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REGISTERED NUMBER: 01534394 (England and Wales)















STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JULY 2023

FOR

GUYS EATING ESTABLISHMENTS LIMITED

GUYS EATING ESTABLISHMENTS LIMITED (REGISTERED NUMBER: 01534394)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JULY 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 5

Report of the Independent Auditors 7

Income Statement 10

Other Comprehensive Income 11

Balance Sheet 12

Statement of Changes in Equity 13

Notes to the Financial Statements 14


GUYS EATING ESTABLISHMENTS LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 30 JULY 2023







DIRECTORS: S A Wilkinson
K A Wilkinson



SECRETARY: K A Wilkinson



REGISTERED OFFICE: Chandler House
7 Ferry Road Office Park
Riversway
Preston
Lancashire
PR2 2YH



REGISTERED NUMBER: 01534394 (England and Wales)



AUDITORS: Wallwork Nelson & Johnson
Chartered Accountants & Statutory Auditors
Chandler House
7 Ferry Road Office Park
Riversway
Preston
Lancashire
PR2 2YH



BANKERS: NatWest Bank plc
35 Fishergate
Preston
Lancashire
PR1 2AD

GUYS EATING ESTABLISHMENTS LIMITED (REGISTERED NUMBER: 01534394)

STRATEGIC REPORT
FOR THE YEAR ENDED 30 JULY 2023

The directors present their strategic report for the year ended 30 July 2023.

REVIEW OF BUSINESS

The principal activities of the Company are that of restaurateurs and hoteliers.

29 July 2023 30 July 2022

£ £

Turnover 5,057,006 5,612,258

Gross Profit 3,319,494 3,938,671

Gross Profit % 65.64% 70.18%

Operating profit/(loss) (144,171 ) 240,831


The results for the year ended 29 July 2023 show a downturn in trade when compared to the year ended 30 July 2022.

The directors consider the reason to be the economic pressure that the whole hospitality sector have experienced during the year and continue to experience currently. The company also faced pressures unique to its own business.

The factors influencing the fall in turnover from £5.6m in the year to 30 July 2022 to £5m for the year to 29 July 2023 are as follows.

The site is affected by the weather. The canal side location is popular with visitors from a wider area when the weather is good, and visitors are attracted to the outside seating areas to enjoy the sunshine. The period from April through August provides the best trading months and give the company the resources to continue operations through the leaner months. Records of the local weather shows that August 2022 was the wettest month of the year to 31 December 2022 with April to July 2023 seeing more rain than in the same period for 2022. Hence, the trade for these months were lower than in previous years.

The directors are of the opinion that the reduced gross profit percentage of 65.64% (2022: 70.18%) and the operating loss of £144,171 (2022: Profit £240,831) have been affected by the following economic factors that are not wholly under the company's control.

It is widely recognised that the costs of foods such as butter, oil, flour, pasta and other stuffs have significantly increased all of which are vital ingredients to the food served in the restaurant. As with every business in the UK, the company has faced significant increases in the cost of energy. Due to the size and nature of the site, energy costs have significantly increased in the year to 29 July 2023.

The increased costs across various goods and services have caused a cost-of-living crisis with households having less disposable income to spend on luxuries such as eating out. The company has had to keep its prices competitive to ensure that visitors are still attracted to the site. Hence, not all the increases in costs have been passed onto the customer, thus reducing gross profit percentage and contributing to the operating loss.


GUYS EATING ESTABLISHMENTS LIMITED (REGISTERED NUMBER: 01534394)

STRATEGIC REPORT
FOR THE YEAR ENDED 30 JULY 2023

REVIEW OF BUSINESS (CONTINUED)
During the period of restrictions due to COVID, the government reduced the VAT rate for the hospitality sector. In the year to 30 July 2022, nine months of the year benefitted from reduced VAT rates and thus contributed to the gross profit of 70.18% for the year to 30 July 2022. The VAT rate for the year to 29 July 2023 has remained at the standard rate of 20% throughout the year. Again, this has contributed to the reduced gross profit percentage and the operating loss.

