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Company registration number: 08093774
Olive Dining Limited
Financial statements
31 July 2023
Olive Dining Limited
Contents
Directors and other information
Strategic report
Directors report
Independent auditor's report to the members
Statement of income and retained earnings
Statement of financial position
Statement of cash flows
Notes to the financial statements
Olive Dining Limited
Directors and other information
Directors Mrs S Spratt
Mr C Whitter
Company number 08093774
Registered office Brooklands House
58 Marlborough Road
Lancing
West Sussex
BN15 8AF
Business address 8 Station Road East
Oxted
Surrey
RH8 0BT
Auditor Gibson Appleby
1-3 Ship Street
Shoreham-by-Sea
West Sussex
BN43 5DH
Accountants Clarity Accounting Limited
Brooklands House
58 Marlborough Road
Lancing
West Sussex
BN15 8AF
Olive Dining Limited
Strategic report
Year ended 31 July 2023
The Directors present the strategic report and financial statements for the period ended 31st July 2022.
Fair review of the business
The Directors of the business are delighted with the company results for the period and its financial position. The company provides catering services to Primary and Secondary Schools in the State Education sector.
Successfully navigating the business challenges and effects of inflation following geo-political events in Easten Europe, the business continued to grow and increased its turnover by 6.0%, this was achieved through a mixture of new contracts and retention of existing business.
Management teams responded quickly to manage risks, in particular the increased food pricing and wage rises, and in doing so were able to contain the impact on gross margin to only a 2.2% decline on 2022, delivering a gross margin of 11.9%. This was achieved by the strategic management of our Head Office function, reducing overheads where not required, strong and detailed management of our cashflow and renegotiation of some contracts.
The results before tax for the year dropped from a profit of £768,325 in 2022 to a loss of £89,369 in 2023, due in part to the aforementioned lower gross profit but also due to significant investment in expanding the Head Office function to ensure continued standards at a time of steady controlled growth.
Careful and strategic management was required to navigate our way through the challenges and control the cashflow. The company had to review its payrates for staff to ensure retention. Labour market supply shortfalls meant the company incurred significant temporary staff (agency) cost. The senior members of the company should be credited with their ability to adapt and navigate through these challenges and their ability to confidently manage complex risks all the while continuing to grow.
Our cashflow management and forecasting shows that the company is able to manage any potential future instances of unpredictable trading which may arise in the next twelve months.
The Directors are very grateful for the support shown by the company's clients and the tremendous commitment and dedication of its staff during this time.
Principal Risks and Uncertainties
The Directors consider the principal risks to the business to be, change in Government policy, particularly given the upcoming general election, the effect of on-going food inflation and the shortage of high calibre staff generally, in the hospitality sector, together with the impact of higher interest rates on families cost of living.
Food inflation continues to be challenging, it is being effectively managed by maintaining excellent supplier relationships, bulk buying produce when required to secure competitive pricing and availability and proactive management of menus to compensate for increased pricing or short supply.
It is expected that trading volumes will continue to rise in the next financial year and the Directors do not anticipate any going concern issues for the company.
Engagement with employees
Our employees are our most valued asset, we must ensure their wellbeing to deliver the continued success of the company. The company continues to value its recruitment policies and processes, to ensure that we are at the forefront as the employer of choice, with excellent rates of pay, supportive training and development programmes and excellent employee benefit and reward schemes.
Effective communication with our employees is paramount to ensure the wellbeing of our employees and through our Wellbeing Team, we assist with staff sickness, and depression and those staff who have suffered bereavement.
We have continued to increase the level of communication with our staff through all communication mediums, reaching our staff from all demographics with monthly newsletters, Director video messaging, social media, Direct mail, and on-site team briefings.
Our messaging to date has focused primarily on the following.
Employee wellbeing - particularly mental health
Team recognition
Company news and business culture
How the business is performing
Career Development & Training
Our expanding People Team oversee the development and training of our employees, we see this as an important strategy in mitigating the effect of the shortage of high calibre candidates in the hospitality industry. We are enhancing the development of our staff through the increased use of online learning and company funded training, both practical and managerial.
