REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Audited Financial Statements for the Year Ended 30 June 2023 |
for |
Bruce Taverns Limited |
REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Audited Financial Statements for the Year Ended 30 June 2023 |
for |
Bruce Taverns Limited |
Bruce Taverns Limited (Registered number: SC197816) |
Contents of the Financial Statements |
for the Year Ended 30 June 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 5 |
Income Statement | 8 |
Other Comprehensive Income | 9 |
Statement of Financial Position | 10 |
Statement of Changes in Equity | 11 |
Statement of Cash Flows | 12 |
Notes to the Statement of Cash Flows | 13 |
Notes to the Financial Statements | 14 |
Bruce Taverns Limited |
Company Information |
for the Year Ended 30 June 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: |
AUDITORS: |
Clifton House |
Crieff |
PH7 4BN |
SOLICITORS: |
Springfield House |
Laurelhill Business Park |
Stirling |
FK7 9JQ |
Bruce Taverns Limited (Registered number: SC197816) |
Strategic Report |
for the Year Ended 30 June 2023 |
The directors present their strategic report for the year ended 30 June 2023. |
Strategic Management |
The year started free of the Covid-19 trading restrictions and the random disruption which had followed on from the initial Covid lockdown in March 2020. The return to normal trading, coupled with pent up demand which had built up through the lockdowns and restricted openings, saw turnover surpass pre-Covid levels. Tourists started to return to the city and the Edinburgh Fringe also opened back up in Autumn 2022 which all contributed to a buoyant trading environment. |
However, there were was also significant inflationary pressures on costs. Food and energy prices were both driven up by the war in Ukraine, whilst labour costs were pushed higher by increases in the national minimum wage, which started our year at £9.50 and closed at £10.42 - a 9.7% increase. |
The cost of living increase and rising interest rates were also areas of concern, both in terms of the impact on consumer spending and our debt servicing costs. |
Business Environment |
Day trade in some of the food led outlets has been more challenging as peoples working patterns have changed post Covid with hybrid working becoming more prevalent. This has had a knock on effect in daytime trade. |
The daytime provision of some of the trading units has been altered as a result, but as many of the units are focused on the night time economy and live music, the company has been able to successfully adapt to the new patterns of demand. |
REVIEW OF BUSINESS |
The results for the year and financial position of the company are as shown in the annexed financial statements. |
Trading Results |
The company's turnover increased to £14,921,300 from £10,827,269 (2022). |
The profit / (loss) before tax for the year amounted to £1,031,082 (2022: £1,816,437). |
The company generated cash from operations (before tax and interest) of £1,872,898 which was a decrease of £203,263 on the prior year. EBITDA for the year ending 30th June 2023 was £1,737,995 (2022 : £2,139,483). EBITDA has been calculated before gain/loss on revaluation of investment property. |
The company had a net outflow of cash in 2023 of £693,867 (2022 : inflow £117,366). |
Re-banking |
The company completed its re-banking with Cynergy Bank. This was necessitated by the decision by AIB to close its Glasgow office. The directors believe that the facility secured with Cynergy Bank will provide stability over the medium / long term. |
Bruce Taverns Limited (Registered number: SC197816) |
Strategic Report |
for the Year Ended 30 June 2023 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The economic environment is one of the greatest risks. Inflationary pressures on cost of living and rising interest rates are likely to see a dampening of consumer spending, which has been relatively buoyant after the suppression of demand in the lockdown periods. |
We have been relatively successful at mitigating the impact of rising costs, by increasing our own prices, without any noticeable impact on demand. However, this is not a given in the future, particularly if consumers start to tighten their belts as a result of interest rates increasing or holding at their current levels. |
