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Registered number: 3723005









SACRED RIVER LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 NOVEMBER 2023

 
SACRED RIVER LIMITED
 
 
COMPANY INFORMATION


Directors
M Mazouz 
M I Bundhun 
D A Pears 




Company secretary
M Mazouz



Registered number
3723005



Registered office
12th Floor
Aldgate Tower

2 Leman Street

London

E1W 9US




Independent auditors
Gravita II LLP
Chartered Accountants
Statutory Auditors

Aldgate Tower

2 Leman Street

London

E1 8FA





 
SACRED RIVER LIMITED
 

CONTENTS



Page
Strategic Report
1
Directors' Report
2 - 3
Independent Auditors' Report
4 - 7
Statement of Comprehensive Income
8
Statement of Financial Position
9
Statement of Changes in Equity
10
Statement of Cash Flows
11
Analysis of Net Debt
12
Notes to the Financial Statements
13 - 26


 
SACRED RIVER LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2023

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

Principal activities and review of business
 
The principal activity is the operation of restaurants and bars, including the provision of afternoon tea.
The turnover for the year was £16.45 million compared to £14.38 million for the previous year, representing an increase of 14.39%. 
Profit before tax was £0.77 million compared to a profit before tax of £0.66 million for the previous year.
 

Principal risks and uncertainties
 
The directors continually identify, monitor and manage potential risks and uncertainties to the company. The directors consider the current principal risks and uncertainties to be adverse economic condition in the UK.
In addition, the other risks arising from the company’s financial instruments are interest rate risk and liquidity risk. The directors review and agree policies for managing each of these risks and they are summarised below.
The policies have remained unchanged from previous periods.
Interest rate risk
The company aims to finance its operations through positive trading cash flow.
Liquidity risk
The company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs. Primarily this is achieved through close management control of working capital and utilisation of existing loan facilities from the bank and the shareholders.

Financial key performance indicators
 
ole7d88.png

Future developments
In the current uncertain economic climate, the cost of living and price inflation, it is difficult to monitor the situation with regard to consumer sentiment. The directors will continue to monitor the situation in the coming months.


This report was approved by the board on 15 August 2024 and signed on its behalf.



M I Bundhun
Director

Page 1

 
SACRED RIVER LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2023

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

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

make judgments and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Principal activity

The principal activity of the company is operating a restaurant.

Directors

The directors who served during the year were:

M Mazouz 
M I Bundhun 
D A Pears 

Engagement with employees

The company places considerable value on the involvement of its employees and has continued to keep them informed on matters affecting them as employees and on the various factors affecting the performance of the company. This is achieved through formal and informal meetings. 

Page 2

 
SACRED RIVER LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023

Employment of disabled employees

The company is committed to a policy of recruitment, promotion and training on the basis of aptitude and ability without discrimination of any kind. Applications for employment by disabled persons are always fully considered, bearing in mind the abilities of the applicant concerned. In event of members of staff becoming disabled every effort is made to ensure that their employment with the company continues and that appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees. 

Disclosure of information to auditors

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

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

This report was approved by the board on 15 August 2024 and signed on its behalf.
 



M I Bundhun
Director

Page 3

 
SACRED RIVER LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SACRED RIVER LIMITED
 


OPINION

We have audited the financial statements of Sacred River Limited (the 'Company') for the year ended 30 November 2023, which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of changes in equity, the Statement of cash flows and the related notes, 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 30 November 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 United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

CONCLUSIONS RELATING TO GOING CONCERN

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the 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. However, because not all future events or conditions can be predicted this statement is not a guarantee as to the company's ability to continue as a going concern.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

OTHER INFORMATION

The other information comprises the information included in the Annual Report other than the financial statements and  our Auditors' report thereon.  The directors are responsible for the other information contained within the Annual Report.  Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated.  If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves.  If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Page 4

 
SACRED RIVER LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SACRED RIVER LIMITED (CONTINUED)


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 in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

adequate accounting records have not been kept, 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; or
the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Directors' report and from the requirement to prepare a Strategic report.

RESPONSIBILITIES OF DIRECTORS
 
As explained more fully in the Directors' responsibilities statement set out on page 2, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the 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.

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.

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. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management.
Page 5

 
SACRED RIVER LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SACRED RIVER LIMITED (CONTINUED)


The extent to which the audit was considered capable of detecting irregularities including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the company;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company including, but not limited to, the Companies Act 2006,  and taxation legislation;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting correspondence; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

understanding the business model as part of the control and business environment;
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations and;
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud.

