Caseware UK (AP4) 2022.0.179 2022.0.179 2023-07-022023-07-02160truetruetruetruetruetrue2022-07-04No description of principal activityfalse154false 09183536 2022-07-04 2023-07-02 09183536 2021-07-04 2022-07-03 09183536 2023-07-02 09183536 2022-07-03 09183536 2021-07-04 09183536 1 2022-07-04 2023-07-02 09183536 1 2021-07-04 2022-07-03 09183536 6 2022-07-04 2023-07-02 09183536 6 2021-07-04 2022-07-03 09183536 d:Director1 2022-07-04 2023-07-02 09183536 d:Director3 2022-07-04 2023-07-02 09183536 d:RegisteredOffice 2022-07-04 2023-07-02 09183536 e:Buildings 2022-07-04 2023-07-02 09183536 e:Buildings 2023-07-02 09183536 e:Buildings 2022-07-03 09183536 e:Buildings e:OwnedOrFreeholdAssets 2022-07-04 2023-07-02 09183536 e:PlantMachinery 2022-07-04 2023-07-02 09183536 e:PlantMachinery 2023-07-02 09183536 e:PlantMachinery 2022-07-03 09183536 e:PlantMachinery e:OwnedOrFreeholdAssets 2022-07-04 2023-07-02 09183536 e:FurnitureFittings 2022-07-04 2023-07-02 09183536 e:FurnitureFittings 2023-07-02 09183536 e:FurnitureFittings 2022-07-03 09183536 e:FurnitureFittings e:OwnedOrFreeholdAssets 2022-07-04 2023-07-02 09183536 e:OfficeEquipment 2022-07-04 2023-07-02 09183536 e:OfficeEquipment 2023-07-02 09183536 e:OfficeEquipment 2022-07-03 09183536 e:OfficeEquipment e:OwnedOrFreeholdAssets 2022-07-04 2023-07-02 09183536 e:OtherPropertyPlantEquipment 2022-07-04 2023-07-02 09183536 e:OtherPropertyPlantEquipment 2023-07-02 09183536 e:OtherPropertyPlantEquipment 2022-07-03 09183536 e:OtherPropertyPlantEquipment e:OwnedOrFreeholdAssets 2022-07-04 2023-07-02 09183536 e:OwnedOrFreeholdAssets 2022-07-04 2023-07-02 09183536 e:CurrentFinancialInstruments 2023-07-02 09183536 e:CurrentFinancialInstruments 2022-07-03 09183536 e:CurrentFinancialInstruments e:WithinOneYear 2023-07-02 09183536 e:CurrentFinancialInstruments e:WithinOneYear 2022-07-03 09183536 e:ReportableOperatingSegment1 2022-07-04 2023-07-02 09183536 e:ReportableOperatingSegment1 2021-07-04 2022-07-03 09183536 e:ReportableOperatingSegment2 2022-07-04 2023-07-02 09183536 e:ReportableOperatingSegment2 2021-07-04 2022-07-03 09183536 e:ShareCapital 2023-07-02 09183536 e:ShareCapital 2022-07-03 09183536 e:ShareCapital 2021-07-04 09183536 e:SharePremium 2022-07-04 2023-07-02 09183536 e:SharePremium 2023-07-02 09183536 e:SharePremium 2022-07-03 09183536 e:SharePremium 2021-07-04 09183536 e:RetainedEarningsAccumulatedLosses 2022-07-04 2023-07-02 09183536 e:RetainedEarningsAccumulatedLosses 2023-07-02 09183536 e:RetainedEarningsAccumulatedLosses 2021-07-04 2022-07-03 09183536 e:RetainedEarningsAccumulatedLosses 2022-07-03 09183536 e:RetainedEarningsAccumulatedLosses 2021-07-04 09183536 d:OrdinaryShareClass1 2022-07-04 2023-07-02 09183536 d:OrdinaryShareClass1 2023-07-02 09183536 d:OrdinaryShareClass1 2022-07-03 09183536 d:FRS102 2022-07-04 2023-07-02 09183536 d:Audited 2022-07-04 2023-07-02 09183536 d:FullAccounts 2022-07-04 2023-07-02 09183536 d:PrivateLimitedCompanyLtd 2022-07-04 2023-07-02 09183536 1 2022-07-04 2023-07-02 09183536 f:PoundSterling 2022-07-04 2023-07-02 xbrli:shares iso4217:GBP xbrli:pure

