Registration number:
Riviera Restaurants & Luxury Ltd
for the Year Ended 31 October 2022
Riviera Restaurants & Luxury Ltd
Contents
Company Information |
|
Strategic Report |
|
Directors' Report |
|
Statement of Directors' Responsibilities |
|
Independent Auditor's Report |
|
Consolidated Statement of Comprehensive Income |
|
Consolidated Balance Sheet |
|
Balance Sheet |
|
Consolidated Statement of Changes in Equity |
|
Statement of Changes in Equity |
|
Consolidated Statement of Cash Flows |
|
Notes to the Financial Statements |
Riviera Restaurants & Luxury Ltd
Company Information
Directors |
D Cornolti R R M Green L V Vloten |
Company secretary |
R R M Green |
Registered office |
|
Auditors |
|
Riviera Restaurants & Luxury Ltd
Strategic Report for the Year Ended 31 October 2022
The directors present their strategic report for the year ended 31 October 2022.
Business review
The financial statements reflect the results for the year to 31 October 2022, which, following the changes in UK reporting requirements post Brexit, are for the consolidated UK subsidiaries of the group.
Key performance indicators
The directors consider that the key performance indicators are turnover, operating profit and feedback from customers across the group’s core activities. The directors are of the opinion that further analysis using other key performance indicators is not necessary for an understanding of the group's development, performance or position.
Travel
This financial year covers a period when French Ski resorts closed for the whole season, many for the first time ever. The following summer season presented its own challenges, with many European countries imposing travel restrictions due to the Coronavirus. Accordingly, the outbound travel side of the business, representing 46% of turnover was severely impacted. Overhead was reduced where possible, but it remained significant against a backdrop of severely impacted sales, and the group reported heavy losses in this area. The group relied upon its French parent company for financial support, avoiding debt or government assistance in the UK.
A large number of deposits and pre-payments were taken for holidays which were not delivered, and credit was accorded for future seasons. In most cases the group was unable to recoup payments and engagements already made to suppliers. It will take a few years for the customer credit to wash-through, and losses can be expected in travel until 2025.
Notwithstanding the above losses, the group was able to weather the difficulties of COVID without seeking external help, unlike many competitors who were unable to continue.
Although the UK consumer is under financial pressure, the outlook for ex-UK travel is stable. However, actual spend is not growing, as consumers' budget becomes squeezed by inflation and the rising cost of living. Accordingly, the group has been looking to new markets to drive growth. Approximately 30% of customers are currently from non-UK markets and the group hopes to increase that to 50%.
Restaurants
During COVID, the group invested in London restaurants, on the expectation that there would be a strong recovery afterwards. Trading was indeed positive immediately after COVID but this was countered by severe staff shortages, as many European hospitality workers left during COVID and did not return. This severely restricted the group's ability to grow, recruit and train its staff.
Furthermore, the current UK government does not consider hospitality work to be skilled. As a result, there remains a gap between the number of skilled workers needed and the number available. It is difficult to maintain the service levels enjoyed prior to the departure of the group's European (and parent company) workforce. This has a negative impact on sales and customer satisfaction at the higher-end of the market where the group's restaurants are. The group sees no immediate solution to the problem.
Riviera Restaurants & Luxury Ltd
Strategic Report for the Year Ended 31 October 2022 (continued)
In February 2022 Ukraine was invaded by its larger neighbour and energy costs rose 4 or 5-fold. The UK has also seen a period of higher inflation, but it has been difficult to pass on its cost-increases to an already-squeezed clientele.
Furthermore, restaurant footfall has dropped substantially on Mondays and Fridays, as office workers seldom come to the city on those days. Weekend footfall has increased but is countered by a lower spend per head.
In summary, the group's restaurants have been severely impacted by skilled staff shortages, higher wages, food and energy costs, import tariffs and lower customer spend and visits.
Accordingly, the directors of the group have decided to reduce its restaurant estate in London.
Growth
The group sees two immediate but modest areas of growth, both organic and with low funding needs, being:
1. Travel, from non-UK consumers
2. IT hospitality services development
Funding
The group is finance by retained profits and it receives further funding from its parent company in France as required. The Covid years were turbulent and a period of consolidation will be required next to the modest growth outlined above.
Principal risks and uncertainties
The directors of the group feel that the UK has entered a period of sustained economic weakness.
Its restaurant business relied upon a good supply of qualified staff, and a clientele with a high discretionary spend. With these two factors in decline, the group will not risk expansion in this area, choosing to reduce its exposure.