To address the risk of fraud through management bias and override of controls, we:

performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

agreeing financial statement disclosures to underlying supporting documentation;
enquiring of management as to actual and potential litigation and claims;
reviewing correspondence and enquiring with the company of actual and potential non-compliance with laws and regulations; and
reading the minutes of meetings of those charged with governance.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Page 6

 
SACRED RIVER LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SACRED RIVER LIMITED (CONTINUED)


Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment by for example forgery, or intentional misrepresentations or through collusion. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations.

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.

OTHER MATTERS WHICH WE ARE REQUIRED TO ADDRESS

The financial statements of the Company for the year ended 30 November 2022 were unaudited.

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.


Shona Munday FCA (Senior statutory auditor)
for and on behalf of
Gravita II LLP
Chartered Accountants
Statutory Auditors
Aldgate Tower
2 Leman Street
London
E1 8FA
15 August 2024
Page 7

 
SACRED RIVER LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 NOVEMBER 2023

2023
2022
Note
£
£

  

Turnover
 3 
16,451,510
14,382,949

Cost of sales
  
(4,015,074)
(3,566,329)

Gross profit
  
12,436,436
10,816,620

Administrative expenses
  
(11,496,151)
(9,988,493)

Other operating income
 4 
-
6,000

Operating profit
 5 
940,285
834,127

Interest receivable and similar income
 8 
7,865
647

Interest payable and similar expenses
 9 
(173,245)
(173,410)

Profit before tax
  
774,905
661,364

Tax on profit
 10 
(213,920)
(157,140)

Profit for the financial year
  
560,985
504,224

Other comprehensive income for the year
  

Total comprehensive income for the year
  
560,985
504,224

The notes on pages 13 to 26 form part of these financial statements.

Page 8

 
SACRED RIVER LIMITED
REGISTERED NUMBER: 3723005

STATEMENT OF FINANCIAL POSITION
AS AT 30 NOVEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 11 
361,666
441,260

  
361,666
441,260

Current assets
  

Stocks
 12 
732,910
636,705

Debtors
 13 
797,924
496,416

Cash at bank and in hand
 14 
417,813
439,677

  
1,948,647
1,572,798

Creditors: amounts falling due within one year
 15 
(5,510,593)
(5,513,959)

Net current liabilities
  
 
 
(3,561,946)
 
 
(3,941,161)

Total assets less current liabilities
  
(3,200,280)
(3,499,901)

Creditors: amounts falling due after more than one year
 16 
(174,242)
(435,606)

  

Net liabilities
  
(3,374,522)
(3,935,507)


Capital and reserves
  

Called up share capital 
 19 
2,372,000
2,372,000

Profit and loss account
 20 
(5,746,522)
(6,307,507)

  
(3,374,522)
(3,935,507)


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 15 August 2024.


M I Bundhun
Director

The notes on pages 13 to 26 form part of these financial statements.

Page 9

 
SACRED RIVER LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 NOVEMBER 2023


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 December 2022
2,372,000
(6,307,507)
(3,935,507)


Comprehensive income for the year

Profit for the year
-
560,985
560,985


At 30 November 2023
2,372,000
(5,746,522)
(3,374,522)



STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 NOVEMBER 2022


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 December 2021
2,372,000
(6,811,731)
(4,439,731)


Comprehensive income for the year

Profit for the year
-
504,224
504,224


At 30 November 2022
2,372,000
(6,307,507)
(3,935,507)


The notes on pages 13 to 26 form part of these financial statements.

Page 10

 
SACRED RIVER LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 NOVEMBER 2023

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
560,985
504,224

Adjustments for:

Depreciation of tangible assets
99,550
114,221

Government grants
-
(6,000)

Interest paid
173,245
173,410

Interest received
(7,865)
(647)

Taxation charge
213,920
-

(Increase) in stocks
(96,205)
(168,039)

(Increase)/decrease in debtors
(301,508)
415,942

(Decrease) in creditors
(42,732)
(362,210)

Corporation tax (paid)/received
(245,685)
157,140

Net cash generated from operating activities

353,705
828,041

Cash flows from investing activities

Purchase of tangible fixed assets
(19,955)
(110,809)

Government grants received
-
6,000

Interest received
7,865
647

Net cash from investing activities

(12,090)
(104,162)

Cash flows from financing activities

Repayment of loans
(261,364)
(564,394)

Other new loans
-
916,667

Repayment of other loans
-
(1,188,635)

Non-equity dividends paid
71,130
71,130

Interest paid
(173,245)
(173,410)

Net cash used in financing activities
(363,479)
(938,642)

Net (decrease) in cash and cash equivalents
(21,864)
(214,763)

Cash and cash equivalents at beginning of year
439,677
654,440

Cash and cash equivalents at the end of year
417,813
439,677


Cash at bank and in hand
417,813
439,677


The notes on pages 13 to 26 form part of these financial statements.

