Caseware UK (AP4) 2023.0.135 2023.0.135 2023-09-302023-09-302023-09-302022-10-01falseNo description of principal activity45falsefalse 05929636 2022-10-01 2023-09-30 05929636 2021-10-01 2022-09-30 05929636 2023-09-30 05929636 2022-09-30 05929636 2021-10-01 05929636 1 2022-10-01 2023-09-30 05929636 d:CompanySecretary1 2022-10-01 2023-09-30 05929636 d:Director1 2022-10-01 2023-09-30 05929636 d:Director2 2022-10-01 2023-09-30 05929636 d:RegisteredOffice 2022-10-01 2023-09-30 05929636 c:Buildings 2022-10-01 2023-09-30 05929636 c:Buildings 2023-09-30 05929636 c:Buildings 2022-09-30 05929636 c:Buildings c:OwnedOrFreeholdAssets 2022-10-01 2023-09-30 05929636 c:Buildings c:LongLeaseholdAssets 2022-10-01 2023-09-30 05929636 c:Buildings c:LongLeaseholdAssets 2023-09-30 05929636 c:Buildings c:LongLeaseholdAssets 2022-09-30 05929636 c:Buildings c:ShortLeaseholdAssets 2022-10-01 2023-09-30 05929636 c:PlantMachinery 2022-10-01 2023-09-30 05929636 c:MotorVehicles 2022-10-01 2023-09-30 05929636 c:MotorVehicles 2023-09-30 05929636 c:MotorVehicles 2022-09-30 05929636 c:MotorVehicles c:OwnedOrFreeholdAssets 2022-10-01 2023-09-30 05929636 c:FurnitureFittings 2022-10-01 2023-09-30 05929636 c:FurnitureFittings 2023-09-30 05929636 c:FurnitureFittings 2022-09-30 05929636 c:FurnitureFittings c:OwnedOrFreeholdAssets 2022-10-01 2023-09-30 05929636 c:ComputerEquipment 2022-10-01 2023-09-30 05929636 c:OwnedOrFreeholdAssets 2022-10-01 2023-09-30 05929636 c:CurrentFinancialInstruments 2023-09-30 05929636 c:CurrentFinancialInstruments 2022-09-30 05929636 c:Non-currentFinancialInstruments 2023-09-30 05929636 c:Non-currentFinancialInstruments 2022-09-30 05929636 c:CurrentFinancialInstruments c:WithinOneYear 2023-09-30 05929636 c:CurrentFinancialInstruments c:WithinOneYear 2022-09-30 05929636 c:Non-currentFinancialInstruments c:AfterOneYear 2023-09-30 05929636 c:Non-currentFinancialInstruments c:AfterOneYear 2022-09-30 05929636 c:Non-currentFinancialInstruments c:BetweenOneTwoYears 2023-09-30 05929636 c:Non-currentFinancialInstruments c:BetweenOneTwoYears 2022-09-30 05929636 c:Non-currentFinancialInstruments c:BetweenTwoFiveYears 2023-09-30 05929636 c:Non-currentFinancialInstruments c:BetweenTwoFiveYears 2022-09-30 05929636 c:Non-currentFinancialInstruments c:MoreThanFiveYears 2023-09-30 05929636 c:Non-currentFinancialInstruments c:MoreThanFiveYears 2022-09-30 05929636 c:ShareCapital 2023-09-30 05929636 c:ShareCapital 2022-09-30 05929636 c:ShareCapital 2021-10-01 05929636 c:RevaluationReserve 2022-10-01 2023-09-30 05929636 c:RevaluationReserve 2023-09-30 05929636 c:RevaluationReserve 2022-09-30 05929636 c:RevaluationReserve 2021-10-01 05929636 c:RetainedEarningsAccumulatedLosses 2022-10-01 2023-09-30 05929636 c:RetainedEarningsAccumulatedLosses 2023-09-30 05929636 c:RetainedEarningsAccumulatedLosses 2021-10-01 2022-09-30 05929636 c:RetainedEarningsAccumulatedLosses 2022-09-30 05929636 c:RetainedEarningsAccumulatedLosses 2021-10-01 05929636 c:AcceleratedTaxDepreciationDeferredTax 2023-09-30 05929636 c:AcceleratedTaxDepreciationDeferredTax 2022-09-30 05929636 d:OrdinaryShareClass1 2022-10-01 2023-09-30 05929636 d:OrdinaryShareClass1 2023-09-30 05929636 d:OrdinaryShareClass1 2022-09-30 05929636 d:FRS102 2022-10-01 2023-09-30 05929636 d:Audited 2022-10-01 2023-09-30 05929636 d:FullAccounts 2022-10-01 2023-09-30 05929636 d:PrivateLimitedCompanyLtd 2022-10-01 2023-09-30 05929636 c:Subsidiary1 2022-10-01 2023-09-30 05929636 c:Subsidiary1 1 2022-10-01 2023-09-30 05929636 c:Subsidiary2 2022-10-01 2023-09-30 05929636 c:Subsidiary2 1 2022-10-01 2023-09-30 05929636 c:WithinOneYear 2023-09-30 05929636 c:WithinOneYear 2022-09-30 05929636 c:BetweenOneFiveYears 2023-09-30 05929636 c:BetweenOneFiveYears 2022-09-30 05929636 c:MoreThanFiveYears 2023-09-30 05929636 c:MoreThanFiveYears 2022-09-30 05929636 c:PlantEquipmentOtherAssetsUnderOperatingLeases 2023-09-30 05929636 c:PlantEquipmentOtherAssetsUnderOperatingLeases 2022-09-30 05929636 c:PlantEquipmentOtherAssetsUnderOperatingLeases c:WithinOneYear 2023-09-30 05929636 c:PlantEquipmentOtherAssetsUnderOperatingLeases c:WithinOneYear 2022-09-30 05929636 c:PlantEquipmentOtherAssetsUnderOperatingLeases c:BetweenOneFiveYears 2023-09-30 05929636 c:PlantEquipmentOtherAssetsUnderOperatingLeases c:BetweenOneFiveYears 2022-09-30 05929636 c:PlantEquipmentOtherAssetsUnderOperatingLeases c:MoreThanFiveYears 2023-09-30 05929636 c:PlantEquipmentOtherAssetsUnderOperatingLeases c:MoreThanFiveYears 2022-09-30 05929636 c:HirePurchaseContracts c:WithinOneYear 2023-09-30 05929636 c:HirePurchaseContracts c:WithinOneYear 2022-09-30 05929636 c:HirePurchaseContracts c:BetweenOneFiveYears 2023-09-30 05929636 c:HirePurchaseContracts c:BetweenOneFiveYears 2022-09-30 05929636 d:Consolidated 2023-09-30 05929636 d:ConsolidatedGroupCompanyAccounts 2022-10-01 2023-09-30 iso4217:GBP xbrli:shares xbrli:pure
Company registration number: 05929636







ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 SEPTEMBER 2023


LEISURE INC (KNIGHTSBRIDGE) LIMITED






































img04db.png                        

 


LEISURE INC (KNIGHTSBRIDGE) LIMITED
 


 
COMPANY INFORMATION


Directors
E P Aleo 
K L Morgan 




Company secretary
K L Morgan



Registered number
05929636



Registered office
Islet Lodge
Islet Road

Maidenhead

Berkshire

SL6 8LE




Independent auditors
Menzies LLP
Chartered Accountants & Statutory Auditor

Magna House

18-32 London Road

Staines-Upon-Thames

TW18 4BP





 


LEISURE INC (KNIGHTSBRIDGE) LIMITED
 



CONTENTS



Page
Group Strategic Report
1
Directors' Report
2 - 3
Independent Auditors' Report
4 - 7
Consolidated Income Statement
8
Consolidated Statement of Financial Position
9
Company Statement of Financial Position
10
Consolidated Statement of Changes in Equity
11
Company Statement of Changes in Equity
12
Consolidated Statement of Cash Flows
13 - 14
Consolidated Analysis of Net Debt
15
Notes to the Financial Statements
16 - 33


 


LEISURE INC (KNIGHTSBRIDGE) LIMITED
 


 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2023

Introduction
 
The group’s principal activities have continued to be those of a Costa Coffee franchise operator within the hospitality industry, as well as property investment and development. Bristal Investments Limited operates exclusively as a Costa Coffee franchise partner and is a wholly owned subsidiary of Leisure Inc (Knightsbridge) Limited. The Group is a UK group with the immediate parent being Leisure Inc (Knightsbridge) Limited, a company incorporated in the United Kingdom.

Business review and key performance indicators
 
The results for the year are set out in the consolidated income statement on page 8.
The Group generated revenue of £11.12m (2022: £9.84m), an increase of 13%. The increase in revenue was primarily due  to operating more stores in this year than throughout the previous year, supplemented by sale proceeds derived from the disposal of a parcel of development land.  
The overall gross profit margin was reduced at 59% (2022: 62%), with Bristal Investments Limited alone contributing 60.5% (2022: 62%). The slight deterioration in the gross profit margin was attributable to continuing upward cost pressures impacting all elements of direct costs. Key performance indicators for the group continue to include monitoring and managing its sales revenues as well as the overhead cost base so that sufficient profits are generated within the group to facilitate further growth and to ensure that the group's financing needs are serviced. Additional key performance indicators also continue to include monitoring the performance of individual store outlets, the performance of all staff and, in particular, key contributors, as well as continual training initiatives.  
The net current assets of the Group have decreased to £0.69m (2022: £1.47m), while the net asset position has improved to £6.83m (2022: £6.17m) as a result of working capital being invested into property purchases. The Group has made further property acquisitions during the year, impacting on the net current asset position. Two further trading outlets have been opened post year end, following which the Group has made it a priority to maximise revenue streams in order to maintain future profitability. In addition, the group has adopted a strategy post year end of maximising the retention of earnings in order to improve the net current asset position and thereby continuing to provide necessary working capital. 

Principal risks and uncertainties
 
The principal risk surrounding the Group continues to be that of servicing its finance needs. In order to do so the group is dependent upon its ability to maintain profitability. The Group has also determined to substantially reduce its net borrowings and has embarked on a strategy to do so over the course of the next 2-3 years. The Group is further mitigating risk by continuing to expand its customer base over a wider number of store locations.

