Company registration number 05181394 (England and Wales)
THE COLUMBO GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
THE COLUMBO GROUP LIMITED
COMPANY INFORMATION
Directors
S Ball
R Shaikh
Secretary
S Ball
Company number
05181394
Registered office
5 Technology Park
Colindeep Lane
Colindale
London
United Kingdom
NW9 6BX
Auditor
Grunberg & Co Limited
5 Technology Park
Colindeep Lane
Colindale
London
United Kingdom
NW9 6BX
THE COLUMBO GROUP LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Income statement
8
Statement of comprehensive income
9
Statement of financial position
10 - 11
Statement of changes in equity
13 - 14
Statement of cash flows
12
Notes to the financial statements
15 - 32
THE COLUMBO GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -
The directors present the strategic report for the year ended 31 December 2023.
Review of the business
This report outlines The Columbo Group's strategic direction for the coming year, considering the current hospitality landscape, key objectives, and planned initiatives. We aim to navigate post-pandemic challenges and capitalize on emerging opportunities to solidify our position as a leading UK hospitality player.
Financial review and Key Performance Indicators
During the year, turnover increased by 40% from £6,531,147 to £9,187,354. The main driver for this increase was having our new site, The Parakeet, operational for the full twelve months of the financial period, which contributed £1,868,044 of additional revenue in the period.
The Board considers profitability to be the main key performance indicator and reviews this regularly to assess. The company reported a loss for the year totalling £263,119 (2022: £1,071,427 profit). This was primarily due to the impairment loss of £1,450,000 on the company's investment property, which has been recognised based on the external valuation report carried out. Please refer to Note 13 for further details. Excluding this impairment loss, the company's performance overall has improved slightly from 2022, and is line with the expectations and goals we set at the start of the period.
We are confident that the company has the right systems, structures and personnel in place to continue this trend going forwards.
Current Business Environment
• Industry: The UK hospitality sector is recovering from pandemic disruptions, with growing consumer demand but facing labour shortages, rising costs, and evolving customer preferences.
• Market Position: The Columbo Group boasts a strong portfolio of iconic venues offering diverse experiences. We excel in live music, food & beverage, and nightlife sectors.
• Financial Performance: Revenue is trending upwards, reflecting post-lockdown recovery. However, profit margins remain pressured due to cost increases.
• Operational Strengths: Strong brand recognition, experienced team, diverse and high-quality offerings, commitment to customer service.
• Weaknesses: Reliance on specific locations, potential talent acquisition challenges.
Risks and Mitigation Strategies
The directors regularly identify, monitor and manage potential risks and currently assess these to be:
• Market risk: Economic Downturn - the general economic climate could have a detrimental effect on customers' spending patterns, and therefore the company's revenue and overall financial performance. We aim to manage this by diversifying our revenue streams through new offerings and target audiences, and maintaining flexible cost structures.
• Market risk: Competition - the market is saturated with businesses of various sizes and offerings, but targeting the same market. We aim to manage this by enhancing brand differentiation, focusing on customer experience, and leveraging technology for innovation.
• Operational risk: Talent Shortages - our employees are key to providing customers the experience and brand differentiation that makes the company stand out. The company is therefore at risk should key personnel leave. We aim to manage this by offering competitive compensation and benefits; investing in training and development; creating a positive work environment.
THE COLUMBO GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Key Objectives (SMART)
1. Increase Revenue by 10%: Expand customer base through targeted marketing and partnerships; introduce new revenue streams like online offerings or event hosting. (Achievable within 1 year)
2. Enhance Operational Efficiency by 10%: Implement technology solutions for cost management and staff scheduling; optimize supply chain and procurement processes.
3. Strengthen Brand Differentiation and Loyalty: Develop unique experiences and curate diverse events; leverage social media and loyalty programs for better engagement. (Specific and relevant)
4. Attract and Retain Top Talent: Offer competitive compensation and benefits; foster a positive work environment with training and development opportunities. (Actionable and time-bound)
Objectives 2-4 are considered the most important non-financial key performance indicators of the company. As noted above, financial performance (excluding the impairment loss) has improved from 2022, and this is a consequence of our continued efforts in achieves objectives 2-4.