The principal operational risks around the company remain the same as identified in previous years and are the losing of a premises licence on either a short term or long term basis. The senior management team work hard to ensure that the company is compliant with national and local laws and maintains good relationships with neighbours in the areas surrounding its operations. |
Mckays on the Mile was opened in Q4 of the financial year. When the development of the unit started pre Covid, a higher level of daytime trade was anticipated from local office buildings. This has been lower than anticipated due to the change to hybrid working in many organisations. It remains a risk around the unit, although it is expected that it will trade well during the tourist seasons as it sits on the Royal Mile. |
In February 2023, the popular Royal Mile Tavern was damaged by fire. Fortunately there were no casualties, but the unit has been closed since. The anticipated re-opening date remains uncertain. Although not one of the larger units, it does contribute a steady profit stream when open. |
The plan to dispose of Dusk nightclub in Stirling was well advanced when a historic planning issue was uncovered as part of the sale due diligence. Although it is still expected that the sale will go ahead, this will not happen until the planning issue is resolved and at present, there is no certainty over the timescale for this. |
ON BEHALF OF THE BOARD: |
Bruce Taverns Limited (Registered number: SC197816) |
Report of the Directors |
for the Year Ended 30 June 2023 |
The directors present their report with the financial statements of the company for the year ended 30 June 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of proprietors of licensed premises. |
DIVIDENDS |
An interim dividend of |
The total distribution of dividends for the year ended 30 June 2023 will be £ |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 July 2022 to the date of this report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
AUDITORS |
The auditors, McLachlan & Tiffin, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Bruce Taverns Limited |
Opinion |
We have audited the financial statements of Bruce Taverns Limited (the 'company') for the year ended 30 June 2023 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 30 June 2023 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Report of the Independent Auditors to the Members of |
Bruce Taverns Limited |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
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. Based on our understanding of the company and its industry, we identified that the principal risks of non-compliance with laws and regulations related to the UK tax legislation, pensions legislation, employment regulation and health and safety regulation, anti-bribery, corruption and fraud, money laundering, non-compliance with implementation of government support schemes relating to COVID-19, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, such as the Companies Act 2006. |
We evaluated the directors' and 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 posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, in particular in relation to loss reserves, and significant one-off or unusual transactions. |
Our audit procedures were designed to respond to those identified risks, including non-compliance with laws and regulations (irregularities) and fraud that are material to the financial statements. Our audit procedures included but were not limited to: |
- discussing with the directors and management their policies and procedures regarding compliance with laws and regulations; |
- communicating identified laws and regulations throughout our engagement team and remaining alert to any indications of non-compliance throughout our audit; and |
- considering the risk of acts by the Company which were contrary to applicable laws and regulations, including fraud. |
Our audit procedures in relation to fraud included but were not limited to: |
- making enquiries of the directors and management on whether they had knowledge of any actual, suspected or alleged fraud; |
- gaining an understanding of the internal controls established to mitigate risks related to fraud; |
- discussing amongst the engagement team the risks of fraud; and |
- addressing the risks of fraud through management override of controls by performing journal entry testing. |