Whilst the restriction associated with COVID were not affecting the day-to-day operation, the uncertainty during 2021 and 2022 prevented the directors from being able to plan the festival event such as the Oyster Festival and the Oktoberfest, which would have generated significant revenue for the company in September and October in past years and had acted as flagship events bringing in new customers and significant publicity for the site.

The profit and loss account shows a loss before tax of £249,763 (2022: profit £171,873). To economy is suffering from high inflation due to the increased costs discussed above, and to address the high rate of inflation, the Bank of England has increased the rate of interest. As the company has substantial borrowings, the costs of servicing that finance has significantly increased over the year, and contributing to the pre-tax loss.

The directors are disappointed with the results and their plans are detailed in the future developments section of this strategic report.

PRINCIPAL RISKS AND UNCERTAINTIES
The management of risks by the directors is maturing. This ensures that we are able to proactively identify and evaluate risks that may affect the ability to achieve strategic objectives. Risk appetite is the level of risk the directors are willing to accept in pursuit of the company's objectives. The level of risk acceptable for principal risks is assessed by the directors on an annual basis and, define their risk appetite against key indicators of potential risk and our ability to reduce risk through mitigation.

Internal and external factors mean that the risks are constantly changing. Risk descriptions are periodically reviewed and updated to ensure that they remain an accurate reflection of the risks faced by the business.

Uncertain UK economic outlook
The uncertain UK economy may result in reduced and changing demand and consumer confidence is weak. Inflation is impacting the cost base across wages, utilities and food costs. Overall, this may lead to declining cashflows, impact on property valuations and increased borrowing costs. To mitigate this risk, the directors continually monitor costs of utilities and food across suppliers and change the supplier to obtain the best price available. The number of staff per shift is monitored against the level of trade on that shift and reduced where necessary.

Talent attraction and retention
Changes in the labour market since Brexit and COVID remain challenging with hotspots in specific roles such as chefs and housekeepers along with real cost of living pressures that impact the attractiveness of hospitality work. Changes in these key roles can cause disruption to customer expectations.

Weather
The business is more attractive to a wider customer base when the weather is good. When the weather is good the site has a competitive edge over others in the hospitality sectors due to an extensive outside seating area. The trade in periods of good weather aids cashflow during leaner months of trade. The directors provide events at the site to encourage visitors to reduce the reliance on good weather.

Health and safety
Death or serious injury arising from company negligence or a significant failure resulting from food, in particular the risk from allergens or other significant safety failure. This could be due to failure in safety standards, supply chain provenance, responsible sourcing or poor hygiene standards. This could lead to adverse publicity, loss of revenue, brand damage and prolonged downturn in demand. The directors have become more aware of the effects of slipping hygiene standards in the year and are now even more committed to maintain high standards in this area.

FINANCIAL KEY PERFORMANCE INDICATORS
The Directors review a number of key financial indicators on a monthly basis, these include sales versus budget and comparisons of food and drink margins and employment costs. The directors monitor the cash position regularly to ensure any lending conditions are met.


GUYS EATING ESTABLISHMENTS LIMITED (REGISTERED NUMBER: 01534394)

STRATEGIC REPORT
FOR THE YEAR ENDED 30 JULY 2023

FUTURE DEVELOPMENTS
The company continued to face external economic issues in the months after the year end. The increase in the energy prices and the costs of food and drink continued. The cost of living continued to cause a squeeze on peoples' disposable incomes making it difficult for the company to raise prices and pass on the increases in costs. Interest rates remained high making the servicing of the loans more costly.

The directors have assessed the going concern of the business by preparing forecasts which include adjustments for current economic conditions including inflationary adjustments, marginal falls in turnover and a range of interest rates. Current loan facilities are to be reviewed in January 2025. The directors have secured a further loan of £400,000 in July 2024. The directors consider the time frames to be sufficient to allow the company to continue in operation whilst the directors look for alternative sources of finance or capital injections or trading conditions improve.