Planned Initiatives
• Marketing & Sales: Launch targeted digital campaigns; partner with local influencers and tourism boards; explore international expansion opportunities.
• Product Development: Introduce new food & beverage menus, themed events, and enhance customer experience.
• Operations: Implement cost-saving technologies (e.g., energy management systems); streamline procurement processes; optimise staffing with flexible scheduling models.
• Human Resources: Offer competitive salaries and benefits; prioritise employee well-being and career development; build a diverse and inclusive workplace.
Conclusion
The Columbo Group is well-positioned to navigate the evolving hospitality landscape by focusing on targeted growth, operational efficiency, brand differentiation, and talent acquisition. This strategic plan ensures we remain a leader in the UK market, delivering outstanding experiences to our customers and creating value for our stakeholders.
S Ball
Director
28 August 2024
THE COLUMBO GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
The directors present their annual report and financial statements for the year ended 31 December 2023.
Principal activities
The principal activity of the company continued to be that of public houses, restaurants and bars.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £1,334,000. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
S Ball
R Shaikh
Auditor
In accordance with the company's articles, a resolution proposing that Grunberg & Co Limited be reappointed as auditor of the company will be put at a General Meeting.
Statement of directors' responsibilities
The directors are responsible for preparing the annual 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 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.
Risk and Mitigation Strategies
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of the principal risks and uncertainties. See the Risks and Mitigation Strategies on page 1 for further information.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
THE COLUMBO GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
S Ball
Director
28 August 2024
THE COLUMBO GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF THE COLUMBO GROUP LIMITED
- 5 -
Opinion
We have audited the financial statements of The Columbo Group Limited (the 'company') for the year ended 31 December 2023 which comprise the income statement, the statement of comprehensive income, the statement of financial position, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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 December 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.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the 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.
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 financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the 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.
THE COLUMBO GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF THE COLUMBO GROUP LIMITED
- 6 -
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 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, 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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
THE COLUMBO GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF THE COLUMBO GROUP LIMITED
- 7 -
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:
the nature of the industry and sector and whether the financial results of our client differed from industry trends;
the legal and regulatory framework that the Company operates in,focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements;
the matters discussed among the audit engagement team during the planning process regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.
Audit procedures performed included reviewing the financial statements disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; discussions with the directors on their own assessment of the risks that irregularities may occur either as a result of fraud or error, their assessment of compliance with laws and regulations and whether they were aware of any instances of non-compliance, including any potential litigation or claims;performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; 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 business rationale of any significant transactions that are unusual or outside the normal course of business.
As a result of our assessment, it is considered that there are no laws and regulations for which non-compliance may be fundamental to the operating aspects of the business. However, laws and regulations considered to have a direct effect on the financial statements included the UK Companies Act, Employment Laws, Tax and Pensions legislation and Health & Safety legislation.
No instances of material non compliance were identified. However, the likelihood of detecting irregularities,including fraud,is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls , and the nature,timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. There is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with the ISAs (UK).
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Herman Hang ACCA
Senior Statutory Auditor
For and on behalf of Grunberg & Co Limited
30 August 2024
Chartered Accountants
Statutory Auditor
5 Technology Park
Colindeep Lane
Colindale
London
United Kingdom
NW9 6BX
THE COLUMBO GROUP LIMITED
INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
9,187,354
6,531,147
Cost of sales
(4,086,400)
(1,950,408)
Gross profit
5,100,954
4,580,739
Administrative expenses
(5,163,968)
(2,664,033)
Other operating income
485,544
358,659
Operating profit
4
422,530
2,275,365
Interest receivable and similar income
7
2
31
Interest payable and similar expenses
8
(981,646)
(590,162)
(Loss)/profit before taxation
(559,114)
1,685,234
Tax on (loss)/profit
9
295,995
(613,807)
(Loss)/profit for the financial year
(263,119)
1,071,427
The income statement has been prepared on the basis that all operations are continuing operations.