There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Report of the Independent Auditors to the Members of |
Bruce Taverns Limited |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Clifton House |
Crieff |
PH7 4BN |
Bruce Taverns Limited (Registered number: SC197816) |
Income Statement |
for the Year Ended 30 June 2023 |
30.6.23 | 30.6.22 |
Notes | £ | £ |
TURNOVER |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
1,361,302 | 1,380,475 |
Other operating income | 3 |
OPERATING PROFIT | 5 |
Interest receivable and similar income |
1,459,091 | 1,861,299 |
Gain/loss on revaluation of investment property |
- |
185,449 |
1,459,091 | 2,046,748 |
Interest payable and similar expenses | 6 |
PROFIT BEFORE TAXATION |
Tax on profit | 7 |
PROFIT FOR THE FINANCIAL YEAR |
Bruce Taverns Limited (Registered number: SC197816) |
Other Comprehensive Income |
for the Year Ended 30 June 2023 |
30.6.23 | 30.6.22 |
Notes | £ | £ |
PROFIT FOR THE YEAR |
OTHER COMPREHENSIVE INCOME |
Revaluation heritable property |
Investment property disposal |
Income tax relating to other comprehensive income |
( |
) |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
Bruce Taverns Limited (Registered number: SC197816) |
Statement of Financial Position |
30 June 2023 |
30.6.23 | 30.6.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
Tangible assets | 10 |
Investment property | 11 |
CURRENT ASSETS |
Stocks | 12 |
Debtors | 13 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT ASSETS/(LIABILITIES) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 15 | ( |
) | ( |
) |
PROVISIONS FOR LIABILITIES | 19 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 20 |
Revaluation reserve | 21 |
Fair value reserve | 21 |
Retained earnings | 21 |
SHAREHOLDERS' FUNDS |
The financial statements were approved and authorised for issue by the Board of Directors and authorised for issue on |
Bruce Taverns Limited (Registered number: SC197816) |
Statement of Changes in Equity |
for the Year Ended 30 June 2023 |
Called up | Fair |
share | Retained | Revaluation | value | Total |
capital | earnings | reserve | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 July 2021 |
Changes in equity |
Profit for the year | - | 1,411,088 | - | - | 1,411,088 |
Other comprehensive income | - | (90,078 | ) | 2,672,612 |
Total comprehensive income | - |
Dividends | - | ( |
) | - | - | ( |
) |
Balance at 30 June 2022 |
Changes in equity |
Profit for the year | - | 830,714 | - | - | 830,714 |
Other comprehensive income | - | 16,475 | ( |
) | - |
Total comprehensive income | - | ( |
) |
Dividends | - | ( |
) | - | - | ( |
) |
Balance at 30 June 2023 |
Bruce Taverns Limited (Registered number: SC197816) |
Statement of Cash Flows |
for the Year Ended 30 June 2023 |
30.6.23 | 30.6.22 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( |
) | ( |
) |
Interest element of hire purchase payments paid |
( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
New loans in year |
Loan repayments in year | ( |
) | ( |
) |
New HP agreements | 30,000 | - |
Capital repayments in year | ( |
) |
Amount introduced by directors | 104,494 | 201,097 |
Amount withdrawn by directors | (194,363 | ) | (119,901 | ) |
Loan from group companies |
Loan to group companies | ( |
) | ( |
) |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
(Decrease)/increase in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
1,659,387 |
Cash and cash equivalents at end of year | 2 | 1,082,886 | 1,776,753 |
Bruce Taverns Limited (Registered number: SC197816) |
Notes to the Statement of Cash Flows |
for the Year Ended 30 June 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
30.6.23 | 30.6.22 |
£ | £ |
Profit before taxation |
Depreciation charges |
Loss on disposal of fixed assets |
Gain on revaluation of fixed assets | - | (185,449 | ) |
Reclassification of assets | (13,500 | ) | - |
Finance costs | 428,009 | 230,311 |
Finance income | (146 | ) | - |
1,725,117 | 2,139,485 |
Increase in stocks | ( |
) | ( |
) |
Increase in trade and other debtors | ( |
) | ( |
) |
Increase in trade and other creditors |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 30 June 2023 |
30.6.23 | 1.7.22 |
£ | £ |
Cash and cash equivalents | 1,082,886 | 1,776,753 |
Year ended 30 June 2022 |
30.6.22 | 1.7.21 |
£ | £ |
Cash and cash equivalents | 1,776,753 | 1,659,387 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.7.22 | Cash flow | At 30.6.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 1,776,753 | (693,867 | ) | 1,082,886 |
