REGISTERED NUMBER: |
PIG AND CHICKEN INN LTD |
Strategic Report, Directors' Report and |
Financial Statements for the Year Ended 31 October 2023 |
REGISTERED NUMBER: |
PIG AND CHICKEN INN LTD |
Strategic Report, Directors' Report and |
Financial Statements for the Year Ended 31 October 2023 |
PIG AND CHICKEN INN LTD (REGISTERED NUMBER: NI659032) |
Contents of the Financial Statements |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Directors' Report | 5 |
Independent Auditors' Report | 7 |
Income Statement | 11 |
Statement of Financial Position | 12 |
Statement of Changes in Equity | 13 |
Statement of Cash Flows | 14 |
Notes to the Statement of Cash Flows | 15 |
Notes to the Financial Statements | 16 |
PIG AND CHICKEN INN LTD |
Company Information |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
INDEPENDENT AUDITORS: |
Chartered Accountants and Statutory Auditors |
36-38 Northland Row |
Dungannon |
Co. Tyrone |
BT71 6AP |
BANKERS: |
78 Wellington Street |
Ballymena |
Antrim |
BT43 6AF |
SOLICITORS: |
21 Arthur Street |
Belfast |
BT1 4GA |
PIG AND CHICKEN INN LTD (REGISTERED NUMBER: NI659032) |
Strategic Report |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
The directors present their strategic report for the year ended 31 October 2023. |
PRINCIPAL ACTIVITY AND REVIEW OF BUSINESS |
The principal activities of the company during the year continued to be that of the provision of hotel, spa, restaurant and bar facilities. |
The directors consider the results for the year to be in line with expectations with turnover of £8,960,155 (2022: £7,874,662) and profit before tax of £1,726,331 (2022: £1,693,680). Net assets of the company at the year end were £282,527 (2022: Net liabilities of £1,015,768). |
The directors are satisfied with the company's performance for the year and the position at the balance sheet date. |
Key financial performance indicators |
The directors consider the key performance indicators are those that communicate the financial performance and strengths of the company as a whole, being turnover, gross profit and operating profit. |
The directors have provided an analysis of the key performance indicators of the business below. The directors continue to monitor revenue and costs to ensure the company remains profitable. The company continues to maintain a strong net asset position. |
2023 | 2022 |
£/No. | £/No. |
Turnover | 8,960,155 | 7,874,662 |
Gross profit | 4,004,430 | 3,316,200 |
Operating profit | 2,196,342 | 1,839,640 |
Average number of employees | 135 | 125 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The Board continually reviews risks and uncertainties facing the company by regular review of the company's performance, compliance activities and wider economic factors influencing the marketplace in which the company operates. |
Interest rate risk |
The company has a policy of maintaining debt at SONIA linked rates. The directors will revisit the |
appropriateness of this policy should the company's operations change in size or nature. |
Price risk |
The company is exposed to commodity price risk as a result of its operations. However, given the size of the company's operations, the costs of managing exposure to commodity price risk exceed any potential benefits. The company has no exposure to equity securities price risk as it holds no listed investments. |
Liquidity risk |
The company actively maintains a mixture of short term and medium term debt finance that is designed to ensure the company has sufficient available funds for operations and planned expansions. |
Foreign exchange risk |
When necessary, the company uses financial instruments to manage foreign exchange exposure, in the normal course of the business. |
Economic risk |
We are committed to maintaining an asset-backed balance sheet which underpins our business model |
and our growth ambitions. Whilst the Directors are content the business is in a strong financial position, |
we are mindful of additional challenges facing the industry including inflationary pressures on utility |
costs, food and beverage costs and supply chain pressures. However, we believe our robust operating |
model with a focus on cost control as well as our strong relationship with our suppliers will help mitigate |
these challenges. |
The Board recognises its responsibility for managing business risk faced by the company including the promotion of good corporate governance, meeting legal and statutory obligations, and ensuring a strong framework of internal and financial controls. |
PIG AND CHICKEN INN LTD (REGISTERED NUMBER: NI659032) |
Strategic Report |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
STRATEGY |
The company's overarching strategy remains focused on the delivery of world class, market-leading |
hospitality and tourism experiences for the local economy of Northern Ireland and the Island of |
Ireland as an international tourism destination. This is underpinned by the Board's continued commitment |
to grow the business organically, by continually investing in innovative products and services to exceed |
market and consumer demands. The Company strives to deliver leading value whilst consistently |
providing guests with premium quality hospitality experiences. |
BUSINESS MODEL |
The company will focus on strengthening the global positioning of the brand through our focused |
strategy. We will continually review our core market segments alongside our product offerings and |
developments to ensure that we remain competitive and exceed expectations. We will continually seek |