The directors intend to take advantage of a summer of sport and to offer other events to encourage visitors to the site. The directors are monitoring costs closely and look for reductions where possible. In this difficult period of economic uncertainty, the ultimate aim is to at least maintain the current level sales at a reduced cost. With Annual inflation for May 2024 being 2.8% compared to 9.6% at its peak in October 2022, the directors are optimistic that the squeeze on customer disposable incomes may ease.

ON BEHALF OF THE BOARD:





K A Wilkinson - Secretary


29 July 2024

GUYS EATING ESTABLISHMENTS LIMITED (REGISTERED NUMBER: 01534394)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 30 JULY 2023

The directors present their report with the financial statements of the company for the year ended 30 July 2023.

PRINCIPAL ACTIVITY
The principal activities of the company are that of restaurateurs and hoteliers.

DIVIDENDS
The total distribution of dividends for the year ended 30 July 2023 will be £ 150,000 .

EVENTS SINCE THE END OF THE YEAR
Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS
The directors shown below have held office during the whole of the period from 31 July 2022 to the date of this report.

S A Wilkinson
K A Wilkinson

AUDITOR
The auditor, Wallwork Nelson & Johnson, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

STRATEGIC REPORT
The company has chosen in accordance with Companies Act 2006, s 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has been done in respect of :

-Future developments
-Financial risk management objectives and policies

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

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

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

GUYS EATING ESTABLISHMENTS LIMITED (REGISTERED NUMBER: 01534394)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 30 JULY 2023


STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:



K A Wilkinson - Secretary


29 July 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
GUYS EATING ESTABLISHMENTS LIMITED

Opinion
We have audited the financial statements of Guys Eating Establishments Limited (the 'company') for the year ended 30 July 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 30 July 2023 and of its loss for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Material uncertainty relating to going concern
We draw you attention to Note 2 in the financial statements, which indicates that the company has received continuing financial support from its bank and a further loan in July 2024.

The current facilities with the primary bank are agreed until January 2025 and the further finance until July 2025. The company will then require the renewal of these facilities or an alternative injection of capital in order to continue as a going concern.

As stated in note 2, these represent material uncertainties that may cast significant doubt on the company's ability to continue as a going concern.

Our opinion is not modified in respect of this matter. 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.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. However, as not all future events or conditions can be predicted, this statement is not a guarantee as to the company's ability to continue as a going concern.

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
GUYS EATING ESTABLISHMENTS LIMITED


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

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 company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

- Enquiry of management around actual and potential litigation and claims.

- Enquiry of management and entity staff to identify any instances of non compliance with laws and regulations.

- Reviewing financial statement disclosures and testing to support documentation to assess compliance with applicable laws and regulations.

- Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness and evaluating the business rationale of significant transactions outside the normal course of business.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
GUYS EATING ESTABLISHMENTS LIMITED


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




Michael Barker FCCA (Senior Statutory Auditor)
for and on behalf of Wallwork Nelson & Johnson
Chartered Accountants & Statutory Auditors
Chandler House
7 Ferry Road Office Park
Riversway
Preston
Lancashire
PR2 2YH

29 July 2024

GUYS EATING ESTABLISHMENTS LIMITED (REGISTERED NUMBER: 01534394)

INCOME STATEMENT
FOR THE YEAR ENDED 30 JULY 2023

30/7/23 30/7/22
Notes £    £   

TURNOVER 5,057,006 5,612,258

Cost of sales 1,737,512 1,673,587
GROSS PROFIT 3,319,494 3,938,671

Administrative expenses 3,463,665 3,709,168
(144,171 ) 229,503

Other operating income 3 - 11,329
OPERATING (LOSS)/PROFIT 5 (144,171 ) 240,832

Interest receivable and similar income - 285
(144,171 ) 241,117

Interest payable and similar expenses 6 105,592 69,279
(LOSS)/PROFIT BEFORE TAXATION (249,763 ) 171,838

