REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JULY 2023 |
FOR |
GUYS EATING ESTABLISHMENTS LIMITED |
REGISTERED NUMBER: |
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: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants & Statutory Auditors |
Chandler House |
7 Ferry Road Office Park |
Riversway |
Preston |
Lancashire |
PR2 2YH |
BANKERS: |
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: |
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 £ |
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. |
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: |
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. |
for and on behalf of |
Chartered Accountants & Statutory Auditors |
Chandler House |
7 Ferry Road Office Park |
Riversway |
Preston |
Lancashire |
PR2 2YH |
GUYS EATING ESTABLISHMENTS LIMITED (REGISTERED NUMBER: 01534394) |
INCOME STATEMENT |
FOR THE YEAR ENDED 30 JULY 2023 |
30/7/23 | 30/7/22 |
Notes | £ | £ |
TURNOVER |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
(144,171 | ) | 229,503 |
Other operating income | 3 |
OPERATING (LOSS)/PROFIT | 5 | ( |
) |
Interest receivable and similar income |
(144,171 | ) | 241,117 |
Interest payable and similar expenses | 6 |
(LOSS)/PROFIT BEFORE TAXATION | ( |
) |
Tax on (loss)/profit | 7 | (63,902 | ) | 44,462 |
(LOSS)/PROFIT FOR THE FINANCIAL YEAR |
( |
) |
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 | ( |
) |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
( |
) |
GUYS EATING ESTABLISHMENTS LIMITED (REGISTERED NUMBER: 01534394) |
BALANCE SHEET |
30 JULY 2023 |
30/7/23 | 30/7/22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 |
CURRENT ASSETS |
Stocks | 10 |
Debtors | 11 |
Cash at bank and in hand | 12 |
CREDITORS |
Amounts falling due within one year | 13 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
14 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 18 | ( |
) |
NET ASSETS |
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 |
The financial statements were approved by the Board of Directors and authorised for issue on |
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 |
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 |
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 |
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 |
Social security costs |
Other pension costs |
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 |
30/7/23 | 30/7/22 |
£ | £ |
Directors' remuneration |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
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 |
Other operating leases |
Depreciation - owned assets |
Loss on disposal of fixed assets |
Auditors' remuneration |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
30/7/23 | 30/7/22 |
£ | £ |
Bank interest |
Other loan interest |
Interest on overdue taxation |
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 | ( |
) |
Deferred tax | ( |
) |
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 | ( |
) |
(Loss)/profit multiplied by the standard rate of corporation tax in the UK of |
( |
) |
Effects of: |
Expenses not deductible for tax purposes |
Capital allowances in excess of depreciation | ( |
) | ( |
) |
Adjustments to tax charge in respect of previous periods |
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 |
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 |
Additions |
At 30 July 2023 |
DEPRECIATION |
At 31 July 2022 |
Charge for year |
At 30 July 2023 |
NET BOOK VALUE |
At 30 July 2023 |
At 30 July 2022 |
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 |
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 |
Other debtors |
Amounts owed by group undertakings | 1,099,827 | 1,087,375 |
Tax |
Deferred tax asset |
Prepayments |
12. | CASH AT BANK AND IN HAND |
30/7/23 | 30/7/22 |
£ | £ |
Bank account | - | 439,906 |
Cash in hand |
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) |
Other loans (see note 15) |
Trade creditors |
Tax |
Social security and other taxes |
Other creditors | 42,403 | 34,074 |
Accrued expenses |
14. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
30/7/23 | 30/7/22 |
£ | £ |
Bank loans (see note 15) |
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 |
Bank loans - less than 1 year | 69,585 | 63,506 |
Other loans - less than 1 year |
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 |
Between one and five years |
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 |
Bank loans |
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 |
Credit to Income Statement during year | ( |
) |
Change in tax rates |
Balance at 30 July 2023 | ( |
) |
19. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 30/7/23 | 30/7/22 |
value: | £ | £ |
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. |