Employee Safety
The ongoing health and safety of our employees and our customers is key to our success. We have a focus on Health & Safety training and continued refresher training for our staff. The monitoring of Health & Safety is managed at our Board meetings. We engage outside agencies to ensure that we are the most up to date and using the best training systems available.
Development & Peformance
Whilst changes to Governments and Government policies creates uncertainty, it also brings opportunities. Our fantastic management teams are continuing to innovate and stay close to political party's pledges and be ready to maximise the opportunities as they present themselves.
We continue to work hand in hand with our clients where the focus is on providing students with what is likely to be, in many cases, their only substantial meal of the day. We continue to produce freshly prepared, high-quality meals, made from nutritious fresh ingredients, created by staff of a high calibre, and enjoyed in a welcoming dining ambience. This remains the shared priority of the company and of our clients.
We are convinced that our company model provides the solution to the requirements of our existing and new clients.
Key Performace Indicators
The Directors consider the key performance indicators to be the company's gross profit margin, profit before tax, cash flow position and total net asset value.
The company has a detailed accounts management system.
This provides real time information and allows for immediate detailed interrogation of financial information.
The company continues to manage its business through the use of weekly cashflow and dashboard reports, weekly site trading reports, and monthly management accounts, which form part of our monthly Board review.
This report was approved by the board of directors on 21 June 2024 and signed on behalf of the board by:
Mrs S Spratt
Director
Olive Dining Limited
Directors report
Year ended 31 July 2023
The directors present their report and the financial statements of the company for the year ended 31 July 2023.
Directors
The directors who served the company during the year were as follows:
Mrs S Spratt
Mr C Whitter
Dividends
Particulars of recommended dividends are detailed in note 12 to the financial statements.
Future developments
Further information regarding the business, its principal risks and uncertainties, financial instruments and future developments have been included within the strategic report.
Directors responsibilities statement
The directors are responsible for preparing the strategic report, 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). 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 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 judgments and accounting estimates that are reasonable and prudent; and
- 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.
Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
The auditor is deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006.
This report was approved by the board of directors on 21 June 2024 and signed on behalf of the board by:
Mrs S Spratt
Director
Olive Dining Limited
Independent auditor's report to the members of
Olive Dining Limited
Year ended 31 July 2023
Opinion
We have audited the financial statements of Olive Dining Limited (the 'company') for the year ended 31 July 2023 which comprise the statement of income and retained earnings, statement of financial position, statement of cash flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial statements: - give a true and fair view of the state of the company's affairs as at 31 July 2023 and of its loss for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the 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 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 auditor’s report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the finacial 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 has 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 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: - 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 the returns; or - certain disclosures of directors' remuneration specified by law are not made; or
Responsibilities of directors
As explained more fully in the directors' responsibilities statement set out on page 5, 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 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.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We gained an understanding of the legal and regulatory framework applicable to the company and the environment in which it operates, from our own knowledge and through discussion with a director and key management. We assessed the risk of fraud and error and designed our audit procedures accordingly. We focused on laws and regulations which could give rise to material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation.
Our tests included agreeing the figures and disclosures in the financial statements to underlying supporting documentation and enquiries with management. We did not identify any key audit matters relating to irregularities, including fraud. We also addressed the risk of management override of internal controls, including reviewing journals and evaluating whether there was evidence of bias by the directors that represented a risk of fraud.
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 Auditor's Report.
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.