Tax on (loss)/profit 7 (63,902 ) 44,462
(LOSS)/PROFIT FOR THE FINANCIAL
YEAR

(185,861

)

127,376

GUYS EATING ESTABLISHMENTS LIMITED (REGISTERED NUMBER: 01534394)

OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JULY 2023

30/7/23 30/7/22
Notes £    £   

(LOSS)/PROFIT FOR THE YEAR (185,861 ) 127,376


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

(185,861

)

127,376

GUYS EATING ESTABLISHMENTS LIMITED (REGISTERED NUMBER: 01534394)

BALANCE SHEET
30 JULY 2023

30/7/23 30/7/22
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 9 5,347,488 5,335,793

CURRENT ASSETS
Stocks 10 113,005 118,485
Debtors 11 1,230,987 1,198,662
Cash at bank and in hand 12 5,982 448,639
1,349,974 1,765,786
CREDITORS
Amounts falling due within one year 13 1,307,161 1,269,899
NET CURRENT ASSETS 42,813 495,887
TOTAL ASSETS LESS CURRENT
LIABILITIES

5,390,301

5,831,680

CREDITORS
Amounts falling due after more than one
year

14

(1,347,210

)

(1,423,738

)

PROVISIONS FOR LIABILITIES 18 - (28,990 )
NET ASSETS 4,043,091 4,378,952

CAPITAL AND RESERVES
Called up share capital 19 30,500 30,500
Capital redemption reserve 20 3,500 3,500
Other reserve 20 2,597,283 2,597,283
Retained earnings 20 1,411,808 1,747,669
SHAREHOLDERS' FUNDS 4,043,091 4,378,952

The financial statements were approved by the Board of Directors and authorised for issue on 29 July 2024 and were signed on its behalf by:





S A Wilkinson - Director


GUYS EATING ESTABLISHMENTS LIMITED (REGISTERED NUMBER: 01534394)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JULY 2023

Called up Capital
share Retained redemption Other Total
capital earnings reserve reserve equity
£    £    £    £    £   
Balance at 31 July 2021 30,500 1,745,293 3,500 2,597,283 4,376,576

Changes in equity
Dividends - (125,000 ) - - (125,000 )
Total comprehensive income - 127,376 - - 127,376
Balance at 30 July 2022 30,500 1,747,669 3,500 2,597,283 4,378,952

Changes in equity
Dividends - (150,000 ) - - (150,000 )
Total comprehensive income - (185,861 ) - - (185,861 )
Balance at 30 July 2023 30,500 1,411,808 3,500 2,597,283 4,043,091

GUYS EATING ESTABLISHMENTS LIMITED (REGISTERED NUMBER: 01534394)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JULY 2023

1. STATUTORY INFORMATION

Guys Eating Establishments Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


The principal place of business is St. Michael's Road, Bilsborrow, Preston, PR3 0RS.

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 as modified by the revaluation of certain assets.

Financial Reporting Standard 102 - reduced disclosure exemptions
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows;
the requirement of paragraph 33.7.

The company is a wholly owned subsidiary of Thatched Hamlet Limited, a company incorporated in England and Wales. the results of Guys Eating Establishments Limited are included in the consolidated financial statements of Thatched Hamlet Limited which are available from Chandler House, 7 Ferry Road Office Park, Riversway, Preston, PR2 2YH.

Significant judgements and estimates
In the application of the company's accounting policies, management is required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily available 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.

The key judgements and sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described below:

Estimated useful lives and residual values of fixed assets

Depreciation of tangible fixed assets and amortisation of intangible fixed assets have been based on estimated useful lives and residual values deemed appropriate by the directors. Estimated useful lives are reviewed annually and revised as appropriate. Revisions take into account estimated useful lives used by other companies operating in the sector and actual asset lives and residual values, as evidenced by disposals during current and prior accounting periods.