THE COLUMBO GROUP LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
£
£
(Loss)/profit for the year
(263,119)
1,071,427
Other comprehensive income
Adjustments to the fair value of financial assets
(774,590)
1,060,433
Tax relating to other comprehensive income
193,647
(391,041)
Other comprehensive income for the year
(580,943)
669,392
Total comprehensive income for the year
(844,062)
1,740,819
THE COLUMBO GROUP LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
12
15,746,825
16,108,179
Investment property
13
11,050,000
12,500,000
Investments
14
1,427,360
1,427,440
28,224,185
30,035,619
Current assets
Stocks
16
129,062
75,729
Debtors
17
848,936
892,457
Cash at bank and in hand
428,689
203,061
1,406,687
1,171,247
Creditors: amounts falling due within one year
18
(5,550,703)
(4,864,742)
Net current liabilities
(4,144,016)
(3,693,495)
Total assets less current liabilities
24,080,169
26,342,124
Creditors: amounts falling due after more than one year
19
(14,684,891)
(14,102,620)
Provisions for liabilities
Deferred tax liability
21
1,177,927
1,844,091
(1,177,927)
(1,844,091)
Net assets
8,217,351
10,395,413
Capital and reserves
Called up share capital
22
3
3
Revaluation reserve
2,600,068
6,928,269
Capital redemption reserve
1
1
Other reserves
2,659,758
Profit and loss reserves
2,957,521
3,467,140
Total equity
8,217,351
10,395,413
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
THE COLUMBO GROUP LIMITED
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT
31 DECEMBER 2023
31 December 2023
- 11 -
The financial statements were approved by the board of directors and authorised for issue on 28 August 2024 and are signed on its behalf by:
S Ball
Director
Company registration number 05181394 (England and Wales)
THE COLUMBO GROUP LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
28
4,036,595
4,460,244
Interest paid
(981,646)
(590,161)
Income taxes paid
(354,013)
(174,251)
Net cash inflow from operating activities
2,700,936
3,695,832
Investing activities
Purchase of tangible fixed assets
(974,657)
(3,504,228)
Proceeds from disposal of tangible fixed assets
33,000
Purchase of investment property
(6,057,058)
Proceeds from disposal of associates
80
(422,100)
Loans made to the directors
281,487
-
Interest received
2
31
Net cash used in investing activities
(660,088)
(9,983,355)
Financing activities
Proceeds from borrowings
(323,350)
Repayment of bank loans
(481,062)
5,487,520
Dividends paid
(1,334,000)
(582,333)
Net cash (used in)/generated from financing activities
(1,815,062)
4,581,837
Net increase/(decrease) in cash and cash equivalents
225,786
(1,705,686)
Cash and cash equivalents at beginning of year
202,903
1,908,589
Cash and cash equivalents at end of year
428,689
202,903
Relating to:
Cash at bank and in hand
428,689
203,061
Bank overdrafts included in creditors payable within one year
(158)
THE COLUMBO GROUP LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
Share capital
Revaluation reserve
Capital redemption reserve
Non-distributable reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
£
Balance at 1 January 2022
3
6,258,877
1
-
2,697,259
8,956,140
Year ended 31 December 2022:
Profit
-
-
-
-
1,071,427
1,071,427
Other comprehensive income:
Adjustments to fair value of financial assets
-
1,060,433
-
-
280,787
1,341,220
Tax relating to other comprehensive income
-
(391,041)
-
-
(391,041)
Total comprehensive income
-
669,392
-
-
1,352,214
2,021,606
Dividends
10
-
-
-
-
(582,333)
(582,333)
Balance at 31 December 2022
3
6,928,269
1
-
3,467,140
10,395,413
THE COLUMBO GROUP LIMITED
STATEMENT OF CHANGES IN EQUITY (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
Share capital
Revaluation reserve
Capital redemption reserve
Non-distributable reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
£
- 14 -
Year ended 31 December 2023:
Loss
-
-
-
-
(263,119)
(263,119)
Other comprehensive income:
Adjustments to fair value of financial assets