In travel, climactic change poses medium and long-term uncertainty.
Approved by the
.........................................
Director
Riviera Restaurants & Luxury Ltd
Directors' Report for the Year Ended 31 October 2022
The directors present their report and the for the year ended 31 October 2022.
Directors of the group
The directors who held office during the year were as follows:
Principal activity
The principal activity of the company is that of a parent company. The principal activities of the company's subsidiaries is that of tour operators and restauranteurs.
Directors' liabilities
The company has made qualifying third party indemnity provisions for the benefits of its directors which were made during the year and remain in force at the date of this report.
Disclosure of information to the auditor
Each director of the company who held office at the date of the approval of this Annual Report, as set out above, confirms that:
• so far as they are aware, there is no relevant audit information (information needed by the company's auditors in connection with preparing their report) of which the company's auditors are unaware, and
• they have taken all the steps they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
Reappointment of auditors
The auditors, Hawsons Chartered Accountants, are deemed to be reappointed under section 487(2) of the Companies Act 2006.
Approved by the
.........................................
Director
Riviera Restaurants & Luxury Ltd
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities for preparing the Annual 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 apply them consistently; |
• |
make judgements and accounting estimates that are reasonable and prudent; |
• |
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
• |
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.
Riviera Restaurants & Luxury Ltd
Independent Auditor's Report
to the Members of Riviera Restaurants & Luxury Ltd
Disclaimer of opinion
We were engaged to audit the financial statements of Riviera Restaurants & Luxury Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 October 2022, which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated Statement of Cash Flows, and 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).
We do not express an opinion on the financial statements because of the significance of the matters described in the basis for disclaimer of opinion section of our report below. We have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on these financial statements.
Basis for disclaimer of opinion on financial statements
The UK group and the company previously took advantage of exemption from audit under section 479A of the Companies Act 2006 relating to subsidiary companies for the year ended 31 October 2021. We were unable to obtain
sufficient appropriate audit evidence for the comparative amounts. Consequently, we are unable to
determine whether any adjustments to the comparative information were necessary.
Moreover, in respect of a significant component of the group, Purple Ski Ltd, for the year ended 31 October 2022, we were unable to access all of the accounting
records to enable us to perform all of the testing and confirmations that we would deem necessary,
hence there was a general limitation in the scope of our work. Consequently, we were unable to
obtain sufficient appropriate audit evidence over tangible fixed assets, valuation of
inventories, existence and recoverability of debtors, completeness of creditors and over amounts recognised in the Consolidated Statement of Comprehensive Income.
As a result of these matters, we were unable to determine whether any adjustments might have been
found necessary in respect of comparative amounts of inventories, tangible fixed assets, debtors, creditors, retained reserves, and the elements making up the
Consolidated Statement of Comprehensive Income.
Because of the possible effect to the financial statements of the above we are unable to form an opinion as to whether the financial statements:
• | give a true and fair view of the state of the group's and the parent company's affairs as at 31 October 2022 and of the group's loss for the year then ended; |
• | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• | have been prepared in accordance with the requirements of the Companies Act 2006. |
Opinion on other matter prescribed by the Companies Act 2006
Notwithstanding our disclaimer of an opinion on the view given by the financial statements, in our opinion, based on the work undertaken in the course of the audit:
• |
the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
• |
the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
Riviera Restaurants & Luxury Ltd
Independent Auditor's Report
to the Members of Riviera Restaurants & Luxury Ltd (continued)
Matters on which we are required to report by exception
Notwithstanding our disclaimer of an opinion on the financial statements, in the light of our knowledge and understanding of the company and its environment obtained in the course of the audit performed subject to the pervasive limitation described above, we have not identified material misstatements in the Directors' Report.
Arising from the limitation on the scope of our work referred to above:
• |
we have not received all the information and explanations that we consider necessary for the purpose of our audit; and |
• |
we were unable to determine whether adequate accounting records have been kept. |
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:
• |
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 |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page 5, 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 group’s and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so.
Auditor responsibilities for the audit of the financial statements
Our responsibility is to conduct an audit of the company’s financial statements in accordance with International Standards on Auditing (UK) and to issue an auditor’s report.
However, because of the matters described in the basis for disclaimer of opinion section of our report, we were not able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on these financial statements.
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.