Registered number: 09183536










DOWNOAK LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 2 JULY 2023

 
DOWNOAK LIMITED
 
 
COMPANY INFORMATION


Directors
Peter James Borg-Neal 
Dermot Francis King 




Registered number
09183536



Registered office
Saxon House, 211 High Street
Berkhamsted

Hertfordshire

HP4 1AD




Independent auditors
Haysmacintyre LLP

10 Queen Street Place

London

EC4R 1AG





 
DOWNOAK LIMITED
 

CONTENTS



Page
Strategic Report
1 - 2
Directors' Report
3 - 4
Independent Auditors' Report
5 - 8
Statement of Comprehensive Income
9
Statement of Financial Position
10
Statement of Changes in Equity
11
Notes to the Financial Statements
12 - 23


 
DOWNOAK LIMITED
 
 
STRATEGIC REPORT
FOR THE PERIOD ENDED 2 JULY 2023

Introduction
 
The Directors present their report and the financial statements for the 12 months ended 2 July 2023.
Downoak Limited is a wholly owned subsidiary of Oakman Inns (P&E) Limited which is a wholly owned subsidiary of Oakman Inns and Restaurants Limited and is part of Oakman Group. The Company owns and operates four freehold premium pubs. 

Business review
 
The Government support that had been put in place following the Covid 19 pandemic, including Coronavirus Job Retention Scheme, grant support schemes and the temporary VAT relief for the hospitality sector all ended prior to the beginning of the financial year.
At this time  the hospitality industry suffered generally from a shortage of workers. Although we were perhaps less affected than others, we limited opening hours and trading capacity across the business until those pressures lifted in the summer of 2022.  
Inflation had impacted energy prices, not unconnected to Russia invading Ukraine, and although we had negotiated long term energy supply agreements prior to market prices becoming unsustainable, shielding us from the worst of that cost increase, consumer confidence became impacted by what was becoming a cost-of-living crisis. The Government’s Mini Budget in September 2022 had the opposite effect that was intended and saw interest rates and inflation spiral upwards putting more pressure on both business and households. Nevertheless, the business performed strongly given the pressures outside of our control.
The business focused on creating an environment to retain our best talent, paying as much as we could afford, rather than as little as we could get away with. Of particular concern was the employment landscape for kitchen workers and chefs generally. The training and development of our kitchen teams was a key part of this strategy and has provided us with the employee resources to continue our growth.
Despite the continuation of outside factors impacting our ability to trade, the Company produced Turnover of £7.3m with EBITDA of £1m. The Balance Sheet shows Net Assets of £8.3m.

Financial and non financial key performance indicators
 
• During the year, sales performance was marginally down on prior year by 0.6%and behind the market.
• Average net weekly sales per pub of £35k were level with the previous period.
• Wet Margins improved by 0.6% compared to the previous year.
• Dry Margins dropped by some 2.2% compared to the previous year.
• Staff turnover for the period was 62.5%.

Future developments
 
The principal risks facing the business in the period are covered below. They continue to be risks to the operation of the pubs however the risk has transferred to Oakman Inns (P&E) Limited given the post year end hive up of trade. 
The Directors restructured the intercompany loans within Oakman Group at the start of July 2023 and have “hived up” the trade and assets of the Company net of liabilities by transferring them to Oakman Inns (P&E) Limited. Following this “hive up” the Company no longer trades and the intention of the Directors is to liquidate this entity. Therefore the financial statements have been prepared on a basis other than going concern.