Sarah Johnson ACA (Senior Statutory Auditor)
For and on behalf of
Gibson Appleby
Statutory Auditors
1-3 Ship Street
Shoreham-by-Sea
West Sussex
BN43 5DH
21 June 2024
Olive Dining Limited
Statement of income and retained earnings
Year ended 31 July 2023
2023 2022
Note £ £
Turnover 4 17,856,335 16,847,515
Cost of sales ( 15,737,965) ( 14,463,869)
_______ _______
Gross profit 2,118,370 2,383,646
Administrative expenses ( 2,128,227) ( 1,821,941)
Other operating income 5 19,822 444,819
_______ _______
Operating profit 6 9,965 1,006,524
Other interest receivable and similar income 9 53 81
Interest payable and similar expenses 10 ( 110,213) ( 69,716)
_______ _______
(Loss)/profit before taxation ( 100,195) 936,889
Tax on (loss)/profit 11 10,826 ( 168,564)
_______ _______
(Loss)/profit for the financial year and total comprehensive income ( 89,369) 768,325
_______ _______
Dividends declared and paid or payable during the year 12 ( 340,000) ( 520,000)
Retained earnings at the start of the year 921,535 673,210
_______ _______
Retained earnings at the end of the year 492,166 921,535
_______ _______
All the activities of the company are from continuing operations.
Olive Dining Limited
Statement of financial position
31 July 2023
2023 2022
Note £ £ £ £
Fixed assets
Tangible assets 13 373,559 422,137
_______ _______
373,559 422,137
Current assets
Stocks 14 304,470 234,863
Debtors 15 2,877,477 2,391,413
Investments 16 5,380 5,380
Cash at bank and in hand 218,449 972,485
_______ _______
3,405,776 3,604,141
Creditors: amounts falling due
within one year 17 ( 2,827,446) ( 2,541,567)
_______ _______
Net current assets 578,330 1,062,574
_______ _______
Total assets less current liabilities 951,889 1,484,711
Creditors: amounts falling due
after more than one year 18 ( 388,667) ( 493,513)
Provisions for liabilities 19 ( 70,976) ( 69,583)
_______ _______
Net assets 492,246 921,615
_______ _______
Capital and reserves
Called up share capital 23 80 80
Profit and loss account 24 492,166 921,535
_______ _______
Shareholders funds 492,246 921,615
_______ _______
These financial statements were approved by the board of directors and authorised for issue on 21 June 2024 , and are signed on behalf of the board by:
Mrs S Spratt
Director
Company registration number: 08093774
Olive Dining Limited
Statement of cash flows
Year ended 31 July 2023
2023 2022
£ £
Cash flows from operating activities
(Loss)/profit for the financial year ( 89,369) 768,325
Adjustments for:
Depreciation of tangible assets 283,286 330,202
Government grant income ( 19,822) ( 444,819)
Other interest receivable and similar income ( 53) ( 81)
Interest payable and similar expenses 110,213 69,716
Gain/(loss) on disposal of tangible assets ( 7,434) -
Tax on loss/profit ( 10,826) 168,564
Accrued expenses/(income) ( 554,094) ( 100,067)
Changes in:
Stocks ( 69,607) ( 19,719)
Trade and other debtors 53,894 ( 200,247)
Trade and other creditors 480,012 1,432
_______ _______
Cash generated from operations 176,200 573,306
Interest paid ( 110,213) ( 69,716)
Interest received 53 81
Tax paid 5,129 ( 255,937)
_______ _______
Net cash from operating activities 71,169 247,734
_______ _______
Cash flows from investing activities
Purchase of tangible assets ( 287,304) ( 349,482)
Proceeds from sale of tangible assets 60,030 -
_______ _______
Net cash used in investing activities ( 227,274) ( 349,482)
_______ _______
Cash flows from financing activities
Proceeds from borrowings ( 214,259) ( 218,458)
Government grant income 19,822 444,819
Payment of finance lease liabilities ( 51,633) 51,633
Equity dividends paid ( 340,000) ( 520,000)
_______ _______
Net cash used in financing activities ( 586,070) ( 242,006)
_______ _______
Net increase/(decrease) in cash and cash equivalents ( 742,175) ( 343,754)
Cash and cash equivalents at beginning of year 972,485 1,316,239
_______ _______
Cash and cash equivalents at end of year 230,310 972,485
_______ _______
Olive Dining Limited
Notes to the financial statements
Year ended 31 July 2023
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Brooklands House, 58 Marlborough Road, Lancing, West Sussex, BN15 8AF.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Going concern
As explained more fully in the Strategic Report, the year ended 31 July 2023 proved to be challenging for the public sector catering industry, and the company worked hard to contain these challenges to a loss of £89,369. However, through increased turnover and the full year effect of actions taken in 2023, the Directors are confident in their forecasts that show a return to profitability in the year ending 31 July 2024. The continuing expansion in the company's activities means the Directors are evermore focused on cash flow requirements and forward planning. To assist with ongoing funding and to continue to grow the business, additional financing agreements have been entered into after the year end to aid with cashflow timings, ensuring the Company is able to meet its liabilities as they fall due. The Company also have scope to access further finance should it be required. On this basis the directors consider that the company is able to continue as a going concern for the foreseeable future and that future trading prospects are excellent. Accordingly, they continue to adopt the going concern basis in preparing these financial statements.