Future Developments
 
The principal activity and trading objectives of the Group is to maintain growth in revenues in order to grow future profits. Post year end, two further new stores have been opened with additional opportunities in the pipeline.


This report was approved by the board and signed on its behalf.


................................................
E P Aleo
Director
Date: 30 July 2024

Page 1

 


LEISURE INC (KNIGHTSBRIDGE) LIMITED
 


 
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2023

The directors present their report and the financial statements for the year ended 30 September 2023.

Directors' responsibilities statement

The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and the Group 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 for the Group's financial statements and then apply them consistently;

make judgments 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 Group will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006They are 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.

Results and dividends

The profit for the year, after taxation, amounted to £1,053,676 (2022 - £1,014,574).

Dividends paid during the year ended 30 September 2023 were £391,000 (2022: £340,000).

Directors

The directors who served during the year were:

E P Aleo 
K L Morgan 

Matters covered in the Group Strategic Report

The Group has chosen in accordance with Section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 to set out within the company's Strategic Report the Company's Strategic Report Information required by schedule 7 of the Large and Medium Sized Companies and Groups (Accounts and Report) Regulations 2008.This includes information that would have been included in the business review and details of the principal risks and 
uncertainties.

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Page 2

 


LEISURE INC (KNIGHTSBRIDGE) LIMITED
 


 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023

Post balance sheet events

As disclosed in note 29, Subsequent to the year end, two properties held in stock were sold for £735,000 and £650,000 on 14 December 2023 and 9 February 2024 and a proportion of the intercompany loan repaid upon completion of the sale of these properties.

Auditors

Under section 487(2) of the Companies Act 2006Menzies LLP will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.

This report was approved by the board and signed on its behalf.
 





................................................
E P Aleo
Director

Date: 30 July 2024

Page 3

 


LEISURE INC (KNIGHTSBRIDGE) LIMITED
 

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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LEISURE INC (KNIGHTSBRIDGE) LIMITED

Opinion


We have audited the financial statements of Leisure Inc (Knightsbridge) Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 30 September 2023, which comprise the Group Income Statement, the Group and Company Statements of Financial Position, the Group Statement of Cash Flows, the Group and Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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's affairs as at 30 September 2023 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.


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 United Kingdom, including the Financial Reporting Council'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 or 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 directors with respect to going concern are described in the relevant sections of this report.


Other information


The other information comprises the information included in the Annual Report other than the financial statements and  our Auditors' 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.


Page 4

 


LEISURE INC (KNIGHTSBRIDGE) LIMITED


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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LEISURE INC (KNIGHTSBRIDGE) LIMITED (CONTINUED)

Opinion 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group Strategic Report and the Directors' Report 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 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 set out on page 2, 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 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 directors either intend to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


Page 5

 


LEISURE INC (KNIGHTSBRIDGE) LIMITED


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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LEISURE INC (KNIGHTSBRIDGE) LIMITED (CONTINUED)

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 an Auditors' 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 Group 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:

- The Group is subject to laws and regulations that directly affect the financial statements including financial reporting legislation. We determined that the following laws and regulations were most significant including UK Companies Act, employment law and tax legislation. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
- We understood how the Group is complying with those legal and regulatory frameworks by, making inquiries to management, those responsible for legal and compliance procedures. 
- The engagement partner assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations. The assessment did not identify any issues in this area.
- We assessed the susceptibility of the Group's financial statements to material misstatement, including how fraud might
occur. Audit procedures performed by the engagement team included:
        - Identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud;
        - Understanding how those charged with governance considered and addressed the potential for override of controls or
          other inappropriate influence over the financial reporting process; and
        - Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.
- As a result of the above procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:
        - Posting of unusual journals and complex transactions;
        - Risk of fictitious employees;
        - Accounting estimates in relation to property valuations.


Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


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 Auditors' Report.


Page 6

 


LEISURE INC (KNIGHTSBRIDGE) LIMITED


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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LEISURE INC (KNIGHTSBRIDGE) LIMITED (CONTINUED)

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 2006Our 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 Auditors' 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.





Sophie Said FCA (Senior Statutory Auditor)
  
for and on behalf of
Menzies LLP
 
Chartered Accountants
Statutory Auditor
  
Magna House
18-32 London Road
Staines-Upon-Thames
TW18 4BP

30 July 2024
Page 7

 


LEISURE INC (KNIGHTSBRIDGE) LIMITED
 


 
CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
11,121,406
9,835,756

Cost of sales
  
(4,515,696)
(3,788,816)

Gross profit
  
6,605,710
6,046,940

Administrative expenses
  
(5,493,142)
(4,886,011)

Other operating income
 5 
257,440
321,169

Fair value movements
  
258,097
-

Operating profit
 8 
1,628,105
1,482,098

Interest receivable and similar income
  
10,406
6,867

Interest payable and similar expenses
 10 
(285,716)
(200,658)

Profit before tax
  
1,352,795
1,288,307

Tax on profit
 11 
(299,119)
(273,733)

Profit for the financial year
  
1,053,676
1,014,574

Profit for the year attributable to:
  

Owners of the parent
  
1,053,676
1,014,574

  
1,053,676
1,014,574

The notes on pages 16 to 33 form part of these financial statements.