out new markets, working collaboratively with industry bodies, not just for the benefit of the company, |
but for the industry within Northern Ireland. |
FUTURE OUTLOOK |
The economic environment in which the company operated will continue to be monitored closely during the next 12 months, with conditions continually assessed and analysed to detect and forecast any notable changes and to facilitate timely action, if required. |
The performance will provide a firm foundation on which to deliver further growth. Business and stakeholder relationships continue to provide strong support and remain a key focus as the company maintains its solid focus on delivering market-leading luxury tourism experiences coupled with a unique standard of service. |
SUSTAINABILITY |
The company aims to ensure the environment is left in a better condition for future generations, this strategy underlines the importance of Environmental, Social and Governance (ESG) as well as sustainability in supporting the future growth and development of the business. As a company we have made meaningful progress in the last financial year in understanding our environmental impact and developing mitigation measures. We have developed our Responsible Visitor Charter and have introduced our 'Green Policy 10-Point Plan' which includes details of our overall aim to becoming carbon neutral by 2030. This will be achieved through the following: |
1. Directors Commitment |
2. Staff Commitment |
3. Waste Management |
4. Zero Emissions Vehicles |
5. Natural Environment |
6. Greener Energy |
7. Community Initiatives |
8. Water Treatment |
9. Healthy Living |
10. Wellbeing and Diversity |
The company also is the recipient of Green Tourism Silver for excellence in the promotion of sustainability. |
The company is committed to finding ways to contribute to society and the main ways we can do this are by working with local charities, societies and clubs to have a positive impact in the community. We are proud to support several local sports clubs, societies and charities. |
PIG AND CHICKEN INN LTD (REGISTERED NUMBER: NI659032) |
Strategic Report |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
EMPLOYMENT |
The company is dedicated to offering careers of purpose to our employees, and we acknowledge the |
unique contribution that each person brings to our team. We strive to offer long-term career paths, because we know that, by retaining the best talent, we will continue to build a loyal customer base for our business, ensuring lasting, sustainable growth. We are proud to be a key employer in the local community focused on the recruitment, training, development and retention of employees, including internal communication and health and safety procedures throughout the organisation. |
The company will continue to promote, encourage and champion best practice and we are proud to have received Great Place To Work Accreditation throughout all our properties in March 2023. Ensuring that our employees have access to development opportunities is central to the way we retain talent. By continuing to invest in their growth, we will play a key role in shaping their professional development and can better support their ongoing career progression as well as the core skills both within the business, the local economy and wider industry. |
ON BEHALF OF THE BOARD: |
PIG AND CHICKEN INN LTD (REGISTERED NUMBER: NI659032) |
Directors' Report |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
The directors present their report with the audited financial statements of the company for the year ended 31 October 2023. |
PRINCIPAL ACTIVITY |
The principal activities of the company during the year continued to be that of the provision of hotel, spa and bar facilities. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 October 2023. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 November 2022 to the date of this report. |
RESULTS DURING THE YEAR |
The profit for the year, after taxation, amounted to £1,298,295 (2022: £1,342,074). |
DIRECTORS' INDEMNITIES |
As permitted by the Articles of Association, the Directors have the benefit of an indemnity which is a qualifying third-party indemnity provision as defined by Section 234 of the Companies Act 2006. The indemnity was in force throughout the last financial year and is currently in force. The company also purchased and maintained throughout the financial year Directors' and Officers' liability insurance in respect of itself and its Directors. |
MATTERS COVERED IN THE STRATEGIC REPORT |
Under Schedule 7.1A of "Large and Medium-Sized Companies and Groups (Accounts and Reports) Regulations 2008" the company has elected to disclose the following directors report information in the strategic report: |
- Financial performance indicators; |
- Future developments; |
- Principal risks and uncertainties; and |
- Principal activity and Business review; |
DIRECTORS' RESPONSIBILITIES STATEMENT |
The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), 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 of the profit or loss of the Company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
PIG AND CHICKEN INN LTD (REGISTERED NUMBER: NI659032) |
Directors' Report |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
DIRECTORS' RESPONSIBILITIES STATEMENT - continued |
The directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company's website. Legislation in Northern Ireland governing the preparation and dissemination of financial statements and other information included in the Directors' reports may differ from legislation in other jurisdictions. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the Company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the Company's auditors are aware of that information. |
