Company registration number 05303063 (England and Wales)
SOLITAIRE RESTAURANTS HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023
SOLITAIRE RESTAURANTS HOLDINGS LIMITED
COMPANY INFORMATION
Directors
Mr M Nicholas
Mr P Nicholas
Secretary
Mr M Nicholas
Company number
05303063
Registered office
Group Accounts Office
Moth Club, Old Trades Hall
Valette Street
London
E9 6NU
Auditor
SPW (UK) LLP
Gable House
239 Regents Park Road
London
N3 3LF
SOLITAIRE RESTAURANTS HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 7
Group statement of comprehensive income
8
Group statement of financial position
9
Company statement of financial position
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Company statement of cash flows
14
Notes to the financial statements
15 - 32
SOLITAIRE RESTAURANTS HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2023
- 1 -

The directors present the strategic report for the year ended 31 May 2023.

Review of the business
The results for the year and the financial position at the year end were considered satisfactory by the directors who expect continued growth in the forseeable future.
Principal risks and uncertainties

The principal risks and uncertainties facing the company are the current economic climate and interest rates.

Key Performance Indicators

The group monitors business performance based on the key performance indicators focusing on increasing profitability, margins and cash flow.

On behalf of the board

Mr M Nicholas
Director
1 March 2024
SOLITAIRE RESTAURANTS HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2023
- 2 -

The directors present their annual report and financial statements for the year ended 31 May 2023.

Principal activities
The principal activity of the company continued to be that of operatiing public houses and restaurants.
Results and dividends

The results for the year are set out on page 8.

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr M Nicholas
Mr P Nicholas
Disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the group continues and that the appropriate training is arranged. It is the policy of the group that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Employee involvement

The group's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.

 

Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.

 

There is no employee share scheme at present, but the directors are considering the introduction of such a scheme as a means of further encouraging the involvement of employees in the company's performance.

Auditor

The auditors, SPW (UK) LLP, are deemed to be reappointed under section 487(2) of the Companies Act 2006.

Energy and carbon report

As the group has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.

SOLITAIRE RESTAURANTS HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 3 -
Statement of directors' responsibilities

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

On behalf of the board
Mr M Nicholas
Director
1 March 2024
SOLITAIRE RESTAURANTS HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SOLITAIRE RESTAURANTS HOLDINGS LIMITED
- 4 -
Opinion

We have audited the financial statements of Solitaire Restaurants Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 May 2023 which comprise the group statement of comprehensive income, the company statement of financial position, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including 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:

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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.
The impact of uncertainties due to the Coronavirus Pandemic on our audit.
Uncertainties related to the effects of the Coronavirus Pandemic are relevant to understanding our audit of the accounts. All audits assess and challenge the reasonableness of estimates made by the directors, such as the valuation of property and related disclosures and the appropriateness of the going concern basis of preparation of the financial statements. All of these depend on assessments of the future economic environment and the businesses future prospects and performance.
The Coronavirus Pandemic is one of the most significant economic events for the UK, and at the date of this report its effects are subject to unprecedented levels of uncertainty of outcomes, with the full range of possible effects unknown. We applied a standardised firm-wide approach in response to that uncertainty when assessing the company's future prospects and performance. However, no audit should be expected to predict the unknowable factors or all possible future.
SOLITAIRE RESTAURANTS HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SOLITAIRE RESTAURANTS HOLDINGS LIMITED
- 5 -

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 our audit:

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 their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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 parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's 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 an auditor's report 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.