Page 8

 


LEISURE INC (KNIGHTSBRIDGE) LIMITED
REGISTERED NUMBER:05929636



CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible Assets
 13 
15,333
26,166

Tangible Fixed Assets
 14 
7,764,044
6,916,038

Investment Property
 16 
2,939,748
2,670,594

  
10,719,125
9,612,798

Current assets
  

Stocks
 17 
3,412,326
2,852,513

Debtors
 18 
469,841
307,989

Cash At Bank And In Hand
  
163,648
1,168,487

  
4,045,815
4,328,989

Creditors: Amounts Falling Due Within One Year
 19 
(3,354,262)
(2,860,662)

Net current assets
  
 
 
691,553
 
 
1,468,327

Total assets less current liabilities
  
11,410,678
11,081,125

Creditors: Amounts Falling Due After More Than One Year
 20 
(4,084,667)
(4,421,915)

Provisions for liabilities
  

Deferred taxation
 23 
(350,275)
(346,150)

Provisions
 24 
(144,393)
(144,393)

  
 
 
(494,668)
 
 
(490,543)

Net assets
  
6,831,343
6,168,667


Capital and reserves
  

Called up share capital 
 25 
340
340

Revaluation Reserve
 26 
147,920
147,920

Profit And Loss Account
  
6,683,083
6,020,407

  
6,831,343
6,168,667


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




................................................
E P Aleo
Director

Date: 30 July 2024

The notes on pages 16 to 33 form part of these financial statements.

Page 9

 


LEISURE INC (KNIGHTSBRIDGE) LIMITED
REGISTERED NUMBER:05929636



COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 14 
6,252,654
5,292,994

Investments
 15 
270
270

Investment Property
 16 
2,939,748
2,670,594

  
9,192,672
7,963,858

Current assets
  

Stocks
 17 
1,392,059
1,261,211

Debtors
 18 
1,996,379
1,444,911

Cash at bank and in hand
  
50,539
51,420

  
3,438,977
2,757,542

Creditors: amounts falling due within one year
 19 
(2,313,294)
(664,150)

Net current assets
  
 
 
1,125,683
 
 
2,093,392

Total assets less current liabilities
  
10,318,355
10,057,250

  

Creditors: amounts falling due after more than one year
 20 
(4,045,398)
(4,421,915)

Provisions for liabilities
  

Deferred taxation
 23 
(152,803)
(101,303)

  
 
 
(152,803)
 
 
(101,303)

Net assets
  
6,120,154
5,534,032


Capital and reserves
  

Called up share capital 
 25 
340
340

Revaluation reserve
 26 
147,920
147,920

Profit and loss account
 26 
5,971,894
5,385,772

  
6,120,154
5,534,032


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 


................................................
E P Aleo
Director
Date: 30 July 2024

The notes on pages 16 to 33 form part of these financial statements.

Page 10

 


LEISURE INC (KNIGHTSBRIDGE) LIMITED
 



CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2023


Called up share capital
Revaluation reserve
Profit and loss account
Total equity

£
£
£
£


At 1 October 2021
340
147,920
5,345,833
5,494,093


Comprehensive income for the year

Profit for the year
-
-
1,014,574
1,014,574

Dividends: Equity capital
-
-
(340,000)
(340,000)



At 1 October 2022
340
147,920
6,020,407
6,168,667


Comprehensive income for the year

Profit for the year
-
-
1,053,676
1,053,676

Dividends: Equity capital
-
-
(391,000)
(391,000)


At 30 September 2023
340
147,920
6,683,083
6,831,343


The notes on pages 16 to 33 form part of these financial statements.

Page 11

 


LEISURE INC (KNIGHTSBRIDGE) LIMITED
 



COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2023


Called up share capital
Revaluation reserve
Profit and loss account
Total equity

£
£
£
£


At 1 October 2021
340
147,920
4,458,268
4,606,528


Comprehensive income for the year

Profit for the year
-
-
1,267,504
1,267,504

Dividends: Equity capital
-
-
(340,000)
(340,000)



At 1 October 2022
340
147,920
5,385,772
5,534,032


Comprehensive income for the year

Profit for the year
-
-
977,122
977,122

Dividends: Equity capital
-
-
(391,000)
(391,000)


At 30 September 2023
340
147,920
5,971,894
6,120,154


The notes on pages 16 to 33 form part of these financial statements.

