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Registration number: 03330944

Riviera Restaurants & Luxury Ltd

Annual Report and Consolidated Financial Statements

for the Year Ended 31 October 2022

 

Riviera Restaurants & Luxury Ltd

Contents

Company Information

1

Strategic Report

2 to 3

Directors' Report

4

Statement of Directors' Responsibilities

5

Independent Auditor's Report

6 to 8

Consolidated Statement of Comprehensive Income

9

Consolidated Balance Sheet

10

Balance Sheet

11

Consolidated Statement of Changes in Equity

12

Statement of Changes in Equity

13

Consolidated Statement of Cash Flows

14 to 15

Notes to the Financial Statements

16 to 25

 

Riviera Restaurants & Luxury Ltd

Company Information

Directors

D Cornolti

R R M Green

L V Vloten

Company secretary

R R M Green

Registered office

44 Connaught Street
London
W2 2AA

Auditors

Hawsons Chartered Accountants
Pegasus House
463a Glossop Road
Sheffield
South Yorkshire
S10 2QD

 

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 Board on 24 January 2024 and signed on its behalf by:

.........................................
R R M Green
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:

D Cornolti

R R M Green

L V Vloten

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 Board on 24 January 2024 and signed on its behalf by:

.........................................
R R M Green
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.

......................................
Scott Sanderson (Senior Statutory Auditor)
For and on behalf of Hawsons Chartered Accountants, Statutory Auditor

Pegasus House
463a Glossop Road
Sheffield
South Yorkshire
S10 2QD

30 January 2024

 

Riviera Restaurants & Luxury Ltd

Consolidated Statement of Comprehensive Income for the Year Ended 31 October 2022

Note

2022
£

2021
£

Turnover

2

10,606,751

3,929,473

Cost of sales

 

(5,847,036)

(2,094,950)

Gross profit

 

4,759,715

1,834,523

Administrative expenses

 

(7,625,649)

(3,843,609)

Other operating income

3

338,000

607,101

Operating loss

4

(2,527,934)

(1,401,985)

Other interest receivable and similar income

5

12

2,422

Interest payable and similar expenses

6

-

(1,340)

   

12

1,082

Loss before tax

 

(2,527,922)

(1,400,903)

Tax on loss

9

-

(38,138)

Loss for the financial year

 

(2,527,922)

(1,439,041)

Foreign currency translation gains/(losses)

(43,338)

(273)

Total comprehensive income for the year

(2,571,260)

(1,439,314)

Total comprehensive income attributable to:

Owners of the company

(2,454,508)

(1,393,186)

Minority interests

(116,752)

(46,128)

(2,571,260)

(1,439,314)

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

10

635,475

831,317

Tangible assets

11

855,968

920,639

 

1,491,443

1,751,956

Current assets

 

Stocks

13

213,681

165,031

Debtors

14

3,491,665

1,650,735

Cash at bank and in hand

 

725,614

1,383,315

 

4,430,960

3,199,081

Creditors: Amounts falling due within one year

15

(11,038,610)

(7,524,256)

Net current liabilities

 

(6,607,650)

(4,325,175)

Total assets less current liabilities

 

(5,116,207)

(2,573,219)

Provisions for liabilities

(60,727)

(22,455)

Net liabilities

 

(5,176,934)

(2,595,674)

Capital and reserves

 

Called up share capital

18

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 Board on 24 January 2024 and signed on its behalf by:
 

.........................................

R R M Green
Director

 

Riviera Restaurants & Luxury Ltd

(Registration number: 03330944)
Balance Sheet as at 31 October 2022

Note

2022
£

2021
£

Fixed assets

 

Investments

12

171,894

764,754

Current assets

 

Debtors

14

8,993

2,286,406

Cash at bank and in hand

 

50,372

125,353

 

59,365

2,411,759

Creditors: Amounts falling due within one year

15

(2,588,394)

(2,346,694)

Net current (liabilities)/assets

 

(2,529,029)

65,065

Net (liabilities)/assets

 

(2,357,135)

829,819

Capital and reserves

 

Called up share capital

18

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 Board on 24 January 2024 and signed on its behalf by:
 

.........................................