Impairment of tangible fixed assets

The company assesses at each reporting date whether there is an indication that the carrying amount of an asset may not be recoverable. If there is such an indication, then the company estimates the recoverable amount of the asset using the information available at that date. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use. If the recoverable amount is less than the carrying amount, the carrying amount of an asset is impaired and it is reduced to its recoverable value through an impairment in the statement of comprehensive income.

GUYS EATING ESTABLISHMENTS LIMITED (REGISTERED NUMBER: 01534394)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JULY 2023

2. ACCOUNTING POLICIES - continued

Turnover
Turnover is measured at the fair value of the consideration received and is mainly derived from bar and kitchen sales, hotel accommodation sales and the sale of tickets to special events held at various dates during the year, after deducting discounts and value added tax. Turnover is recognised at the point of sale.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold property-not provided
Plant and machinery-15% to 33% on cost
Fixtures and fittings-15% and 20% on cost
Motor vehicles-25% on cost

Tangible fixed assets are stated at cost less accumulated depreciation and any provision for impairment in value.

The non-depreciation of freehold property is a departure from the requirements of the Companies Act 2006 that all tangible fixed assets should be depreciated. The directors are of the opinion that this departure from the requirements of the Companies Act is necessary to show a true and fair view.

Freehold property is valued at the open market value at the date of transition to FRS 102 to establish the deemed cost.

At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If the estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in profit or loss.

If an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

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 sell is recognised as an impairment loss in profit and loss. Reversals of impairment losses are also recognised in profit and loss.

GUYS EATING ESTABLISHMENTS LIMITED (REGISTERED NUMBER: 01534394)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JULY 2023

2. ACCOUNTING POLICIES - continued

Financial instruments
The company has elected to apply the provisions of FRS 102 Section 11 'Basic Financial Instruments' to all of its financial instruments.

A basic financial instrument is a contract that gives rise to a financial asset in one entity and a financial liability or equity instrument of another entity.

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. Trade and other debtors and amounts owed to group undertakings are measured at the undiscounted amount of cash or other consideration expected to be received.

Financial assets are assessed for indicators of impairment at each reporting end date with any impairment loss being recognised in profit and loss.

Basic financial liabilities, including creditors, bank loans and loans to group companies or connected parties are recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.

Bank and other loans and hire purchase contracts are initially measured at the present value of future payments, discounted at a market rate of interest, and subsequently at amortised cost using the effective interest method. Trade creditors are measured at the undiscounted amount of cash or other consideration expected to be paid.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

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.

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

GUYS EATING ESTABLISHMENTS LIMITED (REGISTERED NUMBER: 01534394)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JULY 2023

2. ACCOUNTING POLICIES - continued

Employee benefits
The cost of short-term employee benefits is recognised as a liability and as 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.

Going concern
The financial statements have been prepared on a going concern basis which assumes that the company will be able to meet its liabilities as the fall due for the going concern period to 29 July 2025 being 12 months from approval of the financial statements.

The directors have prepared detailed forecasts and cashflow projection models which have been stress tested to allow them to assess the going concern assumptions.

These forecasts indicate that the company can continue as a going concern under the base case scenario and after stress tests and within existing facilities.

The existing facilities with the company's primary bank, are due to be reviewed in January 2025. The company arranged for a further £400,000 loan as disclosed in Note 22 to the accounts which is due for review in July 2025.

Whilst renewal of the facilities is uncertain, the directors consider time frames to be sufficient to either find alternative sources of finance or capital injections and for trading conditions to improve.

The stress tests factored in current economic conditions including inflationary adjustments, marginal falls in turnover and a range of interest rates.

Having made due and careful enquiry, the directors have satisfied themselves that the company should continue to adopt the going concern basis is preparing the financial statements.

Other income
Government grants receivable consists of funds received under the Coronavirus Job Retention Scheme implemented by the UK Government response to the COVID 19 pandemic as a contribution to employee costs and Coronavirus grants from Wyre BC.

3. OTHER OPERATING INCOME
30/7/23 30/7/22
£    £   
Government grants - 11,329

Government grants receivable consists of funds received under the Coronavirus Job Retention Scheme implemented by the UK Government response to the COVID 19 pandemic as a contribution to employee costs and Coronavirus grants from Wyre BC.