Page 12

 


LEISURE INC (KNIGHTSBRIDGE) LIMITED
 



CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
1,053,676
1,014,574

Adjustments for:

Amortisation of intangible assets
10,833
16,923

Depreciation of tangible assets
459,021
497,059

Loss on disposal of tangible assets
(6,482)
506

Government grants
-
(83,334)

Interest paid
285,716
200,658

Interest received
(10,406)
(6,867)

Taxation charge
299,119
273,733

(Increase) in stocks
(559,813)
(129,327)

(Increase)/decrease in debtors
(161,852)
50,669

(Decrease)/increase in creditors
(312,842)
415,989

Increase in provisions
4,125
40,095

Net fair value (gains)/losses recognised in P&L
(285,097)
-

Corporation tax (paid)
(249,531)
(204,519)

Net cash generated from operating activities

526,467
2,086,159


Cash flows from investing activities

Purchase of intangible fixed assets
-
(5,000)

Purchase of tangible fixed assets
(1,352,275)
(567,205)

Sale of tangible fixed assets
51,730
8,933

Government grants received
-
83,334

Interest received
10,406
6,867

Net cash from investing activities

(1,290,139)
(473,071)
Page 13

 


LEISURE INC (KNIGHTSBRIDGE) LIMITED
 



CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023


2023
2022

£
£



Cash flows from financing activities

New secured loans
865,000
-

Repayment of loans
(580,496)
(1,332,910)

Repayment of hire purchase leases
(228)
-

New hire purchase leases
143,332
-

Amount introduced/ (drawndown) by directors
7,941
(11,343)

Dividends paid
(391,000)
(340,000)

Interest paid
(285,716)
(200,658)

Net cash used in financing activities
(241,167)
(1,884,911)

Net (decrease) in cash and cash equivalents
(1,004,839)
(271,823)

Cash and cash equivalents at beginning of year
1,168,487
1,440,310

Cash and cash equivalents at the end of year
163,648
1,168,487


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
163,648
1,168,487

163,648
1,168,487


The notes on pages 16 to 33 form part of these financial statements.

Page 14

 


LEISURE INC (KNIGHTSBRIDGE) LIMITED
 



CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 30 SEPTEMBER 2023





At 1 October 2022
Cash flows
New finance leases
At 30 September 2023
£

£

£

£

Cash at bank and in hand

1,168,487

(1,147,943)

143,104

163,648

Debt due after 1 year

(4,421,915)

453,713

-

(3,968,202)

Debt due within 1 year

(1,061,754)

(222,199)

-

(1,283,953)

Finance leases

-

-

(143,104)

(143,104)


(4,315,182)
(916,429)
-
(5,231,611)

The notes on pages 16 to 33 form part of these financial statements.

Page 15

 


LEISURE INC (KNIGHTSBRIDGE) LIMITED
 


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

1.


General information

Leisure Inc (Knightsbridge) Limited is a private company limited by shares incorporated in England and Wales. The address of the registered office is disclosed on the company information page. 
The Group's functional and presentational currency is GBP (£).

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Income Statement in these financial statements.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of Financial Position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Income Statement from the date on which control is obtained. They are deconsolidated from the date control ceases.

 
2.3

Revenue

Revenue represents income earned from the principal activity of the business, being franchise coffee shops. All revenue generated is recognised at the point of sale and measured at the fair value of the consideration received, excluding any discounts, value added tax and other sales taxes.
Other income represents rent receivables from property held investment property & in work in progress. The income generated from work in progress is incidental to the trade and is generated short term as planning permission is sought.

 
2.4

Operating leases: the Group as lessor

Rental income from operating leases is credited to profit or loss on a straight-line basis over the lease term.

 
2.5

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Page 16

 


LEISURE INC (KNIGHTSBRIDGE) LIMITED
 


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

2.Accounting policies (continued)

 
2.6

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. The Group has taken advantage of the Government's job retention scheme and business rate grants available as a result of the COVID-19 pandemic. Funds received under these grants of a revenue nature are recognised in the Consolidated Income Statement in the same period as the related expenditure.

 
2.7

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Group in independently administered funds.

 
2.8

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Freehold property
-
2%
on cost of building
Long-term leasehold property
-
2%
on cost
Lease improvements
-
Straight line over period of the lease
Plant and machinery
-
25%
on reducing balance
Motor vehicles
-
25%
on reducing balance
Fixtures and fittings
-
25%
on reducing balance
Computer equipment
-
25%
on reducing balance

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

  
2.9

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Page 17

 


LEISURE INC (KNIGHTSBRIDGE) LIMITED
 


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

2.Accounting policies (continued)

 
2.10

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Stock held consists of work in progress and finished goods which include labour and attributable overheads.

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.11

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

Intangibles relate to franchise fees and are initially measured at cost. They are subsequently amortised evenly over the life of the agreement being 5 years.

 
2.12

Investment property

Investment property is carried at fair value determined annually by the directors and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in profit or loss.

 
2.13

Provisions for liabilities

Provisions are made where an event has taken place that gives the Group a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Group becomes aware of the obligation, and are measured at the best estimate at the reporting date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Statement of Financial Position.

 
2.14

Financial instruments

The Group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Page 18

 


LEISURE INC (KNIGHTSBRIDGE) LIMITED
 


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

2.Accounting policies (continued)

 
2.15

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

Page 19

 


LEISURE INC (KNIGHTSBRIDGE) LIMITED
 


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

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the accounts reported. These estimates and judgements are continually reviewed and are based on experiences and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The judgements (apart from those involving estimates) that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements is the split and valuation of the mixed use properties & the provision for dilapidation's.
 