The objectives of our audit, in respect to detecting irregularities including fraud, are:
- to identify and assess the risks of material misstatement of the financial statements due to fraud;
- to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and
SOLITAIRE RESTAURANTS HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SOLITAIRE RESTAURANTS HOLDINGS LIMITED
- 6 -
- to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management.
The audit team obtained an understanding of the legal and regulatory frameworks that are applicable to the company and determined that the most significant are those that relate to the reporting framework (FRS 102 and the Companies Act 2006), the relevant UK tax compliance regulations and Data Protection Regulation (GDPR).
We understood how the company complies with laws and regulations by making enquiries of management, finance team, those responsible for legal and compliance procedures. We made enquiries through our review of board minutes and internal controls process documentation and considered the results of our audit procedures.
We assessed the susceptibility of the company's financial statements to material misstatement, including how fraud might occur by meeting with management to discuss areas where we considered there was susceptibility to fraud. We considered the internal controls that the company has implemented to address any risks identified, or to prevent, deter and detect fraud, and how senior management monitor them
In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.
In addition to the above, our procedures to respond to the risks identified included the following:
• reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
• performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
•enquiring of management and in-house legal counsel concerning actual and potential litigation and claims, and instances of non-compliance with laws and regulations; and
•reading minutes of meetings of those charged with governance.
The key audit areas identified at planning included revenue recognition, accounting estimates and management override of controls (testing manual journals). We planned and designed our work to provide reasonable assurance that the financial statements were free from fraud or error. However due to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected an irregularity or fraud that could result in a material misstatement in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards.
A further description of our responsibilities is available on the Financial Reporting Council's website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
SOLITAIRE RESTAURANTS HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SOLITAIRE RESTAURANTS HOLDINGS LIMITED
- 7 -

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Paul Winter (Senior Statutory Auditor)
For and on behalf of`SPW (UK) LLP
1 March 2024
Chartered Accountants
Statutory Auditor
SOLITAIRE RESTAURANTS HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MAY 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
45,187,923
41,438,472
Cost of sales
(11,990,526)
(11,094,887)
Gross profit
33,197,397
30,343,585
Administrative expenses
(27,593,298)
(23,490,158)
Other operating income
2,720,086
2,675,704
Operating profit
4
8,324,185
9,529,131
Interest receivable and similar income
7
22,083
818
Interest payable and similar expenses
8
(320,866)
(154,348)
Net gain on closure of subsidiaries
9
619,531
-
Profit before taxation
8,644,933
9,375,601
Tax on profit
10
(1,796,756)
(2,012,469)
Profit for the financial year
23
6,848,177
7,363,132
Profit for the financial year is attributable to:
- Owners of the parent company
4,626,450
2,465,554
- Non-controlling interests
2,221,727
4,897,578
6,848,177
7,363,132
Total comprehensive income for the year is attributable to:
- Owners of the parent company
4,626,450
2,465,554
- Non-controlling interests
2,221,727
4,897,578
6,848,177
7,363,132

The income statement has been prepared on the basis that all operations are continuing operations.

SOLITAIRE RESTAURANTS HOLDINGS LIMITED
GROUP STATEMENT OF FINANCIAL POSITION
AS AT
31 MAY 2023
31 May 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
11
-
0
529,849
Tangible assets
12
81,366,741
72,422,230
81,366,741
72,952,079
Current assets
Stocks
14
530,393
562,631
Debtors
15
5,132,815
4,485,615
Cash at bank and in hand
8,244,134
15,230,186
13,907,342
20,278,432
Creditors: amounts falling due within one year
17
(10,787,105)
(10,650,603)
Net current assets
3,120,237
9,627,829
Total assets less current liabilities
84,486,978
82,579,908
Creditors: amounts falling due after more than one year
18
(6,533,908)
(9,948,674)
Provisions for liabilities
20
(5,439,510)
(5,431,201)
Net assets
72,513,560
67,200,033
Capital and reserves
Called up share capital
22
80
80
Revaluation reserve
23
22,230,000
22,230,000
Distributable profit and loss reserves
23
40,065,883
35,439,433
Equity attributable to owners of the parent company
62,295,963
57,669,513
Non-controlling interests
10,217,597
9,530,520
72,513,560
67,200,033
The financial statements were approved by the board of directors and authorised for issue on 1 March 2024 and are signed on its behalf by:
01 March 2024
Mr M Nicholas
Director
SOLITAIRE RESTAURANTS HOLDINGS LIMITED
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 MAY 2023
31 May 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
12
3,592,143
3,630,513
Investments
13
6,220,964
6,021,064
9,813,107
9,651,577
Current assets
Debtors
15
24,807,279
18,792,435
Cash at bank and in hand
89,737
1,710,645
24,897,016
20,503,080
Creditors: amounts falling due within one year
17
(2,238,735)
(185,295)
Net current assets
22,658,281
20,317,785
Total assets less current liabilities
32,471,388
29,969,362
Creditors: amounts falling due after more than one year
18
(1,830,766)
(2,470,729)
Net assets
30,640,622
27,498,633
Capital and reserves
Called up share capital
22
80
80
Distributable profit and loss reserves
23
30,640,542
27,498,553
Total equity
30,640,622
27,498,633

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £3,141,989 (2022 - £1,627,350 profit).