AUDITORS |
The auditors, CavanaghKelly, have indicated their willingness to continue in office in accordance with the provision of Section 485 of the Companies Act 2006. |
ON BEHALF OF THE BOARD: |
Independent Auditors' Report to the Members of |
Pig and Chicken Inn Ltd |
Opinion |
We have audited the financial statements of Pig and Chicken Inn Ltd (the 'Company') for the year ended 31 October 2023 which comprise the Income Statement, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the Company's affairs as at 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. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
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 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Directors' Report, but does not include the financial statements and our Auditors' Report thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements. |
Independent Auditors' Report to the Members of |
Pig and Chicken Inn Ltd |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' 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 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 pages five and six, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so. |
Independent Auditors' Report to the Members of |
Pig and Chicken Inn Ltd |
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 financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud |
Irregularities, including fraud, are instances of non-compliance with laws and regulations. The objectives of our audit in respect of fraud are to assess the risk of material misstatement due to fraud, design and implement appropriate responses to those assessed risks and to respond appropriately to instances of fraud or suspected fraud identified during the course of our audit. However, the primary responsibility for the prevention and detection of fraud rests with management and those charged with governance of the company. |
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following: |
-We obtained understanding of the legal and regulatory requirements applicable to the company’s financial statements and considered the most significant are the Companies Act 2006, Financial Reporting Standards (FRS102) and UK taxation legislation; |
-We have assessed the risk of material misstatement of the financial statements, including risk of material misstatement due to fraud and how it might occur by holding discussions with management and those charged with governance; |
-We enquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations; |
-Understanding the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations; and |
-Discussions amongst the audit engagement team regarding how fraud might occur in the financial statements and any potential indicators of fraud. As part of this discussion we identified the following potential areas where fraud may occur: timing of revenue recognition and management override. |
The audit response to risks identified included: |
-Reviewing the financial statements disclosures and testing to supporting documentation to assess compliance with the relevant laws and regulations above; |
-Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risk of material misstatement due to fraud; and |
-In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments, assessing whether the judgements made in making accounting estimates are reasonable and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report. |
Independent Auditors' Report to the Members of |
Pig and Chicken Inn Ltd |
Use of our report |
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in 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. |
for and on behalf of |
Chartered Accountants and Statutory Auditors |
36-38 Northland Row |
Dungannon |
Co. Tyrone |
BT71 6AP |
PIG AND CHICKEN INN LTD (REGISTERED NUMBER: NI659032) |
Income Statement |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 4 |
Cost of sales | ( |
) | ( |
) |
GROSS PROFIT |
Administrative expenses | ( |
) | ( |
) |
2,089,799 | 1,752,396 |
Other operating income | 5 |
OPERATING PROFIT | 7 |
Finance costs | 8 | ( |
) | ( |
) |
PROFIT BEFORE TAXATION |
Tax on profit | 9 | ( |
) | ( |
) |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
PIG AND CHICKEN INN LTD (REGISTERED NUMBER: NI659032) |
Statement of Financial Position |
31 OCTOBER 2023 |
2023 | 2022 |
Notes | £ | £ |
NON-CURRENT ASSETS |
Tangible assets | 10 |
CURRENT ASSETS |
Stocks | 11 |
Receivables: amounts falling due within one year |
12 |
Cash at bank |
PAYABLES |
Amounts falling due within one year | 13 | ( |
) | ( |
) |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PAYABLES |
Amounts falling due after more than one year |
14 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 17 | ( |
) | ( |
) |
NET ASSETS/(LIABILITIES) | ( |
) |
CAPITAL AND RESERVES |
Called up share capital | 18 |
Retained earnings | 19 | ( |
) |
SHAREHOLDERS' FUNDS | ( |
) |
The financial statements were approved by the Board of Directors and authorised for issue on |
PIG AND CHICKEN INN LTD (REGISTERED NUMBER: NI659032) |
Statement of Changes in Equity |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 November 2021 | ( |
) | ( |
) |
Changes in equity |
Total comprehensive income | - |
Balance at 31 October 2022 | ( |
) | ( |
) |
Changes in equity |
Total comprehensive income | - |
Balance at 31 October 2023 |
PIG AND CHICKEN INN LTD (REGISTERED NUMBER: NI659032) |