Page 1

 
DOWNOAK LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 2 JULY 2023

Principal risks and uncertainties
 
The principal risks facing the business are:-
• Funding – the size and type of leverage exposes the business to short term fluctuations in market
conditions. Although cashflow and other information is constantly monitored, re-engineering the structure of the balance sheet is the primary focus of the board.
• Employment landscape – as a service business, access to sufficient labour is critical. Post Brexit and the impact of Covid-19. The labour market has contracted, and the business is facing this challenge by creating and developing a strategy that attracts, develops and retains the best talent in our market, including but not limited to the development of our Chef Academy. 
• Inflation – like all retail businesses, consumer confidence can impact discretionary spending decisions by families. High energy prices on households that drive inflation that impact day to day prices risks damaging that confidence.
• Food safety – the business retains the highest standards of food safety and correctly places this issue at the top of every management meeting.
• Data security – the board has implemented sufficient defences in our networks to prevent criminal attacks. A sustained attack, if successful, would disrupt our ability to trade using payment cards.


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



Dermot Francis King
Director

Date: 31 January 2024

Page 2

 
DOWNOAK LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE PERIOD ENDED 2 JULY 2023

The Directors present their report and the financial statements for the period ended 2 July 2023.

Directors' responsibilities statement

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

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


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

make judgments and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The profit for the period, after taxation, amounted to £794,902 (2022 - £1,610,129).

No dividends were paid in the year (2021: £nil).


Page 3

 
DOWNOAK LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 2 JULY 2023


Directors

The Directors who served during the period were:

Peter James Borg-Neal 
Dermot Francis King 

Disclosure of information to auditors

Each of the persons who are Directors at the time when this Directors' Report is approved has confirmed that:
• so far as the Director is aware, there is no relevant audit information of which the Company's auditors are
unaware, and
• the Director has taken all the steps that ought to have been taken as a Director in order to be aware of any
relevant audit information and to establish that the Company's auditors are aware of that information.

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

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

Auditors

The auditorsHaysmacintyre LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

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





Dermot Francis King
Director

Date: 31 January 2024

Page 4

 
DOWNOAK LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DOWNOAK LIMITED
 

Opinion


We have audited the financial statements of Downoak Limited (the 'Company') for the period ended 2 July 2023, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 2 July 2023 and of its profit for the period then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


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


Emphasis of matter


We draw attention to note 2.3 of the financial statements. This explains that the Directors have restructured the intercompany loans within Oakman Group and have “hived up” the trade and assets of the Company net of liabilities by transferring them to Oakman Inns P&E Limited on 3 July 2023. Following this “hive up” the Company  no longer trades.
For this reason, the Directors have concluded that the Company is no longer a going concern and therefore these financial statements have been prepared on a basis other than going concern as described in noted 2.3. Our opinion is not modified in respect of this matter. 













Page 5

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


Other information


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


We have nothing to report in this regard.


Opinion on other matters prescribed by the Companies Act 2006
 

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


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


Matters on which we are required to report by exception
 

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


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


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


Responsibilities of Directors
 

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


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


Page 6

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


Auditors' responsibilities for the audit of the financial statements
 

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


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We consider the most significant laws and regulations that have a direct impact on the financial statements to be:
- FRS102 and Companies Act 2006 compliance: We reviewed of the financial statement disclosures and performed testing on balances and disclosures.
- Tax regulation: We inspected correspondence with regulators and tax authorities, and reviewed the companies tax computations.
We consider the most significant laws and regulations that have an indirect impact on the financial statements
are:
- Food safety and hygiene: We discussed with management to identify whether they were aware of instances of non-compliance, we reviewed board minutes, we searched for a sample of sites on the FSA website to identify whether any instances of poor ratings or breaches. 
- Licencing: We discussed with management to identify whether they were aware of instances of non-compliance and we reviewed board minutes.
- Minimum wage: We discussed with management to identify whether they were aware of instances of non-compliance, we reviewed board minutes and we remained alert for any breaches during our sample testing on payroll.
We considered the following areas to be those where the financial statements are most susceptible to fraud:
- Management override of controls: We evaluated management’s controls designed to prevent and detect
irregularities and we sampled and tested journals, in particular journal entries posted with unusual account
combinations, postings by unusual users or with unusual descriptions, and we challenging assumptions and
judgements made by management in their critical accounting estimates.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


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


Page 7

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


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 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.





