REGISTERED NUMBER: SC236976 (Scotland) |
Group Strategic Report, Report of the Directors and |
Audited Consolidated Financial Statements for the Year Ended 30 June 2023 |
for |
Bruce Group Scotland Limited |
REGISTERED NUMBER: SC236976 (Scotland) |
Group Strategic Report, Report of the Directors and |
Audited Consolidated Financial Statements for the Year Ended 30 June 2023 |
for |
Bruce Group Scotland Limited |
Bruce Group Scotland Limited (Registered number: SC236976) |
Contents of the Consolidated Financial Statements |
for the Year Ended 30 June 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 5 |
Report of the Independent Auditors | 6 |
Consolidated Income Statement | 9 |
Consolidated Other Comprehensive Income | 10 |
Consolidated Balance Sheet | 11 |
Company Balance Sheet | 12 |
Consolidated Statement of Changes in Equity | 13 |
Company Statement of Changes in Equity | 14 |
Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Financial Statements | 17 |
Bruce Group Scotland Limited |
Company Information |
for the Year Ended 30 June 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Clifton House |
Crieff |
PH7 4BN |
Bruce Group Scotland Limited (Registered number: SC236976) |
Group Strategic Report |
for the Year Ended 30 June 2023 |
The directors present their strategic report of the company and the group for the year ended 30 June 2023. |
The principal activity of the company is that of a holding company and the principal activities of the group are the development and operation of entertainment, leisure and property facilities. |
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 in excess of 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. |
Turnover was further enhanced as Bruce Investments Ltd started trading, after the successful acquisition of the Drovers Inn in July 2022. |
However, there were were 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 people's 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 group as a whole has been able to successfully adapt to the new patterns of demand. |
Bruce Group Scotland Limited (Registered number: SC236976) |
Group Strategic Report |
for the Year Ended 30 June 2023 |
REVIEW OF BUSINESS |
Revaluation of Property |
As a revaluation had been recognised in the prior year, no further adjustments were made in the year to 30th June 2023. |
Acquisitions |
The acquisition of the Drovers, an iconic Inn located in Inverarnan, Loch Lomond was completed on 6th July 2022. This represented the culmination of 3 years of work, the completion of the deal being interrupted by Covid 19. |
Trading Results |
Turnover increased from £11,014,189 to £17,152,133. This was partially due to the acquisition of the Drovers Inn, which is traded through Bruce Investments Limited. The acquisition was completed on 6th July 2022, which allowed almost a complete year of trading to be included in the group accounts. |
The group made an operating profit of £1,945,177 for the year. This was £161,196 down on the prior year. The acquisition of the Drovers and its inclusion in the group results helped mitigate some of the adverse impacts of cost increases.Gross profit margins were eroded due to increases in labour and food and drink costs, whilst overheads were impacted as Covid 19 rates relief support ended in the year to 30th June 2022 and utility bills increased substantially as a result of the war in Ukraine. |
EBITDA (excluding the impact of investment property revaluations) fell to £2,258,011 (2022 : £2,410,063). Excluding the impact of the Drovers, like for like EBITDA was £1,995,566. |
The group generated cash from operations (before tax and interest) of £2,725,295 which was an increase of £395,072 against the prior year of £2,330,223. The year to 30th June 2023 saw a net cash outflow of £395,483, compared to a cash inflow of £260,187 in the prior year.This was largely driven by the Drovers Inn acquisition. Debt increased from £6,568,162 to £8,664,914. |
Re-banking |
The Group 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. As part of the re-banking, additional funds were secured to support the acquisition of the Drovers Inn. |
Bruce Group Scotland Limited (Registered number: SC236976) |
