Company registration number 12995138 (England and Wales)
PROJECT KNIGHT LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
PROJECT KNIGHT LIMITED
COMPANY INFORMATION
Directors
M Ladhar
B Ladhar
Company number
12995138
Registered office
Earl Grey Properties
2nd Floor, Adelphi Chambers
20 Shakespeare Street
Newcastle upon Tyne
NE1 6AQ
Auditor
Robson Laidler Accountants Limited
Fernwood House
Fernwood Road
Jesmond
Newcastle upon Tyne
Tyne and Wear
England
NE2 1TJ
PROJECT KNIGHT LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 24
PROJECT KNIGHT LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2024
- 1 -
The directors present the strategic report for the year ended 31 January 2024.
Review of the business
The results for the year for the group show that turnover has increased to £15,096,889 (2023: £14,914,612).
The Gross Profit has remained comparable at 69.9% (2022: 65.9%).
Future Outlook
The directors are satisfied with the performance of the group for the year ended 31 January 2024 and expect growth in revenue and profitability in future years.
Principal risks and uncertainties
The management of the business and the execution of the group's strategy are subject to a number of risks.
We have considered the key business risks affecting the group and are satisfied we have done what we can to minimise those risks. In particular, and in light of the current commercial environment, the group has taken steps to substantially reduce its borrowings.
Employees
Applications for employment by disabled persons are always fully considered, bearing in mind the respective aptitudes and abilities of the applicant concerned. In the event of members of staff becoming disabled every effort is made to ensure that their employment with the group continues and the appropriate training is arranged. It is the policy of the group that the training, career development and promotion of a disabled person should, as far as possible, be identical to that of a person who does not suffer from a disability.
Consultation with employees or their representatives has continued at all levels, with the aim of ensuring that views are taken into account when decisions are made that are likely to affect their interests and that all employees are aware of the financial and economic performance of the company as a whole.
Financial Risk Management
The group is subject to a number of financial risks, in particular liquidity, interest rate, and credit risk.
Liquidity risk
During the year the management took steps to substantially reduce the group's exposure to external debt, and entered into a new term loan facility to provide sufficient funds for ongoing operations.
Interest rate risk
The group has used interest rate swaps in the past to minimise the risk of part of the term debt. Following repayment of a large part of the term debt during the prior year, management no longer consider interest rate risk to be significant enough to warrant entering into swap agreements.
Credit risk
The group's credit risk is primarily attributable to its trade debtors. The amounts presented in the balance sheet are shown net of provisions for impairment where it is considered the group will not be able to collect all amounts due. Management consider that the cgroup has no significant concentration on credit risk as the majority of its turnover is generated from cash sales.
PROJECT KNIGHT LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 2 -
Section 172(1) Statement
The directors have had regard for the matters set out in section 172(1)(a)-(f) of the Companies Act 2006 when performing their duty under section 172. The directors consider that they have acted in good faith in the way that would be most likely to promote the success of the Company for the benefit of its members as a whole, while also considering the broad range of stakeholders who interact with and are impacted by our business, especially with regard to major decisions.
In doing the above the directors have taken into account the following:
a) the likely consequences of any decision in the long-term:
- The Directors have set out a clear strategy for the business over the medium and long term for creating value and growth, which has been shared with staff and shareholders, the key pillars of which are set out below:
1. Humanity - being passionate about caring for people and organisations by creating an experience that is more human, with a personal connection; and
2. Technology - investing in new technologies, in order to better connect and make the experience smart, simple and efficient.
b) the interests of the Company's employees:
1. Regular leadership meetings, department meeting and conferences
2. Active employee feedback through Q&A, an open culture and regular surveys; and
3. The provision of learning and development opportunities for staff including management training and mental health
c) the need to foster the Company's business relationships with suppliers, customers and others by ensuring all stakeholders are treated within the spirit and detail of the Sir John Fitzgerald ethics policies and the core values.
d) the impact of the Company's operations on the community and the environment including consideration of the climate change through supporting appropriate Energy Savings Opportunities Scheme recommendations and a push to become as paperless as possible.
e) the desirability of the Company maintaining a reputation for high standards of business conduct through the organisation's values, culture and ethical standards, as set out in the company's business principles, which are published on its website. Our core values represent the foundation of our culture. They help us develop, grow and better serve our residents and other stakeholders.
f) the need to act fairly as between members of the Company through treating shareholders equitably.
M Ladhar
Director
11 July 2024
PROJECT KNIGHT LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JANUARY 2024
- 3 -
The directors present their annual report and financial statements for the year ended 31 January 2024.