1,776,753 | ( |
) | 1,082,886 |
Debt |
Finance leases | - | (27,787 | ) | (27,787 | ) |
Debts falling due within 1 year | (818,359 | ) | 695,223 | (123,136 | ) |
Debts falling due after 1 year | (5,703,522 | ) | (923,342 | ) | (6,626,864 | ) |
(6,521,881 | ) | (255,906 | ) | (6,777,787 | ) |
Total | (4,745,128 | ) | (949,773 | ) | (5,694,901 | ) |
Bruce Taverns Limited (Registered number: SC197816) |
Notes to the Financial Statements |
for the Year Ended 30 June 2023 |
1. | STATUTORY INFORMATION |
Bruce Taverns Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Significant judgements and estimates |
Preparation of the financial statements requires management to make significant judgements and estimates. |
The items in the financial statements where these judgements and estimates have been made include: |
Depreciation of tangible fixed assets |
Determining the appropriate rate of depreciation of tangible fixed assets requires an estimation of the useful |
economic life and ultimate net realisable value. The useful economic life is determined to be the period during which each asset will generate positive cash flows for the company. |
Investment property |
The value of investment property is subject to prevailing market conditions and can be subject to short term |
fluctuations driven by local demand or macro economic conditions. The investment property was valued by an independent professional valuer. The directors do not believe there has been a significant change in values since the last valuation in May 2022. |
Heritable and leasehold property held as part of tangible fixed assets |
The value of heritable and leasehold property is subject to prevailing market conditions and can be subject to short term fluctuations driven by local demand or macro economic conditions. The heritable and leasehold property held within tangible fixed assets was valued by an independent professional valuer. The directors do not believe there has been a significant change in values since the last valuation in May 2022. |
Turnover |
Turnover represents net invoiced sale of goods, excluding value added tax. The company's policy is to recognise a sale when substantively all the risks and rewards in connection with the goods have been passed to the buyer. For properties held for rental purposes, rental income is recognised in the period that it falls due. |
Goodwill |
Goodwill has arisen from the acquisition of businesses in 2013, 2017 and 2018 and is being written off over 10 years on a straight line basis. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Bruce Taverns Limited (Registered number: SC197816) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2023 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Depreciation is provided at the following annual rates in order to write off each asset over its |
estimated useful life, or if held under a finance lease, over the lease term, whichever is shorter. |
Heritable properties | - 2% and 4% on cost, where the residual value is assessed to be below the current net book value |
Fixtures and fittings | - 20% on cost |
Motor vehicles | - 25% on cost |
Computer equipment | - 25% on cost |
Heritable properties are being held under the revaluation model. All other tangible fixed assets are held under the cost model. |
The directors believe that the residual values of heritable properties will match or exceed their current net book values. Therefore no depreciation has been provided in the current year. |
Leasehold property is depreciated on a straight line basis over the duration of the lease. |
Investment property |
Investment property is shown at most recent valuation. The properties are assessed for any impairment of their carrying value and where required the valuation is adjusted for impairment. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss. |
Where a fair value adjustment has been made, the amount has been transferred from retained earnings to a fair value reserve in order to distinguish between distributable and non distributable reserves. |
Depreciation shown against investment properties is accumulated depreciation which was held against the properties at the the point they were reclassified as investment properties. No further depreciation has been recognised since that date. |