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 1 March 2024 and are signed on its behalf by:
01 March 2024
Mr M Nicholas
Director
Company registration number 05303063 (England and Wales)
SOLITAIRE RESTAURANTS HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2023
- 11 -
Share capital
Revaluation reserve
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
£
Balance at 1 June 2021
80
22,230,000
32,973,879
55,203,959
5,717,312
60,921,271
Year ended 31 May 2022:
Profit and total comprehensive income for the year
-
-
2,465,554
2,465,554
4,897,578
7,363,132
Dividends
-
-
-
-
(1,084,370)
(1,084,370)
Balance at 31 May 2022
80
22,230,000
35,439,433
57,669,513
9,530,520
67,200,033
Year ended 31 May 2023:
Profit and total comprehensive income for the year
-
-
4,626,450
4,626,450
2,221,727
6,848,177
Dividends
-
-
-
-
(1,534,650)
(1,534,650)
Balance at 31 May 2023
80
22,230,000
40,065,883
62,295,963
10,217,597
72,513,560
SOLITAIRE RESTAURANTS HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2023
- 12 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 June 2021
80
25,871,202
25,871,282
Year ended 31 May 2022:
Profit and total comprehensive income for the year
-
1,627,351
1,627,351
Balance at 31 May 2022
80
27,498,553
27,498,633
Year ended 31 May 2023:
Profit and total comprehensive income
-
3,141,989
3,141,989
Balance at 31 May 2023
80
30,640,542
30,640,622
SOLITAIRE RESTAURANTS HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
25
9,189,554
13,585,947
Interest paid
(320,866)
(154,348)
Income taxes paid
(1,907,032)
(1,828,457)
Net cash inflow from operating activities
6,961,656
11,603,142
Investing activities
Purchase of intangible assets
(200,000)
-
Proceeds from disposal of intangibles
990,846
(3,970)
Purchase of tangible fixed assets
(11,308,267)
(2,769,931)
Proceeds from disposal of tangible fixed assets
1,325,205
2,054,240
Proceeds from disposal of investment property
-
(50,000)
Proceeds from disposal of associates
-
250,000
Proceeds from disposal of investments
(15,719)
-
Interest received
54,773
(22,031)
Net cash used in investing activities
(9,153,162)
(541,692)
Financing activities
Repayment of borrowings
45,287
(1,892,500)
Repayment of bank loans
(3,311,631)
(4,653,980)
Dividends paid to equity shareholders
-
0
320,000
Dividends paid to non-controlling interests
(1,534,650)
(1,404,370)
Net cash used in financing activities
(4,800,994)
(7,630,850)
Net (decrease)/increase in cash and cash equivalents
(6,992,500)
3,430,600
Cash and cash equivalents at beginning of year
15,230,186
11,799,586
Cash and cash equivalents at end of year
8,237,686
15,230,186
Relating to:
Cash at bank and in hand
8,244,134
15,230,186
Bank overdrafts included in creditors payable within one year
(6,448)
-
SOLITAIRE RESTAURANTS HOLDINGS LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
26
(3,783,753)
2,840,483
Interest paid
(67)
(789)
Income taxes paid
(106,570)
(39,597)
Net cash (outflow)/inflow from operating activities
(3,890,390)
2,800,097
Investing activities
Proceeds from disposal of subsidiaries
100
(358)
Proceeds from disposal of investments
(200,100)
-
0
Interest received
151,495
215,891
Dividends received
2,957,950
1,403,430
Net cash generated from investing activities
2,909,445
1,618,963
Financing activities
Repayment of borrowings
(639,963)
(320,000)
Repayment of bank loans
-
(2,500,000)
Net cash used in financing activities
(639,963)
(2,820,000)
Net (decrease)/increase in cash and cash equivalents
(1,620,908)
1,599,060
Cash and cash equivalents at beginning of year
1,710,645
111,585
Cash and cash equivalents at end of year
89,737
1,710,645
SOLITAIRE RESTAURANTS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023
- 15 -
1
Accounting policies
Company information

Solitaire Restaurants Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is .