R R M Green
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

60,000

(2,570,142)

(2,510,142)

(85,532)

(2,595,674)

Loss for the year

-

(2,411,170)

(2,411,170)

(116,752)

(2,527,922)

Other comprehensive income

-

(43,338)

(43,338)

-

(43,338)

Total comprehensive income

-

(2,454,508)

(2,454,508)

(116,752)

(2,571,260)

Dividends

-

-

-

(10,000)

(10,000)

At 31 October 2022

60,000

(5,024,650)

(4,964,650)

(212,284)

(5,176,934)

Share capital
£

Profit and loss account
£

Total
£

Non- controlling interests
£

Total equity
£

At 1 November 2020

60,000

(1,176,956)

(1,116,956)

(34,404)

(1,151,360)

Loss for the year

-

(1,392,913)

(1,392,913)

(46,128)

(1,439,041)

Other comprehensive income

-

(273)

(273)

-

(273)

Total comprehensive income

-

(1,393,186)

(1,393,186)

(46,128)

(1,439,314)

Dividends

-

-

-

(5,000)

(5,000)

At 31 October 2021

60,000

(2,570,142)

(2,510,142)

(85,532)

(2,595,674)

 

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

60,000

769,819

829,819

Loss for the year

-

(3,186,954)

(3,186,954)

Total comprehensive income

-

(3,186,954)

(3,186,954)

At 31 October 2022

60,000

(2,417,135)

(2,357,135)

Share capital
£

Profit and loss account
£

Total
£

At 1 November 2020

60,000

801,337

861,337

Loss for the year

-

(31,518)

(31,518)

Total comprehensive income

-

(31,518)

(31,518)

At 31 October 2021

60,000

769,819

829,819

 

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

 

(2,527,922)

(1,439,041)

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

4

443,873

222,578

Loss on disposal of tangible assets

461

-

Finance income

5

(12)

(2,422)

Finance costs

6

-

1,340

Income tax expense

9

-

38,138

 

(2,083,600)

(1,179,407)

Working capital adjustments

 

Increase in stocks

13

(48,650)

(165,031)

Increase in trade debtors

14

(1,840,930)

(643,201)

Increase in trade creditors

15

3,563,139

3,001,899

Increase in provisions

38,138

17,605

Cash generated from operations

 

(371,903)

1,031,865

Income taxes paid

9

-

(38,138)

Net cash flow from operating activities

 

(371,903)

993,727

Cash flows from investing activities

 

Interest received

12

2,422

Acquisitions of tangible assets

(152,605)

(644,190)

Acquisition of intangible assets

10

(30,560)

-

Net cash flows from investing activities

 

(183,153)

(641,768)

Cash flows from financing activities

 

Interest paid

6

-

(1,340)

Proceeds from bank borrowing draw downs

 

(10,648)

45,563

Net cash flows from financing activities

 

(10,648)

44,223

Net (decrease)/increase in cash and cash equivalents

 

(565,704)

396,182

Cash and cash equivalents at 1 November

 

1,383,315

1,018,292

Effect of exchange rate fluctuations on cash held

 

(91,997)

(31,159)

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

1

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

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

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.

2

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

5,633,208

3,098,234

France

4,973,543

831,239

10,606,751

3,929,473

3

Other operating income

The analysis of the group's other operating income for the year is as follows:

2022
£

2021
£

Government grants

28,000

307,956

Group management charges receivable

310,000

299,145

338,000

607,101

4

Operating loss

Arrived at after charging/(crediting)

2022
£

2021
£

Depreciation expense

217,471

192,244

Amortisation expense

226,402

30,334

Loss on disposal of tangible fixed assets

461

-

Auditor's remuneration - audit of these financial statements

15,000

-

Auditor's remuneration - other services

25,640

24,630

5

Other interest receivable and similar income

2022
£

2021
£

Interest income on bank deposits

12

2,422

 

Riviera Restaurants & Luxury Ltd

Notes to the Financial Statements for the Year Ended 31 October 2022 (continued)

6

Interest payable and similar expenses

2022
£

2021
£

Interest expense on other finance liabilities

-

1,340

7

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2022
£

2021
£

Wages and salaries

3,234,947

1,500,223

Social security costs

182,829

122,874

Pension costs, defined contribution scheme

29,721

24,340

3,447,497

1,647,437

The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:

2022
No.

2021
No.

Management and administration

155

127

8

Directors' remuneration

The directors' remuneration for the year was as follows:

2022
£

2021
£

Remuneration

100,740

68,551

Contributions paid to money purchase schemes

931

3,214

101,671

71,765

During the year the number of directors who were receiving benefits and share incentives was as follows:

2022
No.

2021
No.

Accruing benefits under money purchase pension scheme

1

1

 

Riviera Restaurants & Luxury Ltd

Notes to the Financial Statements for the Year Ended 31 October 2022 (continued)

9

Taxation

Tax charged/(credited) in the income statement

2022
£

2021
£

Current taxation

UK corporation tax

-

38,138

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 19% (2021 - 19%).