Investment Property Rented to Another Group Entity |
The company is the lessor for two properties under operating leases which would meet the criteria for investment properties. It rents these properties to another group company and has chosen to recognise them under the cost model. The carrying costs are included within leasehold costs. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
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 accounts receivable and payable, loans from banks and other third parties. |
Debt instruments, including loans and other accounts receivable and payable are initially measured at transaction price adjusted for transaction costs. They are subsequently recognised at amortised costs using the effective interest method. Where loans have been consolidated, this has been treated as a new loan agreement and the effective rate of interest has been recalculated. |
Creditors payable within one year, typically trade payables, are measured initially and subsequently at the undiscounted amount of the cash or other consideration expected to be paid. |
Debtors payable within one year, typically trade receivables, are measured initially and subsequently at the undiscounted amount of the cash or other consideration expected to be received. |
Bruce Taverns Limited (Registered number: SC197816) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2023 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
Leasing commitments |
Rentals paid under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease. |
3. | OTHER OPERATING INCOME |
30.6.23 | 30.6.22 |
£ | £ |
Rents received |
Government grants |
97,643 | 480,824 |
4. | EMPLOYEES AND DIRECTORS |
30.6.23 | 30.6.22 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
30.6.23 | 30.6.22 |
Management and operational staff |
Bruce Taverns Limited (Registered number: SC197816) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2023 |
4. | EMPLOYEES AND DIRECTORS - continued |
30.6.23 | 30.6.22 |
£ | £ |
Directors' remuneration |
5. | OPERATING PROFIT |
The operating profit is stated after charging: |
30.6.23 | 30.6.22 |
£ | £ |
Depreciation - owned assets |
Loss on disposal of fixed assets |
Goodwill amortisation |
Tenants' Leases amortisation |
Auditors' Renumeration |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
30.6.23 | 30.6.22 |
£ | £ |
Bank interest |
Bank loan interest |
Interest payable |
Hire purchase |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
30.6.23 | 30.6.22 |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax |
Tax on profit |
Bruce Taverns Limited (Registered number: SC197816) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2023 |
7. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
30.6.23 | 30.6.22 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2022 - |
Effects of: |
Expenses not deductible for tax purposes |
Income not taxable for tax purposes | ( |
) | ( |
) |
Capital allowances in excess of depreciation | ( |
) | ( |
) |
debtor |
Other timing differences | (1,237 | ) | (1,116 | ) |
Group relief | (324 | ) | (456 | ) |
Deferred tax on investment property revaluation | - | 78,897 |
Deferred tax movement on fixed asset timing differences originating in prior periods | 88,855 |
90,738 |
Deferred tax adjustment | (43,958 | ) | (536 | ) |
Lease premium income taxed but not recognised in period | 7,894 | - |
Total tax charge | 200,368 | 405,349 |
Tax effects relating to effects of other comprehensive income |
There were no tax effects for the year ended 30 June 2023. |
30.6.22 |
Gross | Tax | Net |
£ | £ | £ |
Revaluation heritable property | (895,510 | ) | 2,672,612 |
Investment property disposal |
3,568,122 | (895,510 | ) | 2,672,612 |
8. | DIVIDENDS |
30.6.23 | 30.6.22 |
£ | £ |
Ordinary shares of £1 each |
Interim |
Bruce Taverns Limited (Registered number: SC197816) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2023 |
9. | INTANGIBLE FIXED ASSETS |
Tenants' |
Goodwill | Leases | Totals |
£ | £ | £ |
COST |
At 1 July 2022 |
and 30 June 2023 |
AMORTISATION |
At 1 July 2022 |
Amortisation for year |
At 30 June 2023 |
NET BOOK VALUE |
At 30 June 2023 |
At 30 June 2022 |
10. | TANGIBLE FIXED ASSETS |
Fixtures |
Heritable | Short | and |
properties | leasehold | fittings |
£ | £ | £ |
COST OR VALUATION |
At 1 July 2022 |
Additions |
Disposals | ( |
) |
Reclassification/transfer |
At 30 June 2023 |
DEPRECIATION |