Detection of irregularities, including fraud
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Riviera Restaurants & Luxury Ltd
Independent Auditor's Report
to the Members of Riviera Restaurants & Luxury Ltd (continued)
The company is subject to laws and regulations that directly and indirectly affect the financial statements. Based on our understanding of the company and the environment it operates within, we determined that the laws and regulations which were most significant included FRS 102 Section, Companies Act 2006, Civil Aviation Authority, Association of British Travel Agents, Food Hygeine and Health and Safety regulations. We considered the extent to which non-compliance with these laws and regulations might have a material effect on the financial statements, including how fraud might occur. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to the posting of inappropriate journal entries to improve the company’s result for the period, and management bias in key accounting estimates.
Audit procedures performed by the engagement team included:
• |
Discussions with management and those responsible for legal compliance procedures within the company to obtain an understanding of the legal and regulatory framework applicable to the company and how the company complies with that framework, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud; |
• |
Identifying and assessing the design effectiveness of controls that management has in place to prevent and detect fraud and non-compliance with laws and regulations; |
• |
Challenging assumptions and judgements made by management in their significant accounting estimates; |
There are inherent limitations in the audit procedures described above and the more removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
A further description of our responsibilities is available on the Financial Reporting Council's website at www.frc.org.uk/auditors/audit-assurance/auditor-s-responsibilities-for-the-audit-of-the-fi/description-of
-the-auditor’s-responsibilities-for. This description forms part of our auditor's report.
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 an auditor’s 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.
......................................
For and on behalf of
Pegasus House
463a Glossop Road
South Yorkshire
S10 2QD
Riviera Restaurants & Luxury Ltd
Consolidated Statement of Comprehensive Income for the Year Ended 31 October 2022
Note |
2022 |
2021 |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Administrative expenses |
( |
( |
|
Other operating income |
|
|
|
Operating loss |
( |
( |
|
Other interest receivable and similar income |
|
|
|
Interest payable and similar expenses |
- |
( |
|
12 |
1,082 |
||
Loss before tax |
( |
( |
|
Tax on loss |
- |
( |
|
Loss for the financial year |
( |
( |
Foreign currency translation gains/(losses) |
( |
( |
Total comprehensive income for the year |
( |
( |
Total comprehensive income attributable to: |
||
Owners of the company |
( |
( |
Minority interests |
( |
( |
( |
( |
The above results were derived from continuing operations.
The group has no other recognised gains or losses for the year other than the results above.
As permitted by Section 408 of the Companies Act 2006, the Profit and Loss Account of the Parent Company is not presented as part of these Financial Statements.
Riviera Restaurants & Luxury Ltd
(Registration number: 03330944)
Consolidated Balance Sheet as at 31 October 2022
Note |
2022 |
2021 |
|
Fixed assets |
|||
Intangible assets |
|
|
|
Tangible assets |
|
|
|
|
|
||
Current assets |
|||
Stocks |
|
|
|
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current liabilities |
( |
( |
|
Total assets less current liabilities |
( |
( |
|
Provisions for liabilities |
( |
( |
|
Net liabilities |
( |
( |
|
Capital and reserves |
|||
Called up share capital |
60,000 |
60,000 |
|
Profit and loss account |
(5,024,650) |
(2,570,142) |
|
Equity attributable to owners of the company |
(4,964,650) |
(2,510,142) |
|
Minority interests |
(212,284) |
(85,532) |
|
Shareholders' deficit |
(5,176,934) |
(2,595,674) |
Approved and authorised by the
.........................................
Director
Riviera Restaurants & Luxury Ltd
(Registration number: 03330944)
Balance Sheet as at 31 October 2022
Note |
2022 |
2021 |
|
Fixed assets |
|||
Investments |
|
|
|
Current assets |
|||
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current (liabilities)/assets |
( |
|
|
Net (liabilities)/assets |
( |
|
|
Capital and reserves |
|||
Called up share capital |
60,000 |
60,000 |
|
Profit and loss account |
(2,417,135) |
769,819 |
|
Shareholders' (deficit)/funds |
(2,357,135) |
829,819 |
The company made a loss after tax for the financial year of £3,186,954 (2021 - loss of £31,518).
Approved and authorised by the
.........................................
