REGISTERED NUMBER: 11139878 (England and Wales) |
Group Strategic Report, Report of the Director and |
Consolidated Financial Statements for the Year Ended 31 July 2023 |
for |
Exultant Holdings Limited |
REGISTERED NUMBER: 11139878 (England and Wales) |
Group Strategic Report, Report of the Director and |
Consolidated Financial Statements for the Year Ended 31 July 2023 |
for |
Exultant Holdings Limited |
Exultant Holdings Limited (Registered number: 11139878) |
Contents of the Consolidated Financial Statements |
for the Year Ended 31 July 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Director | 4 |
Report of the Independent Auditors | 6 |
Consolidated Statement of Comprehensive Income |
10 |
Consolidated Balance Sheet | 11 |
Company Balance Sheet | 12 |
Consolidated Statement of Changes in Equity | 13 |
Company Statement of Changes in Equity | 14 |
Consolidated Cash Flow Statement | 15 |
Company Cash Flow Statement | 16 |
Notes to the Consolidated Financial Statements | 17 |
Exultant Holdings Limited |
Company Information |
for the Year Ended 31 July 2023 |
DIRECTOR: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
2nd Floor |
Grove House |
55 Lowlands Road |
Harrow |
Middlesex |
HA1 3AW |
Exultant Holdings Limited (Registered number: 11139878) |
Group Strategic Report |
for the Year Ended 31 July 2023 |
The director presents his strategic report of the company and the group for the year ended 31 July 2023. |
REVIEW OF BUSINESS |
The group's results for the year and the financial position at the year-end were considered satisfactory by the directors. |
The management is headed by Mizan Syed having a vast experience in the QSR sector and take away food industry. Store count over England is 28 in the course of the reporting period with a number of new stores in purchased after the year end , the continued growth and success of the group will sustained. |
The group has continued to perform with in management expectations and the group continues to maintain a healthy balance of working capital to meet its liabilities. The group has managed the challenge mostly driven by the accelerated growth of third party aggregators like Deliveroo, Just Eat & Uber Eats. Pizza Hut's e-channel managed to claw back a lot of it's customers through the on line portal via Pizza Hut Digital Ventures customer ordering platform. |
Improvements in marketing, establishing a more frictionless customer journey, providing deals that offered a stronger value proposition and partnering with the third party aggregators saw sales and profit rise significantly in the second half of the trading year. |
Furthermore, the business continued to position itself for sustained long-term growth by investing in the staffing structure and providing developmental training across the group. The group is closely working with its Franchisees and has invested in new available technology e.g. Pizza Hut Digital Ventures, Pizza Hut Loyalty Scheme, Just Eat, Deliveroo and other Third Party Aggregators, Dragon Tail systems, Zonal EPOS systems and Fourth labour scheduling tools. All this new technology will help increase the customer experience, reflecting on higher top line growth, enabling more efficiencies in key cost lines and hence leading to better overall financial results. |
Post year end, the group has performed broadly in line with the Director's expectation and continues to grow despite increasing cost of sales and reducing margins. In addition, the new subsidiary was incorporated as another fast food chain franchise. |
Exultant Holdings Limited (Registered number: 11139878) |
Group Strategic Report |
for the Year Ended 31 July 2023 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The Director regards the following as the principal risks and uncertainties for the company: |
Financial risks |
The exposure to credit risk is not high as all the consumer sales are paid for by the customer at the point of order with the payment being made by the major online payment providers typically within 3 days. The rapid receipt of cash from customers also reduces the exposure to risks surrounding cash flows allowing the company to maintain sufficient cash reserves to meet its payments as they fall due. The company monitors the financial risks carefully and has strategies in place to manage these effectively. |
Competitive risks |
The fast food market is a competitive and over-crowded market, however due to a strong brand and established position in the market place Pizza Hut is able to mitigate these risks. Performance is carefully monitored across all stores via a daily review of a specific range of KPIs. |