The differences are reconciled below:

2022
£

2021
£

Loss before tax

(2,527,922)

(1,400,903)

Corporation tax at standard rate

(480,305)

(266,172)

Effect of tax losses

480,305

304,310

Total tax charge

-

38,138

10

Intangible assets

Group

Goodwill
 £

Other intangible assets
 £

Total
£

Cost or valuation

At 1 November 2021

447,761

446,025

893,786

Additions

-

30,560

30,560

At 31 October 2022

447,761

476,585

924,346

Amortisation

At 1 November 2021

-

62,469

62,469

Amortisation charge

194,030

32,372

226,402

At 31 October 2022

194,030

94,841

288,871

Carrying amount

At 31 October 2022

253,731

381,744

635,475

At 31 October 2021

447,761

383,556

831,317

 

Riviera Restaurants & Luxury Ltd

Notes to the Financial Statements for the Year Ended 31 October 2022 (continued)

11

Tangible assets

Group

Fixed assets
£

Cost or valuation

At 1 November 2021

1,429,160

Additions

152,605

Disposals

(461)

At 31 October 2022

1,581,304

Depreciation

At 1 November 2021

507,865

Charge for the year

217,471

At 31 October 2022

725,336

Carrying amount

At 31 October 2022

855,968

At 31 October 2021

920,639

12

Investments

Company

2022
£

2021
£

Investments in subsidiaries

171,894

764,754

Subsidiaries

£

Cost

At 1 November 2021 and 31 October 2022

764,754

Provision

At 1 November 2021

-

Provision

592,860

At 31 October 2022

592,860

Carrying amount

At 31 October 2022

171,894

At 31 October 2021

764,754

 

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

Purple Ski Limited

England and Wales

Ordinary

100%

100%

Purple Summer Limited

England and Wales

Ordinary

100%

100%

Ski France Limited

England and Wales

Ordinary

100%

100%

Ski France Premium Chalets Limited

England and Wales

Ordinary

100%

100%

28-50 Limited

England and Wales

Ordinary

75%

75%

28-50 By Night

England and Wales

Ordinary

90%

90%

28-50 Oxford Circus Limited

England and Wales

Ordinary

90%

90%

28-50 Chelsea Limited

England and Wales

Ordinary

90%

90%

28-50 Kensington Limited

England and Wales

Ordinary

90%

90%

28-50 Paddington Limited

England and Wales

Ordinary

90%

90%

Connaught Procurement Limited

England and Wales

Ordinary

100%

100%

The Stablehand Limited

England and Wales

Ordinary

90%

90%

Purpleski.com Limited (indirect holding)

England and Wales

Ordinary

100%

100%

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)

13

Stocks

 

Group

Company

2022
£

2021
£

2022
£

2021
£

Finished goods and goods for resale

213,681

165,031

-

-

14

Debtors

   

Group

Company

Note

2022
£

2021
£

2022
£

2021
£

Trade debtors

 

2,982

122,868

-

-

Amounts owed by related parties

19

2,195,693

-

-

2,266,082

Other debtors

 

908,410

601,297

8,993

20,324

Prepayments and accrued income

 

384,580

926,570

-

-

 

3,491,665

1,650,735

8,993

2,286,406

15

Creditors

   

Group

Company

Note

2022
£

2021
£

2022
£

2021
£

Due within one year

 

Loans and borrowings

16

34,915

45,563

-

-

Trade creditors

 

1,194,363

656,505

10,692

-

Amounts due to related parties

19

7,170,005

3,429,761

2,457,141

2,246,215

Social security and other taxes

 

1,079,573

723,565

70,392

55,048

Other payables

 

463,196

360,952

35,169

43,331

Accruals and deferred income

 

1,096,558

2,307,910

15,000

2,100

 

11,038,610

7,524,256

2,588,394

2,346,694

 

Riviera Restaurants & Luxury Ltd

Notes to the Financial Statements for the Year Ended 31 October 2022 (continued)

16

Loans and borrowings

 

Group

Company

2022
£

2021
£

2022
£

2021
£

Current loans and borrowings

Bank borrowings

34,915

45,563

-

-

17

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 £29,721 (2021 - £24,340).

Contributions totalling £12,376 (2021 - £18,128) were payable to the scheme at the end of the year and are included in creditors.

18

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

         

19

Related party transactions

The company has taken exemption from disclosing transactions with wholly owned group companies under section 33 of FRS 102.

20

Parent and ultimate parent undertaking

The company's immediate parent company is Eurogroup SA, a company incorporated in France.

 The most senior parent entity producing publicly available financial statements is Eurogroup SA. These financial statements are available upon request from 472 Rue de la Leysse, 73000 Chambery, France.

The ultimate controlling party is R R M Green, by virtue of his controlling shareholding in Eurogroup SA.