Turnover
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax.
Revenue from the sale of goods and services is recognised when the company has delivered those goods and services to its client schools under the terms of its agreed contracts with them, or if outside of the standard contract, when the supply has been completed.
Taxation
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in the statement of comprehensive income, except to the extent that it relates to items recognised in other comprehensive income or directly in capital and reserves. In this case, tax is recognised in other comprehensive income or directly in capital and reserves, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Operating leases
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.
Tangible assets
tangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated depreciation and impairment losses.
Depreciation
Depreciation is calculated so as to write off the cost of an asset, less its residual value, over the useful economic life of that asset as follows:
Short leasehold property - 20 % straight line
Plant and machinery - Straight line over 3 or 4 years
Fittings fixtures and equipment - Straight line over 4 or 5 years
Motor vehicles - Straight line over 3 years
If there is an indication that there has been a significant change in depreciation rate, useful life or residual value of tangible assets, the depreciation is revised prospectively to reflect the new estimates.
Impairment
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. When it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stocks to their present location and condition.
Hire purchase and finance leases
Assets held under finance leases are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
Government grants
Government grants are recognised using the accrual model.
Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event; it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised in finance costs in profit or loss in the period it arises.
Financial instruments
A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument.
Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.
Certain employees who have transferred to the Company under the TUPE rules have instead elected to remain members of a defined benefit contribution scheme operated by a local government pension scheme (LGPS). Aside from meeting ongoing annual contributions (which are factored in to the tender meal price), it is not considered that the Company has any further potential liabilities under this scheme. Any future deficits remain the responsibility of the local borough council.
4. Turnover
Turnover arises from:
2023 2022
£ £
Rendering of services 17,422,150 16,847,515
_______ _______
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
5. Other operating income
2023 2022
£ £
Government grant income 19,822 444,819
_______ _______
6. Operating loss/profit
Operating loss/profit is stated after charging/(crediting):
2023 2022
£ £
Depreciation of tangible assets 283,286 330,202
(Gain)/loss on disposal of tangible assets ( 7,434) -
Impairment of trade debtors - 12,912
Operating lease rentals 189,052 201,751
Fees payable for the audit of the financial statements 16,000 14,986
_______ _______
7. Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
2023 2022
Direct 580 543
Administrative & Support 37 34
_______ _______
617 577
_______ _______
The aggregate payroll costs incurred during the year were:
2023 2022
£ £
Wages and salaries 8,819,818 7,766,643
Social security costs 105,238 87,656
Other pension costs 316,999 359,038
_______ _______
9,242,055 8,213,337
_______ _______
8. Directors remuneration
The directors aggregate remuneration in respect of qualifying services was:
2023 2022
£ £
Remuneration 24,248 17,952
Company contributions to pension schemes in respect of qualifying services 1,653 3,142
_______ _______
25,901 21,094
_______ _______
The number of directors who accrued benefits under company pension plans was as follows:
2023 2022
Number Number
Defined contribution plans 2 2
_______ _______
9. Other interest receivable and similar income
2023 2022
£ £
Bank deposits 53 81
_______ _______
10. Interest payable and similar expenses
2023 2022
£ £
Bank loans and overdrafts 56,368 44,898
Other interest payable and similar expenses 53,845 24,818
_______ _______
110,213 69,716
_______ _______
11. Tax on loss/profit
Major components of tax income/expense
2023 2022
£ £
Current tax:
UK current tax expense - 175,524
Adjustments in respect of previous periods ( 12,219) -
_______ _______
Deferred tax:
Origination and reversal of timing differences 1,393 ( 6,960)
_______ _______
Tax on loss/profit ( 10,826) 168,564
_______ _______
Reconciliation of tax income/expense
The tax assessed on the loss/profit for the year is higher than (2022: lower than) the standard rate of corporation tax in the UK of 19.00 % (2022: 19.00%).