Commercial risks |
The principal activity within the company is managing the Pizza Hut branches. The main commercial risks facing the business is ensuring the procedures and standards required by Pizza Hut are satisfied, so the customer journey is consistent across all the franchisees. The business has policies and procedures in place to ensure that on an ongoing basis its commercial risks are carefully monitored and mitigated against. The business has procedures in place to ensure its Franchise agreement is being adhered to. |
KEY PERFORMANCE INDICATORS |
The key financial performance indicators used to determine the progress and performance of the group are set out below: |
PE 31.07.23 | PE 31.07.22 |
£ | £ |
Turnover | 16,033,083 | 15,236,393 |
Gross profit | 4,004,298 | 5,016,219 |
Gross profit margin | 24.98% | 32..92% |
(loss) /Profit before tax | (835,478) | 678,712 |
Shareholders' equity | 2,892,721 | 4,111,200 |
As a result of the above, it will be appropriate to review them next year for an understanding of the business. |
ON BEHALF OF THE BOARD: |
Exultant Holdings Limited (Registered number: 11139878) |
Report of the Director |
for the Year Ended 31 July 2023 |
The director presents his report with the financial statements of the company and the group for the year ended 31 July 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of The principal activity of the parent continued to be that of a holding company. |
The principal activity of the subsidiaries were that of operating fast food franchised restaurants, property investments and franchised fitness gyms. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 July 2023. |
DIRECTOR |
FINANCIAL INSTRUMENTS |
Interest rate risk - The group borrows from its bankers using term loans whose tenure depends on the nature of the assets and management's view of the future direction on interest rate. |
Liquidity risk - The objective of the group in managing liquidity risk is to ensure that it can meet its financial obligations as and when they fall due.The group expects to meet its financial obligations through operating cashflow. Given the maturity of the bank loan, the group is in a position to meet its commitments and obligations as they come due. |
EMPLOYMENT OF DISABLED PERSONS |
The company gives full consideration to applications for employment from disabled persons where the requirements of the job can be adequately fulfilled by a disabled person. where existing employees become disabled, it is company's policy wherever practicable to provide continuing employment under normal terms and conditions and to provide training, career development and promotion to disabled employees wherever appropriate. |
EMPLOYEE INVOLVEMENT |
The directors consider that the involvement of employees is important to the success of the company, employees are regularly informed of the company's performance and progress at both formal and informal meetings. |
Exultant Holdings Limited (Registered number: 11139878) |
Report of the Director |
for the Year Ended 31 July 2023 |
STATEMENT OF DIRECTOR'S RESPONSIBILITIES |
The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations. |
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the director is 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 director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
AUDITORS |
The auditors, RA Audit Services Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Exultant Holdings Limited |
Opinion |
We have audited the financial statements of Exultant Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 July 2023 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement, Company Cash Flow Statement 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 group's and of the parent company affairs as at 31 July 2023 and of the group's 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 group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report. |
Report of the Independent Auditors to the Members of |
Exultant Holdings Limited |
Other information |
The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Director. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of director's remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of director |
As explained more fully in the Statement of Director's Responsibilities set out on page five, the director is 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 director determines 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 director is responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the group or the parent company or to cease operations, or has no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
