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Buenos Aires Restaurant Limited

Annual Report and Financial Statements
Period from 27 June 2022 to 25 June 2023

Registration number: 06275601

 

Buenos Aires Restaurant Limited

Contents

Balance Sheet

1

Notes to the Financial Statements

2 to 9

 

Buenos Aires Restaurant Limited

Balance Sheet

25 June 2023

Note

25 June
2023
£

26 June
2022
£

Fixed assets

 

Intangible assets

4

110,728

149,810

Tangible assets

5

1,405,643

1,494,177

 

1,516,371

1,643,987

Current assets

 

Stocks

6

145,060

116,129

Debtors

7

3,042,043

2,576,132

Cash at bank and in hand

 

864,996

754,515

 

4,052,099

3,446,776

Creditors: Amounts falling due within one year

8

(1,890,309)

(1,748,996)

Net current assets

 

2,161,790

1,697,780

Total assets less current liabilities

 

3,678,161

3,341,767

Creditors: Amounts falling due after more than one year

8

(873,294)

(345,833)

Provisions for liabilities

12

(237,501)

(95,424)

Net assets

 

2,567,366

2,900,510

Capital and reserves

 

Called up share capital

10

1,000

1,000

Profit and loss account

2,566,366

2,899,510

Shareholders' funds

 

2,567,366

2,900,510

These financial statements have been prepared and delivered in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006 and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 28 March 2024 and signed on its behalf by:
 

.........................................
G V Lloyd Jones
Director

   
     

Company Registration Number: 06275601

 

Buenos Aires Restaurant Limited

Notes to the Financial Statements

Period from 27 June 2022 to 25 June 2023

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Nower End
Nower Road
Dorking
RH4 3BX
England

These financial statements were authorised for issue by the Board on 28 March 2024.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. There are no material departures from FRS 102.

Basis of preparation

These financial statements have been prepared using the historical cost convention.

Going concern

Notwithstanding the loss for the year of £333,144 (2022 - profit of £854,789), and having considered a period of no less than 12 months from the approval of these accounts, the directors are satisfied that it is appropriate for these financial statements to have been prepared on a going concern basis.

In forming their opinion the directors have taken into consideration the ongoing availability of CBILS and recovery bank loan facilities, the trading performance subsequent to the year end and forecasted to June 2025. In particular the directors have taken into consideration the inflationary economic environment and the anticipated impact upon the clientele of the restaurants operated by the company.

 

Buenos Aires Restaurant Limited

Notes to the Financial Statements

Period from 27 June 2022 to 25 June 2023

Key judgements and sources of estimation uncertainty

In the application of the company's accounting policies, management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The key judgement in respect of the financial statements is going concern. In forming their opinion, and in particular, the directors have considered the performance of the company both during the year and subsequent to the year end, and the forecasted financial performance.

The key estimates that has a significant effect on the amounts recognised in the financial statements is described below:

An onerous lease provision has been estimated by the directors in the financial statements. The provision represents the best estimate of least net costs that will be incurred in exiting the lease based on rentals payable and costs to exit the lease, discounted at a relevant rate. The carrying amount is £193,074 (2022 - £Nil).

Recoverability of intercompany debtor balances requires estimation by management as to the recoverability of the debtor and the amount of any provision required against the debt at the year end. The directors have considered recoverability with reference to regular settlement, overall going concern assessment of the group and ongoing interrelationship between entities. The directors consider the balances fully recoverable at the year end. The carrying amount is £2,863,547 (2022 - £2,468,303).

Tangible fixed assets are carried at cost, less accumulated depreciation and any subsequent accumulated impairment losses. This requires an estimation in the depreciation rates used as well as assessment of the ongoing economic contribution of the assets of the company as to whether an indicator of impairment has occurred. The carrying amount is £1,405,643 (2022 - £1,494,177).

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of food and beverages in the ordinary course of the company's activities. Turnover is shown net of value added tax, returns, rebates and discounts and after eliminating sales within the company.

The company recognises revenue at the point of sale.

Government grants

Government revenue grants are accounted for under the accruals method. These are credited to the profit and loss account when th company is entitled to the income.

Tax

Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

 

Buenos Aires Restaurant Limited

Notes to the Financial Statements

Period from 27 June 2022 to 25 June 2023

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

Deferred tax is recognised on all timing differences at the balance sheet date unless indicated below. Timing differences are differences between taxable profits and the results as stated in the profit and loss account and other comprehensive income. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

Pre-opening costs

Pre-opening costs are deferred until the site opens. On opening of the site, an analysis is performed on all costs held on the balance sheet for the site and split into capital and non-capital expenditure. All non-capital expenditure is recognised in the profit and loss account from the date of opening.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Plant and machinery

15% reducing balance method

Leasehold property

Over the lease period

Fixtures and fittings

15% reducing balance method

Office equipment

15% reducing balance method

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Goodwill

10 years straight line basis

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

Defined contribution pension obligation

The company operates a defined contribution pension scheme. Contributions are recognised in the profit and loss account in the period in which they become payable in accordance with the rules of the scheme.

 

Buenos Aires Restaurant Limited

Notes to the Financial Statements

Period from 27 June 2022 to 25 June 2023

Financial instruments

Classification
The company holds the following financial instruments:

• Short term trade and other debtors and creditors;
• Intercompany debtors and creditors;
• Bank loans; and
• Cash and bank balances.