Director
Riviera Restaurants & Luxury Ltd
Consolidated Statement of Changes in Equity for the Year Ended 31 October 2022
Equity attributable to the parent company
Share capital |
Profit and loss account |
Total |
Non- controlling interests |
Total equity |
|
At 1 November 2021 |
|
( |
( |
( |
( |
Loss for the year |
- |
( |
( |
( |
( |
Other comprehensive income |
- |
( |
( |
- |
( |
Total comprehensive income |
- |
( |
( |
( |
( |
Dividends |
- |
- |
- |
( |
( |
At 31 October 2022 |
|
( |
( |
( |
( |
Share capital |
Profit and loss account |
Total |
Non- controlling interests |
Total equity |
|
At 1 November 2020 |
|
( |
( |
( |
( |
Loss for the year |
- |
( |
( |
( |
( |
Other comprehensive income |
- |
( |
( |
- |
( |
Total comprehensive income |
- |
( |
( |
( |
( |
Dividends |
- |
- |
- |
( |
( |
At 31 October 2021 |
|
( |
( |
( |
( |
Riviera Restaurants & Luxury Ltd
Statement of Changes in Equity for the Year Ended 31 October 2022
Share capital |
Profit and loss account |
Total |
|
At 1 November 2021 |
|
|
|
Loss for the year |
- |
( |
( |
Total comprehensive income |
- |
( |
( |
At 31 October 2022 |
|
( |
( |
Share capital |
Profit and loss account |
Total |
|
At 1 November 2020 |
|
|
|
Loss for the year |
- |
( |
( |
Total comprehensive income |
- |
( |
( |
At 31 October 2021 |
|
|
|
Riviera Restaurants & Luxury Ltd
Consolidated Statement of Cash Flows for the Year Ended 31 October 2022
Note |
2022 |
2021 |
|
Cash flows from operating activities |
|||
Loss for the year |
( |
( |
|
Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
|
|
|
Loss on disposal of tangible assets |
|
- |
|
Finance income |
( |
( |
|
Finance costs |
- |
|
|
Income tax expense |
- |
|
|
( |
( |
||
Working capital adjustments |
|||
Increase in stocks |
( |
( |
|
Increase in trade debtors |
( |
( |
|
Increase in trade creditors |
|
|
|
Increase in provisions |
|
|
|
Cash generated from operations |
( |
|
|
Income taxes paid |
- |
( |
|
Net cash flow from operating activities |
( |
|
|
Cash flows from investing activities |
|||
Interest received |
|
|
|
Acquisitions of tangible assets |
( |
( |
|
Acquisition of intangible assets |
( |
- |
|
Net cash flows from investing activities |
( |
( |
|
Cash flows from financing activities |
|||
Interest paid |
- |
( |
|
Proceeds from bank borrowing draw downs |
( |
|
|
Net cash flows from financing activities |
( |
|
|
Net (decrease)/increase in cash and cash equivalents |
( |
|
|
Cash and cash equivalents at 1 November |
|
|
|
Effect of exchange rate fluctuations on cash held |
( |
( |
|
Cash and cash equivalents at 31 October |
725,614 |
1,383,315 |
Riviera Restaurants & Luxury Ltd
Consolidated Statement of Cash Flows for the Year Ended 31 October 2022 (continued)
Reconciliation of net funds/(debt)
2022
At 1 November 2021 |
Cash flows |
Other non-cash changes |
At 31 October 2022 |
|||||
£ |
£ |
£ |
£ |
|||||
Cash and cash equivalents |
||||||||
Cash at bank and in hand |
1,383,315 |
(565,704) |
(91,997) |
725,614 |
||||
Borrowings |
||||||||
Debt due within one year |
(45,563) |
10,648 |
- |
(34,915) |
||||
Total net funds/(debt) |
1,292,189 |
(555,056) |
(91,997) |
645,136 |
2021
At 1 November 2020 |
Cash flows |
Other non-cash changes |
At 31 October 2021 |
|||||
£ |
£ |
£ |
£ |
|||||
Cash and cash equivalents |
||||||||
Cash at bank and in hand |
1,018,292 |
396,182 |
(31,159) |
1,383,315 |
||||
Borrowings |
||||||||
Debt due within one year |
(50,000) |
4,437 |
- |
(45,563) |
||||
Total net funds/(debt) |
968,292 |
400,619 |
(31,159) |
1,337,752 |
Riviera Restaurants & Luxury Ltd
Notes to the Financial Statements for the Year Ended 31 October 2022
Accounting policies |
Statutory information
Riviera Restaurants & Luxury Ltd is a private company, limited by shares, domiciled in England and Wales, company number 03330944. The registered office is at 44 Connaught Street, London, W2 2AA.
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value. The presentation currency is United Kingdom pounds sterling, which is the functional currency of the company. The financial statements are those of an individual entity.