Exultant Holdings Limited |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Irregularities including fraud are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. |
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: |
The client partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify and recognise non-compliance with applicable laws and regulations. |
1) We identified the laws and regulations applicable to the group through discussions with directors, key management personnel and from our commercial knowledge and experience. |
2) We focused on specific laws and regulations which we considered may have a direct effect on financial statements or the operations of the group including Companies Act 2006, current taxation legislation, data protection, anti-bribery and money laundering, employment and health and safety legislation. |
3) We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management. |
4) Identified laws and regulations were communicated with the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. |
We assessed the susceptibility of the group's financial statements to material misstatement, including obtaining an understanding of how fraud might occur by; |
1) Making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual suspected and alleged fraud and |
2) Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. |
To address the risk of fraud through management bias and override of controls, we: |
1) Performed analytical procedures to identify any unusual and unexpected relationships, |
2) Tested journal entries to identify unusual transactions, |
3) Investigated the rationale behind significant or unusual transactions. |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
1) Agreeing financial statements disclosures to underlying supporting documentation. |
2) Enquiring of management as to actual and potential litigation and claims and |
3) Reviewing correspondence with HMRC, enquiring of management over health and safety. |
Report of the Independent Auditors to the Members of |
Exultant Holdings Limited |
There are inherent limitations in our audit procedures described above. Auditing standards also limit the audit procedures required to identifying non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. |
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
2nd Floor |
Grove House |
55 Lowlands Road |
Harrow |
Middlesex |
HA1 3AW |
Exultant Holdings Limited (Registered number: 11139878) |
Consolidated Statement of Comprehensive Income |
for the Year Ended 31 July 2023 |
Period |
1.2.21 |
Year Ended | to |
31.7.23 | 31.7.22 |
Notes | £ | £ |
TURNOVER | 16,033,083 | 15,236,393 |
Cost of sales | 12,028,785 | 10,220,174 |
GROSS PROFIT | 4,004,298 | 5,016,219 |
Administrative expenses | 4,840,241 | 4,333,844 |
(835,943 | ) | 682,375 |
Other operating income | 32,948 | - |
OPERATING (LOSS)/PROFIT | 5 | (802,995 | ) | 682,375 |
Interest receivable and similar income |
- |
7,030 |
(802,995 | ) | 689,405 |
Interest payable and similar expenses |
6 |
32,483 |
10,693 |
(LOSS)/PROFIT BEFORE TAXATION | (835,478 | ) | 678,712 |
Tax on (loss)/profit | 7 | 383,001 | 571,505 |
(LOSS)/PROFIT FOR THE FINANCIAL YEAR |
( |
) |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
(1,218,479 |
) |
107,207 |
(Loss)/profit attributable to: |
Owners of the parent | (1,218,479 | ) | 107,207 |
Total comprehensive income attributable to: |
Owners of the parent | (1,218,479 | ) | 107,207 |
Exultant Holdings Limited (Registered number: 11139878) |
Consolidated Balance Sheet |
31 July 2023 |
31.7.23 | 31.7.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 | 117,545 | 58,269 |
Tangible assets | 11 | 4,275,880 | 2,538,067 |
Investments | 12 | - | - |
Investment property | 13 | 1,207,186 | 1,207,186 |
5,600,611 | 3,803,522 |
CURRENT ASSETS |
Stocks | 14 | 133,684 | 120,353 |
Debtors | 15 | 1,000,659 | 409,022 |
Cash at bank and in hand | 488,059 | 2,614,577 |
1,622,402 | 3,143,952 |
CREDITORS |
Amounts falling due within one year | 16 | 2,788,479 | 1,973,413 |
NET CURRENT (LIABILITIES)/ASSETS | (1,166,077 | ) | 1,170,539 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
4,434,534 |
4,974,061 |
CREDITORS |
Amounts falling due after more than one year |
17 |
(776,507 |
) |
(375,126 |
) |
PROVISIONS FOR LIABILITIES | 20 | (765,306 | ) | (487,735 | ) |
NET ASSETS | 2,892,721 | 4,111,200 |
CAPITAL AND RESERVES |
Called up share capital | 21 | 500 | 500 |
Retained earnings | 2,892,221 | 4,110,700 |
SHAREHOLDERS' FUNDS | 2,892,721 | 4,111,200 |
The financial statements were approved by the director and authorised for issue on 25 July 2024 and were signed by: |