GUYS EATING ESTABLISHMENTS LIMITED (REGISTERED NUMBER: 01534394)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JULY 2023

4. EMPLOYEES AND DIRECTORS
30/7/23 30/7/22
£    £   
Wages and salaries 1,685,405 1,996,513
Social security costs 132,621 153,428
Other pension costs 25,749 58,864
1,843,775 2,208,805

The average number of employees during the year was as follows:
30/7/23 30/7/22

Management and administration 17 17
Sales 97 96
114 113

30/7/23 30/7/22
£    £   
Directors' remuneration 18,192 223,836

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 2 2

5. OPERATING (LOSS)/PROFIT

The operating loss (2022 - operating profit) is stated after charging:

30/7/23 30/7/22
£    £   
Hire of plant and machinery 31,060 43,134
Other operating leases 6,591 7,407
Depreciation - owned assets 32,269 30,875
Loss on disposal of fixed assets - 112
Auditors' remuneration 17,500 14,500

6. INTEREST PAYABLE AND SIMILAR EXPENSES
30/7/23 30/7/22
£    £   
Bank interest 104,792 63,331
Other loan interest - 5,176
Interest on overdue taxation 800 772
105,592 69,279

GUYS EATING ESTABLISHMENTS LIMITED (REGISTERED NUMBER: 01534394)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JULY 2023

7. TAXATION

Analysis of the tax (credit)/charge
The tax (credit)/charge on the loss for the year was as follows:
30/7/23 30/7/22
£    £   
Current tax:
UK corporation tax (25,617 ) 25,902

Deferred tax (38,285 ) 18,560
Tax on (loss)/profit (63,902 ) 44,462

Reconciliation of total tax (credit)/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:

30/7/23 30/7/22
£    £   
(Loss)/profit before tax (249,763 ) 171,838
(Loss)/profit multiplied by the standard rate of corporation tax in the UK of
25% (2022 - 19%)

(62,441

)

32,649

Effects of:
Expenses not deductible for tax purposes 1,860 383
Capital allowances in excess of depreciation (5,341 ) (7,414 )
Adjustments to tax charge in respect of previous periods - 285
Deferred tax charge/(credit)to profit and loss account during year (6,069 ) 4,449
Change in tax rates 8,089 14,110
Total tax (credit)/charge (63,902 ) 44,462

The main rate of income tax was increased from 1 April 2023 from 19% to 25%.

8. DIVIDENDS
30/7/23 30/7/22
£    £   
Interim 150,000 125,000

GUYS EATING ESTABLISHMENTS LIMITED (REGISTERED NUMBER: 01534394)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JULY 2023

9. TANGIBLE FIXED ASSETS
Fixtures
Freehold Plant and and Motor
property machinery fittings vehicles Totals
£    £    £    £    £   
COST OR VALUATION
At 31 July 2022 5,246,690 316,479 268,896 3,958 5,836,023
Additions - 14,317 29,647 - 43,964
At 30 July 2023 5,246,690 330,796 298,543 3,958 5,879,987
DEPRECIATION
At 31 July 2022 - 279,442 216,830 3,958 500,230
Charge for year - 11,268 21,001 - 32,269
At 30 July 2023 - 290,710 237,831 3,958 532,499
NET BOOK VALUE
At 30 July 2023 5,246,690 40,086 60,712 - 5,347,488
At 30 July 2022 5,246,690 37,037 52,066 - 5,335,793

Freehold land and buildings are valued on an open market basis. The original cost of the land and buildings was £3,039,046. A valuation of the land and buildings was carried out on 13 January 2016 by Eckersley Chartered Surveyors, a company external and independent of Guys Eating Establishments Limited. The valuation provided the deemed cost on transition to FRS 102 on 1 February 2016.

10. STOCKS
30/7/23 30/7/22
£    £   
Food, drink and consumables 113,005 118,485

Stock recognised in cost of sales during the year as an expense was £1,723,749 (2022: £1,681,068).

