Registered number
07090216
Barrio Central Ltd
Filleted Accounts
2 July 2023
Barrio Central Ltd
Registered number: 07090216
Balance Sheet
as at 2 July 2023
Notes 2023 2022
£ £
Fixed assets
Tangible assets 6 32,663 42,979
Current assets
Stocks 20,709 15,173
Debtors 8 1,533,107 1,495,374
Cash at bank and in hand 172,018 343,361
1,725,834 1,853,908
Creditors: amounts falling due within one year 9 (718,617) (978,600)
Net current assets 1,007,217 875,308
Total assets less current liabilities 1,039,880 918,287
Provisions for liabilities (30,666) (33,245)
Net assets 1,009,214 885,042
Capital and reserves
Called up share capital 13 13
Share premium 49,997 49,997
Profit and loss account 959,204 835,032
Shareholders' funds 1,009,214 885,042
The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime within Part 15 of the Companies Act 2006 and the option not to file the Profit and Loss Account has been taken.
Michael Willingham-Toxvaerd
Director
Approved by the board on 27 March 2024
Barrio Central Ltd
Notes to the Accounts
for the period from 4 July 2022 to 2 July 2023
1 General Information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 141-143 Shoreditch High Street, London, E1 6JE.
2 Accounting policies
Basis of preparation
The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard).

The financial statements are prepared in sterling, which is the functional currency of the entity.

Following the company's acquisition by Nightcap plc in November 2021, the company's year-end was changed to 30 June to align with the Group. Amounts presented for the comparative reporting period are for a 65 week period. Current period figures are for a 52 week period. Consequently, the comparative amounts for the profit and loss account, statement of changes in equity, and related notes, are not entirely comparable.
Going Concern
In concluding that it is appropriate to prepare the financial statements for the 52 weeks ended 2 July 2023 on the going concern basis, the Directors have considered the company’s cash flows, liquidity and business activities. In addition, the Directors have considered the cash flows, liquidity and business activities of the group headed by the ultimate parent company, Nightcap plc (the "Group"), as they believe the going concern basis requires consideration on a group basis. References below are made in relation to the Group's consolidated financial statements which are available at the address shown in note 17.

As at 2 July 2023 the Group had cash balances of £5.4m including cash in transit. During the financial year under review the Group refinanced its legacy debt with an amortising term loan (£3m) and a Revolving Credit Facility (up to £7m) repayable in August 2025. Since the period end the Group has reset its banking covenants to more favourable terms.
Based on the Group’s forecasts, the Directors have adopted the going concern basis in preparing the Financial Statements. The Directors have made this assessment after consideration of the Group’s cash flows and related assumptions and in accordance with the Guidance on Risk Management, Internal Control and Related Financial and Business Reporting 2014 published by the UK Financial Reporting Council.

In making the assessment the Directors have made a current consideration of any future potential impact of the rail strikes as well as the challenges in the macro-economic environment as set out in the Groups’ Strategic Report.

The Directors have considered the impact of these on the cash flows and liquidity of the Group over the next 15-month period and has sensitised these forecasts accordingly.

Based on these assessments the Group forecasts to comply with its newly reset banking covenant obligations, and have sufficient liquidity to fund the operations of the Group. Accordingly the Directors’ have concluded that it is appropriate to prepare the financial statements on the going concern basis.
Disclosure exemptions
The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. Its financial statements are consolidated into the financial statements of Nightcap Plc which can be obtained from the address shown in note 17. As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102:

(a) No cash flow statement has been presented for the company.
(b) Disclosures in respect of financial instruments have not been presented.
(c) No disclosure has been given for the aggregate remuneration of key management personnel.
(d) No disclosure has been given for the related party transactions with other wholly owned subsidiaries of the Nightcap Plc group.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The judgements and accounting estimates that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are as follows:

Valuation of tangible and intangible fixed assets
The assets’ residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Useful economic lives of tangible and intangible fixed assets
The depreciation and amortisation charge in each period is sensitive to the assumptions used regarding the economic lives of assets and their respective depreciation rates.