Principal activities
The principle activity of the company in the year under review was that of the management of public houses.
Results and dividends
The results for the year are set out on page 1.
No ordinary dividends were paid. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
M Ladhar
B Ladhar
Disabled persons
Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the group continues and that the appropriate training is arranged. It is the policy of the group that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.
Employee involvement
The group's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.
Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.
There is no employee share scheme at present, but the directors are considering the introduction of such a scheme as a means of further encouraging the involvement of employees in the company's performance.
Auditor
In accordance with the company's articles, a resolution proposing that be reappointed as auditor of the group will be put at a General Meeting.
Energy and carbon report
The gross greenhouse gas (GHG) emissions for the group are 1,132 (2023: 1,271) tonnes of carbon dioxide equivalent (tCO2e) for the period 1st February 2023 to 31st January 2024.
The gross GHG emissions figure, reportable under SECR legislation, includes all material Scope 1, 2 plus Scope 3 required to disclosed by the legislation; that is the emissions associated with UK electricity and natural gas consumption, and business travel in company and private vehicles by employees. Scope 3 emissions resulting from transmission and distribution (T&D) losses in the electricity supply network are included voluntarily, in accordance with normal GHG reporting practice.
In accordance with the legislation an emissions intensity ratio has been calculated and for the group this is 75.0 (2023: 85.2) tCO2e per £m revenue.
N.B. the group has low carbon tariffs for its NHH electricity supplies, however these make up only approximately 3% of the total and so are included within the total using a common, location-based, methodology.
PROJECT KNIGHT LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 4 -
The gross greenhouse gas (GHG) emissions for the group are 1,132 (2023: 1,271) tonnes of carbon dioxide equivalent (tCO2e) for the period 1st February 2023 to 31st January 2024.
The gross GHG emissions figure, reportable under SECR legislation, includes all material Scope 1, 2 plus Scope 3 required to disclosed by the legislation; that is the emissions associated with UK electricity and natural gas consumption, and business travel in company and private vehicles by employees. Scope 3 emissions resulting from transmission and distribution (T&D) losses in the electricity supply network are included voluntarily, in accordance with normal GHG reporting practice.
In accordance with the legislation an emissions intensity ratio has been calculated and for the group this is 75.0 (2023: 85.2) tCO2e per £m revenue.
N.B. The group has low carbon tariffs for its NHH electricity supplies, however these make up only approximately 3% of the total and so are included within the total using a common, location-based, methodology.
Statement of directors' responsibilities
The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the ;
prepare the on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.
On behalf of the board
M Ladhar
Director
11 July 2024
PROJECT KNIGHT LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PROJECT KNIGHT LIMITED
- 5 -
Opinion
We have audited the financial statements of Project Knight Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 January 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the group's and the parent company's affairs as at 31 January 2024 and of the group's profit 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.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and 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 directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
PROJECT KNIGHT LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PROJECT KNIGHT LIMITED
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
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 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 directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
The risk of material misstatement due to error or fraud is deemed to be low within the entity as the company operate strong internal controls to mitigate any such risk. These controls are reviewed as part of the audit by performing systems walkthroughs to ensure they are operating effectively. Other substantive testing is also performed on all material balances and therefore any instances of non-compliance should be identified or considered as insignificant. Group transactions are confirmed to audit files also prepared by the firm. Journal entries are scrutinised by data analytics software used as part of the audit.
The laws and regulations which are considered to be significant to the entity relate to Food Standards, safety and hygiene. Discussions are held with management to determine whether any breaches have occurred as well as legal expenditure being scrutinised for any evidence on non-compliance.