Group 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 group 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 group 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: |
28 March 2024 |
Bruce Group Scotland Limited (Registered number: SC236976) |
Report of the Directors |
for the Year Ended 30 June 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 30 June 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of proprietors of licensed premises. |
DIVIDENDS |
Interim dividends of £55,000 per share were paid to the shareholders of the parent company on 5th April 2023. The directors recommend that no final dividend be paid. |
Dividends of £33,600 were also issued to a non-controlling interest in the year. These were paid to the |
non-controlling interest by a subsidiary company of the parent. |
The total distribution of dividends by the group for the year ended 30 June 2023 was £143,600. |
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 Group 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group'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 group'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 Group Scotland Limited |
Opinion |
We have audited the financial statements of Bruce Group Scotland Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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 group's and of the parent company affairs as at 30 June 2023 and of the group's 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 group 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 group's and the parent 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 Group 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 Group 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 Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
Bruce Group Scotland Limited |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page five, 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 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. |
Report of the Independent Auditors to the Members of |
Bruce Group Scotland Limited |
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. |
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. |
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 Group Scotland Limited (Registered number: SC236976) |
Consolidated Income Statement |
for the Year Ended 30 June 2023 |
30.6.23 | 30.6.22 |
Notes | £ | £ |
TURNOVER | 17,152,133 | 11,014,189 |
Cost of sales | 10,009,794 | 6,097,222 |
GROSS PROFIT | 7,142,339 | 4,916,967 |
Administrative expenses | 5,376,121 | 3,406,807 |
1,766,218 | 1,510,160 |
Other operating income | 3 | 178,959 | 596,213 |
OPERATING PROFIT | 5 | 1,945,177 | 2,106,373 |
Interest receivable and similar income | 490 | - |
1,945,667 | 2,106,373 |
Gain/loss on revaluation of investment property |
- |
1,718,850 |
1,945,667 | 3,825,223 |
Interest payable and similar expenses | 6 | 552,020 | 232,219 |
PROFIT BEFORE TAXATION | 1,393,647 | 3,593,004 |
Tax on profit | 7 | 281,817 | 900,857 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 1,110,444 | 2,659,577 |
Non-controlling interests | 1,386 | 32,570 |
1,111,830 | 2,692,147 |
Bruce Group Scotland Limited (Registered number: SC236976) |
Consolidated Other Comprehensive Income |
for the Year Ended 30 June 2023 |
30.6.23 | 30.6.22 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 1,111,830 | 2,692,147 |
OTHER COMPREHENSIVE INCOME |
Revaluation heritable property | - | 3,568,122 |
Investment property disposal |
Income tax relating to other comprehensive income |
- |
(895,510 |
) |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
- |
2,672,612 |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
1,111,830 |
5,364,759 |
Total comprehensive income attributable to: |
Owners of the parent | 1,110,444 | 5,332,189 |
Non-controlling interests | 1,386 | 32,570 |
1,111,830 | 5,364,759 |
Bruce Group Scotland Limited (Registered number: SC236976) |
Consolidated Balance Sheet |
30 June 2023 |
30.6.23 | 30.6.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 | 485,028 | 557,473 |
Tangible assets | 11 | 13,596,780 | 9,655,731 |
Investments | 12 | - | - |
Investment property | 13 | 6,541,447 | 6,541,447 |
20,623,255 | 16,754,651 |
CURRENT ASSETS |
Stocks | 14 | 305,589 | 262,241 |
Debtors | 15 | 1,077,510 | 865,493 |