Isabelle Shepherd (Senior Statutory Auditor)
for and on behalf of
Haysmacintyre LLP
Statutory Auditors
10 Queen Street Place
London
EC4R 1AG

31 January 2024
Page 8

 
DOWNOAK LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 2 JULY 2023

2023
2022
Note
£
£

  

Turnover
 4 
7,317,665
7,363,926

Cost of sales
  
(4,251,791)
(4,237,949)

Gross profit
  
3,065,874
3,125,977

Administrative expenses
  
(2,090,243)
(1,276,699)

Other operating income
 5 
43,161
58,231

EBITDA
 6 
1,018,792
1,907,509

Depreciation
  
(223,890)
(297,380)

Total operating profit
  
794,902
1,610,129

Profit for the period
  
794,902
1,610,129

Other comprehensive income for the period
  

Total comprehensive income for the period
  
794,902
1,610,129

The notes on pages 12 to 23 form part of these financial statements.

Page 9

 
DOWNOAK LIMITED
REGISTERED NUMBER: 09183536

STATEMENT OF FINANCIAL POSITION
AS AT 2 JULY 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 11 
11,221,648
11,278,841

  
11,221,648
11,278,841

Current assets
  

Stocks
 12 
81,944
62,509

Debtors: amounts falling due within one year
 13 
2,711,759
1,922,305

Cash at bank and in hand
 14 
9,221
11,815

  
2,802,924
1,996,629

Creditors: amounts falling due within one year
 15 
(5,704,733)
(5,750,533)

Net current liabilities
  
 
 
(2,901,809)
 
 
(3,753,904)

Total assets less current liabilities
  
8,319,839
7,524,937

Net assets
  
8,319,839
7,524,937


Capital and reserves
  

Called up share capital 
 16 
50,001
50,001

Share premium account
 17 
4,704,707
4,704,707

Profit and loss account
 17 
3,565,131
2,770,229

  
8,319,839
7,524,937


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




Dermot Francis King
Director

Date: 31 January 2024

The notes on pages 12 to 23 form part of these financial statements.

Page 10

 
DOWNOAK LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 2 JULY 2023


Called up share capital
Share premium account
Profit and loss account
Total equity

£
£
£
£


At 4 July 2021
50,001
4,704,707
1,160,100
5,914,808



Profit for the period
-
-
1,610,129
1,610,129



At 3 July 2022
50,001
4,704,707
2,770,229
7,524,937



Profit for the period
-
-
794,902
794,902


At 2 July 2023
50,001
4,704,707
3,565,131
8,319,839


The notes on pages 12 to 23 form part of these financial statements.

Page 11

 
DOWNOAK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 2 JULY 2023

1.


General information

Downoak Limited is a company limited by shares, incorporated in England and Wales. The registered office is Saxon House, 211 High Street, Berkhamsted, Hertfordshire, United Kingdom, HP4 1AD.
The company trades from various locations at which it operates pubs. Post year end the trade and assets of the Company were "hived up" to Oakman Inns P&E Limited and therefore the Company no longer trades. See 2.3 for further information.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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

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

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Oakman Group Plc as at 3 July 2023 and these financial statements may be obtained from Companies House.

 
2.3

Going concern

In preparing the financial statements, the Directors have made the assessment of the entity’s ability to continue as a going concern.
Post year end, the Directors have restructured the intercompany loans within Oakman Group and have “hived up” the trade and assets of the Company net of liabilities by transferring them to Oakman Inns P&E Limited on 3 July 2023. Following this “hive up” the Company no longer trades. 
For this reason, the Directors have concluded that the Company is no longer a going concern and these financial statements have been prepared on this basis. No material adjustments arose as a result of ceasing to apply the going concern basis. 