 

The group consists of Solitaire Restaurants Holdings Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Solitaire Restaurants Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 May 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

SOLITAIRE RESTAURANTS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 16 -

Investments in joint ventures and associates are carried in the group statement of financial position at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.7
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

SOLITAIRE RESTAURANTS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 17 -

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Land and buildings Freehold
over 25 years
Land and buildings Leasehold
over lease term
Plant and machinery
15% reducing balance
Fixtures, fittings & equipment
15% reducing balance
Computer equipment
33% on cost
Motor vehicles
25% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the income statement.

1.8
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

SOLITAIRE RESTAURANTS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 18 -
1.9
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.10
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.11
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

SOLITAIRE RESTAURANTS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 19 -
1.12
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's statement of financial position when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

SOLITAIRE RESTAURANTS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 20 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.13
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.14
Derivatives

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

 

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.

1.15
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

SOLITAIRE RESTAURANTS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 21 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.16
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.17
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.18
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.19
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

SOLITAIRE RESTAURANTS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 22 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Turnover and other revenue

An analysis of the group's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
Public Houses
37,613,275
34,096,167
Restaurants
7,574,648
7,342,305
45,187,923
41,438,472
2023
2022
£
£
Other revenue
Interest income
22,083
818
Grants received
12,633
309,573
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Government grants
(12,633)
(309,573)
Depreciation of owned tangible fixed assets
1,013,690
1,189,890
Loss on disposal of tangible fixed assets
24,861
50,145
(Profit)/loss on disposal of investment property
-
0
50,000
Amortisation of intangible assets
729,849
827,850
(Profit)/loss on disposal of intangible assets
(990,846)
3,970
Operating lease charges
1,787,377
1,748,452
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
-
-
Audit of the financial statements of the company's subsidiaries
17,592
35,192
SOLITAIRE RESTAURANTS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 23 -
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
405
248
2
2

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
9,976,409
8,747,650
-
0
-
0
Social security costs
907,882
793,745
-
-
Pension costs
458,510
119,460
-
0
-
0
11,342,801
9,660,855
-
0
-
0
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
16,375
818
Other interest income
5,708
-
Total income
22,083
818
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
16,375
818
8
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
314,249
145,620
Other finance costs:
Other interest
6,617
8,728
Total finance costs
320,866
154,348
SOLITAIRE RESTAURANTS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 24 -
9
Net gain on closure of subsidiaries
2023
2022
£
£
Amounts written back to financial assets held at cost
508,598
-
Amounts written off investments held at fair value
(524,317)
-
Amounts written back to financial liabilities
635,250
-
619,531
-
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
1,816,242
1,929,892
Adjustments in respect of prior periods
(6,228)
41,516
Total current tax
1,810,014
1,971,408
Deferred tax
Origination and reversal of timing differences
(13,227)
41,273
Adjustment in respect of prior periods
(31)
(212)
Total deferred tax
(13,258)
41,061
Total tax charge
1,796,756
2,012,469