M Syed - Director |
Exultant Holdings Limited (Registered number: 11139878) |
Company Balance Sheet |
31 July 2023 |
31.7.23 | 31.7.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 |
Tangible assets | 11 |
Investments | 12 |
Investment property | 13 |
CURRENT ASSETS |
Debtors | 15 |
CREDITORS |
Amounts falling due within one year | 16 |
NET CURRENT ASSETS/(LIABILITIES) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
( |
) |
CAPITAL AND RESERVES |
Called up share capital | 21 |
Retained earnings | ( |
) |
SHAREHOLDERS' FUNDS | ( |
) |
Company's profit for the financial year |
250,000 |
14,750 |
The financial statements were approved by the director and authorised for issue on |
Exultant Holdings Limited (Registered number: 11139878) |
Consolidated Statement of Changes in Equity |
for the Year Ended 31 July 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 February 2021 | 1 | 4,023,493 | 4,023,494 |
Changes in equity |
Issue of share capital | 499 | - | 499 |
Dividends | - | (20,000 | ) | (20,000 | ) |
Total comprehensive income | - | 107,207 | 107,207 |
Balance at 31 July 2022 | 500 | 4,110,700 | 4,111,200 |
Changes in equity |
Total comprehensive income | - | (1,218,479 | ) | (1,218,479 | ) |
Balance at 31 July 2023 | 500 | 2,892,221 | 2,892,721 |
Exultant Holdings Limited (Registered number: 11139878) |
Company Statement of Changes in Equity |
for the Year Ended 31 July 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 February 2021 |
Changes in equity |
Issue of share capital | - |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 July 2022 | ( |
) | ( |
) |
Changes in equity |
Total comprehensive income | - |
Balance at 31 July 2023 |
Exultant Holdings Limited (Registered number: 11139878) |
Consolidated Cash Flow Statement |
for the Year Ended 31 July 2023 |
Period |
1.2.21 |
Year Ended | to |
31.7.23 | 31.7.22 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 24 | (257,107 | ) | 3,127,914 |
Interest paid | (32,483 | ) | (10,693 | ) |
Tax paid | (118,028 | ) | - |
Net cash from operating activities | (407,618 | ) | 3,117,221 |
Cash flows from investing activities |
Purchase of intangible fixed assets | (74,765 | ) | (52,393 | ) |
Purchase of tangible fixed assets | (2,155,517 | ) | (591,199 | ) |
Purchase of investment property | - | (365,469 | ) |
Interest received | - | 7,030 |
Net cash from investing activities | (2,230,282 | ) | (1,002,031 | ) |
Cash flows from financing activities |
New loans in year | 607,000 | 518,888 |
Loan repayments in year | (205,618 | ) | - |
Amount introduced by directors | 110,000 | - |
Share issue | - | 499 |
Equity dividends paid | - | (20,000 | ) |
Net cash from financing activities | 511,382 | 499,387 |
(Decrease)/increase in cash and cash equivalents | (2,126,518 | ) | 2,614,577 |
Cash and cash equivalents at beginning of year |
25 |
2,614,577 |
- |
Cash and cash equivalents at end of year |
25 |
488,059 |
2,614,577 |
Exultant Holdings Limited (Registered number: 11139878) |
Company Cash Flow Statement |
for the Year Ended 31 July 2023 |
Period |
1.2.21 |
Year Ended | to |
31.7.23 | 31.7.22 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 24 | ( |
) | ( |
) |
Net cash from operating activities | ( |
) | ( |
) |
Cash flows from investing activities |
Purchase of fixed asset investments | (100 | ) | (4 | ) |
Dividends received |
Net cash from investing activities |
Cash flows from financing activities |
Share issue |
Equity dividends paid | ( |
) |
Net cash from financing activities | ( |
) |
Increase in cash and cash equivalents |
Cash and cash equivalents at beginning of year |
25 |
- |
Cash and cash equivalents at end of year |
25 |
- |
- |
Exultant Holdings Limited (Registered number: 11139878) |
Notes to the Consolidated Financial Statements |
for the Year Ended 31 July 2023 |
1. | STATUTORY INFORMATION |
Exultant Holdings Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Basis of consolidation |
This is the first year, consolidated financial statements are being prepared for Exultant Holdings Limited as per acquisition accounting as it acquired following subsidiaries during the year: |
1. Exultant Limited |
2. Exultant Properties Limited |
3. Exultant Pizza Limited |
4. Exultant Fitness Limited |
In the parent company financial statements, the cost of 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 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. Investment in subsidiaries are accounted for at cost less impairment. |
The consolidated financial statements incorporate those of Exultant Holdings Limited and all of its subsidiaries (i.e. entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes. |