2023 2022
£ £
(Loss)/profit before taxation ( 100,195) 936,889
_______ _______
(Loss)/profit multiplied by rate of tax ( 19,037) 178,009
Adjustments in respect of prior periods ( 12,219) -
Effect of expenses not deductible for tax purposes 80,036 69,335
Effect of capital allowances and depreciation ( 60,999) ( 71,820)
Deferred tax 1,393 ( 6,960)
_______ _______
Tax on loss/profit ( 10,826) 168,564
_______ _______
12. Dividends
Equity dividends
2023 2022
£ £
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year) 340,000 520,000
_______ _______
13. Tangible assets
Short leasehold property Plant and machinery Fixtures, fittings and equipment Motor vehicles Total
£ £ £ £ £
Cost
At 1 August 2022 17,828 1,527,900 97,755 76,988 1,720,471
Additions 2,244 259,539 25,521 - 287,304
Disposals - ( 665,739) ( 3,419) ( 68,188) ( 737,346)
_______ _______ _______ _______ _______
At 31 July 2023 20,072 1,121,700 119,857 8,800 1,270,429
_______ _______ _______ _______ _______
Depreciation
At 1 August 2022 14,135 1,191,942 69,833 22,424 1,298,334
Charge for the year 1,859 249,800 19,224 12,403 283,286
Disposals - ( 654,640) ( 3,592) ( 26,518) ( 684,750)
_______ _______ _______ _______ _______
At 31 July 2023 15,994 787,102 85,465 8,309 896,870
_______ _______ _______ _______ _______
Carrying amount
At 31 July 2023 4,078 334,598 34,392 491 373,559
_______ _______ _______ _______ _______
At 31 July 2022 3,693 335,958 27,922 54,564 422,137
_______ _______ _______ _______ _______
14. Stocks
2023 2022
£ £
Finished goods and goods for resale 304,470 234,863
_______ _______
15. Debtors
2023 2022
£ £
Trade debtors 1,940,349 2,046,098
Prepayments and accrued income 581,012 315,437
Other debtors 356,116 29,878
_______ _______
2,877,477 2,391,413
_______ _______
16. Investments
2023 2022
£ £
Other investments 5,380 5,380
_______ _______
17. Creditors: amounts falling due within one year
2023 2022
£ £
Bank loans and overdrafts 212,000 362,000
Trade creditors 945,872 869,100
Accruals and deferred income 55,053 81,050
Corporation tax 148,635 155,725
Social security and other taxes 955,959 547,810
Obligations under finance leases - 8,787
Director loan accounts - 2,259
Other creditors 509,927 514,836
_______ _______
2,827,446 2,541,567
_______ _______
The bank loan totalling £212,000 (2022 - £212,000) is secured on the assets of the company by way of a fixed and floating charge. The bank loan is subject to interest at Bank of England base rate + 3.99%.
18. Creditors: amounts falling due after more than one year
2023 2022
£ £
Bank loans and overdrafts 388,667 450,667
Obligations under finance leases - 42,846
_______ _______
388,667 493,513
_______ _______
The bank loan totalling £388,667 (2022 - £600,667) is secured on the assets of the company by way of a fixed and floating charge. The bank loan is subject to interest at Bank of England base rate + 3.99%.
19. Provisions
Deferred tax (note 20) Total
£ £
At 1 August 2022 69,583 69,583
Additions 1,393 1,393
_______ _______
At 31 July 2023 70,976 70,976
_______ _______
20. Deferred tax
The deferred tax included in the statement of financial position is as follows:
2023 2022
£ £
Included in provisions (note 19) 70,976 69,583
_______ _______
The deferred tax account consists of the tax effect of timing differences in respect of:
2023 2022
£ £
Accelerated capital allowances 70,976 69,583
_______ _______
21. Employee benefits
The amount recognised in profit or loss in relation to staff contribution plans was £316,999 (2022: £359,038). At the year end £166,809 (2022 - £183,082) was owing to the pension schemes.