At 1 July 2022 |
Charge for year |
Eliminated on disposal | ( |
) |
At 30 June 2023 |
NET BOOK VALUE |
At 30 June 2023 |
At 30 June 2022 |
Bruce Taverns Limited (Registered number: SC197816) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2023 |
10. | TANGIBLE FIXED ASSETS - continued |
Motor | Computer |
vehicles | equipments | Totals |
£ | £ | £ |
COST OR VALUATION |
At 1 July 2022 |
Additions |
Disposals | ( |
) | ( |
) |
Reclassification/transfer |
At 30 June 2023 |
DEPRECIATION |
At 1 July 2022 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 30 June 2023 |
NET BOOK VALUE |
At 30 June 2023 |
At 30 June 2022 |
The leasehold assets are held under operating leases, with only the initial set up costs such as legal fees being capitalised. |
Under FRS102 the fair value of these operating leases is not recognised on the balance sheet, but the value was £2,280,000 (2022 : £2,280,000). The valuations are based on a market valuation on 23rd May 2022 by Colliers. The combined net book value pertaining to these leases which is held on the balance sheet as at 30th June 2023 is £2,226,777. This is made up of a combination of lease costs, fixtures and fittings and goodwill. |
The reclassification of short leasehold assets relates to the transfer of a lease premium which was previously included in short leasehold assets. It has now been included in other creditors. |
Cost or valuation at 30 June 2023 is represented by: |
Fixtures |
Heritable | Short | and |
properties | leasehold | fittings |
£ | £ | £ |
Valuation in 2017 | 902,929 | - | - |
Valuation in 2018 | (128,030 | ) | - | - |
Valuation in 2019 | (29,947 | ) | - | - |
Valuation in 2020 | (686,962 | ) | - | - |
Valuation in 2022 | 3,568,122 | - | - |
Cost | 4,112,296 | 2,014,915 | 3,127,707 |
7,738,408 | 2,014,915 | 3,127,707 |
Bruce Taverns Limited (Registered number: SC197816) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2023 |
10. | TANGIBLE FIXED ASSETS - continued |
Motor | Computer |
vehicles | equipments | Totals |
£ | £ | £ |
Valuation in 2017 | - | - | 902,929 |
Valuation in 2018 | - | - | (128,030 | ) |
Valuation in 2019 | - | - | (29,947 | ) |
Valuation in 2020 | - | - | (686,962 | ) |
Valuation in 2022 | - | - | 3,568,122 |
Cost | 79,540 | 21,921 | 9,356,379 |
79,540 | 21,921 | 12,982,491 |
If freehold land and buildings had not been revalued they would have been included at the following historical cost: |
30.6.23 | 30.6.22 |
£ | £ |
Cost | 4,147,851 | 3,829,585 |
Aggregate depreciation | 58,875 | 58,875 |
Freehold property was valued on an open market basis on 23 May 2022 by Colliers . |
The directors do not believe that the valuations at 30 June 2023 are significantly different. |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Motor |
vehicles |
£ |
COST OR VALUATION |
At 1 July 2022 |
and 30 June 2023 |
DEPRECIATION |
At 1 July 2022 |
and 30 June 2023 |
NET BOOK VALUE |
At 30 June 2023 |
At 30 June 2022 |
11. | INVESTMENT PROPERTY |
Total |
£ |
FAIR VALUE |
At 1 July 2022 |
and 30 June 2023 |
DEPRECIATION |
At 1 July 2022 |
and 30 June 2023 | 32,003 |
NET BOOK VALUE |
At 30 June 2023 |
At 30 June 2022 |
Bruce Taverns Limited (Registered number: SC197816) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2023 |
11. | INVESTMENT PROPERTY - continued |
Fair value at 30 June 2023 is represented by: |
£ |
Valuation in 2017 | 591,492 |
Valuation in 2018 | 57,239 |
Valuation in 2019 | 101,750 |
Valuation in 2020 | (208,229 | ) |
Valuation in 2022 | 185,449 |
Cost | 2,172,119 |
2,899,820 |
If investment property had not been revalued it would have been included at the following historical cost: |
30.6.23 | 30.6.22 |
£ | £ |
Cost | 2,178,637 | 2,172,119 |
Aggregate depreciation | (32,003 | ) | (32,003 | ) |
Investment property was valued on an open market basis on 23 May 2022 by Colliers . |
The directors do not believe that the valuations at 30 June 2023 are significantly different. |
12. | STOCKS |
30.6.23 | 30.6.22 |
£ | £ |
Stocks |
13. | DEBTORS |
30.6.23 | 30.6.22 |
£ | £ |
Amounts falling due within one year: |
Trade debtors |
Amounts owed by group undertakings |
Other debtors |
Bruce Inns < 1 year | 332,227 | 408,927 |
Prepayments and accrued income |
Amounts falling due after more than one year: |
Other Debtors > 1 Year | 8,399 | 8,399 |
Aggregate amounts |
Bruce Taverns Limited (Registered number: SC197816) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2023 |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
