Company Registration No. 07033979 (England and Wales)
STEALTHWAVE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
STEALTHWAVE LIMITED
COMPANY INFORMATION
Director
C Economou
Company number
07033979
Registered office
Acre House
11-15 William Road
London
NW1 3ER
United Kingdom
Auditor
HW Fisher LLP
Acre House
11-15 William Road
London
NW1 3ER
United Kingdom
Business address
50A Berkeley Street
London
W1J 8HA
STEALTHWAVE LIMITED
CONTENTS
Page
Strategic report
1
Director's report
2
Director's responsibilities statement
3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 20
STEALTHWAVE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 1 -
The director presents the strategic report for the year ended 31 October 2023.
Fair review of the business
The company made a pre-tax profit of £4,883,715 (2022: £6,835,490) for the year on a turnover of £29,324,679 (2022: £29,428,615)
As at 31 October 2023, the company had net assets of £571,693 (2022: £1,672,178).
Principal risks and uncertainties
The principal risks and uncertainties facing the company are:
1) Competition from other restaurants. The company's management seek to mitigate this by an ongoing assessment of competition restaurants and consideration of any changes needed to its own dining experience to compete.
2) Potential reputation damage resulting from suppliers. The company applies rigorous controls in selecting its suppliers to ensure that all food and drink purchased is of the highest quality.
3) Potential reputational damage resulting from clientele. Management applies careful review of all complaints and online postings due to the growing use of web booking and reviewing sites such as Tripadvisor and OpenTable.
Key performance indicators
In the opinion of the director, there are several key performance indicators whose disclosure is necessary for an understanding of the development, performance or position of the business.
These are viewed before any exceptional costs are incurred.
The key performance indicators that are taken into consideration when managing the restaurants are:
1) Turnover
This amounted to £29,324,679 for the year ended 31 October 2023 (2022: £29,428,615).
2) Gross profit margin
This amounted to 37% for the year ended 31 October 2023 (2022: 42%).
Future developments
Management are expecting the business to continue at the current level for the foreseeable future.
C Economou
Director
21 July 2024
STEALTHWAVE LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 2 -
The director presents his report and financial statements for the year ended 31 October 2023.
Principal activities
The principal activity of the company continued to be the operation of two restaurants and a lounge bar at 50A Berkeley Street, London W1.
Results and dividends
The results for the year are set out on page 7.
Ordinary dividends were paid amounting to £4,675,444. The director does not recommend payment of a final dividend.
Director
The director who held office during the year and up to the date of signature of the financial statements was as follows:
C Economou
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 company continues and that the appropriate training is arranged. It is the policy of the company 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 company's policy is to consult and discuss with employees, through staff councils and at meetings, matters likely to affect employees' interests.
Auditor
The auditor, HW Fisher LLP, are deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of disclosure to auditor
The director has confirmed that there is no information of which he is aware which is relevant to the audit, but of which the auditors are unaware. He has further confirmed that he has taken appropriate steps to identify such relevant information and to establish that the auditors are aware of such information.
On behalf of the board
C Economou
Director
21 July 2024
STEALTHWAVE LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 3 -
The director is responsible for preparing the annual report 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 of the profit or loss of the company 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;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
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 transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
STEALTHWAVE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF STEALTHWAVE LIMITED
- 4 -
Opinion
We have audited the financial statements of Stealthwave Limited (the 'company') for the year ended 31 October 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the 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 FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 October 2023 and of its 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 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 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 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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is 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 director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the director's report have been prepared in accordance with applicable legal requirements.
STEALTHWAVE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF STEALTHWAVE LIMITED
- 5 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and the director's report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of 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 director's responsibilities statement, 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 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 director is responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the company or to cease operations, or has 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.
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. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
As part of our planning process:
We enquired of management the systems and controls the company has in place, the areas of the financial statements that are mostly susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud. The company did not inform us of any known, suspected or alleged fraud.
We obtained an understanding of the legal and regulatory frameworks applicable to the company. We determined that the following were most relevant: FRS 102, Companies Act 2006, health and safety and employment law.
We considered the incentives and opportunities that exist in the company, including the extent of management bias, which present a potential for irregularities and fraud to be perpetuated, and tailored our risk assessment accordingly.
Using our knowledge of the company, together with the discussions held with the company at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment.
The key procedures we undertook to detect irregularities including fraud during the course of the audit included:
Identifying and testing journal entries and the overall accounting records, in particular those that were significant and unusual.
Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied.
Assessing the extent of compliance, or lack of, with the relevant laws and regulations.
Testing key revenue lines, in particular cut-off, for evidence of management bias.
Performing a physical verification of key assets and stock items.
Obtaining third-party confirmation of material bank balances.