Cash at bank and in hand | 1,528,230 | 1,923,713 |
2,911,329 | 3,051,447 |
CREDITORS |
Amounts falling due within one year | 16 | 3,167,034 | 3,240,632 |
NET CURRENT LIABILITIES | (255,705 | ) | (189,185 | ) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
20,367,550 |
16,565,466 |
CREDITORS |
Amounts falling due after more than one year | 17 | (8,477,034 | ) | (5,711,493 | ) |
PROVISIONS FOR LIABILITIES | 21 | (1,964,110 | ) | (1,895,797 | ) |
NET ASSETS | 9,926,406 | 8,958,176 |
CAPITAL AND RESERVES |
Called up share capital | 22 | 2 | 2 |
Revaluation reserve | 23 | 2,784,113 | 2,800,588 |
Fair value reserve | 23 | 2,835,210 | 2,835,210 |
Retained earnings | 23 | 4,091,240 | 3,107,921 |
SHAREHOLDERS' FUNDS | 9,710,565 | 8,743,721 |
NON-CONTROLLING INTERESTS | 24 | 215,841 | 214,455 |
TOTAL EQUITY | 9,926,406 | 8,958,176 |
The financial statements were approved by the Board of Directors and authorised for issue on 28 March 2024 and were signed on its behalf by: |
K Fullerton - Director |
Bruce Group Scotland Limited (Registered number: SC236976) |
Company Balance Sheet |
30 June 2023 |
30.6.23 | 30.6.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 |
Tangible assets | 11 |
Investments | 12 |
Investment property | 13 |
CURRENT ASSETS |
Debtors | 15 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 16 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 22 |
Retained earnings |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 212,210 | 81,950 |
The financial statements were approved by the Board of Directors and authorised for issue on |
Bruce Group Scotland Limited (Registered number: SC236976) |
Consolidated Statement of Changes in Equity |
for the Year Ended 30 June 2023 |
Called up |
share | Retained | Revaluation |
capital | earnings | reserve |
£ | £ | £ |
Balance at 1 July 2021 | 2 | 1,696,525 | 144,450 |
Changes in equity |
Total comprehensive income | - | 1,493,396 | 2,656,138 |
Dividends | - | (82,000 | ) | - |
Balance at 30 June 2022 | 2 | 3,107,921 | 2,800,588 |
Changes in equity |
Total comprehensive income | - | 1,126,919 | (16,475 | ) |
Dividends | - | (143,600 | ) | - |
Balance at 30 June 2023 | 2 | 4,091,240 | 2,784,113 |
Fair |
value | Non-controlling | Total |
reserve | Total | interests | equity |
£ | £ | £ | £ |
Balance at 1 July 2021 | 1,652,555 | 3,493,532 | 181,885 | 3,675,417 |
Changes in equity |
Total comprehensive income | 1,182,655 | 5,332,189 | 32,570 | 5,364,759 |
Dividends | - | (82,000 | ) | - | (82,000 | ) |
Balance at 30 June 2022 | 2,835,210 | 8,743,721 | 214,455 | 8,958,176 |
Changes in equity |
Total comprehensive income | - | 1,110,444 | 1,386 | 1,111,830 |
Dividends | - | (143,600 | ) | - | (143,600 | ) |
Balance at 30 June 2023 | 2,835,210 | 9,710,565 | 215,841 | 9,926,406 |
Bruce Group Scotland Limited (Registered number: SC236976) |
Company Statement of Changes in Equity |
for the Year Ended 30 June 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 July 2021 |
Changes in equity |
Profit for the year | - | 81,950 | 81,950 |
Total comprehensive income | - |
Dividends | - | ( |
) | ( |
) |
Balance at 30 June 2022 |
Changes in equity |
Profit for the year | - | 212,210 | 212,210 |
Total comprehensive income | - |
Dividends | - | ( |
) | ( |
) |
Balance at 30 June 2023 |
Bruce Group Scotland Limited (Registered number: SC236976) |
Consolidated Cash Flow Statement |
for the Year Ended 30 June 2023 |
30.6.23 | 30.6.22 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 2,725,295 | 2,330,223 |
Interest paid | (551,383 | ) | (211,339 | ) |
Interest element of hire purchase payments paid |
(637 |
) |
- |
Tax paid | (274,460 | ) | (328,064 | ) |
Net cash from operating activities | 1,898,815 | 1,790,820 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (4,168,071 | ) | (903,118 | ) |
Interest received | 490 | - |
Net cash from investing activities | (4,167,581 | ) | (903,118 | ) |
Cash flows from financing activities |
New loans in year | 8,610,000 | - |
Loan repayments in year | (6,541,035 | ) | (508,711 | ) |
New HP finance | 30,000 | - |
Capital repayments in year | (2,213 | ) | - |
Amount introduced by directors | 214,494 | 283,097 |
Amount withdrawn by directors | (294,363 | ) | (319,901 | ) |
Equity dividends paid | (143,600 | ) | (82,000 | ) |