In general, the company operates a defined contribution pension scheme for eligible employees.
Certain employees who have transferred to the company under the TUPE rules have however, elected to remain members of a defined benefit pension scheme operated by a local government pension scheme (LGPS). In this case the company is responsible for meeting the ongoing annual costs estimated to be needed to cover future projected benefits under this scheme. In the event that contributions need to be increased to cover projected future benefits then the company has the right to renegotiate the tender price of the meals that it supplies to cover these costs. Any further deficits that may arise in connection with a review of the scheme assets or projected liabilities under the scheme are the responsibility of the local borough council. It is not, therefore, considered that the company has any future potential liability under this scheme.
There can be delays in making ongoing contributions to the local authority pending acceptance instructions which need to be issued by them. These were initially delayed because of the covid outbreak. In such cases a full record is kept of the contributions payable and the amount due to the local authority so it can be paid as soon as the necessary arrangements are in place. The amount held on behalf of the local authority at the year-end amounted to £140,731 (2022: £162,068).
22. Government grants
The amounts recognised in the financial statements for government grants are as follows:
2023 2022
£ £
Recognised in other operating income:
Government grants recognised directly in income 19,822 444,819
_______ _______
23. Called up share capital
Issued, called up and fully paid
2023 2022
No £ No £
Ordinary shares of £ 1.00 each 80 80 80 80
_______ _______ _______ _______
24. Reserves
Profit and loss account - This reserve records retained earnings and accumulated losses.Called-up share capital – represents the nominal value of shares that have been issued.
25. Analysis of changes in net debt
At 1 August 2022 Cash flows At 31 July 2023
£ £ £
Cash and cash equivalents 972,485 (754,036) 218,449
Debt due within one year (373,046) 161,046 (212,000)
Debt due after one year (493,513) 104,846 (388,667)
Current asset investments 5,380 - 5,380
_______ _______ _______
111,306 ( 488,144) ( 376,838)
_______ _______ _______
26. Operating leases
The company as lessee
The total future minimum lease payments under non-cancellable operating leases are as follows:
£ £
Not later than 1 year 130,301 131,470
Later than 1 year and not later than 5 years 260,602 321,202
_______ _______
390,903 452,672
_______ _______
27. Directors advances, credits and guarantees
During the year the directors entered into the following advances and credits with the company:
2023
Balance brought forward Advances /(credits) to the directors Balance o/standing
£ £ £
Mrs S Spratt ( 1,875) 114,657 112,782
Mr C Whitter ( 384) 107,370 106,986
_______ _______ _______
( 2,259) 222,027 219,768
_______ _______ _______
2022
Balance brought forward Advances /(credits) to the directors Balance o/standing
£ £ £
Mrs S Spratt 147,626 ( 149,501) ( 1,875)
Mr C Whitter ( 4,550) 4,166 ( 384)
_______ _______ _______
143,076 ( 145,335) ( 2,259)
_______ _______ _______
The overdrawn directors' loans were cleared on 6th April 2024 by the declaration of a dividend.
Mrs S Spratt , one the directors, has personally guaranteed an amount of £106,000 in relation to the company's CBIL loan.
28. Related party transactions
During the year the company entered into the following transactions with related parties:
Transaction value Balance owed by/(owed to)
2023 2022 2023 2022
£ £ £ £
Olive Dining Independent Ltd 493,359 465,720 109,447 20,424
Related individual ( 225,000) ( 150,000) ( 225,000) ( 150,000)
_______ _______ _______ _______
The above company is considered to be related by virtue of the fact that it has the same controlling party. The above individual is considered to be related by virtue of their relationship to the controlling party of the company
29. Controlling Party
Mrs S Spratt exercises control over the company by virtue of her majority shareholding in the company.