All financial statements are made up to 31 July 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. |
Exultant Holdings Limited (Registered number: 11139878) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2023 |
2. | ACCOUNTING POLICIES - continued |
Going concern |
Management has considered the post balance sheet events, and other conditions, and it has determined that they do not create a material uncertainty that casts significant doubt upon group's ability to continue as a going concern. Improving operating results and financial position after the balance sheet date indicates the going concern assumption is still appropriate. |
Turnover |
Turnover comprises the fair value of the sale of goods to external customers, net of value added tax, and returns. Turnover is recognised on the sale of goods when the significant risks and rewards of ownership of goods have passed to the buyer and the amount of revenue can be measured reliably. Turnover on goods delivered is recognised when the customer accepts delivery. Turnover also includes income receivable from fitness gym. |
Intangible assets - goodwill |
Goodwill arising on acquisitions, represents any excess of the fair value of the consideration given over the fair value of the identifiable assets acquired, and is capitalised and written off on a straight line basis over its useful economic life, up to a maximum 10 years. In estimating the useful economic life of goodwill, account has been taken of the nature of the business acquired and the period over which the value of the business will remain in excess of its tangible assets. Goodwill is reviewed for impairment at the end of the first full year following the acquisition and in other periods if events or changes in circumstances indicate that the carrying value may not be recoverable. |
Intangible assets - franchisee fees |
Franchisee fees are initially measured at cost. After initial recognition, they are measured at cost less and accumulated amortisation and any accumulated impairment losses. |
Franchisee fees are being amortised over its estimated useful life of ten years. |
Tangible fixed assets |
Freehold property | - |
Short leasehold | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
Freehold land is not being depreciated. |
Tangible fixed assets are measured at cost, net of depreciation and any impairment losses. |
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 credited or charged to profit or loss. |
Exultant Holdings Limited (Registered number: 11139878) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2023 |
2. | ACCOUNTING POLICIES - continued |
Investment property |
Investment property which is property held to earn rentals and or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss account. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Stocks are stated at the lower of cost and net realisable value. At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price is recognised as an impairment loss in profit or loss. |
Reversals of impairment losses are also recognised in profit or loss. |
Financial instruments |
The group has elected to apply the provision of Section 11 `Basic Financial Instruments` and Section 12 Other Financial Instruments Issues` of FRS 102 to all of its financial instruments. |
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 arrangements constitute 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. |
Impairment of financial assets |
Financial assets 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. |
Classification of financial liabilities |
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity is any contract that evidences are residual interest in the assets of the group after deducting all of its liabilities |
Basic financial liabilities |
Basic financial liabilities include creditors and bank loans are initially recognised at transaction price unless the arrangement constitute a financing transaction, where the debt instrument is measured at the present value of the future receipts 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. |
Exultant Holdings Limited (Registered number: 11139878) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2023 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred 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. |
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. |
Rentals paid under operating leases including any lease incentives received, 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 group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Cash and cash equivalents |