Page 11

 
SACRED RIVER LIMITED
 

ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 30 NOVEMBER 2023





At 1 December 2022
Cash flows
Other non-cash changes
At 30 November 2023
£

£

£

£

Cash at bank and in hand

439,677

(21,864)

-

417,813

Debt due after 1 year

(435,606)

-

261,364

(174,242)

Debt due within 1 year

(2,928,031)

-

-

(2,928,031)


(2,923,960)
(21,864)
261,364
(2,684,460)

The notes on pages 13 to 26 form part of these financial statements.

Page 12

 
SACRED RIVER LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023

1.


General information

Sacred River Limited is a company limited by shares incorporated in England and Wales. The registered office is 12th Floor, Aldgate Tower, 2 Leman Street, London E1W 9US. The place of business is at 9 Conduit Street, Mayfair, London W1S 2XG.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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

The company's functional presentation currency is GBP and rounded to the nearest £1.

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

The following principal accounting policies have been applied:

 
2.2

Going concern

The financial statements have been prepared on a going concern basis even though the company has net liabilities of £3,374,522 (2022- £3,935,507). The validity of the going concern concept is dependent on the continuing support from creditors and the directors. The directors believe that the going concern concept is applicable as the company will be able to meet its debts as and when they fall due, as the directors are confident that the principal creditor will continue to provide support as required for a period of at least 12 months from the date of approval of the financial statements.  

 
2.3

Turnover

Turnover represents the value of sales, net of Value Added Tax and discounts and is recognised at the point of sale of food and drink by the restaurant.

 
2.4

Tangible fixed assets

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

Page 13

 
SACRED RIVER LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023

2.Accounting policies (continued)


2.4
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on the following basis:.

Depreciation is provided on the following basis:

Leasehold Property
-
over 20 years
Plant & machinery
-
over 10 years
Fixtures & fittings
-
25% p.a reducing balance basis

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

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

 
2.5

Stocks

Stocks 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 purchase on a weighted average basis. Work in progress and finished goods include labour and attributable overheads.

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

 
2.6

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.

 
2.7

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 the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

 
2.8

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

The Company has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.

Page 14

 
SACRED RIVER LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023

2.Accounting policies (continued)


2.8
Financial instruments (continued)

Financial instruments are recognised in the Company's Statement of Financial Position when the Company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts
Page 15

 
SACRED RIVER LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023

2.Accounting policies (continued)


2.8
Financial instruments (continued)

discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Other financial instruments

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.

Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.

 
2.9

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.

 
2.10

Finance costs

Finance costs are charged to profit or loss 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.

Page 16

 
SACRED RIVER LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023

2.Accounting policies (continued)

 
2.11

Operating leases: the Company as lessee

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

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.12

Pensions

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

 
2.13

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.14

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.15

Taxation

Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

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


3.


Turnover

2023
2022
£
£

Turnover
16,451,510
14,382,949

16,451,510
14,382,949


All turnover arose within the United Kingdom.

Page 17

 
SACRED RIVER LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023

4.


Exceptional items

2023
2022
£
£

Government grants receivable
-
6,000

-
6,000





5.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Cost of stock recognised and expensed
4,015,074
3,566,329

Depreciation of tangible fixed assets
99,550
114,221

Other operating lease rentals
710,000
271,911

Fees payable to the Company's auditor and its associates for the audit of the Company's annual financial statements
22,500
-

Defined contribution pension cost
102,228
81,941

Page 18

 
SACRED RIVER LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023

6.


Employees

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


2023
2022
£
£

Wages and salaries
5,845,006
5,318,961

Social security costs
435,203
379,975

Cost of defined contribution scheme
102,228
81,941

6,382,437
5,780,877


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


        2023
        2022
            No.
            No.







Administration
19
17



Restaurant
237
227

256
244


7.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
170,000
275,000

170,000
275,000


The highest paid director received remuneration of £120,000 (2022 - £275,000).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £NIL (2022 - £NIL).

The total accrued pension provision of the highest paid director at 30 November 2023 amounted to £NIL (2022 - £NIL).

All directors and certain senior employees who have authority and responsibility for planning, directing and controlling the activities of the company are considered to be Key management personnel. Aggregate compensation in respect of these individuals is £459,946 (2022: £535,742).

Page 19

 
SACRED RIVER LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023

8.


Interest receivable

2023
2022
£
£


Other interest receivable
7,865
647

7,865
647


9.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
59,898
68,832

Other loan interest payable
42,217
33,448

Preference share dividends
71,130
71,130

173,245
173,410


10.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
213,920
157,140


Total current tax
213,920
157,140
Page 20

 
SACRED RIVER LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
 
10.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022-higher than) the standard rate of corporation Tax in the UK of 23% (2022-19%). The difference is explained below:

2023
2022
£
£


Profit on ordinary activities before tax
774,905
661,364


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23% (2022 - 19%)
178,228
125,659

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
54,475
43,347

Capital allowances for year in excess of depreciation
(18,783)
(11,866)

Total tax charge for the year
213,920
157,140

Page 21

 
SACRED RIVER LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023

11.