Page 12

 
DOWNOAK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 2 JULY 2023

2.Accounting policies (continued)

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Food and beverage revenue is measured as the fair value of the consideration received or receivable for the sale of food and beverage in the pubs operated by the Company, excluding value added tax, discounts and other sales taxes. Accomodation revenue is also measured as the fair value of the consideration received or receivable for the sale of accomodation in the hotel operated by the Company, excluding value added tax, discounts and other sales taxes. 

 
2.5

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. The grants received in the prior year are revenue based grants under the Coronavirus Job Retention Scheme (CJRS) and they were recognised as Other Income in the Statement of Comprehensive Income. The amounts recognised in both periods reflect the employee's covered by CJRS in the period leading up to this date, while the pubs were closed due to the Covid-19 pandemic. Grants were also received under the Retail, Tourism and Hospitality scheme. These grants were recognised in the period in which the company became entitled to these grants. 

 
2.6

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.

Page 13

 
DOWNOAK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 2 JULY 2023

2.Accounting policies (continued)

 
2.7

Taxation

Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

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

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

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

 
2.8

Tangible fixed assets

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

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

Depreciation is provided on the following basis:

Freehold property
-
Over 50 years (with 100% residual value)
Plant and machinery
-
12.5% straight line
Fixtures and fittings
-
10% straight line
Office equipment
-
33% straight line
Other fixed assets
-
33% 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 profit or loss.

Page 14

 
DOWNOAK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 2 JULY 2023

2.Accounting policies (continued)

  
2.9

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 weighted average basis.
At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss

 
2.10

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.11

Cash and cash equivalents

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

 
2.12

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.

 
2.13

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of
financial assets and liabilities like trade and other debtors and creditors, loans from banks and other
third parties, loans to related parties and investments in ordinary shares.
Debt instruments (other than those wholly repayable or receivable within one year), including loans
and other accounts receivable and payable, are initially measured at present value of the future cash
flows and subsequently at amortised cost using the effective interest method. Debt instruments that
are payable or receivable within one year, typically trade debtors and creditors, are measured, initially
and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid
or received. However, if the arrangements of a short-term instrument constitute a financing
transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an
out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially
at the present value of future cash flows discounted at a market rate of interest for a similar debt
instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the
case of a small company, or a public benefit entity concessionary loan.
Financial assets that are measured at cost and amortised cost are assessed at the end of each
reporting period for objective evidence of impairment. If objective evidence of impairment is found, an
impairment loss is recognised in the Statement of Comprehensive Income.
For financial assets measured at amortised cost, the impairment loss is measured as the difference
between an asset's carrying amount and the present value of estimated cash flows discounted at the
asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate
 
Page 15

 
DOWNOAK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 2 JULY 2023

2.Accounting policies (continued)


2.13
Financial instruments (continued)

for measuring any impairment loss is the current effective interest rate determined under the
contract.
For financial assets measured at cost less impairment, the impairment loss is measured as the
difference between an asset's carrying amount and best estimate of the recoverable amount, which is
an approximation of the amount that the Company would receive for the asset if it were to be sold at
the reporting date.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