Forecast business cashflows
For purposes of the going concern assessment and as an input into the impairment assessment, the Company make estimates of likely future cash flows which are based on assumptions given the uncertainties involved. The assumptions include timings for new sites commencing to trade, performance and growth of existing bars, capital expenditure, cost of labour and supplies and working capital movements. These assumptions are made by management based on recent performance and management’s knowledge and expertise of the cashflow drivers.
Turnover
Revenue predominantly arises from the sale of food and drink to customers in the sites for which payment in cash or cash equivalents is received immediately and as such revenue is recognised at point of sale.

The Company operates in a single geographical region (the UK) and hence all revenues are impacted by the same economic factors.

Retro payments and listing fees are spread over the life of the contract. The income is recognised as a credit within cost of sales. Revenue is shown net of value added tax, returns and discounts.

Customer deposits received in advance of events and bookings are recorded as deferred revenue on the balance sheet. They are recognised as revenue along with any balancing payment from the customer when the associated event / booking occurs.
Current and deferred taxation
The tax expense for each reporting period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date.

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

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

Deferred tax assets and liabilities are offset where there is a legally enforceable right to offset current tax assets and liabilities and where the deferred tax balances relate to the same tax authority. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Leased assets
Rentals payable under operating leases are charged to the profit and loss account on a straight line basis over the term of the lease. The charge to the profit and loss account includes non-cash rent expense arising from the recognition of stepped rent, on a straight line basis over the lease term.

Reverse premiums and similar incentives received to enter into operating lease agreements are credited to the profit and loss account, to reduce the lease expense, on a straight-line basis over the period of the lease.

Incentives received to enter into an operating lease are credited to the profit and loss account, to reduce the lease expense, on a straight-line basis over the period of the lease. Incentives are recognised from the point that inflows of future economic benefits to the company become virtually certain.
Tangible fixed assets
Tangible fixed assets are stated at cost less accumulated depreciation and any recognised impairment loss. Cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Plant and machinery 25% straight line
Fixtures and fittings 25% straight line
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the profit and loss account.
Cash and cash equivalents
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Payments taken from customers on debit and credit cards for which cash remains outstanding at any reporting date (cash in transit) are recognised as trade receivables. The trade receivable is converted to cash within 3 days of processing. The Directors view these trade receivables as cash when monitoring cash flows and forecasts internally.
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.

For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.
Stocks
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price. The impairment loss is recognised immediately in profit or loss.
Provisions
Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.