Tangible fixed assets





Leasehold Property
Plant & machinery
Fixtures & fittings
Total

£
£
£
£



Cost 


At 1 December 2022
7,387,134
428,649
3,452,726
11,268,509


Additions
-
19,955
-
19,955



At 30 November 2023

7,387,134
448,604
3,452,726
11,288,464



Depreciation


At 1 December 2022
7,274,631
299,889
3,252,729
10,827,249


Charge for the year on owned assets
4,690
44,860
49,999
99,549



At 30 November 2023

7,279,321
344,749
3,302,728
10,926,798



Net book value



At 30 November 2023
107,813
103,855
149,998
361,666



At 30 November 2022
112,503
128,760
199,997
441,260


12.


Stocks

2023
2022
£
£

Raw materials and consumables
732,910
636,705

732,910
636,705


Page 22

 
SACRED RIVER LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023

13.


Debtors


2023
2022
£
£

Due after more than one year

Other debtors - rent deposit
200,000
80,000

200,000
80,000

Due within one year

Trade debtors
208,380
158,340

Other debtors
10,259
3,728

Prepayments and accrued income
379,285
254,348

797,924
496,416



14.


Cash at bank and in hand

2023
2022
£
£

Cash at bank and in hand
417,813
439,677

417,813
439,677



15.


Creditors: Amounts falling due within one year

2023
2022
£
£

Bank loan
261,364
261,364

Other loans
2,666,667
2,666,667

Trade creditors
844,928
1,007,701

Corporation tax
213,920
245,684

Other taxation and social security
388,481
299,891

Other creditors
355,650
284,520

Accruals and deferred income
779,583
748,132

5,510,593
5,513,959


Page 23

 
SACRED RIVER LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023

16.


Creditors: Amounts falling due after more than one year

2023
2022
£
£

Bank loan
174,242
435,606

174,242
435,606





17.


Loans


Analysis of the maturity of loans is given below:


2023
2022
£
£

Amounts falling due within one year

Bank loan
261,364
261,364

Other loans
2,666,667
2,666,667


2,928,031
2,928,031

Amounts falling due 1-2 years

Bank loan
174,242
435,606


174,242
435,606



3,102,273
3,363,637


The bank loan of £435,606 (2022: £696,970) is under the Government Business Interruption Scheme and is for a period of 5 years with effect from June 2020.

Page 24

 
SACRED RIVER LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023

18.


Financial instruments

2023
2022
£
£

Financial assets


Financial assets measured at fair value through profit or loss
417,813
439,677

Financial assets that are debt instruments measured at amortised cost
418,639
242,068

836,452
681,745


Financial liabilities


Financial liabilities measured at amortised cost
(4,726,784)
(5,119,470)


Financial assets that are debt instruments measured at amortised cost comprise of money held by landlord on which interest is received


Financial liabilities measured at amortised cost comprise a loan by a director to the company.

Page 25

 
SACRED RIVER LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023

19.


Share capital

2023
2022
£
£
Shares classified as equity

Authorised, allotted, called up and fully paid



1,000 Ordinary shares of £1.00 each
1,000
1,000
2,371,000 3% Cumulative preference  shares of £1.00 each
2,371,000
2,371,000

2,372,000

2,372,000



20.


Reserves

Profit and loss account

The profit and loss account includes all current and prior year retained profit and losses.


21.


Pension commitments

The company operates a defined contributions pension scheme. The pension cost charge represents contribution paid by the company to the fund and amounted to £102,228 (2022: £81,941).


22.


Commitments under operating leases

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

2023
2022
£
£


Not later than 1 year
720,000
710,000

Later than 1 year and not later than 5 years
3,175,000
3,045,000

Later than 5 years
5,250,000
5,480,000

9,145,000
9,235,000


23.


Related party transactions

Included in creditors is an amount of £2,666,667 (2022: £2,666,667)  due to a director and shareholder, Mr D A Pears, as well as accrued interest of £58,295 (2022: £29,500). Part of the loan amounting to £1,750,000 (2022: £1,750,000) is interest free and repayable on demand. The further loan of £916,667 is repayable on demand and interest is accured at 3% per annum.
An amount of £80,000 (2022: £nil) was paid to Venus Fly Trap Limited of which a director, Mr Mazouz is a director.

Page 26

 
SACRED RIVER LIMITED