30.6.23 | 30.6.22 |
£ | £ |
Bank loans and overdrafts (see note 16) |
Hire purchase contracts (see note 17) |
Trade creditors |
Amounts owed to group undertakings |
Tax |
Social security and other taxes |
Machine Games Duty | - | 1,516 |
VAT | 507,322 | 324,702 |
Other creditors |
Directors' current accounts | 94,197 | 184,066 |
Accrued expenses |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
30.6.23 | 30.6.22 |
£ | £ |
Bank loans (see note 16) |
Other loans (see note 16) |
Hire purchase contracts (see note 17) |
16. | LOANS |
An analysis of the maturity of loans is given below: |
30.6.23 | 30.6.22 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank Loan <1 Year | 123,136 | 818,359 |
Amounts falling due between one and two years: |
Bank loans - 1-2 years |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
Other loans - 2-5 years |
17. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase contracts |
30.6.23 | 30.6.22 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
Bruce Taverns Limited (Registered number: SC197816) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2023 |
17. | LEASING AGREEMENTS - continued |
Non-cancellable operating | leases |
30.6.23 | 30.6.22 |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
18. | SECURED DEBTS |
The following secured debts are included within creditors: |
30.6.23 | 30.6.22 |
£ | £ |
Bank loans |
Other loans |
Cynergy bank hold a bond and floating charge over the company's assets. They also hold first standard |
securities over the properties owned and leased by the company. |
There is an unlimited cross Company guarantee between Bruce Inns Limited, Bruce Bars Scotland Limited, |
Bruce Taverns Ltd, Bruce Property Ltd, Bruce Faith Ltd and Bruce Group Scotland Ltd. |
The directors K. Fullerton and S. Piatkowski have provided a guarantee for the sum of £350,000. |
19. | PROVISIONS FOR LIABILITIES |
30.6.23 | 30.6.22 |
£ | £ |
Deferred tax | 1,222,782 | 1,177,886 |
Deferred |
tax |
£ |
Balance at 1 July 2022 |
Credit to Income Statement during year | ( |
) |
Capital allowances timing | 88,855 |
Balance at 30 June 2023 |
20. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 30.6.23 | 30.6.22 |
value: | £ | £ |
Ordinary | £1 | 100 | 100 |
Bruce Taverns Limited (Registered number: SC197816) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2023 |
21. | RESERVES |
Fair |
Retained | Revaluation | value |
earnings | reserve | reserve | Totals |
£ | £ | £ | £ |
At 1 July 2022 | 5,459,646 |
Profit for the year |
Dividends | ( |
) | ( |
) |
Transfer to profit & loss | 16,475 | (16,475 | ) | - | - |
At 30 June 2023 | 6,180,360 |
22. | ULTIMATE PARENT COMPANY |
Bruce Group Scotland Ltd is regarded by the directors as being the company's ultimate parent company. |
The registered office address of Bruce Group Scotland Ltd is: |
Springfield House |
Laurelhill Business Park |
Stirling |
FK7 9JQ |
23. | RELATED PARTY DISCLOSURES |
During the year, total dividends of £110,000 were paid to the directors . |
Other related parties |
30.06.23 | 30.06.22 |
£ | £ |
Amount due from related parties | 332,227 | 408,927 |
The loans provided from these parties were provided interest free and have been classified as short term loans as there are no set repayment terms. |
30.06.23 | 30.06.22 |
£ | £ |
Amount due to related parties | 645,635 | 544,336 |
The loans provided from these parties were provided interest free and have been classified as short term loans as there are no set repayment terms. The outstanding amount is included in amounts owed to group undertakings. |
The value of transactions during the year between the company and other related parties was £806,554 (2022 : £373,062). |
Bruce Taverns Limited (Registered number: SC197816) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2023 |
24. | ULTIMATE CONTROLLING PARTY |
The controlling party is Bruce Group Scotland Ltd. |
Bruce Taverns Ltd is a wholly owned subsidiary of Bruce Group Scotland Ltd, whose registered office is:- |
Springfield House |
Laurelhill Business Park |
Stirling |
FK7 9JQ |
It is the view of the directors that there is no ultimate controlling party. The directors hold 100% of the issued share capital of the ultimate parent Bruce Group Scotland Ltd and have an equal shareholding and equivalent voting rights in that entity. |