Net cash from financing activities | 1,873,283 | (627,515 | ) |
(Decrease)/increase in cash and cash equivalents | (395,483 | ) | 260,187 |
Cash and cash equivalents at beginning of year |
2 |
1,923,713 |
1,663,526 |
Cash and cash equivalents at end of year | 2 | 1,528,230 | 1,923,713 |
Bruce Group Scotland Limited (Registered number: SC236976) |
Notes to the Consolidated Cash Flow Statement |
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 | 1,393,647 | 3,593,004 |
Depreciation charges | 312,344 | 303,690 |
Loss on disposal of fixed assets | 622 | - |
Gain on revaluation of fixed assets | - | (1,718,850 | ) |
Reclassification of assets | (13,500 | ) | - |
Finance costs | 552,020 | 232,219 |
Finance income | (490 | ) | - |
2,244,643 | 2,410,063 |
Increase in stocks | (43,348 | ) | (91,612 | ) |
Increase in trade and other debtors | (212,017 | ) | (259,647 | ) |
Increase in trade and other creditors | 736,017 | 271,419 |
Cash generated from operations | 2,725,295 | 2,330,223 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 30 June 2023 |
30.6.23 | 1.7.22 |
£ | £ |
Cash and cash equivalents | 1,528,230 | 1,923,713 |
Year ended 30 June 2022 |
30.6.22 | 1.7.21 |
£ | £ |
Cash and cash equivalents | 1,923,713 | 1,663,526 |
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 | 1,923,713 | (395,483 | ) | 1,528,230 |
1,923,713 | (395,483 | ) | 1,528,230 |
Debt |
Finance leases | - | (27,787 | ) | (27,787 | ) |
Debts falling due within 1 year | (856,669 | ) | 678,136 | (178,533 | ) |
Debts falling due after 1 year | (5,711,493 | ) | (2,747,101 | ) | (8,458,594 | ) |
(6,568,162 | ) | (2,096,752 | ) | (8,664,914 | ) |
Total | (4,644,449 | ) | (2,492,235 | ) | (7,136,684 | ) |
Bruce Group Scotland Limited (Registered number: SC236976) |
Notes to the Consolidated Financial Statements |
for the Year Ended 30 June 2023 |
1. | STATUTORY INFORMATION |
Bruce Group Scotland Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention. |
The principal accounting policies adopted in the preparation of the financial statements are set out below and have remained unchanged from the previous year. |
Basis of consolidation |
The group accounts have been prepared using the acquisition accounting method. |
Results of the subsidiaries have been consolidated based on the activities for their most recent accounting period. |
All subsidiaries have the same year end date of 30th June. |
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 group. |
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. For properties held for rental purposes, rental income is recognised in the period in which it is due. The group's policy is to recognise a sale when substantively all risks and rewards in connection with the goods have been passed to the buyer. |
Goodwill |
Goodwill is comprised of two elements. Goodwill relating to the acquisition of Bruce Taverns and the acquisition of Bruce Faith is being amortised straight line over 20 years.The second element is goodwill on the acquisition of trading units within Bruce Taverns. This is being amortised straight line over 10 years. |
Bruce Group Scotland Limited (Registered number: SC236976) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 June 2023 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Heritable properties and investment 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 value of heritable properties will match or exceed their current net book values. Therefore no depreciation has been provided in the current year. |
Included within heritable property is a Police Box. This is being depreciated at 4% per annum straight line. Other heritable property is being depreciated at 2% per annum straight line when a provision is made. |
For other asset classes depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. |
Lease costs capitalised in relation to the leasing of properties are depreciated on a straight line basis over the duration of the lease. |
Short leasehold - Straight line over the duration of the lease. |
Fixtures and fittings - 20% on straight line basis. |
Motor vehicles - 25% on straight line basis. |
Office equipment - 25% on a straight line basis. |
Investment property |
Investment property is shown at most recent valuation. 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. |