Tangible Fixed Assets
The estimated useful economic lives of tangible fixed assets are based on management's judgement and experience. When management identifies that the actual useful economic lives differ materially from the estimates used to calculate depreciation, that charge is adjusted prospectively. Due to the significance of tangible fixed asset investment to the company, variations between actual and estimated useful economic lives could impact operating results both positively and negatively, although historically few changes to estimated useful economic lives have been required. The estimated useful economic lives and residual values of tangible fixed assets are based on management's judgement and experience. When management identifies that the actual useful economic lives differ materially from the estimates used to calculate depreciation, that charge is adjusted prospectively. Due to the significance of tangible fixed asset investment to the company, variations between actual and estimated useful economic lives, and variations between actual and estimated residual value, could impact operating results both positively and negatively, although historically few changes to estimated useful economic lives have been required.
The Company is required to evaluate the carrying values of tangible fixed assets for impairment whenever circumstances indicate, in management's judgement, that the carrying value of such assets may not be recoverable. An impairment review requires management to make subjective judgements concerning the cash flows, growth rates and discount rates of the cash generating units under review. Management concluded that a £83k reversal of a prior period impairment was required as at 3 July 2022 on the basis of the known information at this date. There has been no impairment or impairment releases recognised in the period to 2 July 2023. 
Intercompany Debtor Recoverability
The recoverability of these debts has been assessed based on the underlying value of the other entities within the Group. The debt is considered recoverable on the basis the value of the Group assets exceeds the liabilities and therefore they would have sufficient reserves to clear the debt on the sale of assets. Were this to change, the material nature of intercompany balance means there could be a material impact on the accounts.

Page 16

 
DOWNOAK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 2 JULY 2023

4.


Turnover

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


2023
2022
£
£

Food and beverage
6,398,452
6,539,785

Accommodation
919,213
824,141

7,317,665
7,363,926


All turnover arose within the United Kingdom.


5.


Other operating income

2023
2022
£
£

Net rents receivable
43,161
32,573

Government grants receivable
-
25,658

43,161
58,231


The Company was awarded a government grant amounting to £nil (2022: £5,158) in relation to the Coronavirus Job Retention scheme. The grant received in relation to the Coronavirus Job Retention Scheme was claimed by another company in the group (Oakman Inns & Restraurants Limited) as they are the employer. The value in relation to the employees that work for this company is what has been recognised as Other Operating Income. 


6.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Depreciation of tangible fixed assets
223,890
297,380

Defined contribution pension scheme
34,412
37,791

Impairment reversal
-
(82,872)

Page 17

 
DOWNOAK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 2 JULY 2023

7.


Auditors' remuneration

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


2023
2022
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
10,600
10,528

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


8.


Employees

Staff costs were as follows:


2023
2022
£
£

Wages and salaries
2,352,493
2,352,871

Social security costs
150,709
166,919

Cost of defined contribution scheme
34,412
37,791

2,537,614
2,557,581


The average monthly number of employees, including the Directors, during the period was as follows:


        2023
        2022
            No.
            No.







Retail
154
160

The employees are contracted with Oakman Inns and Restaurants Limited, the parent company. The number of employees disclosed above are those used by this company under a recharge agreement with Oakman Inns & Restaurants.


9.


Directors' remuneration

The Directors of the company are remunerated through another group company, Oakman Inns and Restaurants Limited. No recharge is made for their costs therefore no amount is recognised in these financial statements in relation to Directors' remuneration. The Directors are also deemed to be the key management personnel. 




Page 18

 
DOWNOAK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 2 JULY 2023

10.


Taxation



Factors affecting tax charge for the period/year

The tax assessed for the period/year is lower than (2022 - lower than) the standard rate of corporation tax in the UK of 20.53% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
794,902
1,610,129


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 20.53% (2022 - 19%)
163,217
305,925

Effects of:


Expenses not deductible for tax purposes
-
4,194

Capital allowances for period/year in excess of depreciation
32,205
2,291

Group relief
(150,902)
(302,609)

Remeasurement of deferred tax for changes in tax rates
9,686
3,095

Movement in deferred tax not recognised
(54,206)
(12,896)

Total tax charge for the period/year
-
-


Factors that may affect future tax charges

On 24 May 2021 the increase of corporation tax to 25% was substantively enacted, as of 1 April 2023. The deferred tax at the balance sheet date has therefore been measured at this rate. 

Page 19

 
DOWNOAK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 2 JULY 2023

11.