Cash at bank and in hand are basic financial assets and include cash in hand and deposits held at call with banks and bank overdraft. Bank overdrafts are shown within borrowings in current liabilities. |
Equity instruments |
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they no longer at the discretion of the company. |
Reporting period |
The group's reporting period has changed, and the financial statements presented are for a period longe than one year. The reason for this is to have all the companies in the group to have the same year end date. |
Exultant Holdings Limited (Registered number: 11139878) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2023 |
3. | CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCER |
In the application of the group's accounting policies, the directors are required to make judgments estimates and assumptions about the carrying amount of the assets and liabilities that are not readily apparent from other 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. |
Key Sources of estimation uncertainty |
The following judgements have had the most significant effect on amounts recognised in the financial statements. |
Useful lives of intangible fixed assets |
Intangible fixed assets consist of goodwill and fanchisee fees. The annual amortisation charge depends on estimated useful economic life of the asset. The directors regularly review the remaining useful life of these assets. Changes in asset's useful economic life can have a significant impact on amortisation charge for the period. Detail of the useful economic life is included in accounting policies. |
Useful lives of tangible fixed assets |
The costs of tangible fixed assets less their residual value are depreciated over their estimated useful economic lives which are estimated by the director. Changes in the expected level of usage and technological developments could impact on the useful economic lives of these assets; therefore, further depreciation charges could be revised. |
4. | EMPLOYEES AND DIRECTORS |
Period |
1.2.21 |
Year Ended | to |
31.7.23 | 31.7.22 |
£ | £ |
Wages and salaries | 6,139,860 | 4,797,426 |
Social security costs | 310,837 | 254,277 |
Other pension costs | 38,071 | 18,123 |
6,488,768 | 5,069,826 |
The average number of employees during the year was as follows: |
Period |
1.2.21 |
Year Ended | to |
31.7.23 | 31.7.22 |
Employees | 428 | 396 |
Director | 1 | - |
Exultant Holdings Limited (Registered number: 11139878) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2023 |
4. | EMPLOYEES AND DIRECTORS - continued |
The average number of employes during the year for the company was 1 (2021: 1). |
Period |
1.2.21 |
Year Ended | to |
31.7.23 | 31.7.22 |
£ | £ |
Director's remuneration | 30,000 | 43,500 |
5. | OPERATING (LOSS)/PROFIT |
The operating loss (2022 - operating profit) is stated after charging: |
Period |
1.2.21 |
Year Ended | to |
31.7.23 | 31.7.22 |
£ | £ |
Other operating leases | 309,138 | 240,660 |
Depreciation - owned assets | 417,703 | 357,365 |
Goodwill amortisation | 4,750 | 4,750 |
Patents and licences amortisation | 10,739 | 874 |
Auditors' remuneration | 9,500 | 14,750 |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
Period |
1.2.21 |
Year Ended | to |
31.7.23 | 31.7.22 |
£ | £ |
Bank interest | 278 | - |
Bank loan interest | 26,607 | 10,693 |
Interest payable | 5,598 | - |
32,483 | 10,693 |
Exultant Holdings Limited (Registered number: 11139878) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2023 |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the loss for the year was as follows: |
Period |
1.2.21 |
Year Ended | to |
31.7.23 | 31.7.22 |
£ | £ |
Current tax: |
UK corporation tax | 105,430 | 83,770 |
Deferred tax | 277,571 | 487,735 |
Tax on (loss)/profit | 383,001 | 571,505 |
8. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements. |
9. | DIVIDENDS |
Period |
1.2.21 |
Year Ended | to |
31.7.23 | 31.7.22 |
£ | £ |
Ordinary share of 1 |
Final | - | 20,000 |
Exultant Holdings Limited (Registered number: 11139878) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2023 |
10. | INTANGIBLE FIXED ASSETS |
Group |
Patents |
and |
Goodwill | licences | Totals |
£ | £ | £ |
COST |
At 1 August 2022 | 613,513 | 52,393 | 665,906 |
Additions | - | 74,765 | 74,765 |
At 31 July 2023 | 613,513 | 127,158 | 740,671 |
AMORTISATION |
At 1 August 2022 | 606,763 | 874 | 607,637 |
Amortisation for year | 4,750 | 10,739 | 15,489 |
At 31 July 2023 | 611,513 | 11,613 | 623,126 |
NET BOOK VALUE |
At 31 July 2023 | 2,000 | 115,545 | 117,545 |
At 31 July 2022 | 6,750 | 51,519 | 58,269 |
11. | TANGIBLE FIXED ASSETS |
Group |
Freehold | Short | Plant and |