The audit was considered capable of identifying irregularities only to the extent of the substantive testing performed and from discussions with management.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
PROJECT KNIGHT LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PROJECT KNIGHT LIMITED
- 7 -
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Michael T Moran BA FCA
Senior Statutory Auditor
For and on behalf of Robson Laidler Accountants Limited
11 July 2024
Statutory Auditor
Fernwood House
Fernwood Road
Jesmond
Newcastle upon Tyne
Tyne and Wear
England
NE2 1TJ
PROJECT KNIGHT LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JANUARY 2024
- 8 -
2024
2023
Notes
£
£
Turnover
2
15,096,889
14,914,612
Cost of sales
(4,545,812)
(5,075,177)
Gross profit
10,551,077
9,839,435
Administrative expenses
(7,852,139)
(7,635,991)
Other operating income
149,036
217,576
Operating profit
3
2,847,974
2,421,020
Interest payable and similar expenses
6
(893,327)
(629,482)
Profit before taxation
1,954,647
1,791,538
Tax on profit
7
(552,993)
(437,837)
Profit for the financial year
1,401,654
1,353,701
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
PROJECT KNIGHT LIMITED
GROUP BALANCE SHEET
AS AT
31 JANUARY 2024
31 January 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
9
22,663,201
22,249,741
Current assets
Stocks
12
300,491
277,967
Debtors
13
2,233,888
2,166,096
Cash at bank and in hand
2,553,506
3,807,258
5,087,885
6,251,321
Creditors: amounts falling due within one year
14
(11,034,045)
(12,568,522)
Net current liabilities
(5,946,160)
(6,317,201)
Total assets less current liabilities
16,717,041
15,932,540
Creditors: amounts falling due after more than one year
15
(9,502,618)
(10,119,771)
Net assets
7,214,423
5,812,769
Capital and reserves
Called up share capital
19
2
2
Profit and loss reserves
7,214,421
5,812,767
Total equity
7,214,423
5,812,769
The financial statements were approved by the board of directors and authorised for issue on 11 July 2024 and are signed on its behalf by:
11 July 2024
M Ladhar
Director
Company registration number 12995138 (England and Wales)
PROJECT KNIGHT LIMITED
COMPANY BALANCE SHEET
AS AT 31 JANUARY 2024
31 January 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
10
15,886,523
15,886,523
Current assets
Debtors
13
2,161,000
3,985,609
Cash at bank and in hand
263,439
287,890
2,424,439
4,273,499
Creditors: amounts falling due within one year
14
(8,806,081)
(10,038,587)
Net current liabilities
(6,381,642)
(5,765,088)
Total assets less current liabilities
9,504,881
10,121,435
Creditors: amounts falling due after more than one year
15
(9,502,618)
(10,119,771)
Net assets
2,263
1,664
Capital and reserves
Called up share capital
19
2
2
Profit and loss reserves
2,261
1,662
Total equity
2,263
1,664
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £599 (2023 - £419 profit).
The financial statements were approved by the board of directors and authorised for issue on 11 July 2024 and are signed on its behalf by:
11 July 2024
M Ladhar
Director
Company registration number 12995138 (England and Wales)
PROJECT KNIGHT LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2024
- 11 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 February 2022
2
4,459,066
4,459,068
Year ended 31 January 2023:
Profit and total comprehensive income
-
1,353,701
1,353,701
Balance at 31 January 2023
2
5,812,767
5,812,769
Year ended 31 January 2024:
Profit and total comprehensive income
-
1,401,654
1,401,654
Balance at 31 January 2024
2
7,214,421
7,214,423
PROJECT KNIGHT LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2024
- 12 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 February 2022
2
1,244
1,246
Year ended 31 January 2023:
Profit and total comprehensive income for the year
-
418
418
Balance at 31 January 2023
2
1,662
1,664
Year ended 31 January 2024:
Profit and total comprehensive income
-
599
599
Balance at 31 January 2024
2
2,261
2,263
PROJECT KNIGHT LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JANUARY 2024
- 13 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
22
570,456
3,552,951
Interest paid
(893,327)
(629,482)
Income taxes refunded
138,688
Net cash (outflow)/inflow from operating activities
(184,183)
2,923,469
Investing activities
Purchase of tangible fixed assets
(659,207)
(210,480)
Proceeds from disposal of tangible fixed assets
5,999
-
Net cash used in investing activities
(653,208)
(210,480)
Financing activities
Repayment of bank loans
(416,361)
(534,150)
Net cash used in financing activities
(416,361)
(534,150)
Net (decrease)/increase in cash and cash equivalents
(1,253,752)
2,178,839
Cash and cash equivalents at beginning of year
3,807,258
1,628,419
Cash and cash equivalents at end of year
2,553,506
3,807,258
PROJECT KNIGHT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
- 14 -
1
Accounting policies
Company information
Project Knight Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Earl Grey Properties, 2nd Floor, Adelphi Chambers, 20 Shakespeare Street, Newcastle Upon Tyne, Tyne and Wear, NE1 6AQ.
The group consists of Project Knight Limited and all of its subsidiaries.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
1.2
Basis of consolidation
The results of the group are consolidated on a line by line basis from date of acquisition, eliminating all inter group transactions to show the result of the group as if it were a single entity.
1.3
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.4
Turnover
Turnover represents the value of goods sold net of value added tax at point of sale. All turnover arises within the United Kingdom.
1.5
Intangible fixed assets - goodwill
Goodwill, being the amount paid in connection with the acquisition of a business has been fully amortised in the current year.