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 Group 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 (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable are initially measured at transaction price adjusted for transaction costs. They are subsequently recognised at amortised cost 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 creditors, are measured initially and subsequently at the undiscounted amount of the cash or other consideration expected to be paid. |
Debtors receivable within one year, typically trade debtors, are measured initially and subsequently at the undiscounted amount of the cash or other consideration expected to be received. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated 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 balance sheet date. |
Bruce Group Scotland Limited (Registered number: SC236976) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 June 2023 |
2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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. |
Foreign currencies |
The company's functional and presentational currency is GBP. |
Hire purchase and leasing commitments |
Leases are assessed based on the substance of the transaction and are categorised as finance leases or operating leases accordingly. |
Finance Leases |
Where substantially all the risks and rewards incidental to ownership are borne by the lessee, the lease is |
categorised as a finance lease. It is initially recognised in the statement of financial position as an asset with a corresponding liability. |
The subsequent allocation of payments between the finance charge and the reduction of the outstanding liability are calculated using the effective interest method, so as to produce a constant periodic rate of interest on the remaining balance of the liability. |
Operating Leases |
Rentals paid under operating leases are charged to the profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
3. | OTHER OPERATING INCOME |
30.6.23 | 30.6.22 |
£ | £ |
Rents received | 178,959 | 158,312 |
Sundry receipts | - | 38,391 |
Government grants | - | 399,510 |
178,959 | 596,213 |
4. | EMPLOYEES AND DIRECTORS |
30.6.23 | 30.6.22 |
£ | £ |
Wages and salaries | 5,621,088 | 3,293,581 |
Social security costs | 94,543 | 29,404 |
Other pension costs | 63,316 | 37,320 |
5,778,947 | 3,360,305 |
Bruce Group Scotland Limited (Registered number: SC236976) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 June 2023 |
4. | EMPLOYEES AND DIRECTORS - continued |
The average number of employees during the year was as follows: |
30.6.23 | 30.6.22 |
Management and operational staff |
30.6.23 | 30.6.22 |
£ | £ |
Directors' remuneration | 58,500 | 16,720 |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
30.6.23 | 30.6.22 |
£ | £ |
Operating lease income | (178,959 | ) | (158,312 | ) |
Depreciation - owned assets | 239,899 | 230,512 |
Loss on disposal of fixed assets | 622 | - |
Goodwill amortisation | 72,290 | 73,024 |
Tenants' Leases amortisation | 155 | 155 |
Auditors remuneration | 7,325 | 6,865 |
Other operating leases | 822,406 | 731,379 |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
30.6.23 | 30.6.22 |
£ | £ |
Bank interest | 264 | 4,687 |
Bank loan interest | 543,862 | 225,274 |
Interest payable | 7,257 | 2,258 |
Hire purchase | 637 | - |
552,020 | 232,219 |
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 | 213,504 | 274,460 |
Deferred tax | 68,313 | 626,397 |
Tax on profit | 281,817 | 900,857 |
Bruce Group Scotland Limited (Registered number: SC236976) |
Notes to the Consolidated 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 | 1,393,647 | 3,593,004 |
Profit multiplied by the standard rate of corporation tax in the UK of 20.500 % (2022 - 19 %) |
285,698 |
682,671 |
Effects of: |
Expenses not deductible for tax purposes | 182 | 164 |
Income not taxable for tax purposes | (985 | ) | (333,876 | ) |
Capital allowances in excess of depreciation | (83,868 | ) | (73,071 | ) |
Other timing differences | (1,263 | ) | (1,116 | ) |
Deferred tax on investment property revaluation | - | 536,196 |
Deferred tax movement on fixed asset timing differences originating in prior periods | 112,272 |
90,738 |
Unrealised tax saving on goodwill amortisation on consolidation | 4,986 | 4,622 |