-
(774,590)
-
-
-
(774,590)
Tax relating to other comprehensive income
-
193,647
-
-
193,647
Total comprehensive income
-
(580,943)
-
-
(263,119)
(844,062)
Dividends
10
-
-
-
-
(1,334,000)
(1,334,000)
Transfers
-
-
3,747,258
3,747,258
Other movements
-
(3,747,258)
-
(1,087,500)
1,087,500
(3,747,258)
Balance at 31 December 2023
3
2,600,068
1
2,659,758
2,957,521
8,217,351
THE COLUMBO GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
1
Accounting policies
Company information
The Columbo Group Limited is a private company limited by shares incorporated in England and Wales. The registered office is 5 Technology Park, Colindeep Lane, Colindale, London, United Kingdom, NW9 6BX.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover for drink, door and food sales are measured at the fair value of the consideration received or receivable, excluding promotions,staff discounts, wastage and value added tax. Turnover is recognised at the point of sale.
Consultancy services are invoiced monthly to related parties for advising and promoting the venues.
Sundry sales consist mainly of listing fees and external event revenue. Listing fees are recorded as revenue over the term of the contract and external event revenue is recorded once the events have taken place.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings
No depreciation
Leasehold improvements
No depreciation
Plant and equipment
20% on reducing balance
Fixtures and fittings
15% on reducing balance
Computers
33.3333% on cost
Motor vehicles
25% on reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
THE COLUMBO GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
Properties whose fair value can be measured reliably are held under the revaluation model and are carried at a revalued amount, being their fair value at the date of valuation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The fair value of the land and buildings is usually considered to be their market value.
Revaluation gains and losses are recognised in other comprehensive income and accumulated in equity, except to the extent that a revaluation gain reverses a revaluation loss previously recognised in profit or loss or a revaluation loss exceeds the accumulated revaluation gains recognised in equity; such gains and losses are recognised in profit or loss.
1.5
Investment property
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.
1.6
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
1.7
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.8
Stocks
Stocks are stated at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.
THE COLUMBO GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
1.9
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.10
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
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 debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
THE COLUMBO GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
THE COLUMBO GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Property Valuations
The fair value of investment property is reassessed by the directors on an annual basis and formally valued every 3 years. The freehold properties are formally valued every 3 years as the directors do not believe there will be a material change in value in that period. The formal valuations are provided by independent valuers who are members of RICS. Each independent valuer has the relevant professional expertise and experience in the location of the property being valued as well as the leisure industry.
THE COLUMBO GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Drink and food sales
6,022,904
3,888,915
Door sales
600,333
500,232
Consultancy services
458,587
426,000
Sundry sales
2,105,530
1,716,000
9,187,354
6,531,147
2023
2022
£
£
Other revenue
Interest income
2
31
All revenue has been generated in the United Kingdom.