Statement of Cash Flows |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( |
) | ( |
) |
Tax paid | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
New loans in year |
Loan repayments in year | ( |
) | ( |
) |
Capital repayments in year | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
Increase/(decrease) in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
(295,845 |
) |
414,084 |
Cash and cash equivalents at end of year |
2 |
( |
) |
PIG AND CHICKEN INN LTD (REGISTERED NUMBER: NI659032) |
Notes to the Statement of Cash Flows |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation |
Depreciation charges |
Profit on disposal of fixed assets | ( |
) |
Finance costs | 470,011 | 145,960 |
2,616,732 | 2,152,757 |
Increase in stocks | ( |
) | ( |
) |
Decrease/(increase) in trade and other debtors | ( |
) |
Increase in trade and other creditors |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 31 October 2023 |
31/10/23 | 1/11/22 |
£ | £ |
Cash and cash equivalents | 89,230 | 5,389 |
Bank overdrafts | ( |
) | ( |
) |
87,255 | (295,845 | ) |
Year ended 31 October 2022 |
31/10/22 | 1/11/21 |
£ | £ |
Cash and cash equivalents | 5,389 | 414,084 |
Bank overdrafts | ( |
) |
(295,845 | ) | 414,084 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1/11/22 | Cash flow | At 31/10/23 |
£ | £ | £ |
Net cash |
Cash at bank | 5,389 | 83,841 | 89,230 |
Bank overdrafts | (301,234 | ) | 299,259 | (1,975 | ) |
(295,845 | ) | 87,255 |
Debt |
Debts falling due within 1 year | (283,130 | ) | 49,843 | (233,287 | ) |
Debts falling due after 1 year | (6,539,833 | ) | 150,907 | (6,388,926 | ) |
(6,822,963 | ) | 200,750 | (6,622,213 | ) |
Total | (7,118,808 | ) | 583,850 | (6,534,958 | ) |
PIG AND CHICKEN INN LTD (REGISTERED NUMBER: NI659032) |
Notes to the Financial Statements |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
1. | STATUTORY INFORMATION |
Pig and Chicken Inn Ltd is a private company limited by shares and registered in Northern Ireland. The company's registered number and registered office address can be found on the Company Information page. |
The principal activity of the company is the provision of restaurant, hotel, spa and bar facilities. |
2. | STATEMENT OF COMPLIANCE |
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. |
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented unless otherwise stated. |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The accounts are prepared on a going concern basis and in accordance with the historical cost convention except for certain properties and financial instruments that are measured at revalued amounts of fair values, as explained in the accounting policies below. Historical cost is generally based on the fair value of the consideration given in exchange for assets. The financial reporting framework that has been applied in their preparation is the Companies Act 2006 (the "Act") and FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" issued by the Financial Reporting Council. |
The financial statements are prepared in sterling, which is the functional currency of the entity. |
Defined contribution pension plan |
The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the |
contributions have been paid the company has no further payment obligations. |
The contributions are recognised as an expense in the Income Statement 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 company in independently administered funds. |
Critical accounting judgements and key sources of estimation uncertainty |
In applying the company's accounting policies, the directors are required to make significant judgments, estimates and assumptions in determining the carrying amounts of assets and liabilities. The directors' judgments, estimates and assumptions are based on the best and most reliable evidence available at the time when the decisions are made, and are based on historical experience and other factors that are considered to be applicable. Due to the inherent subjectivity involved in making such judgments, estimates and assumptions, the actual results and outcomes may differ. |
No critical judgements or estimates have been made in applying the company's accounting policies. |
PIG AND CHICKEN INN LTD (REGISTERED NUMBER: NI659032) |
Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
3. | ACCOUNTING POLICIES - continued |
Revenue |
Revenue recognised in the Income Statement represents amounts invoiced during the year exclusive of Value Added Tax. Revenue is recognised when, and to the extent that, the company obtains the right to consideration in exchange for its performance. With respect to food, bar, spa and function room income, revenue is recognized at the point when the service is provided. For accommodation, revenue is recognised over the duration of the guests stay. |
Government grants |
Grants are recognised under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income. |
Grants of revenue nature are recognised in the Income Statement in the same period as relevant expenses. |
Foreign currencies |
Functional and Presentation currency |
The company's functional and presentational currency is GBP. |
Transactions and Balances |
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the date of transactions. |
At each period end foreign currency monetary items are translated using the closing rate. Non-Monetary items measured at historical costs are translated using the exchange at the date of the transaction and non-monetary items measured at fair value using the exchange rate when fair value was determined. |