1) Mixed use properties

The estimations that management has made in considering the split and valuation of the investment property portfolio is as follows: 

Valuation
The investment properties are measured at fair value and are based on active market prices, adjusted if necessary for any difference in nature, location or condition of the specific asset. Any changes in the fair value are recognised in either the profit or loss for the period in which they arise. 
The directors review the valuation of the properties on an annual basis and, taking market conditions into account, consider the values included in the accounts to be the fair value of the properties.  
 
Classification split
To apportion the cost value between investment property and freehold element of the mixed use properties, the directors applied the average market yield to the annual earnings to obtain the open market value. The open market value split was apportioned to the cost.
The average market yield used was based on the market rate from a 3rd party valuation performed on the properties based on market evidence available. 
 
2) Dilapidation provision

The directors have obtained a dilapidation assessment from a 3rd party expert on three different coffee shops and have applied an adjusted average cost per square meter across the remaining coffee shops on the basis that the condition of the properties and the dilapidation requirements are similar across the portfolio.


4.


Turnover

An analysis of turnover by class of business is as follows:


2023
2022
£
£

Sale of goods from coffee shops
10,496,406
9,835,756

Sale of property
625,000
-

11,121,406
9,835,756


All turnover arose within the United Kingdom.

Page 20

 


LEISURE INC (KNIGHTSBRIDGE) LIMITED
 


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

5.


Other operating income

2023
2022
£
£

Other operating income
1,728
4,774

Rent receivable
255,712
233,061

Government grants receivable
-
83,334

257,440
321,169



6.


Employees

Staff costs, including directors' remuneration, were as follows:


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Staff wages and salaries
3,022,640
2,695,331
105,170
63,876

Social security
246,093
231,255
15,347
9,913

Directors wages and salaries
24,000
24,000
24,000
24,000

Directors social security
807
870
807
870

Staff cost of defined contribution scheme
44,545
39,795
-
-

3,338,085
2,991,251
145,324
98,659


The average monthly number of employees, including the directors, during the year was as follows:



Group
Group
Company
Company
        2023
        2022
        2023
        2022
            No.
            No.
            No.
            No.









Directors
2
2
2
2



Office and other key management
2
3
2
3



Area managers
5
5
-
-



Shop managers
24
22
-
-



Shop staff
119
100
-
-

152
132
4
5

Page 21

 


LEISURE INC (KNIGHTSBRIDGE) LIMITED
 


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

7.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
24,000
24,000

24,000
24,000


The number of directors that were receiving pension contributions during the year was nil (2021: nil).


8.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Rent payable under external operating leases
417,363
381,218

Depreciation
459,021
497,059

Amortisation
10,833
16,923

Loss on disposal of fixed assets
(6,482)
506


9.


Auditors' remuneration

During the year, the Group obtained the following services from the Company's auditors:


2023
2022
£
£

Fees payable to the Group's auditor and its associates for the audit of the Group's
annual financial statements
25,000
22,500


10.


Interest payable and similar expenses

2023
2022
£
£


Bank loan interest
284,218
182,824

Other loan interest payable
656
9,832

Finance leases and hire purchase contracts
842
-

Other interest
-
8,002

285,716
200,658

Page 22

 


LEISURE INC (KNIGHTSBRIDGE) LIMITED
 


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

11.


Taxation


2023
2022
£
£

Corporation tax


UK corporation tax
294,994
249,214


294,994
249,214


Total current tax
294,994
249,214

Deferred tax


Origination and reversal of timing differences
4,125
18,634

Impact of change in the UK tax rate
-
5,885

Total deferred tax
4,125
24,519


Taxation on profit on ordinary activities
299,119
273,733

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - higher than) the standard rate of corporation tax in the UK of 22% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
1,352,795
1,288,307


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 22% (2022 - 19%)
297,615
244,778

Effects of:


Expenses not deductible for tax purposes
5,165
2,396

Ineligible depreciation
31,031
32,320

Adjustments to tax charge in respect of prior periods
(19,605)
-

Non-taxable income for tax purposes
(56,803)
-

Chargeable gains/(losses)
41,264
(11,646)

Tax losses carried back
452
-

Remeasurement of deferred tax
-
5,885

Total tax charge for the year
299,119
273,733


Factors that may affect future tax charges

Changes to the UK Corporation Tax rates were substantively enacted as part of the Finance Bill 2021 on 10 June 2021. These include an increment of the rate of Corporation Tax to 25% from 19% from April 2023. 

Page 23

 


LEISURE INC (KNIGHTSBRIDGE) LIMITED
 


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

12.


Dividends

2023
2022
£
£


Ordinary shares of £1 each
391,000
340,000


13.


Intangible assets

Group 





Patents

£



Cost


At 1 October 2022
178,172



At 30 September 2023

178,172



Amortisation


At 1 October 2022
152,006


Charge for the year on owned assets
10,833



At 30 September 2023

162,839



Net book value



At 30 September 2023
15,333



At 30 September 2022
26,166



The Company had no Intangible assets at the reporting date.

Page 24


LEISURE INC (KNIGHTSBRIDGE) LIMITED
  
 
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2023



14.