Documenting and verifying all significant related party balances and transactions.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements even though we have properly planned and performed our audit in accordance with auditing standards. The primary responsibility for the prevention and detection of irregularities and fraud rests with the directors.
STEALTHWAVE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF STEALTHWAVE LIMITED
- 6 -
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.
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 him 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.
Russell Nathan (Senior Statutory Auditor)
For and on behalf of HW Fisher LLP
Chartered Accountants
Statutory Auditor
Acre House
11-15 William Road
London
NW1 3ER
United Kingdom
21 July 2024
STEALTHWAVE LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
29,324,679
29,428,615
Cost of sales
(18,364,566)
(17,124,574)
Gross profit
10,960,113
12,304,041
Administrative expenses
(6,076,398)
(5,468,489)
Operating profit
4
4,883,715
6,835,552
Interest receivable and similar income
7
318
Interest payable and similar expenses
8
(380)
Profit before taxation
4,883,715
6,835,490
Tax on profit
9
(1,308,756)
(1,278,111)
Profit for the financial year
3,574,959
5,557,379
The Statement Of Comprehensive Income has been prepared on the basis that all operations are continuing operations.
STEALTHWAVE LIMITED
BALANCE SHEET
AS AT
31 OCTOBER 2023
31 October 2023
- 8 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
3,133,897
3,455,500
Current assets
Stocks
12
753,391
636,167
Debtors
13
481,491
502,968
Cash at bank and in hand
1,547,299
3,192,726
2,782,181
4,331,861
Creditors: amounts falling due within one year
14
(5,047,505)
(6,027,351)
Net current liabilities
(2,265,324)
(1,695,490)
Total assets less current liabilities
868,573
1,760,010
Provisions for liabilities
Deferred tax liability
15
296,880
87,832
(296,880)
(87,832)
Net assets
571,693
1,672,178
Capital and reserves
Called up share capital
17
100
100
Profit and loss reserves
571,593
1,672,078
Total equity
571,693
1,672,178
The financial statements were approved and signed by the director and authorised for issue on 21 July 2024
C Economou
Director
Company Registration No. 07033979
STEALTHWAVE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2023
- 9 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 November 2021
100
2,289,441
2,289,541
Year ended 31 October 2022:
Profit and total comprehensive income for the year
-
5,557,379
5,557,379
Dividends
10
-
(6,174,742)
(6,174,742)
Balance at 31 October 2022
100
1,672,078
1,672,178
Year ended 31 October 2023:
Profit and total comprehensive income for the year
-
3,574,959
3,574,959
Dividends
10
-
(4,675,444)
(4,675,444)
Balance at 31 October 2023
100
571,593
571,693
STEALTHWAVE LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 10 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
20
4,515,116
7,929,579
Interest paid
(380)
Income taxes paid
(1,398,810)
(990,500)
Net cash inflow from operating activities
3,116,306
6,938,699
Investing activities
Purchase of tangible fixed assets
(86,289)
(89,109)
Interest received
318
Net cash used in investing activities
(86,289)
(88,791)
Financing activities
Dividends paid
(4,675,444)
(6,174,742)
Net cash used in financing activities
(4,675,444)
(6,174,742)
Net (decrease)/increase in cash and cash equivalents
(1,645,427)
675,166
Cash and cash equivalents at beginning of year
3,192,726
2,517,560
Cash and cash equivalents at end of year
1,547,299
3,192,726
STEALTHWAVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 11 -
1
Accounting policies
Company information
Stealthwave Limited is a private company limited by shares incorporated in England and Wales. The registered office is Acre House, 11-15 William Road, London, United Kingdom, NW1 3ER.
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 £.
1.2
Going concern
Atruet the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. This is based on the continuing profitability of the business, which is supported by forecasts and the ongoing support of the shareholders in ensuring cash flows are managed effectively to meet obligations as they fall due.
1.3
Turnover
Turnover represents the sale of food and drinks in the restaurants, net of VAT. Turnover is recognised at the point of sale.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Short leasehold land and buildings
Over length of lease
Plant and machinery
25% - 33% Straight Line
Fixtures, fittings and equipment
20% - 25% Straight Line
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.
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price. Cost comprises direct costs incurred in bringing stock to their present location and condition.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.7
Cash at bank and in hand
Cash at bank and in hand are basic financial assets and include cash in hand and deposits held at call with banks.
STEALTHWAVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 12 -
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
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.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
STEALTHWAVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 13 -
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account 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 company’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 liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.11
Employee benefits
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.12
Retirement benefits
The company operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the year they are payable.
STEALTHWAVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 14 -
1.13
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
Rent concessions received from the landlord are recognised in the period that they relate to.
1.14
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The director believes there to be no critical judgements or key sources of uncertainty in preparing these accounts.