Unused losses carried forward | 859 | 849 |
Utilisation of tax losses | - | (5,784 | ) |
Deferred tax adjustment | (43,958 | ) | (536 | ) |
Lease premium taxed but not recognised in period | 7,894 | - |
Total tax charge | 281,817 | 900,857 |
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 | 3,568,122 | (895,510 | ) | 2,672,612 |
Investment property disposal |
3,568,122 | (895,510 | ) | 2,672,612 |
8. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
9. | DIVIDENDS |
30.6.23 | 30.6.22 |
£ | £ |
Ordinary shares of £1 each |
Interim | 143,600 | 82,000 |
Bruce Group Scotland Limited (Registered number: SC236976) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 June 2023 |
10. | INTANGIBLE FIXED ASSETS |
Group |
Tenants' |
Goodwill | Leases | Totals |
£ | £ | £ |
COST |
At 1 July 2022 |
and 30 June 2023 | 973,480 | 1,551 | 975,031 |
AMORTISATION |
At 1 July 2022 | 416,579 | 979 | 417,558 |
Amortisation for year | 72,290 | 155 | 72,445 |
At 30 June 2023 | 488,869 | 1,134 | 490,003 |
NET BOOK VALUE |
At 30 June 2023 | 484,611 | 417 | 485,028 |
At 30 June 2022 | 556,901 | 572 | 557,473 |
11. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Heritable | Short | and |
property | leasehold | fittings |
£ | £ | £ |
COST OR VALUATION |
At 1 July 2022 | 7,728,533 | 1,820,500 | 2,859,768 |
Additions | 3,405,015 | 180,915 | 519,156 |
Disposals | - | - | (1,571 | ) |
Reclassification/transfer | - | 13,500 | - |
At 30 June 2023 | 11,133,548 | 2,014,915 | 3,377,353 |
DEPRECIATION |
At 1 July 2022 | 65,513 | 518,923 | 2,184,154 |
Charge for year | - | 46,495 | 182,662 |
Eliminated on disposal | - | - | (1,426 | ) |
At 30 June 2023 | 65,513 | 565,418 | 2,365,390 |
NET BOOK VALUE |
At 30 June 2023 | 11,068,035 | 1,449,497 | 1,011,963 |
At 30 June 2022 | 7,663,020 | 1,301,577 | 675,614 |
Bruce Group Scotland Limited (Registered number: SC236976) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 June 2023 |
11. | TANGIBLE FIXED ASSETS - continued |
Group |
Motor | Office |
vehicles | equipment | Totals |
£ | £ | £ |
COST OR VALUATION |
At 1 July 2022 | 36,883 | 21,921 | 12,467,605 |
Additions | 62,985 | - | 4,168,071 |
Disposals | (883 | ) | - | (2,454 | ) |
Reclassification/transfer | - | - | 13,500 |
At 30 June 2023 | 98,985 | 21,921 | 16,646,722 |
DEPRECIATION |
At 1 July 2022 | 23,851 | 19,433 | 2,811,874 |
Charge for year | 9,778 | 964 | 239,899 |
Eliminated on disposal | (405 | ) | - | (1,831 | ) |
At 30 June 2023 | 33,224 | 20,397 | 3,049,942 |
NET BOOK VALUE |
At 30 June 2023 | 65,761 | 1,524 | 13,596,780 |
At 30 June 2022 | 13,032 | 2,488 | 9,655,731 |
Heritable property was valued on an open market basis on 23rd May 2022 by Colliers. |
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 £3,540,000 (2022 : £3,540,000). 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 in the balance sheet as at 30th June 2023 is £2,277,075. This is made up of a combination of lease costs, fixtures and fittings and goodwill. |
Cost or valuation at 30 June 2023 is represented by: |
Fixtures |
Heritable | Short | and |
property | 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 | 7,507,436 | 2,014,915 | 3,377,353 |
11,133,548 | 2,014,915 | 3,377,353 |
Bruce Group Scotland Limited (Registered number: SC236976) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 June 2023 |
11. | TANGIBLE FIXED ASSETS - continued |
Group |
Motor | Office |
vehicles | equipment | 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 | 98,985 | 21,921 | 13,020,610 |
98,985 | 21,921 | 16,646,722 |
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 | 7,507,436 | 4,102,421 |
Aggregate depreciation | 74,882 | 74,882 |
Freehold land and buildings were 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 | 20,000 |
DEPRECIATION |
At 1 July 2022 |
and 30 June 2023 | 20,000 |
NET BOOK VALUE |
At 30 June 2023 | - |
At 30 June 2022 | - |
Bruce Group Scotland Limited (Registered number: SC236976) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 June 2023 |
12. | FIXED ASSET INVESTMENTS |
Company |
Other |
investments |
£ |
COST |
At 1 July 2022 |
Additions |
At 30 June 2023 |
NET BOOK VALUE |
At 30 June 2023 |
At 30 June 2022 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: c/o Macgregor Thomson Limited, Springfield House, Laurelhill Business Park, Stirling |