Tangible fixed assets


Group







Freehold property
Long-term leasehold property
Lease improvements
Plant and machinery
Motor vehicles
Fixtures and fittings
Computer equipment
Total

£
£
£
£
£
£
£
£



Cost or valuation


At 1 October 2022
4,476,027
1,160,662
1,016,204
1,078,421
58,800
1,989,901
6,300
9,786,315


Additions
933,986
-
95,368
58,443
185,579
78,899
-
1,352,275


Disposals
-
-
(229)
(77,955)
(51,450)
(390)
-
(130,024)



At 30 September 2023

5,410,013
1,160,662
1,111,343
1,058,909
192,929
2,068,410
6,300
11,008,566



Depreciation


At 1 October 2022
223,448
139,287
494,731
729,281
25,180
1,254,549
3,801
2,870,277


Charge for the year on owned assets
54,090
23,211
95,975
88,928
9,388
186,804
625
459,021


Disposals
-
-
-
(63,849)
(20,608)
(319)
-
(84,776)



At 30 September 2023

277,538
162,498
590,706
754,360
13,960
1,441,034
4,426
3,244,522



Net book value



At 30 September 2023
5,132,475
998,164
520,637
304,549
178,969
627,376
1,874
7,764,044



At 30 September 2022
4,252,579
1,021,375
521,473
349,140
33,620
735,352
2,499
6,916,038

Page 25

 


LEISURE INC (KNIGHTSBRIDGE) LIMITED
 


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

           14.Tangible fixed assets (continued)


Company






Freehold property
Long-term leasehold property
Motor vehicles
Fixtures and fittings
Total

£
£
£
£
£

Cost or valuation


At 1 October 2022
4,476,027
1,160,662
-
35,374
5,672,063


Additions
933,986
-
108,342
1,980
1,044,308



At 30 September 2023

5,410,013
1,160,662
108,342
37,354
6,716,371



Depreciation


At 1 October 2022
223,448
139,287
-
16,334
379,069


Charge for the year on owned assets
54,090
23,211
2,257
5,090
84,648



At 30 September 2023

277,538
162,498
2,257
21,424
463,717



Net book value



At 30 September 2023
5,132,475
998,164
106,085
15,930
6,252,654



At 30 September 2022
4,252,579
1,021,375
-
19,040
5,292,994

Included in freehold property is land of £2,628,128 (2022 - £2,170,330) which is not depreciated.
Included in the Group's net book value of £7,764,044 is £190,719 (2022: £18,444) relating to assets held under hire purchase agreement. Included in the Company's net book value of £6,252,654 is £106,085 (2022: £nil) relating to assets held under hire purchase agreement. 
Included within the Group's and Company's freehold property is £3,664,710 (2022: £2,777,203) and in long term leasehold is £998,166 (2022: £1,021,379) relating to the net book value of properties which the Company rents to another group entity. 
Also included within the freehold property's Group and Company's net book value of £5,132,475 is £860,952 relating to properties which have historically been revalued with a comparable historical cost of £784,610 (2022: £775,580) and depreciation of £57,455 (2022: £47,845) respectively. 






Page 26

 


LEISURE INC (KNIGHTSBRIDGE) LIMITED
 


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

15.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost or valuation


At 1 October 2022
270



At 30 September 2023
270





Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Class of shares

Holding

Bristal Investments Limited
Islet Lodge, Islet Road, Maidenhead, Berkshire, SL6 8LE, England.
Ordinary
100%
Bristal Developments Limited
Islet Lodge, Islet Road, Maidenhead, Berkshire, SL6 8LE, England.
Ordinary
100%

Page 27

 


LEISURE INC (KNIGHTSBRIDGE) LIMITED
 


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

16.


Investment property

Group and Company


Freehold investment property
Long term leasehold investment property
Total

£
£
£



Valuation


At 1 October 2022
2,456,594
214,000
2,670,594


Additions at cost
11,057
-
11,057


Surplus on revaluation
258,097
-
258,097



At 30 September 2023
2,725,748
214,000
2,939,748

All of the Group's investment property are held in the Parent company.

The 2023 valuations were made by the directors, on an open market value for existing use basis, taking into consideration informal 3rd party reviews of the properties conditions and estimated values.

See note 3 for key judgements and estimates made in relation to the split.



If the Investment properties had been accounted for under the historic cost accounting rules, the properties would have been measured as follows:

2023
2022
£
£


Historic cost
2,034,425
2,023,368

2,034,425
2,023,368


17.


Stocks

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Raw materials and consumables
26,400
26,400
-
-

Work in progress
3,385,926
2,826,113
1,392,059
1,261,211

3,412,326
2,852,513
1,392,059
1,261,211


Page 28

 


LEISURE INC (KNIGHTSBRIDGE) LIMITED
 


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

18.