11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
30/7/23 30/7/22
£    £   
Trade debtors 9,578 1,413
Other debtors 10,392 16,282
Amounts owed by group undertakings 1,099,827 1,087,375
Tax 25,805 -
Deferred tax asset 9,296 -
Prepayments 76,089 93,592
1,230,987 1,198,662

12. CASH AT BANK AND IN HAND
30/7/23 30/7/22
£    £   
Bank account - 439,906
Cash in hand 5,982 8,733
5,982 448,639

GUYS EATING ESTABLISHMENTS LIMITED (REGISTERED NUMBER: 01534394)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JULY 2023

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
30/7/23 30/7/22
£    £   
Bank loans and overdrafts (see note 15) 167,430 63,506
Other loans (see note 15) 85,755 76,433
Trade creditors 596,842 544,696
Tax - 21,361
Social security and other taxes 212,888 224,533
Other creditors 42,403 34,074
Accrued expenses 201,843 305,296
1,307,161 1,269,899

14. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
30/7/23 30/7/22
£    £   
Bank loans (see note 15) 1,347,210 1,423,738

15. LOANS

An analysis of the maturity of loans is given below:

30/7/23 30/7/22
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts 97,845 -
Bank loans - less than 1 year 69,585 63,506
Other loans - less than 1 year 85,755 76,433
253,185 139,939

Amounts falling due between one and two years:
Bank loans 1-2 years (partly after 5 years) 71,670 65,825

Amounts falling due between two and five years:
Bank loan 2-5 years (payable partly after 5
years)

1,275,540

1,357,913

16. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
30/7/23 30/7/22
£    £   
Within one year 103,000 90,395
Between one and five years 304,904 341,760
407,904 432,155

GUYS EATING ESTABLISHMENTS LIMITED (REGISTERED NUMBER: 01534394)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JULY 2023

17. SECURED DEBTS

The following secured debts are included within creditors:

30/7/23 30/7/22
£    £   
Bank overdraft 97,845 -
Bank loans 1,416,795 1,487,244
1,514,640 1,487,244

The bank loan and overdraft are secured by way of a legal charge over the assets of the company.

18. PROVISIONS FOR LIABILITIES
30/7/22
£   
Deferred tax 28,990

Deferred
tax
£   
Balance at 31 July 2022 28,990
Credit to Income Statement during year (38,286 )
Change in tax rates
Balance at 30 July 2023 (9,296 )

19. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 30/7/23 30/7/22
value: £    £   
30,500 Ordinary £1 30,500 30,500

20. RESERVES
Capital
Retained redemption Other
earnings reserve reserve Totals
£    £    £    £   

At 31 July 2022 1,747,669 3,500 2,597,283 4,348,452
Deficit for the year (185,861 ) (185,861 )
Dividends (150,000 ) (150,000 )
At 30 July 2023 1,411,808 3,500 2,597,283 4,012,591

21. RELATED PARTY DISCLOSURES

The company has taken advantage of the exemption available under FRS 102 Section 33 not to disclose related party transactions between wholly owned subsidiaries within the group.

Guys Executive Pension Scheme
During the year the company rented land and buildings from the Guys Executive Pension Scheme to the value of £85,000 (2022: £85,000).The directors are beneficiaries of the scheme.

GUYS EATING ESTABLISHMENTS LIMITED (REGISTERED NUMBER: 01534394)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JULY 2023

22. POST BALANCE SHEET EVENTS

In July 2024, the company secured an injection of £400,000 loan finance to secure the company's short term cashflow position such that it can continue to pay debts as they fall due.

23. ULTIMATE CONTROLLING PARTY

The company is owned and controlled by Thatched Hamlet Limited, a holding company registered in England and Wales. Thatched Hamlet Limited is ultimately owned and controlled by S A Wilkinson and K A Wilkinson, directors, by way of their shareholdings. Thatched Hamlet Limited prepare group accounts which include the results of this company.