property | leasehold | machinery |
£ | £ | £ |
COST |
At 1 August 2022 | 575,000 | - | 4,686,046 |
Additions | - | 538,816 | 1,252,914 |
At 31 July 2023 | 575,000 | 538,816 | 5,938,960 |
DEPRECIATION |
At 1 August 2022 | 72,240 | - | 2,662,749 |
Charge for year | 11,500 | 55,190 | 330,943 |
At 31 July 2023 | 83,740 | 55,190 | 2,993,692 |
NET BOOK VALUE |
At 31 July 2023 | 491,260 | 483,626 | 2,945,268 |
At 31 July 2022 | 502,760 | - | 2,023,297 |
Exultant Holdings Limited (Registered number: 11139878) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2023 |
11. | TANGIBLE FIXED ASSETS - continued |
Group |
Fixtures |
and | Motor | Computer |
fittings | vehicles | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 August 2022 | 13,107 | - | - | 5,274,153 |
Additions | 341,763 | 19,920 | 2,104 | 2,155,517 |
At 31 July 2023 | 354,870 | 19,920 | 2,104 | 7,429,670 |
DEPRECIATION |
At 1 August 2022 | 1,098 | - | - | 2,736,087 |
Charge for year | 14,783 | 4,980 | 307 | 417,703 |
At 31 July 2023 | 15,881 | 4,980 | 307 | 3,153,790 |
NET BOOK VALUE |
At 31 July 2023 | 338,989 | 14,940 | 1,797 | 4,275,880 |
At 31 July 2022 | 12,009 | - | - | 2,538,066 |
12. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 August 2022 |
Additions |
At 31 July 2023 |
NET BOOK VALUE |
At 31 July 2023 |
At 31 July 2022 |
Exultant Holdings Limited (Registered number: 11139878) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2023 |
12. | FIXED ASSET INVESTMENTS - continued |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: 46 Castle Street, High Wycombe, England, HP13 6RG |
Nature of business: |
% |
Class of shares: | holding |
31.7.23 | 31.7.22 |
£ | £ |
Aggregate capital and reserves |
Loss for the year/period | ( |
) | ( |
) |
Registered office: 46 Castle Street, High Wycombe, England, HP13 6RG |
Nature of business: |
% |
Class of shares: | holding |
31.7.23 | 31.7.22 |
£ | £ |
Aggregate capital and reserves |
(Loss)/profit for the year/period | ( |
) |
Registered office: 46 Castle Street, High Wycombe, England, HP13 6RG |
Nature of business: |
% |
Class of shares: | holding |
31.7.23 | 31.7.22 |
£ | £ |
Aggregate capital and reserves | ( |
) | ( |
) |
Loss for the year/period | ( |
) | ( |
) |
Exultant Holdings Limited (Registered number: 11139878) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2023 |
12. | FIXED ASSET INVESTMENTS - continued |
Registered office: 46 Castle Street, High Wycombe, England, HP13 6RG |
Nature of business: |
% |
Class of shares: | holding |
31.7.23 | 31.7.22 |
£ | £ |
Aggregate capital and reserves |
Profit for the year/period |
Registered office: 46 Castle Street, High Wycombe, England, HP13 6RG |
Nature of business: |
% |
Class of shares: | holding |
31.7.23 |
£ |
Aggregate capital and reserves | ( |
) |
Loss for the year | ( |
) |
AUDIT EXEMPTION OF SUBSIDIARIES |
For the financial year ended 31 July 2023, Exultant Pizza Limited, Exultant Properties Limited, Exultant Fitness Limited and Exultant Food To Go limited have claimed exemption from audit under S479A of the companies act relating to subsidiary companies. |
13. | INVESTMENT PROPERTY |
Group |
Total |
£ |
FAIR VALUE |
At 1 August 2022 |
and 31 July 2023 | 1,207,186 |
NET BOOK VALUE |
At 31 July 2023 | 1,207,186 |
At 31 July 2022 | 1,207,186 |
In the opinion of the directors, the market value of the investment property is not materially different to the carrying value in the accounts as at the balance sheet date. |
Exultant Holdings Limited (Registered number: 11139878) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2023 |
14. | STOCKS |
Group |
31.7.23 | 31.7.22 |
£ | £ |
Stocks | 133,684 | 120,353 |
15. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31.7.23 | 31.7.22 | 31.7.23 | 31.7.22 |
£ | £ | £ | £ |
Trade debtors | 39,770 | 239,846 |
Amounts owed by group undertakings | - | - |
Other debtors | 654,841 | 12,787 |
Directors' current accounts | 6,926 | 116,926 | - | - |
Tax | 39,463 | 39,463 |
Prepayments and accrued income | 240,956 | - |
Prepayments | 18,703 | - |
1,000,659 | 409,022 |
16. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31.7.23 | 31.7.22 | 31.7.23 | 31.7.22 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 18) | 124,772 |
143,762 |
Trade creditors | 1,261,014 | 1,101,069 |
Tax | 110,635 | 123,233 |
Social security and other taxes | 125,835 | 69,677 |
VAT | 399,200 | 412,003 | - | - |
Other creditors | 13,499 | 4 |
Net wages payable | 322,982 | 106,815 | - | - |
Accruals and deferred income | 254,097 | 14,750 |
Accrued expenses | 176,445 | 2,100 |
2,788,479 | 1,973,413 |
17. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
31.7.23 | 31.7.22 |