Basis of consolidation
The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 October 2022.
Subsidiary undertakings are included using the acquisitions method of accounting. Under this method the group profit and loss account and statement of cashflows include the results and cashflows of subsidiaries from the date of acquisition up to the date of sale outside the group in the case of disposals of subsidiaries. The purchase consideration has been allocated to the assets and liabilities on the basis of fair value at the date of acquisition.
Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.
No profit and loss account is presented for the company as permitted by Section 408 of the Companies Act 2006.
Business combinations
Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.
Riviera Restaurants & Luxury Ltd
Notes to the Financial Statements for the Year Ended 31 October 2022 (continued)
1 |
Accounting policies (continued) |
Going concern
After due consideration of all relevant factors, including the financial support from the ultimate parent company of the group, Eurogroup SA, for a period of not less than 12 months from the date of signing these accounts. The directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the forseeable future. Accordingly they continue to adopt the going concern basis in preparing the annual report of accounts.
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.
Revenue is recognised either at the point of sale to the customer or in line with the period of departure as defined by the booking agreements.
Foreign currency transactions and balances
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
Tax
The tax expense for the period comprises tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
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 group operates and generates taxable income.
Deferred tax is recognised in respect of all timing differences between taxable profits and profits
reported in the consolidated financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will
be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively
enacted by the reporting date and that are expected to apply to the reversal of the timing difference.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Riviera Restaurants & Luxury Ltd
Notes to the Financial Statements for the Year Ended 31 October 2022 (continued)
1 |
Accounting policies (continued) |
Depreciation
Depreciation is charged so as to write off the cost of assets over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Motor vehicles |
20% straight line basis |
Office equipment |
20% straight line basis |
Computer equipment |
33.33% straight line basis |
Other fixed assets |
6.67% - 33.33% straight line basis |
Goodwill
Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
Asset class |
Amortisation method and rate |
Goodwill |
10% straight line basis |
Other intangible assets |
6.67 - 25% straight line basis |
Investments
Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Inventories
Stocks are stated at the lower of cost and net realisable value.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Provisions
Provisions are recognised when the group has an obligation at the reporting date as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
Riviera Restaurants & Luxury Ltd
Notes to the Financial Statements for the Year Ended 31 October 2022 (continued)
1 |
Accounting policies (continued) |
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Revenue |
The analysis of the group's turnover for the year, all of which related to the group's principal activities, by geographic market is as follows:
2022 |
2021 |
|
UK |
|
|
France |
|
|
|
|
Other operating income |
The analysis of the group's other operating income for the year is as follows:
2022 |
2021 |
|
Government grants |
|
|
Group management charges receivable |
|
|
|
|
Operating loss |
Arrived at after charging/(crediting)
2022 |
2021 |
|
Depreciation expense |
|
|
Amortisation expense |
|
|
Loss on disposal of tangible fixed assets |
|
- |
Auditor's remuneration - audit of these financial statements |
15,000 |
- |
Auditor's remuneration - other services |
25,640 |
24,630 |
Other interest receivable and similar income |
2022 |
2021 |
|
Interest income on bank deposits |
|
|
Riviera Restaurants & Luxury Ltd
Notes to the Financial Statements for the Year Ended 31 October 2022 (continued)
Interest payable and similar expenses |
2022 |
2021 |
|
Interest expense on other finance liabilities |
- |
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
2022 |
2021 |
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs, defined contribution scheme |
|
|
|
|
The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:
2022 |
2021 |
|
Management and administration |
