides a defined contribution scheme to its employees. The amount recognised as an expense for the defined contribution scheme was £144,992 (2022: £124,288). |
21. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to a director subsisted during the years ended 28 February 2023 and 28 February 2022: |
2023 | 2022 |
£ | £ |
Balance outstanding at start of year |
Amounts advanced |
Amounts repaid |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
22. | RELATED PARTY DISCLOSURES |
Key management personnel are considered to be the Board of Directors whose emoluments are disclosed in note 3. |
During the year the company incurred interest totalling £18,535 (2022: £51,806) paid to a related party of which a director of Stange & Co Limited is also a director. |
The balance due to the above related party at the balance sheet date was £200,000 (2022: £200,000). |
Stange & Co. Limited (Registered number: 00639690) |
Notes to the Financial Statements - continued |
for the year ended 28 February 2023 |
23. | ULTIMATE CONTROLLING PARTY |
Mr N Rowlands, Mr C L Rowlands, Mr D C McLennan and Mrs H M McLennan are considered to be the ultimate controlling parties who together hold 100% of the issued share capital. |