Provisions are charged as an expense to the profit and loss account in the period that the Company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charged to the provision carried in the balance sheet.
Pension costs and other post-retirement benefits
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in the profit and loss account when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the Company in independently administered funds.
3 Audit information
The audit report is unqualified.
Senior statutory auditor: Paul Putnam
Firm: PKF Francis Clark
Date of audit report: 27 March 2024
4 Staff numbers 2023 2022
Number Number
Average number of persons employed by the company 20 15
The aggregate payroll costs incurred during the period, relating to the above, were:
5 Tax on profit
Major components of tax (income)/expense
2023 2022
£ £
Current tax:
UK current tax expense - 29,451
Adjustments in respect of prior periods 260 -
Total current tax 260 29,451
Deferred tax:
Origination and reversal of timing differences (2,579) (12,092)
Impact of change in tax rate - 5,481
Adjustments in respect of prior periods - 1,285
Total deferred tax (2,579) (5,326)
Tax on profit (2,319) 24,125
Reconciliation of tax (income)/expense
2023 2022
£ £
Profit on ordinary activities before taxation 121,853 207,570
At UK standard rate of corporation taxation of 20.5% (2022: 19.0%) 24,975 39,438
Adjustment to tax charge in respect of prior periods 260 1,285
Effect of expenses not deductible for tax purposes - 72
Effect of capital allowances and depreciation (277) (890)
Group relief surrendered (26,813) (22,634)
Movement in unrecognised deferred tax - 5,625
Adjustment in respect of change of rate of corporation tax (464) 1,229
Tax on profit (2,319) 24,125
6 Tangible fixed assets
Plant and machinery Fixtures and Fittings Total
£ £ £
Cost
At 4 July 2022 199,350 210,085 409,435
Additions 4,755 3,229 7,984
Disposals (165,515) (195,628) (361,143)
At 2 July 2023 38,590 17,686 56,276
Depreciation
At 4 July 2022 170,018 196,438 366,456
Charge for the period 10,029 8,271 18,300
On disposals (165,515) (195,628) (361,143)
At 2 July 2023 14,532 9,081 23,613
Net book value
At 2 July 2023 24,058 8,605 32,663
At 3 July 2022 29,332 13,647 42,979
7 Stocks 2023 2022
£ £
Food, beverage and consumables 20,709 15,173
20,709 15,173
8 Debtors 2023 2022
£ £
Trade debtors 8,725 27,007
Amounts owed by group undertakings and undertakings in which the company has a participating interest 1,407,152 1,392,943
Prepayments and accrued income 66,761 24,955
Other debtors 50,469 50,469
1,533,107 1,495,374
Amounts due after more than one year included above
Other debtors - rent deposits 50,469 50,469
Amounts owed by group undertakings are unsecured, interest free, and repayable on demand.
9 Creditors: amounts falling due within one year 2023 2022
£ £
Trade creditors 148,529 52,747
Amounts owed to group undertakings and undertakings in which the company has a participating interest 435,080 763,619
Accruals and deferred income 83,361 66,767
Taxation and social security costs 50,789 95,467
Other creditors 858 -
718,617 978,600
Amounts owed to group undertakings are unsecured, interest free, and repayable on demand.
10 Provisions Deferred tax (note 11) Dilapidations Total
£ £ £
At 3 July 2022 10,745 22,500 33,245
Utilised in the period (2,579) - (2,579)
At 2 July 2023 8,166 22,500 30,666
Dilapidations provision
Some of the property leasing arrangements contain a clause to repair damages incurred during the life the lease, such as wear and tear. The Company therefore recognises a dilapidation provision as such obligation arises. Dilapidation settlements are subject to negotiation and as such, there is an uncertainty with regards to the amount and timing of the cash outflow. The provision is expected to be utilised as the leases terminate. The movements in dilapidation provisions are recognised within administrative expenses in the profit and loss account.
11 Deferred Tax
The deferred tax included in the statement of financial position is as follows:
2023 2022
£ £
Included in provisions (note 10) 8,166 10,745
8,166 10,745
The deferred tax account consists of the tax effect of timing differences in respect of:
2023 2022
£ £
Accelerated capital allowances 8,166 10,745
8,166 10,745
12 Called up share capital 2023 2023 2022 2022
No. £ No. £
Ordinary shares of £0.01 each 1,250 13 1,250 13
1,250 13 1,250 13
13 Operating leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
2023 2022
£ £
No later than 1 year 145,000 122,500
Later than 1 year and not later than 5 years 580,000 490,000
Later than 5 years 211,740 306,250
936,740 918,750
The amount recognised in profit or loss as an expense in relation to operating leases was £145,076 (2022: £142,228)
14 Contingencies
As at 2 July 2023 there were unlimited composite guarantees secured on the fixed assets and shares in the company to cover borrowings which are accounted for in other Group companies.
15 Employee Benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £3,737 (2022: £5,405).

Pension contributions totalling £nil were payable to the pension fund as at 2 July 2023.
16 Related party transactions
The company has taken advantage of the exemption available in Section 33.1A of FRS 102 whereby it has not disclosed transactions with the ultimate parent company and any wholly owned subsidiary undertaking of the group.
17 Controlling party
The Company's immediate parent company was Barrio Familia Limited, a company incorporated in England and Wales. Barrio Familia Limited's registered office is 141-143 Shoreditch High Street, London, E1 6JE.

The Company's ultimate parent company was Nightcap plc, a company incorporated in England and Wales. Nightcap Plc's registered office is c/o Locke Lord (UK) LLP, 201 Bishopsgate, London, EC2M 3AB.

The Directors consider there is no ultimate controlling party.

The smallest and largest group in which the results of the company are consolidated is that headed by Nightcap plc, incorporated in England and Wales. The consolidated accounts are available to the public and may be obtained from Nightcap plc's website www.nightcapplc.com/results-and-reports/.
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