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
27,000
18,125
Depreciation of owned tangible fixed assets
127,470
86,996
Loss/(profit) on disposal of investment property
122
(47,396)
Operating lease charges
(29,120)
16,669
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
144
100
THE COLUMBO GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
5
Employees
(Continued)
- 21 -
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
2,347,546
1,241,525
Social security costs
183,485
102,684
Pension costs
20,742
19,862
2,551,773
1,364,071
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
126,000
117,667
Company pension contributions to defined contribution schemes
3,684
8,000
129,684
125,667
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
2
31
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
2
31
8
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
981,646
584,088
Other finance costs:
Other interest
6,074
981,646
590,162
THE COLUMBO GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
176,522
304,183
Deferred tax
Origination and reversal of timing differences
(472,517)
309,624
Total tax (credit)/charge
(295,995)
613,807
The actual (credit)/charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
(Loss)/profit before taxation
(559,114)
1,685,234
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
(139,779)
320,194
Tax effect of expenses that are not deductible in determining taxable profit
3,683
3,535
Effect of change in corporation tax rate
8,272
Capital allowances in excess of depreciation
304,346
(19,546)
Deferred Tax Charge
(472,517)
309,624
Taxation (credit)/charge for the year
(295,995)
613,807
In addition to the amount (credited)/charged to the income statement, the following amounts relating to tax have been recognised directly in other comprehensive income:
2023
2022
£
£
Deferred tax arising on:
Revaluation of investments
(193,647)
391,041
Deferred tax has been calculated using tax rates expected to apply in the period in which timing difference will reverse. The Finance Bill 2021 enacted provisions to increase the main rate of corporation tax to 25% from the previous rate of 19% from 1 April 2023.
THE COLUMBO GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
10
Dividends
2023
2022
£
£
Interim paid
1,334,000
582,333
11
Impairments
Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:
2023
2022
Notes
£
£
In respect of:
Property, plant and equipment
12
405,000
Investment property
13
1,450,000
57,058
Recognised in:
Administrative expenses
1,855,000
57,058
Amounts recognised in other comprehensive income in respect of impairment losses on previously revalued assets.
774,590
-
THE COLUMBO GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
12
Tangible fixed assets
Freehold land and buildings
Leasehold improvements
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
£
Cost or valuation
At 1 January 2023
12,008,516
3,635,254
384,000
781,237
96,924
42,990
16,948,921
Additions
588,205
58,986
239,530
17,986
69,950
974,657
Disposals
(42,990)
(42,990)
Revaluation
(1,106,021)
(73,568)
(1,179,589)
At 31 December 2023
10,902,495
4,149,891
442,986
1,020,767
114,910
69,950
16,700,999
Depreciation and impairment
At 1 January 2023
288,163
466,296
73,504
12,779
840,742
Depreciation charged in the year
25,203
71,730
14,705
15,832
127,470
Eliminated in respect of disposals
(14,038)
(14,038)
At 31 December 2023
313,366
538,026
88,209
14,573
954,174
Carrying amount
At 31 December 2023
10,902,495
4,149,891
129,620
482,741
26,701
55,377
15,746,825
At 31 December 2022
12,008,516
3,635,254
95,837
314,941
23,420
30,211
16,108,179
THE COLUMBO GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
Land and buildings with a carrying amount of £7,624,590 were revalued at 30/11/2023 by Christie & Co, independent valuers not connected with the company on the basis of market value. The valuation conforms to International Valuation Standards and was based on the profits method of valuation and the capital value per square foot. The remaining land and buildings have not been revalued in the current year but will be revalued within the 3 year cycle adopted by the company.
The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:
Freehold Land and Buildings
2023
2022
£
£
Cost
13,213,052
12,624,847
Accumulated depreciation
(884,740)
(640,479)
Carrying value
12,328,312
11,984,368
13
Investment property
2023
£
Fair value
At 1 January 2023
12,500,000
Net gains or losses through fair value adjustments
(1,450,000)
At 31 December 2023
11,050,000
Investment property comprises two properties held. The fair value of the investment properties has been arrived at based on the directors assessment on and open market basis and on the basis of a valuation carried out at 30/11/2023 by Christie & Co, who are not connected with the company. The valuation was made on a profits method of valuation based on fair maintainable operating profit and an appropriate multiplier.