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit and loss except when deferred in other comprehensive income as qualifying cash flow hedges. |
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the statement of comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'. |
Borrowing costs |
Borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset are capitalised during the period of time that is necessary to complete and prepare the asset for its intended use or sale. Other borrowing costs are expensed in the period in which they are incurred and disclosed in finance costs. |
Finance Costs |
Finance costs are charged to the Income Statement over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument. |
PIG AND CHICKEN INN LTD (REGISTERED NUMBER: NI659032) |
Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
3. | ACCOUNTING POLICIES - continued |
Property, plant and equipment |
Property, plant and equipment 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. |
At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount. |
The company adds to the carrying amount of an item of property, plant and equipment the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to the Income Statement during the period in which they are incurred. |
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. |
Freehold property | 1% - 10% - Straight line |
Fixtures and fittings | 10% - 25% - Straight line |
Motor vehicles | 20% - Straight line |
Assets under construction | Not depreciated |
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 the Income Statement. |
Inventories |
Inventories are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchases on a first in, first out basis. |
At each Statement of Financial Position date, inventories are assessed for impairment. If inventory is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in the Income Statement. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the Statement of Financial Position date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
PIG AND CHICKEN INN LTD (REGISTERED NUMBER: NI659032) |
Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
3. | ACCOUNTING POLICIES - continued |
Debtors |
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment. |
Cash and cash equivalents |
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from due date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value. |
Creditors |
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method. |
Provision for liabilities |
Provisions are made where an event has taken place that gives the company 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 the Income Statement in the year that the company becomes aware of the obligation, and are measured at the best estimate at the Statement of Financial Position 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. |
PIG AND CHICKEN INN LTD (REGISTERED NUMBER: NI659032) |
Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
3. | ACCOUNTING POLICIES - continued |
Financial instruments |
The company 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. |
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan. |
Investments in non-derivative instruments that are equity to the issuer are measured: |
- at fair value with changes recognised in the Income Statement if the shares are publicly traded or their fair value can otherwise be measured reliably; and |
- at cost less impairment for all other investments. |
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Income Statement. |
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract. |
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the company would receive for the asset if it were to be sold at the Statement of Financial Position date. |
Financial assets and liabilities are offset and the net amount reported in the Statement of Financial Position when there is an 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. |
4. | TURNOVER |
All turnover arose within the United Kingdom and is attributable to the principal activities of the company. |
5. | OTHER OPERATING INCOME |
2023 | 2022 |
£ | £ |
Other operating income | 30,113 | 14,429 |
Intragroup recharges | 76,430 | 72,815 |
106,543 | 87,244 |
PIG AND CHICKEN INN LTD (REGISTERED NUMBER: NI659032) |
Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
6. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2023 | 2022 |
Production |
During the year, £Nil was paid to directors in the form of remuneration (2022: £Nil). |
All remuneration to directors was borne by other group entities for current and prior year. |
7. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Depreciation - owned assets | 421,753 | 313,117 |
Auditors' remuneration | 6,300 | 6,000 |
Foreign exchange differences | 212 | 877 |
8. | FINANCE COSTS |
2023 | 2022 |
£ | £ |
Bank loan interest payable |
Group interest payable |
Other interest |
Hire purchase interest |
9. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax |
prior periods | (5,426 | ) | - |
Total current tax |
Deferred tax |
Tax on profit |
PIG AND CHICKEN INN LTD (REGISTERED NUMBER: NI659032) |
Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
9. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Adjustments to tax charge in respect of previous periods | ( |
) | ( |
) |
Fixed asset timing differences | 19,194 | (28,654 | ) |
Remeasurement of deferred tax for changes in tax rates | 19,105 | 77,199 |
Adjustments to brought forward values due to changes in tax rate | 6,393 | - |
Total tax charge | 428,036 | 351,606 |
10. | PROPERTY, PLANT AND EQUIPMENT |
Assets | Fixtures |
Freehold | under | and | Motor |