£ | £ |
Bank loans (see note 18) | 776,507 | 375,126 |
Exultant Holdings Limited (Registered number: 11139878) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2023 |
18. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
31.7.23 | 31.7.22 |
£ | £ |
Amounts falling due within one year | or on demand: |
Bank loans | 124,772 | 143,762 |
Amounts falling due between one | and two years: |
Bank loans - 1-2 years | 242,276 | 375,126 |
Amounts falling due in more than | five years: |
Repayable by instalments |
Bank loans more 5 yr by instal | 534,231 | - |
19. | SECURED DEBTS |
Included within Other creditors falling due within one year and creditors falling due after one year is £Nil (2022: 163,737) in respect of a Flexi Business Loan. This loan was secured by a fixed and floating charge over present and future assets of the company. This loan was settled in February 2023. |
Included in Included within Other creditors falling due within one year and creditors falling due after one year is £31,731 (2022: £47,207) in respect of a loan guarantee by the government under Coronavirus Business Interruption Loan Scheme. This loan is payable by May 2026. |
Included within Other creditors falling due within one year and creditors falling due after one year is £258,460 (2022: 301,944) in respect of a Flexi Business Loan and and Commercial Mortgage loan. This loan is secured by a fixed and floating charge over present and future assets of the company. |
A new loan of £607,000 was taken on 30 June 2023.This loan is secured by a fixed and floating charge over present and future assets of the company. |
20. | PROVISIONS FOR LIABILITIES |
Group |
31.7.23 | 31.7.22 |
£ | £ |
Deferred tax | 765,306 | 487,735 |
Exultant Holdings Limited (Registered number: 11139878) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2023 |
20. | PROVISIONS FOR LIABILITIES - continued |
Group |
Deferred |
tax |
£ |
Balance at 1 August 2022 | 487,735 |
Charge to Statement of Comprehensive Income during year | 277,571 |
Balance at 31 July 2023 | 765,306 |
21. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.7.23 | 31.7.22 |
value: | £ | £ |
Ordinary | 1 | 500 | 500 |
22. | RELATED PARTY DISCLOSURES |
Included in debtors falling due with in one year is £6,926 (2022: £116,926) Due from the director. An interest of £Nil (2022: £7,030) Has been charged on the overdrawn balance. |
23. | ULTIMATE CONTROLLING PARTY |
The controlling party is M Syed. |
24. | RECONCILIATION OF (LOSS)/PROFIT/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
Group |
Period |
1.2.21 |
Year Ended | to |
31.7.23 | 31.7.22 |
£ | £ |
(Loss)/profit before taxation | (835,478 | ) | 678,712 |
Depreciation charges | 433,192 | 236,731 |
Increase in provisions | - | 487,735 |
Finance costs | 32,483 | 10,693 |
Finance income | - | (7,030 | ) |
(369,803 | ) | 1,406,841 |
Increase in stocks | (13,331 | ) | (120,353 | ) |
Increase in trade and other debtors | (701,637 | ) | (369,559 | ) |
Increase in trade and other creditors | 827,664 | 2,210,985 |
Cash generated from operations | (257,107 | ) | 3,127,914 |
Exultant Holdings Limited (Registered number: 11139878) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2023 |
24. | RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS - continued |
Company |
Period |
1.2.21 |
Year Ended | to |
31.7.23 | 31.7.22 |
£ | £ |
Profit before taxation |
Finance income | (250,000 | ) | (20,000 | ) |
- | (5,250 | ) |
Increase in trade and other debtors | ( |
) | ( |
) |
Increase in trade and other creditors |
Cash generated from operations | ( |
) | ( |
) |
25. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statements in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Group | Company |
Year ended 31 July 2023 |
31.7.23 | 1.8.22 | 31.7.23 | 1.8.22 |
£ | £ | £ | £ |
Cash and cash equivalents | 488,059 | 2,614,577 | - | - |
Period ended 31 July 2022 |
31.7.22 | 1.2.21 | 31.7.22 | 1.2.21 |
£ | £ | £ | £ |
Cash and cash equivalents | 2,614,577 | - | - | - |
Exultant Holdings Limited (Registered number: 11139878) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2023 |
26. | ANALYSIS OF CHANGES IN NET FUNDS/(DEBT) |
Group |
At 1.8.22 | Cash flow | At 31.7.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 2,614,577 | (2,126,518 | ) | 488,059 |
2,614,577 | (2,126,518 | ) | 488,059 |
Debt |
Debts falling due within 1 year | (143,762 | ) | 18,990 | (124,772 | ) |
Debts falling due after 1 year | (375,126 | ) | (401,381 | ) | (776,507 | ) |
(518,888 | ) | (382,391 | ) | (901,279 | ) |
Total | 2,095,689 | (2,508,909 | ) | (413,220 | ) |
Company |
At 1.8.22 | Cash flow | At 31.7.23 |
£ | £ | £ |