3
Turnover and other revenue
The total turnover of the company for the year has been derived from its principal activity wholly undertaken in the UK.
2023
2022
£
£
Other significant revenue
Interest income
-
318
4
Operating profit
2023
2022
Operating profit for the year is stated after charging:
£
£
Exchange losses
5,719
11,877
Fees payable to the company's auditor for the audit of the company's financial statements
37,450
35,000
Depreciation of owned tangible fixed assets
407,892
426,043
Operating lease charges
1,205,573
773,528
STEALTHWAVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 15 -
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Directors
1
1
Administration and restaurant
377
338
Total
378
339
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
7,984,922
7,372,735
Social security costs
703,730
684,643
Pension costs
182,729
122,321
8,871,381
8,179,699
6
Director's remuneration
2023
2022
£
£
Remuneration for qualifying services
120,000
165,462
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Other interest income
318
8
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
-
380
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
1,099,708
1,349,469
STEALTHWAVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
9
Taxation
2023
2022
£
£
(Continued)
- 16 -
Deferred tax
Origination and reversal of timing differences
209,048
(71,358)
Total tax charge
1,308,756
1,278,111
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
Profit before taxation
4,883,715
6,835,490
Expected tax charge based on the standard rate of corporation tax in the UK of 22.52% (2022: 19.00%)
1,099,813
1,298,743
Tax effect of expenses that are not deductible in determining taxable profit
461
107
Change in unrecognised deferred tax assets
186,737
Permanent capital allowances in excess of depreciation
21,544
(3,614)
Effect of change in deferred tax rate
201
(17,125)
Taxation charge for the year
1,308,756
1,278,111
10
Dividends
2023
2022
£
£
Interim paid
4,675,444
6,174,742
STEALTHWAVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 17 -
11
Tangible fixed assets
Short leasehold land and buildings
Plant and machinery
Fixtures, fittings and equipment
Total
£
£
£
£
Cost
At 1 November 2022
6,608,857
998,642
2,162,706
9,770,205
Additions
72,071
14,218
86,289
At 31 October 2023
6,608,857
1,070,713
2,176,924
9,856,494
Depreciation and impairment
At 1 November 2022
3,454,966
890,072
1,969,667
6,314,705
Depreciation charged in the year
301,833
51,678
54,381
407,892
At 31 October 2023
3,756,799
941,750
2,024,048
6,722,597
Carrying amount
At 31 October 2023
2,852,058
128,963
152,876
3,133,897
At 31 October 2022
3,153,891
108,570
193,039
3,455,500
12
Stocks
2023
2022
£
£
Raw materials and consumables
753,391
636,167
13
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
13,770
11,739
Other debtors
24,849
26,258
Prepayments and accrued income
442,872
464,971
481,491
502,968
STEALTHWAVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 18 -
14
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
897,469
1,208,808
Corporation tax
434,710
733,812
Other taxation and social security
1,233,673
1,623,190
Other creditors
86,271
47,557
Accruals
2,395,382
2,413,984
5,047,505
6,027,351
15
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
296,880
87,832
2023
Movements in the year:
£
Liability at 1 November 2022
87,832
Charge to profit or loss
209,048
Liability at 31 October 2023
296,880
16
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
182,729
122,321
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
17
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
100
100
100
100
STEALTHWAVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 19 -
18
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2023
2022
£
£
Within one year
1,306,549
1,172,670
Between two and five years
5,226,196
4,690,680
In over five years
5,988,350
6,547,408
12,521,095
12,410,758
19
Related party transactions
Remuneration of key management personnel
2023
2022
£
£
Aggregate compensation
489,881
685,666
Transactions with related parties
Danas Consultants Limited is a 50% shareholder of Stealthwave Limited and a company incorporated in Cyprus. Mr A. Novikov, a director of Stealthwave Limited in the prior year, is the controlling party of Danas Consultants Limited.
During the year, the company was charged royalties of £1,044,738 (2022: £927,292) by Danas Consultants Limited. At 31 October 2023 the company owed accrued royalties to Danas Consultants Limited of £698,150 (2022: £794,882).
20
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
3,574,959
5,557,379
Adjustments for:
Taxation charged
1,308,756
1,278,111
Finance costs
380
Investment income
(318)
Depreciation and impairment of tangible fixed assets
407,892
426,043
Movements in working capital:
(Increase) in stocks
(117,224)
(66,787)
Decrease/(increase) in debtors
21,477
(94,382)
(Decrease)/increase in creditors
(680,744)
829,153
Cash generated from operations
4,515,116
7,929,579
STEALTHWAVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 20 -
21
Analysis of changes in net funds
1 November 2022
Cash flows
31 October 2023
£
£
£
Cash at bank and in hand
3,192,726
(1,645,427)
1,547,299
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