PROJECT KNIGHT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 15 -
1.6
Tangible fixed assets
Tangible fixed assets are stated at cost or valuation less accumulated depreciation. Cost includes the original purchase price of the asset and the costs attributable to bringing the asset to its working condition for its intended use.
Prior to the adoption of FRS15, "Tangible fixed assets" properties were revalued with the last revaluation being in 1993 on an open market basis. When FRS15 was introduced, the transitional provisions of FRS15 were applied, whereby previous valuations have been retained and treated as the relevant cost of the asset but not updated.
The company has taken advantage of the transitional provisions in FRS102 and has continued to use the previous revaluations as deemed cost.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land
not depreciated
Freehold land and buildings
up to 50 years
Leasehold land and buildings
Shorter of 50 years. estimated useful life and remaining life of lease
Fixtures and fittings
either 3 or 7 years
Motor vehicles
4 years
Assets under construction
are not depreciated
The expected useful lives of the assets to the business are reassessed periodically in the light of experience.
1.7
Impairment of fixed assets
Plant and equipment is reviewed for impairment if events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared against its carrying amount. Where the estimated recoverable amount is lower, an impairment loss is recognised immediately in profit and loss.
1.8
Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.
1.9
Cash and cash equivalents
Cash and cash equivalents comprises of cash in hand and current balances with banks and other institutions, which are readily convertible to known amounts of cash and which are subject to insignificant risk of change in value. This definition is also used for the cash flow statement.
1.10
Taxation
Taxation for the period comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, 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
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.
PROJECT KNIGHT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 16 -
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 period 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.
1.11
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.
1.12
Leases
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.
1.13
Government grants
During the current financial year the company received government grant funding through the Job Retention Scheme and through local Council support as a result of the Covid-19 pandemic.
The income has been accounted for in the period in which it relates on an accrual basis.
1.14
Short-term debtors and creditors
Debtors and creditors, with no interest rate which are receivable or payable within one year, are recorded at transaction price. Any loss arising from impairment are recognised immediately in the statement of profit and loss.
2
Turnover and other revenue
2024
2023
£
£
Other revenue
Grants received
-
104,000
3
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Government grants
-
(104,000)
Depreciation of owned tangible fixed assets
245,747
279,058
Profit on disposal of tangible fixed assets
(5,999)
-
Operating lease charges
237,021
251,619
PROJECT KNIGHT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 17 -
4
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
3,640
3,600
Audit of the financial statements of the company's subsidiaries
18,300
17,600
21,940
21,200
5
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Head office
3
4
-
-
Monthly
6
10
-
-
Fortnightly
269
255
-
-
Total
278
269
Their aggregate remuneration comprised:
Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
4,227,157
4,057,019
Social security costs
268,326
266,114
-
-
Pension costs
66,792
66,950
4,562,275
4,390,083
6
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
893,327
629,482
7
Taxation
2024
2023
£
£
Deferred tax
Origination and reversal of timing differences
552,993
437,837
PROJECT KNIGHT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
7
Taxation
(Continued)
- 18 -
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
1,954,647
1,791,538
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
488,662
340,392
Tax effect of expenses that are not deductible in determining taxable profit
19
Unutilised tax losses carried forward
(116,271)
(226,574)
Group relief
(150)
(79)
Permanent capital allowances in excess of depreciation
(368,811)
(114,063)
Other short term timing differences
(3,430)
305
Deferred tax
552,993
437,837
Taxation charge
552,993
437,837
8
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 February 2023 and 31 January 2024
(3,607,226)
Amortisation and impairment
At 1 February 2023 and 31 January 2024
(3,607,226)
Carrying amount
At 31 January 2024
At 31 January 2023
The company had no intangible fixed assets at 31 January 2024 or 31 January 2023.