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
2022 |
2021 |
|
Remuneration |
|
|
Contributions paid to money purchase schemes |
|
|
101,671 |
71,765 |
During the year the number of directors who were receiving benefits and share incentives was as follows:
2022 |
2021 |
|
Accruing benefits under money purchase pension scheme |
|
|
Riviera Restaurants & Luxury Ltd
Notes to the Financial Statements for the Year Ended 31 October 2022 (continued)
Taxation |
Tax charged/(credited) in the income statement
2022 |
2021 |
|
Current taxation |
||
UK corporation tax |
- |
|
The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2021 - the same as the standard rate of corporation tax in the UK) of
The differences are reconciled below:
2022 |
2021 |
|
Loss before tax |
( |
( |
Corporation tax at standard rate |
( |
( |
Effect of tax losses |
|
|
Total tax charge |
- |
|
Intangible assets |
Group
Goodwill |
Other intangible assets |
Total |
|
Cost or valuation |
|||
At 1 November 2021 |
|
|
|
Additions |
- |
|
|
At 31 October 2022 |
|
|
|
Amortisation |
|||
At 1 November 2021 |
- |
|
|
Amortisation charge |
|
|
|
At 31 October 2022 |
|
|
|
Carrying amount |
|||
At 31 October 2022 |
|
|
|
At 31 October 2021 |
|
|
|
Riviera Restaurants & Luxury Ltd
Notes to the Financial Statements for the Year Ended 31 October 2022 (continued)
Tangible assets |
Group
Fixed assets |
|
Cost or valuation |
|
At 1 November 2021 |
|
Additions |
|
Disposals |
( |
At 31 October 2022 |
|
Depreciation |
|
At 1 November 2021 |
|
Charge for the year |
|
At 31 October 2022 |
|
Carrying amount |
|
At 31 October 2022 |
|
At 31 October 2021 |
|
Investments |
Company
2022 |
2021 |
|
Investments in subsidiaries |
|
|
Subsidiaries |
£ |
Cost |
|
At 1 November 2021 and 31 October 2022 |
|
Provision |
|
At 1 November 2021 |
- |
Provision |
|
At 31 October 2022 |
|
Carrying amount |
|
At 31 October 2022 |
|
At 31 October 2021 |
|
Riviera Restaurants & Luxury Ltd
Notes to the Financial Statements for the Year Ended 31 October 2022 (continued)
12 |
Investments (continued) |
Details of undertakings
Details of the investments in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
||||
2022 |
2021 |
||||||
Subsidiary undertakings |
|||||||
|
England and Wales |
|
|
|
|||
|
England and Wales |
|
|
|
|||
|
England and Wales |
|
|
|
|||
|
England and Wales |
|
|
|
|||
|
England and Wales |
|
|
|
|||
|
England and Wales |
|
|
|
|||
|
England and Wales |
|
|
|
|||
|
England and Wales |
|
|
|
|||
|
England and Wales |
|
|
|
|||
|
England and Wales |
|
|
|
|||
|
England and Wales |
|
|
|
|||
|
England and Wales |
|
|
|
|||
|
England and Wales |
|
|
|
For the year ending 31 October 2022 the above subsidiaries were entitled to exemption from audit under section 479A of the Companies Act 2006 relating to subsidiary companies.
The UK parent company, Riviera Restaurants & Luxury Ltd, has given a guarantee under section 479C, in respect of all the subsidiaries named above, which guarantees all outstanding liabilities to which the subsidiary companies above are subject to at the year end.
Riviera Restaurants & Luxury Ltd
Notes to the Financial Statements for the Year Ended 31 October 2022 (continued)
Stocks |
Group |
Company |
|||
2022 |
2021 |
2022 |
2021 |
|
Finished goods and goods for resale |
|
|
- |
- |
Debtors |
Group |
Company |
||||
Note |
2022 |
2021 |
2022 |
2021 |
|
Trade debtors |
|
|
- |
- |
|
Amounts owed by related parties |
|
- |
- |
|
|
Other debtors |
|
|
|
|
|
Prepayments and accrued income |
|
|
- |
- |
|
|
|
|
|
Creditors |
Group |
Company |
||||
Note |
2022 |
2021 |
2022 |
2021 |
|
Due within one year |
|||||
Loans and borrowings |
|
|
- |
- |
|
Trade creditors |
|
|
|
- |
|
Amounts due to related parties |
|
|
|
|
|
Social security and other taxes |
|
|
|
|
|
Other payables |
|
|
|
|
|
Accruals and deferred income |
|
|
|
|
|
|
|
|
|
Riviera Restaurants & Luxury Ltd
Notes to the Financial Statements for the Year Ended 31 October 2022 (continued)
Loans and borrowings |
Group |
Company |
|||
2022 |
2021 |
2022 |
2021 |
|
Current loans and borrowings |
||||
Bank borrowings |
|
|
- |
- |
Pension and other schemes |
Defined contribution pension scheme
The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £
Contributions totalling £
Share capital |
Allotted, called up and fully paid shares
2022 |
2021 |
|||
No. |
£ |
No. |
£ |
|
Ordinary shares of £1 each |
60,000 |
60,000 |
60,000 |
60,000 |
Related party transactions |
The company has taken exemption from disclosing transactions with wholly owned group companies under section 33 of FRS 102.
Parent and ultimate parent undertaking |
The company's immediate parent company is
The most senior parent entity producing publicly available financial statements is
The ultimate controlling party is