Debtors

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£



Trade debtors
21,634
17,968
9,101
5,500

Amounts owed by group undertakings
-
-
1,853,250
1,425,704

Other debtors
111,033
39,679
89,808
301

Prepayments and accrued income
337,174
250,342
44,220
13,406

469,841
307,989
1,996,379
1,444,911



19.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Bank loans
1,283,953
545,736
1,283,953
420,486

Other loans
-
500,000
-
-

Trade creditors
805,764
605,243
83,130
49,694

Amounts owed to group undertakings
-
-
710,958
-

Corporation tax
484,208
434,620
17,847
29,392

Other taxation and social security
384,075
401,005
12,210
16,641

Obligations under finance lease and hire purchase contracts
26,639
-
25,729
-

Other creditors
67,956
83,201
38,660
45,002

Accruals and deferred income
301,667
290,857
140,807
102,935

3,354,262
2,860,662
2,313,294
664,150


Bank loans are secured by way of legal charges over the properties held by the group. 
Others loans were secured by way of a fixed charge over the property to which it relates. Details of the security provided can be seen on note 21.

Page 29

 


LEISURE INC (KNIGHTSBRIDGE) LIMITED
 


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

20.


Creditors: Amounts falling due after more than one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Bank loans
3,968,202
4,421,915
3,968,202
4,421,915

Net obligations under finance leases and hire purchase contracts
116,465
-
77,196
-

4,084,667
4,421,915
4,045,398
4,421,915


Bank loans are secured by way of legal charges over the properties held by the group. Bank loans are secured by way of legal charges over the properties held by the group. 


21.


Loans


Analysis of the maturity of loans is given below:


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Amounts falling due within one year

Bank loans
1,283,953
545,736
1,283,953
420,486

Other loans
-
500,000
-
-


1,283,953
1,045,736
1,283,953
420,486

Amounts falling due 1-2 years

Bank loans 1-2 yrs
418,953
420,486
418,953
420,486

Amounts falling due 2-5 years

Bank loans
1,256,859
1,216,046
1,256,859
1,216,046

Amounts falling due after more than 5 years

Bank loans
2,292,390
2,785,383
2,292,390
2,785,383

5,252,155
5,467,651
5,252,155
4,842,401


Others loans were previously secured by way of a fixed charge over the property of which it related to. The loan had an option agreement in place which gives the lender the option to purchase a proportion of land which was not exercised. The £500,000 other loan was repaid in full following the sale of a piece of land previously held within stock.

Page 30

 


LEISURE INC (KNIGHTSBRIDGE) LIMITED
 


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

22.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Within one year
26,639
-
25,729
-

Between 1-5 years
116,465
-
77,196
-

143,104
-
102,925
-


23.


Deferred taxation


Group



2023


£






At beginning of year
(346,150)


Charged to profit or loss
(4,125)



At end of year
(350,275)

Company


2023


£






At beginning of year
(101,303)


Charged to profit or loss
(51,500)



At end of year
(152,803)

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Accelerated capital allowances
(350,275)
(346,150)
(152,803)
(101,303)

(350,275)
(346,150)
(152,803)
(101,303)

Page 31

 


LEISURE INC (KNIGHTSBRIDGE) LIMITED
 


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

24.


Provisions


Group



Dilapidation provisions

£





At 1 October 2022
144,393



At 30 September 2023
144,393

The Company had no provisions at the reporting date.
 


25.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



340 (2022 - 340) Ordinary shares of £1.00 each
340
340



26.


Reserves

Revaluation reserve

This reserve records the accumulated property movements as a result of the revaluation of the Group's properties.  

Profit and loss account

This reserve records retained earnings and accumulated losses attributable to the shareholders of the Group. Included in the profit and loss reserve is £686,993 in respect of investment property gains net of deferred tax which is non distributable. 

Page 32

 


LEISURE INC (KNIGHTSBRIDGE) LIMITED
 


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

27.


Commitments under operating leases

At 30 September 2023 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Not later than 1 year
385,433
452,801
3,483
3,483

Later than 1 year and not later than 5 years
1,045,207
769,970
-
-

Later than 5 years
560,436
369,198
-
-

1,991,076
1,591,969
3,483
3,483

At 30 September 2023 the Group and the Company had future minimum lease receivable due under non- ancellable operating leases for each of the following periods:


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Not later than 1 year
28,540
28,410
213,590
213,560

Later than 1 year and not later than 5 years
-
-
609,600
609,600

Later than 5 years
-
-
289,456
443,063

28,540
28,410
1,112,646
1,266,223

Any minimum lease payments/ receivables between the Group have been eliminated on consolidation. 


28.


Related party transactions

Balances and transactions between the Group, which are related parties of the Company, have been eliminated on consolidation and are not disclosed in this note.
At 1 October 2022 E Aleo & K Morgan was owed by the Group £16,018. During the year further advances were made of £509,188 and repayments of £473,024. Interest charged at a rate of 2% of £1,737. At 30 September 2023, an amount of £20,146 was owed to the Group. 
Dividends of £391,000 were paid to the directors during the year.


29.


Post balance sheet events

Subsequent to the year end, two properties held in stock were sold for £735,000 and £650,000 on 14 December 2023 and 9 February 2024 and a proportion of the intercompany loan repaid upon completion of the sale of these properties.


30.


Controlling party

E Aleo is the ultimate controlling party by virtue of his majority shareholding.

 
Page 33