Nature of business: |
% |
Class of shares: | holding |
30.6.23 | 30.6.22 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
Registered office: c/o Macgregor Thomson Limited, Springfield House, Laurelhill Business Park, Stirling |
Nature of business: |
% |
Class of shares: | holding |
30.6.23 | 30.6.22 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
Registered office: c/o Macgregor Thomson Limited, Springfield House, Laurelhill Business Park, Stirling |
Nature of business: |
% |
Class of shares: | holding |
30.6.23 | 30.6.22 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
Bruce Group Scotland Limited (Registered number: SC236976) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 June 2023 |
12. | FIXED ASSET INVESTMENTS - continued |
Registered office: c/o Macgregor Thomson Limited, Springfield House, Laurelhill Business Park, Stirling |
Nature of business: |
% |
Class of shares: | holding |
30.6.23 | 30.6.22 |
£ | £ |
Aggregate capital and reserves | ( |
) |
Profit/(loss) for the year | ( |
) |
Registered office: c/o Macgregor Thomson Limited, Springfield House, Laurelhill Business Park, Stirling |
Nature of business: |
% |
Class of shares: | holding |
30.6.23 | 30.6.22 |
£ | £ |
Aggregate capital and reserves | ( |
) | ( |
) |
Loss for the year | ( |
) | ( |
) |
13. | INVESTMENT PROPERTY |
Group |
Total |
£ |
FAIR VALUE |
At 1 July 2022 |
and 30 June 2023 | 6,573,450 |
DEPRECIATION |
At 1 July 2022 |
and 30 June 2023 | 32,003 |
NET BOOK VALUE |
At 30 June 2023 | 6,541,447 |
At 30 June 2022 | 6,541,447 |
Fair value at 30 June 2023 is represented by: |
£ |
Valuation in 2017 | 1,645,941 |
Valuation in 2018 | 57,239 |
Valuation in 2019 | 1,798,623 |
Valuation in 2020 | (1,626,711 | ) |
Valuation in 2022 | 1,718,850 |
Cost | 2,979,508 |
6,573,450 |
Bruce Group Scotland Limited (Registered number: SC236976) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 June 2023 |
13. | INVESTMENT PROPERTY - continued |
Group |
If investment property had not been revalued it would have been included at the following historical cost: |
30.6.23 | 30.6.22 |
£ | £ |
Cost | 2,979,508 | 2,979,508 |
Aggregate depreciation | 32,003 | 32,003 |
Investment property was valued on an open market basis basis on 23 May 2022 by Colliers . |
The directors do not believe that the valuations at 30 June 2023 are significantly different. |
14. | STOCKS |
Group |
30.6.23 | 30.6.22 |
£ | £ |
Stocks | 305,589 | 262,241 |
15. | DEBTORS |
Group | Company |
30.6.23 | 30.6.22 | 30.6.23 | 30.6.22 |
£ | £ | £ | £ |
Amounts falling due within one year: |
Trade debtors | 26,712 | 5,798 |
Amounts owed by group undertakings | - | - |
Other debtors | 35,584 | 4,798 |
Bruce Inns Loan < 1 year | 332,227 | 408,927 | - | - |
Prepayments and accrued income | 674,588 | 437,571 |
1,069,111 | 857,094 |
Amounts falling due after more than one year: |
Other Debtors > 1 year | 8,399 | 8,399 | - | - |
Aggregate amounts | 1,077,510 | 865,493 |
Bruce Group Scotland Limited (Registered number: SC236976) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 June 2023 |
16. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
30.6.23 | 30.6.22 | 30.6.23 | 30.6.22 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 18) | 151,406 | 829,542 |
Other loans (see note 18) | 27,127 | 27,127 |
Hire purchase contracts (see note 19) | 9,347 | - |
Trade creditors | 1,115,572 | 1,025,876 |
Amounts owed to group undertakings | - | - |
Tax | 213,204 | 274,160 |
Social security and other taxes | 76,209 | 49,301 |
Machine games duty | - | 1,516 | - | - |
VAT | 615,080 | 341,318 | - | - |
Other creditors | 149,784 | 24,125 |
Directors' current accounts | 460,385 | 540,254 | 366,189 | 356,188 |
Accrued expenses | 348,920 | 127,413 |
3,167,034 | 3,240,632 |
17. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
30.6.23 | 30.6.22 |
£ | £ |
Bank loans (see note 18) | 8,458,594 | 4,911,493 |
Other loans (see note 18) | - | 800,000 |
Hire purchase contracts (see note 19) | 18,440 | - |
8,477,034 | 5,711,493 |
18. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
30.6.23 | 30.6.22 |
£ | £ |
Amounts falling due within one year or on | demand: |
Bank loan < 1 year | 151,406 | 829,542 |
Other loans - unsecured | 27,127 | 27,127 |