Tangible fixed assets







Freehold property
Plant and machinery
Fixtures and fittings
Office equipment
Other fixed assets

£
£
£
£
£



Cost


At 4 July 2022
10,519,643
448,344
1,590,212
266,406
108,186


Additions
16,007
-
137,616
4,139
13,515


Disposals
-
(4,580)
-
-
-



At 2 July 2023

10,535,650
443,764
1,727,828
270,545
121,701



Depreciation


At 4 July 2022
-
373,024
940,744
266,406
73,776


Charge for the period on owned assets
-
31,014
163,317
621
28,938



At 2 July 2023

-
404,038
1,104,061
267,027
102,714



Net book value



At 2 July 2023
10,535,650
39,726
623,767
3,518
18,987



At 3 July 2022
10,519,643
75,320
649,468
-
34,410
Page 20

 
DOWNOAK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 2 JULY 2023

           11.Tangible fixed assets (continued)


Total

£



Cost


At 4 July 2022
12,932,791


Additions
171,277


Disposals
(4,580)



At 2 July 2023

13,099,488



Depreciation


At 4 July 2022
1,653,950


Charge for the period on owned assets
223,890



At 2 July 2023

1,877,840



Net book value



At 2 July 2023
11,221,648



At 3 July 2022
11,278,841

Oakman Inns (P&E) Limited holds a bank loan with Cynergy that funds this company through intercompany debt. The freehold property held by Hedderwick Ltd forms part of the security on this debt. 


12.


Stocks

2023
2022
£
£

Raw materials and consumables
81,944
62,509

81,944
62,509


Page 21

 
DOWNOAK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 2 JULY 2023

13.


Debtors

2023
2022
£
£


Amounts owed by group undertakings
2,445,614
1,605,344

Amounts owed by related parties
4,129
3,316

Other debtors
178,579
155,334

Prepayments and accrued income
83,437
158,311

2,711,759
1,922,305


Amounts owed from group undertakings are interest free, unsecured and repayable on demand. 


14.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
9,221
11,815



15.


Creditors: Amounts falling due within one year

2023
2022
£
£

Trade creditors
570,386
635,297

Amounts owed to group undertakings
4,767,116
4,758,515

Amounts owed to related parties
43,374
42,326

Other creditors
47,257
7,965

Accruals and deferred income
276,600
306,430

5,704,733
5,750,533


The amounts due to group undertakings are interest free and repayable on demand.

Page 22

 
DOWNOAK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 2 JULY 2023

16.


Share capital

2 July
3 July
2023
2022
£
£
Allotted, called up and fully paid



5,000,100 (2022 - 5,000,100) Ordinary shares of £0.01 each
50,001
50,001



17.


Reserves

Share premium account

Includes any premiums received on issue of share capital. Any transaction costs associated with the issuing of shares are deducted from share premium.

Profit and loss account

Includes all profits and losses accumulated in the current and previous periods.


18.


Pension commitments

The Group in which the Company sits operates a defined contributions pension scheme for all employees within the company. The assets of the scheme are held separately from those of the Group in an independently administered fund.
The pension cost charge represents contributions payable by the Company to the fund and amounted to £34,412 (2022 - £37,791). Contributions payable to the fund at the reporting date are recognised by Oakman Inns and Restaurants Limited where the employees are contracted. 


19.


Related party transactions

At the period end £42,294 (2022 - £42,326) was owed by a company under common control due to mutual management and one common Director. At the period end £nil (2022 - £3,316) was owed by companies under common control due to mutual management teams. 


20.


Post balance sheet events

On 3 July 2023 the Directors decided to restructure the intercompany loans within Oakman Group and “hive up” the trade and assets of the Company, net of liabilities by transferring them to Oakman Inns P&E Limited. Following this “hive up” the Company no longer trades and the intention of the Directors is for this entity to be liquidated. Therefore these accounts have been prepared on a basis other than going concern.


21.


Controlling party

The immediate parent is Oakman Inns (P&E) Limited. The ultimate controlling party is Oakman Group Plc. Both of these companies are registered at Saxon House, 211 High Street, Berkhamsted, Hertfordshire, HP4 1AD. Oakman Group Plc prepares consolidated accounts which include the results of this company.

Page 23