PROJECT KNIGHT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 19 -
9
Tangible fixed assets
Group
Freehold land
Freehold land and buildings
Assets under construction
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 February 2023
20,666,815
1,006,557
48,083
1,246,302
(26,956)
22,940,801
Additions
659,207
659,207
Disposals
(16,265)
(16,265)
At 31 January 2024
20,666,815
1,006,557
48,083
1,905,509
(43,221)
23,583,743
Depreciation and impairment
At 1 February 2023
87,650
5,067
625,299
(26,956)
691,060
Depreciation charged in the year
245,747
245,747
Eliminated in respect of disposals
(16,265)
(16,265)
At 31 January 2024
87,650
5,067
871,046
(43,221)
920,542
Carrying amount
At 31 January 2024
20,579,165
1,001,490
48,083
1,034,463
22,663,201
At 31 January 2023
20,579,165
1,001,490
48,083
621,003
22,249,741
10
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
11
15,886,523
15,886,523
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 February 2023 and 31 January 2024
15,886,523
Carrying amount
At 31 January 2024
15,886,523
At 31 January 2023
15,886,523
PROJECT KNIGHT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 20 -
11
Subsidiaries
Details of the company's subsidiaries at 31 January 2024 are as follows:
Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Indirect
Sir John Fitzgerald (Holdings) Limited
United Kingdom
Holding company
Ordinary
100.00
-
Sir John Fitzgerald Limited
United Kingdom
Public house operations
Ordinary
-
100.00
SJF (Propco 1) Limited
United Kingdom
Management of property
Ordinary
-
100.00
12
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Finished goods and goods for resale
300,491
277,967
13
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
116,910
59,884
1,266,000
510,000
Corporation tax recoverable
136,555
Other debtors
77,536
217,854
Prepayments and accrued income
988,579
147,947
895,000
630,000
1,183,025
562,240
2,161,000
1,140,000
Deferred tax asset (note 17)
1,050,863
1,603,856
2,233,888
2,166,096
2,161,000
1,140,000
Amounts falling due after more than one year:
Amounts owed by group undertakings
-
-
-
2,845,609
Total debtors
2,233,888
2,166,096
2,161,000
3,985,609
PROJECT KNIGHT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 21 -
14
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans
16
646,871
446,079
646,871
446,079
Trade creditors
1,086,121
1,246,826
Corporation tax payable
2,133
Other taxation and social security
477,107
449,485
-
-
Other creditors
7,098,544
9,717,432
8,014,597
9,469,332
Accruals and deferred income
1,723,269
708,700
144,613
123,176
11,034,045
12,568,522
8,806,081
10,038,587
15
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
16
9,502,618
10,119,771
9,502,618
10,119,771
16
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
10,149,489
10,565,850
10,149,489
10,565,850
Payable within one year
646,871
446,079
646,871
446,079
Payable after one year
9,502,618
10,119,771
9,502,618
10,119,771
The bank loans are secured by a fixed and floating charge over the assets of the company.
PROJECT KNIGHT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 22 -
17
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Assets
Assets
2024
2023
Group
£
£
Accelerated capital allowances
(593,874)
(354,142)
Tax losses
1,645,014
1,954,845
Retirement benefit obligations
(277)
3,153
1,050,863
1,603,856
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
£
£
Asset at 1 February 2023
(1,603,856)
-
Charge to profit or loss
552,993
-
Asset at 31 January 2024
(1,050,863)
-
18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
66,792
66,950
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
19
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
2
2
2
2
PROJECT KNIGHT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 23 -
20
Operating lease commitments
Lessee
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
234,350
234,350
-
-
Between two and five years
937,400
937,400
-
-
In over five years
2,574,050
2,808,400
-
-
3,745,800
3,980,150
-
-
Lessor
At the reporting end date the group had contracted with tenants for the following minimum lease payments:
Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
19,542
33,850
-
-
Between two and five years
3,250
19,542
-
-
In over five years
-
3,250
-
-
22,792
56,642
-
-
21
Related party transactions
Transactions with related parties
The following amounts were outstanding at the reporting end date:
Amounts due to related parties
2024
2023
£
£
Group
Other related parties
2,858,335
5,358,334
The following amounts were outstanding at the reporting end date:
Amounts due from related parties
2024
2023
Balance
Balance
£
£
Group
Other related parties
14,534
11,939
PROJECT KNIGHT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
21
Related party transactions
(Continued)
- 24 -
Other information
No guarantees have been given or received.
The other related parties are all connected to the group by virtue of the Ladhar family, in which the director is a member, are directors and shareholders of those entities.
The balances are unsecured, interest free and repayable on demand.
22
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
1,401,654
1,353,701
Adjustments for:
Taxation charged
552,993
437,837
Finance costs
893,327
629,482
Gain on disposal of tangible fixed assets
(5,999)
-
Depreciation and impairment of tangible fixed assets
245,747
279,058
Movements in working capital:
Increase in stocks
(22,524)
(58,762)
(Increase)/decrease in debtors
(757,340)
751,859
(Decrease)/increase in creditors
(1,737,402)
159,776
Cash generated from operations
570,456
3,552,951
23
Analysis of changes in net debt - group
1 February 2023
Cash flows
31 January 2024
£
£
£
Cash at bank and in hand
3,807,258
(1,253,752)
2,553,506
Borrowings excluding overdrafts
(10,565,850)
416,361
(10,149,489)
(6,758,592)
(837,391)
(7,595,983)
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