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
8,644,933
9,375,601
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
1,642,537
1,781,364
Tax effect of expenses that are not deductible in determining taxable profit
117,926
76,378
Effect of change in corporation tax rate
56,400
-
Permanent capital allowances in excess of depreciation
(8,538)
(5,670)
Depreciation on assets not qualifying for tax allowances
7,290
81,485
Under/(over) provided in prior years
(6,229)
(4,717)
Deferred tax adjustment
(12,630)
83,629
Taxation charge
1,796,756
2,012,469
SOLITAIRE RESTAURANTS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 25 -
11
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 June 2022
7,978,500
Additions
200,000
At 31 May 2023
8,178,500
Amortisation and impairment
At 1 June 2022
7,448,651
Amortisation charged for the year
729,849
At 31 May 2023
8,178,500
Carrying amount
At 31 May 2023
-
0
At 31 May 2022
529,849
The company had no intangible fixed assets at 31 May 2023 or 31 May 2022.
SOLITAIRE RESTAURANTS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 26 -
12
Tangible fixed assets
Group
Land and buildings Freehold
Land and buildings Leasehold
Plant and machinery
Fixtures, fittings & equipment
Computer equipment
Motor vehicles
Total
£
£
£
£
£
£
£
Cost
At 1 June 2022
61,927,017
12,873,594
1,859,079
2,806,832
119,245
78,590
79,664,357
Additions
10,907,346
139,783
84,112
168,540
8,486
-
0
11,308,267
Disposals
(639,154)
(1,413,856)
(367,357)
(478,078)
(29,732)
-
0
(2,928,177)
At 31 May 2023
72,195,209
11,599,521
1,575,834
2,497,294
97,999
78,590
88,044,447
Depreciation and impairment
At 1 June 2022
1,267,247
3,068,604
1,006,771
1,763,941
91,404
44,160
7,242,127
Depreciation charged in the year
108,275
470,842
181,459
234,682
9,824
8,608
1,013,690
Eliminated in respect of disposals
-
0
(806,761)
(305,461)
(436,790)
(29,099)
-
0
(1,578,111)
At 31 May 2023
1,375,522
2,732,685
882,769
1,561,833
72,129
52,768
6,677,706
Carrying amount
At 31 May 2023
70,819,687
8,866,836
693,065
935,461
25,870
25,822
81,366,741
At 31 May 2022
60,659,770
9,804,990
852,308
1,042,891
27,841
34,430
72,422,230
SOLITAIRE RESTAURANTS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 27 -
Company
Land and buildings Freehold
£
Cost
At 1 June 2022 and 31 May 2023
3,836,989
Depreciation and impairment
At 1 June 2022
206,476
Depreciation charged in the year
38,370
At 31 May 2023
244,846
Carrying amount
At 31 May 2023
3,592,143
At 31 May 2022
3,630,513
13
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
-
0
-
0
3,714
3,814
Unlisted investments
-
0
-
0
6,217,250
6,017,250
-
0
-
0
6,220,964
6,021,064
Movements in fixed asset investments
Company
Shares in subsidiaries
Other investments
Total
£
£
£
Cost or valuation
At 1 June 2022
3,814
6,017,250
6,021,064
Additions
-
200,000
200,000
Disposals
(100)
-
(100)
At 31 May 2023
3,714
6,217,250
6,220,964
Carrying amount
At 31 May 2023
3,714
6,217,250
6,220,964
At 31 May 2022
3,814
6,017,250
6,021,064
SOLITAIRE RESTAURANTS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 28 -
14
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Finished goods and goods for resale
530,393
562,631
-
0
-
0
15
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
683,541
862,145
5,266
3,175
Amounts owed by group undertakings
-
-
22,819,774
17,412,080
Other debtors
3,798,651
2,680,946
1,982,239
1,377,180
Prepayments and accrued income
607,097
913,385
-
0
-
0
5,089,289
4,456,476
24,807,279
18,792,435
Deferred tax asset (note 20)
43,526
29,139
-
0
-
0
5,132,815
4,485,615
24,807,279
18,792,435
16
Financial instruments
Group
Company
2023
2022
2023
2022
£
£
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
4,669,150
3,606,264
24,807,279
18,792,435
Equity instruments measured at cost less impairment
-
-
6,217,250
6,017,250
Carrying amount of financial liabilities
Measured at amortised cost
14,389,350
17,261,558
4,008,534
2,488,595
SOLITAIRE RESTAURANTS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 29 -
17
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
19
336,036
651,416
-
0
-
0
Other borrowings
19
-
0
50,000
-
0
-
0
Payments received on account
5,658
10,127
-
0
-
0
Trade creditors
2,392,740
3,506,089
12,740
648
Amounts owed to group undertakings
-
0
-
0
1,464,980
-
0
Corporation tax payable
1,736,907
1,841,105
55,620
106,636
Other taxation and social security
1,194,756
1,496,614
5,347
60,793
Other creditors
2,402,903
1,581,596
693,098
10,268
Accruals and deferred income
2,718,105
1,513,656
6,950
6,950
10,787,105
10,650,603
2,238,735
185,295

 

 