178,533 | 856,669 |
Amounts falling due between one and two | years: |
Bank loans - 1-2 years | 226,814 | 2,851,889 |
Amounts falling due between two and five | years: |
Bank loans - 2-5 years | 8,231,780 | 2,059,604 |
Other loans - 2-5 years | - | 800,000 |
8,231,780 | 2,859,604 |
Bruce Group Scotland Limited (Registered number: SC236976) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 June 2023 |
19. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
30.6.23 | 30.6.22 |
£ | £ |
Net obligations repayable: |
Within one year | 9,347 | - |
Between one and five years | 18,440 | - |
27,787 | - |
Group |
Non-cancellable operating | leases |
30.6.23 | 30.6.22 |
£ | £ |
Within one year | 606,090 | 606,090 |
Between one and five years | 2,066,000 | 2,136,000 |
In more than five years | 4,444,353 | 4,908,353 |
7,116,443 | 7,650,443 |
20. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
30.6.23 | 30.6.22 |
£ | £ |
Bank loans | 8,610,000 | 5,741,035 |
Other loans | - | 800,000 |
8,610,000 | 6,541,035 |
Cynergy Bank holds the following security:- |
An unlimited cross company guarantee between Bruce Taverns Limited, Bruce Inns Limited, Bruce Bars Scotland Limited, Bruce Faith Limited, Bruce Property Limited and Bruce Group Scotland Limited. This is supported by the following:- |
A bond and floating charge over the assets of Bruce Taverns Limited along with first standard securities over the properties held by Bruce Taverns Limited. |
A bond and floating charge over the assets of Bruce Inns Limited along with first standard securities over the properties held by Bruce Inns Limited. |
A bond and floating charge over the assets of Bruce Faith Limited along with first standard securities over the properties held by Bruce Faith Limited. |
A bond and floating charge over the assets of Bruce Bars Scotland Limited. |
A bond and floating charge over the assets of Bruce Property Scotland Limited. |
A bond and floating charge over the assets of Bruce Group Scotland Limited. |
A joint and several guarantee by the directors for the sum of £350,000. |
Bruce Group Scotland Limited (Registered number: SC236976) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 June 2023 |
21. | PROVISIONS FOR LIABILITIES |
Group |
30.6.23 | 30.6.22 |
£ | £ |
Deferred tax | 1,964,110 | 1,895,797 |
Group |
Deferred |
tax |
£ |
Balance at 1 July 2022 | 1,895,797 |
Credit to Income Statement during year | (43,958 | ) |
Capital allowance timing | 112,271 |
Balance at 30 June 2023 | 1,964,110 |
22. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 30.6.23 | 30.6.22 |
value: | £ | £ |
Ordinary | £1 | 2 | 2 |
23. | RESERVES |
Group |
Fair |
Retained | Revaluation | value |
earnings | reserve | reserve | Totals |
£ | £ | £ | £ |
At 1 July 2022 | 3,107,921 | 2,800,588 | 2,835,210 | 8,743,719 |
Profit for the year | 1,110,444 | 1,110,444 |
Dividends | (143,600 | ) | (143,600 | ) |
Tfr to profit & loss | 16,475 | (16,475 | ) | - | - |
At 30 June 2023 | 4,091,240 | 2,784,113 | 2,835,210 | 9,710,563 |
24. | NON-CONTROLLING INTERESTS |
The minority interest relates to 24 £1 shares (24%) in Bruce Bars Scotland Ltd held by other parties. The minority interest share of profit and loss reserves is £215,817 (2022: £214,431). |
25. | RELATED PARTY DISCLOSURES |
Key management personnel of the entity or its parent (in the aggregate) |
30.6.23 | 30.6.22 |
£ | £ |
Amount due to related party | 487,512 | 545,381 |
The loans provided are interest free and repayable upon demand. |
Bruce Group Scotland Limited (Registered number: SC236976) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 June 2023 |
25. | RELATED PARTY DISCLOSURES - continued |
Other related parties |
30.6.23 | 30.6.22 |
£ | £ |
Combined Gross Transfers | 572,517 | 92,879 |
Amount due from related party | 332,227 | 408,927 |
The related party transactions are with Bruce Inns Ltd, a company in which the directors of Bruce Group Ltd hold control through their majority shareholding. |
26. | ULTIMATE CONTROLLING PARTY |
It is the view of the directors that there is no ultimate controlling party. The directors hold 100% of the issued share capital in Bruce Group Scotland Ltd, the parent of the group. They both have an equal shareholding and equivalent voting rights in that entity. |