If investment properties were stated on an historical cost basis rather than a fair value basis, the amounts would have been included as follows:
2023
2022
£
£
Cost
7,639,854
7,639,854
Accumulated depreciation
(578,715)
(425,918)
Carrying amount
7,061,139
7,213,936
THE COLUMBO GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
14
Fixed asset investments
2023
2022
Notes
£
£
Investments in associates
15
1,427,360
1,427,440
Movements in fixed asset investments
Shares in associates
£
Cost or valuation
At 1 January 2023
1,427,440
Disposals
(80)
At 31 December 2023
1,427,360
Carrying amount
At 31 December 2023
1,427,360
At 31 December 2022
1,427,440
15
Associates
Details of the company's associates at 31 December 2023 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
The Blues Kitchen Limited
5 Technology Park, Colindeep Lane, Colindale, London, United Kingdom, NW9 6BX
Ordinary
25.00
The Blues Kitchen East Limited
5 Technology Park, Colindeep Lane, Colindale, London, United Kingdom, NW9 6BX
Ordinary
46.50
The Blues Kitchen Brixton Limited
5 Technology Park, Colindeep Lane, Colindale, London, United Kingdom, NW9 6BX
Ordinary
16.50
The Blues Kitchen Brixton Limited
5 Technology Park, Colindeep Lane, Colindale, London, United Kingdom, NW9 6BX
Ordinary B
15.50
16
Stocks
2023
2022
£
£
Finished goods and goods for resale
129,062
75,729
THE COLUMBO GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
17
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
276,414
328,152
Other debtors
490,791
461,599
Prepayments and accrued income
81,731
102,706
848,936
892,457
18
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans and overdrafts
20
293,180
1,356,671
Trade creditors
578,517
272,317
Corporation tax
349,739
527,230
Other taxation and social security
1,035,402
528,129
Other creditors
2,748,763
1,908,114
Accruals and deferred income
545,102
272,281
5,550,703
4,864,742
19
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
20
14,684,891
14,102,620
20
Loans and overdrafts
2023
2022
£
£
Bank loans
14,978,071
15,459,133
Bank overdrafts
158
14,978,071
15,459,291
Payable within one year
293,180
1,356,671
Payable after one year
14,684,891
14,102,620
THE COLUMBO GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
20
Loans and overdrafts
(Continued)
- 28 -
The loans are secured by the following: -
Cross company guarantee with Jazz Café Property Limited, Brixton and Mortar Limited, Belgabar (UK) Limited, The Blues Kitchen Manchester Limited, The Blues Kitchen Limited, The Blues Kitchen Brixton Limited, The Blues Kitchen East Limited, The Blues Kitchen Brixton (Leasehold) Limited, Good Saint Properties Ltd, Columbo Jazz Limited and Columbo South Limited.
First ranking debenture from The Columbo Group Limited, Jazz Café Property Limited, Brixton and Mortar Limited, Belgabar (UK) Limited, The Blues Kitchen Manchester Limited, The Blues Kitchen Limited, The Blues Kitchen Brixton Limited, The Blues Kitchen East Limited, The Blues Kitchen Brixton (Leasehold) Limited, Good Saint Properties Ltd, Columbo Jazz Limited and Columbo South Limited.
Personal guarantee (unsupported) from Mr S Ball & Mr R Shaikh limited to £2,200,000.
An assignment of insurance on the life of Steven Ian Ball and Rizwan Khaleel Shaikh for the insured sum of not less than £3,000,000.