18
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
19
3,893,192
6,882,995
-
0
-
0
Other borrowings
19
2,523,266
3,063,229
1,830,766
2,470,729
Other creditors
117,450
2,450
-
0
-
0
6,533,908
9,948,674
1,830,766
2,470,729
19
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
4,222,780
7,534,411
-
0
-
0
Bank overdrafts
6,448
-
0
-
0
-
0
Other loans
2,523,266
3,113,229
1,830,766
2,470,729
6,752,494
10,647,640
1,830,766
2,470,729
Payable within one year
336,036
701,416
-
0
-
0
Payable after one year
6,416,458
9,946,224
1,830,766
2,470,729

Bank loans are secured by fixed charges over the freehold and leasehold properties interests owned by the Group.

SOLITAIRE RESTAURANTS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 30 -
20
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Group
£
£
£
£
Accelerated capital allowances
5,439,510
5,431,201
43,526
29,139
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 June 2022
5,402,062
-
Credit to profit or loss
(6,078)
-
Liability at 31 May 2023
5,395,984
-

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

21
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
192,868
28,844

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

22
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each
80
80
80
80
23
Reserves
Equity reserve

Called-up share capital -- represents the nominal value of shares that have been issued.

SOLITAIRE RESTAURANTS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
23
Reserves
(Continued)
- 31 -
Profit and loss reserves

Profit and loss account -- includes all current and prior period retained profits and losses.

 

24
Operating lease commitments
Lessee

The operating leases represent leases of properties from third parties. The leases are negotiated over terms of 1-20 years and rentals are fixed for 1-5 years. Certain leases include a provision for five-yearly upward rent reviews according to prevailing market conditions. There are also options in place for either party to extend the lease terms scriptions if required.

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
1,670,615
1,104,730
-
-
Between two and five years
6,682,460
4,289,920
-
-
In over five years
18,376,765
18,015,410
-
-
26,729,840
23,410,060
-
-
25
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
6,848,177
7,363,132
Adjustments for:
Taxation charged
1,796,756
2,012,469
Finance costs
320,866
154,348
Investment income
(22,083)
(818)
Loss on disposal of tangible fixed assets
24,861
50,145
(Gain)/loss on disposal of investment property
-
0
50,000
(Gain)/loss on disposal of intangible assets
(990,846)
3,970
Amortisation and impairment of intangible assets
729,849
827,850
Depreciation and impairment of tangible fixed assets
1,013,690
1,189,890
Other gains and losses
(619,531)
-
Movements in working capital:
Decrease/(increase) in stocks
32,238
(102,108)
(Increase)/decrease in debtors
(665,503)
1,563,149
Increase in creditors
721,080
473,920
Cash generated from operations
9,189,554
13,585,947
SOLITAIRE RESTAURANTS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 32 -
26
Cash (absorbed by)/generated from operations - company
2023
2022
£
£
Profit for the year after tax
3,141,989
1,627,351
Adjustments for:
Taxation charged
55,554
61,558
Finance costs
67
789
Investment income
(3,109,445)
(1,619,321)
Depreciation and impairment of tangible fixed assets
38,370
38,370
Other gains and losses
100
-
Movements in working capital:
(Increase)/decrease in debtors
(6,014,844)
2,843,876
Increase/(decrease) in creditors
2,104,456
(112,140)
Cash (absorbed by)/generated from operations
(3,783,753)
2,840,483
27
Analysis of changes in net funds - group
1 June 2022
Cash flows
Other non-cash changes
31 May 2023
£
£
£
£
Cash at bank and in hand
15,230,186
(6,986,052)
-
8,244,134
Bank overdrafts
-
0
(6,448)
-
(6,448)
15,230,186
(6,992,500)
-
8,237,686
Borrowings excluding overdrafts
(10,647,640)
3,266,344
635,250
(6,746,046)
4,582,546
(3,726,156)
635,250
1,491,640
28
Analysis of changes in net debt - company
1 June 2022
Cash flows
31 May 2023
£
£
£
Cash at bank and in hand
1,710,645
(1,620,908)
89,737
Borrowings excluding overdrafts
(2,470,729)
639,963
(1,830,766)
(760,084)
(980,945)
(1,741,029)
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