property | Construction | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 November 2022 |
Additions |
Disposals | ( |
) | ( |
) |
Reclassification/transfer | ( |
) |
At 31 October 2023 |
DEPRECIATION |
At 1 November 2022 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 October 2023 |
NET BOOK VALUE |
At 31 October 2023 |
At 31 October 2022 |
Included within additions in Assets under Construction is capitalised borrowing costs amounting to £339 (2022: £114,659). Borrowing costs are depreciated in line with the loan term. |
11. | STOCKS |
2023 | 2022 |
£ | £ |
Inventories |
The replacement value of stock is not materially different from the disclosed amounts at year end. |
PIG AND CHICKEN INN LTD (REGISTERED NUMBER: NI659032) |
Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
12. | RECEIVABLES: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade receivables |
Other receivables | 3,788 | 10,415 |
Amounts owed by related parties |
Prepayments and accrued income |
13. | PAYABLES: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans and overdrafts (see note 15) |
Trade payables |
Amounts owed to group undertakings |
Tax |
Social security and other taxes |
Other payables |
Accruals and deferred income |
Amounts owed to group undertakings are interest free, unsecured and repayable except those which are financing in nature whereby a market rate of interest is applied. |
14. | PAYABLES: AMOUNTS FALLING DUE AFTER ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans (see note 15) |
Amounts owed to group undertakings |
Other payables | 88,655 | 104,476 |
Amounts owed to group undertakings are interest free, unsecured and repayable except those which are financing in nature whereby a market rate of interest is applied. |
15. | LOANS |
An analysis of the maturity of loans is given below: |
2023 | 2022 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts |
Bank loans |
Amounts falling due between one and two years: |
Bank loans - 1-2 years |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
PIG AND CHICKEN INN LTD (REGISTERED NUMBER: NI659032) |
Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
15. | LOANS - continued |
The bank loan and overdraft facility are secured by the following: |
-A mortgage debenture incorporating a fixed and floating charge over all of the company assets; |
-Legal mortgage charge over land held at 884 & 886 Antrim Road, Templepatrick; |
-An unlimited cross company guarantee between Galgorm Manor Hotel Limited and Tullymore House Limited; |
-A mortgage debenture incorporating a fixed and floating charge over all assets owed by Galgorm Manor Hotel Limited; and |
-Legal mortgage charge over land held by Galgorm Manor Hotel Limited at Fenaghy Road. |
Bank loans have a commercial rate of interest applied. |
16. | FINANCIAL INSTRUMENTS |
2023 | 2022 |
£ | £ |
Carrying amount of financial assets in the Group |
Measured at fair value through the income statement | 97,628 | 22,977 |
Carrying amount of financial liabilities in the Group |
Measured at amortised cost | 8,885,310 | 10,095,029 |
17. | PROVISIONS FOR LIABILITIES |
2023 | 2022 |
£ | £ |
Deferred tax |
Accelerated capital allowances |
Deferred tax |
£ |
Balance at 1 November 2022 |
Provided during year |
Balance at 31 October 2023 |
18. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary shares | £1 | 1 | 1 |
19. | RESERVES |
Retained |
earnings |
£ |
At 1 November 2022 | ( |
) |
Profit for the year |
At 31 October 2023 |
Called up share capital |
This represents the nominal value of shares that have been issued. |
Retained earnings |
This includes all current and prior period retained profit and losses. |
PIG AND CHICKEN INN LTD (REGISTERED NUMBER: NI659032) |
Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
20. | CONTINGENT LIABILITIES |
There exists an unlimited cross company guarantee as security in respect of a loan provided to a group company. |
21. | RELATED PARTY DISCLOSURES |
The company has taken advantage of the exemptions given in FRS 10, section 33. The exemption permits non-disclosure of related party transactions of wholly owned subsidiary companies within a group. |
During the period the company traded with Cafe Parisien (Belfast) Limited a related party by virtue of common control and directors. |
Sales to Cafe Parisien (Belfast) Limited amounted to £14,609 (2022: £10,543) with purchases of £Nil (2022: £10,543) with a balance owed to Pig and Chicken Inn Ltd of £4,610 (2022: £6,296) at the year end. |
22. | ULTIMATE CONTROLLING PARTY |
The company’s immediate and ultimate parent undertaking was Tullymore House Limited, a company incorporated in Northern Ireland, until 18 November 2022. On this date the company was acquired by Eirmon Group Limited, a company incorporated in the Isle of Man. At the year end the company’s immediate parent undertaking is Eirmon Group Limited. |
On 18 November 2022 the company’s ultimate parent undertaking became Eirmon Holdings Limited, a company incorporated in the Isle of Man, by virtue of its shareholding in Eirmon Group Limited. |
The smallest and largest group for which consolidated accounts are prepared including the results of this company is Eirmon Holdings Limited. |
The Hill family is deemed to be ultimate controlling party of the company. |
23. | PENSION COMMITMENTS |
The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The cost of the contributions in the period was £47,636 (2022: £42,850). At the year end, £10,458 (2022: £12,699) was accrued in respect of outstanding pension contributions. |
24. | POST BALANCE SHEET EVENTS |
There are no post balance sheet events of note. |