Freehold commercial property (1st) for:
Salisbury Hotel, Grand Parade, London, N4 1JX
5 & 7 parkway and land at the back, Camden,NW1 7PG
The Oxford Public House, 256 Kentish Town Road, London, NW5 2AA
The Old Queens Head public house, 44 Essex Road London, N1 8LN
The Brighton public house, 111 and 113 Camden High Street, London, NW1 7JN
234 Cambridge Heath Road, London, E2 9NN
1A Delancey Street, London, NW1 7NL
40 Acre Lane, London, SW2 5SP
Long Leasehold commercial property (1st) For Lower Ground & Ground & First Floor, 13 Quay Street, Manchester, M3 3HN
Short Leasehold commercial property (1st) for:
5 & 7 Parkway, London, NW1 7PG
1 Delancey Street, London, NW1 7NL
Ground Floor & Basement Premises, 134-146 Curtain Road, London, EC2A 3AR
418 Brixton Road, London, SW9 7AY
40 Acre Lane, London, SW2 5SP
111-113 Camden High Street,1 Delancey Street, London, NW1 7JN
21
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
157,172
106,607
Other timing differences
1,020,755
1,737,484
1,177,927
1,844,091
THE COLUMBO GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
21
Deferred taxation
(Continued)
- 29 -
2023
Movements in the year:
£
Liability at 1 January 2023
1,844,091
Credit to profit or loss
(472,517)
Credit to other comprehensive income
(193,647)
Liability at 31 December 2023
1,177,927
22
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A of 1p each
75
75
1
1
Ordinary of 1p each
200
200
2
2
275
275
3
3
23
Operating lease commitments
Lessor
The operating leases represent leases investment property, freehold property and leasehold property to third parties. The leases are negotiated over terms of 1-30 years. All long term leases include a provision for five-yearly upward rent reviews according to prevailing market conditions.
At the reporting end date the company had contracted with tenants for the following minimum lease payments:
2023
2022
£
£
Within one year
301,595
313,573
Between two and five years
438,950
624,250
740,545
937,823
24
Related party transactions
Remuneration of key management personnel
Other than the directors there are no key management personnel.
Transactions with related parties
During the year the company entered into the following transactions with related parties:
THE COLUMBO GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
24
Related party transactions
(Continued)
- 30 -
Consultancy fees
Rental Income
2023
2022
2023
2022
£
£
£
£
458,587
426,000
180,000
180,000
2023
2022
Amounts due to related parties
£
£
Other related parties
2,563,105
1,746,960
The related party balances at year end are interest free and repayable on demand.
The following amounts were outstanding at the reporting end date:
2023
2022
Amounts due from related parties
£
£
Other related parties
189,757
3,299
The related party balances at year end are interest free and repayable on demand.
25
Directors' transactions
Dividends totalling £1,334,000 (2022 - £582,333) were paid in the year in respect of shares held by the company's directors.
Description
% Rate
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
R Shaikh
2.00
94,324
584,089
(725,690)
(47,277)
S Ball
2.00
139,568
567,704
(707,590)
(318)
233,892
1,151,793
(1,433,280)
(47,595)
26
Ultimate controlling party
The ultimate controlling party is the directors by virtue of their shareholdings in the company.
THE COLUMBO GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 31 -
27
Reserves
The companies reserves are as follows:
Revaluation reserve: The revaluation reserve represents non – distributable cumulative gains and losses on freehold property revaluations net of deferred tax.
Capital redemption reserve: The capital redemption reserve represents non-distributable amounts following the purchase of the company’s own shares.
Non-distributable reserve: The non-distributable reserve represent non – distributable cumulative gains and losses on investment property net of deferred tax.
Profit and loss reserves: The profit and loss reserves represent distributable cumulative profits and losses net of dividends paid and other adjustments.
28
Cash generated from operations
2023
2022
£
£
(Loss)/profit for the year after tax
(263,119)
1,071,427
Adjustments for:
Taxation (credited)/charged
(295,995)
613,807
Finance costs
981,646
590,161
Investment income
(2)
(31)
Gain on disposal of tangible fixed assets
(4,048)
-
Fair value loss on investment properties
1,450,000
7,058
Depreciation and impairment of tangible fixed assets
532,469
86,996
Movements in working capital:
Increase in stocks
(53,333)
(22,400)
(Increase)/decrease in debtors
(237,966)
201,116
Increase in creditors
1,926,943
1,912,110
Cash generated from operations
4,036,595
4,460,244
THE COLUMBO GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 32 -
29
Analysis of changes in net debt
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
203,061
225,628
428,689
Bank overdrafts
(158)
158
202,903
225,786
428,689
Borrowings excluding overdrafts
(15,459,133)
481,062
(14,978,071)
(15,256,230)
706,848
(14,549,382)
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