All financial instruments are classified as basic.

 Recognition and measurement
The company has chosen to apply the recognition and measurement principles in FRS102.

Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company’s obligations are discharged, expire or are cancelled.

Except for bank loans, such instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.

Bank loans are initially measured at transaction price, including transaction costs, and are subsequently carried at amortised cost using the effective interest method.

 

3

Staff numbers

The average number of persons employed by the company (including directors) during the period, was 189 (2022 - 105).

 

Buenos Aires Restaurant Limited

Notes to the Financial Statements

Period from 27 June 2022 to 25 June 2023

4

Intangible assets

Goodwill
 £

Total
£

Cost or valuation

At 27 June 2022

390,815

390,815

At 25 June 2023

390,815

390,815

Amortisation

At 27 June 2022

241,005

241,005

Amortisation charge

39,082

39,082

At 25 June 2023

280,087

280,087

Carrying amount

At 25 June 2023

110,728

110,728

At 26 June 2022

149,810

149,810

5

Tangible assets

Land and buildings
£

Furniture, fittings and equipment
 £

Plant and machinery
£

Total
£

Cost or valuation

At 27 June 2022

1,350,759

475,282

425,610

2,251,651

Additions

46,622

245,019

62,269

353,910

At 25 June 2023

1,397,381

720,301

487,879

2,605,561

Depreciation

At 27 June 2022

343,208

224,825

189,441

757,474

Charge for the period

91,592

62,100

41,165

194,857

Impairment

144,156

64,902

38,529

247,587

At 25 June 2023

578,956

351,827

269,135

1,199,918

Carrying amount

At 25 June 2023

818,425

368,474

218,744

1,405,643

At 26 June 2022

1,007,551

250,457

236,169

1,494,177

Included within the net book value of land and buildings above is £818,425 (2022 - £1,007,551) in respect of short leasehold land and buildings.
 

 

Buenos Aires Restaurant Limited

Notes to the Financial Statements

Period from 27 June 2022 to 25 June 2023

6

Stocks

25 June
2023
£

26 June
2022
£

Consumables

145,060

116,129

7

Debtors

25 June
2023
£

26 June
2022
£

Trade debtors

-

16,338

Amounts owed by group undertakings

2,863,547

2,468,303

Prepayments

111,567

33,292

Other debtors

66,929

58,199

3,042,043

2,576,132

8

Creditors

Note

25 June 2023
 £

26 June 2022
 £

Due within one year

 

Loans and borrowings

9

260,000

140,000

Trade creditors

 

186,148

319,578

Amounts due to group undertakings

13

55,147

87,516

Corporation tax

102,396

80,000

Social security and other taxes

 

259,993

309,916

Other creditors

 

499,075

333,962

Accrued expenses

 

527,550

478,024

9

1,890,309

1,748,996

Note

25 June
2023
£

26 June
2022
£

Due after one year

 

Loans and borrowings

9

873,294

345,833

Loans and borrowings consist of bank loans which are secured by legal charge over leasehold property, a debenture over assets of the company and a guarantee given by the company's immediate parent.

 

Buenos Aires Restaurant Limited

Notes to the Financial Statements

Period from 27 June 2022 to 25 June 2023

9

Loans and borrowings

25 June
2023
£

26 June
2022
£

Loans and borrowings due after one year

Bank borrowings

873,294

345,833

25 June
2023
£

26 June
2022
£

Current loans and borrowings

Bank borrowings

260,000

140,000

10

Share capital

Allotted, called up and fully paid shares

 

25 June
2023

26 June
2022

 

No.

£

No.

£

Ordinary shares of £1 each

1,000

1,000

1,000

1,000

         

11

Obligations under leases

Operating leases

The total of future minimum lease payments is as follows:

25 June
2023
£

26 June
2022
£

Not later than one year

575,000

530,000

Later than one year and not later than five years

2,218,005

2,073,595

Later than five years

2,544,685

3,017,205

5,337,690

5,620,800

12

Provisions

Onerous lease
£

Deferred tax
£

Total
£

At 27 June 2022

-

95,424

95,424

Increase in provisions

193,074

(50,997)

142,077

At 25 June 2023

193,074

44,427

237,501

 

Buenos Aires Restaurant Limited

Notes to the Financial Statements

Period from 27 June 2022 to 25 June 2023

13

Related party transactions

Summary of transactions with parent

During the period the company was charged £50,000 (2022 - £Nil) of management fees by its ultimate parent company. The balance due by the company to the ultimate parent at the year end was £5,000 (2022 - £nil).
 

14

Non adjusting events after the financial period

After the period end, the Horsham site closed due to a fire and the decision has been made by management not to re-open. The company has since exited the lease. Fixed assets with a book value of £114,000 at the period end were subsequently written off and a reverse lease premium of £50,000 was paid.

15

Audit report

The Independent Auditors' Report was unqualified. The name of the Senior Statutory Auditor who signed the audit report was Nicholas Farrant BA MSc FCA, who signed for and on behalf of PKF Francis Clark on 29 March 2024.

16

Relationship between entity and parents

The company's immediate parent is Buenos Aires Restaurant Holdings Ltd, incorporated in England & Wales.

The parent of the smallest group in which these financial statements are consolidated is High Road Restaurants Group Holdco Limited, incorporated in England & Wales.

The address of High Road Restaurants Group Holdco Limited is: Nower End, Nower Road, Dorking RH4 3BX