Caseware UK (AP4) 2023.0.135 2023.0.135 2023-12-3123004224557820030021336023684331285564017false2023-12-312022-12-2619NI603526false NI603526 2022-12-26 2023-12-31 NI603526 2 2022-12-26 2023-12-31 NI603526 2021-12-27 2022-12-25 NI603526 2 2021-12-27 2022-12-25 NI603526 2023-12-31 NI603526 2022-12-25 NI603526 2021-12-27 NI603526 d:Director1 2022-12-26 2023-12-31 NI603526 d:Director1 2023-12-31 NI603526 d:Director2 2022-12-26 2023-12-31 NI603526 d:Director2 2023-12-31 NI603526 d:Director3 2022-12-26 2023-12-31 NI603526 d:Director3 2023-12-31 NI603526 d:Director4 2022-12-26 2023-12-31 NI603526 d:Director4 2023-12-31 NI603526 d:Director5 2022-12-26 2023-12-31 NI603526 d:Director6 2022-12-26 2023-12-31 NI603526 d:Director7 2022-12-26 2023-12-31 NI603526 d:RegisteredOffice 2022-12-26 2023-12-31 NI603526 d:Agent1 2022-12-26 2023-12-31 NI603526 d:Agent2 2022-12-26 2023-12-31 NI603526 e:FurnitureFittings 2022-12-26 2023-12-31 NI603526 e:FurnitureFittings 2021-12-27 2022-12-25 NI603526 e:FurnitureFittings 2023-12-31 NI603526 e:FurnitureFittings 2022-12-25 NI603526 e:FurnitureFittings 2021-12-27 NI603526 e:OtherPropertyPlantEquipment 2022-12-26 2023-12-31 NI603526 e:OtherPropertyPlantEquipment 2021-12-27 2022-12-25 NI603526 e:OtherPropertyPlantEquipment 2023-12-31 NI603526 e:OtherPropertyPlantEquipment 2022-12-25 NI603526 e:OtherPropertyPlantEquipment 2021-12-27 NI603526 e:CopyrightsPatentsTrademarksServiceOperatingRights 2022-12-26 2023-12-31 NI603526 e:CopyrightsPatentsTrademarksServiceOperatingRights 2023-12-31 NI603526 e:CopyrightsPatentsTrademarksServiceOperatingRights 2022-12-25 NI603526 e:CopyrightsPatentsTrademarksServiceOperatingRights 2021-12-27 NI603526 e:CurrentFinancialInstruments 2023-12-31 NI603526 e:CurrentFinancialInstruments 2022-12-25 NI603526 e:ShareCapital 2022-12-26 2023-12-31 NI603526 e:ShareCapital 2023-12-31 NI603526 e:ShareCapital 2021-12-27 2022-12-25 NI603526 e:ShareCapital 2022-12-25 NI603526 e:ShareCapital 2021-12-27 NI603526 e:RetainedEarningsAccumulatedLosses 2022-12-26 2023-12-31 NI603526 e:RetainedEarningsAccumulatedLosses 2023-12-31 NI603526 e:RetainedEarningsAccumulatedLosses 2021-12-27 2022-12-25 NI603526 e:RetainedEarningsAccumulatedLosses 2022-12-25 NI603526 d:OrdinaryShareClass1 2022-12-26 2023-12-31 NI603526 d:OrdinaryShareClass1 2023-12-31 NI603526 d:OrdinaryShareClass1 2022-12-25 NI603526 d:FullIFRS 2022-12-26 2023-12-31 NI603526 d:Audited 2022-12-26 2023-12-31 NI603526 d:FullAccounts 2022-12-26 2023-12-31 NI603526 d:PrivateLimitedCompanyLtd 2022-12-26 2023-12-31 NI603526 e:ContinuingOperations 2022-12-26 2023-12-31 NI603526 e:ContinuingOperations 2021-12-27 2022-12-25 NI603526 11 2022-12-26 2023-12-31 NI603526 3 2022-12-26 2023-12-31 NI603526 4 2022-12-26 2023-12-31 NI603526 e:Short-termContract 2023-12-31 NI603526 e:Short-termContract 2022-12-25 NI603526 e:Long-termContract 2023-12-31 NI603526 e:Long-termContract 2022-12-25 NI603526 e:OfficeEquipment e:Right-of-useAssets 2022-12-26 2023-12-31 NI603526 e:OfficeEquipment e:Right-of-useAssets 2021-12-27 2022-12-25 NI603526 e:CopyrightsPatentsTrademarksServiceOperatingRights e:OwnedIntangibleAssets 2021-12-27 2022-12-25 NI603526 e:CurrentFinancialInstruments e:ValueBeforeAllowanceForImpairmentLoss 2023-12-31 NI603526 e:CurrentFinancialInstruments e:ValueBeforeAllowanceForImpairmentLoss 2022-12-25 NI603526 f:PoundSterling 2022-12-26 2023-12-31 iso4217:GBP xbrli:pure xbrli:shares

Registered number: NI603526









SARCON (NO.341) LIMITED









FINANCIAL STATEMENTS

FOR THE 53 WEEKS ENDED 31 DECEMBER 2023

 
SARCON (NO.341) LIMITED
 
 
 
CONTENTS



Page
Company Information
 
1
Directors' Report
 
2 - 4
Independent Auditors' Report
 
5 - 7
Statement of Profit or Loss and Other Comprehensive Income
 
8
Statement of Financial Position
 
9 - 10
Statement of Changes in Equity
 
11
Statement of Cash Flows
 
12
Notes to the Financial Statements
 
13 - 33
 
 

 
SARCON (NO.341) LIMITED
 
 
 
COMPANY INFORMATION


 
DIRECTORS
George Bertram 
David Anderson 
Mark Hayes 




REGISTERED NUMBER
NI603526



REGISTERED OFFICE
7 Seven Houses
Upper English Street

Armagh

BT61 7LA




INDEPENDENT AUDITORS
Crowe Ireland

40 Mespil Road

Dublin 4

D04 C2N4




BANKERS
Bank of Ireland
4-8 High Street

Belfast





First Trust Bank

33-35 University Road

Belfast

BT7 1ND




Page 1

 
SARCON (NO.341) LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE 53 WEEKS ENDED 31 DECEMBER 2023

The Directors present their report and the financial statements for the 53 weeks ended 31 December 2023.

DIRECTORS' RESPONSIBILITIES STATEMENT

The Directors are responsible for preparing the Directors' Report and the financial statements, in accordance with applicable law.

Company law requires the Directors to prepare financial statements for each financial year. Under that law they have elected to prepare the financial statements in accordance with International Financial Reporting Standards (IFRS) as adopted by the UK.

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 the financial statements, the Directors are required to:

select suitable accounting policies and then apply them consistently;

make judgments and estimates that are reasonable and prudent;

state whether they have been prepared in accordance with IFRS as adopted by the UK, subject to any material departures disclosed and explained in the financial statements;

assess the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and

use the going concern basis of accounting unless they either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

The Directors confirm that they have complied with the above requirements in preparing the financial statements.
 
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 responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Company and to prevent and detect fraud and other irregularities.

PRINCIPAL ACTIVITY

The Company is engaged in the sale and delivery of pizzas and trades as Domino's Pizzas.

Page 2

 
SARCON (NO.341) LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE 53 WEEKS ENDED 31 DECEMBER 2023
BUSINESS REVIEW

Both the level of business and the period end financial position were satisfactory.
At the end of the period the Company has assets of £1,266,371 (2022: £1,159,085) and liabilities of £199,470 (2022: £207,205). The net assets of the Company have increased by £115,021 (2022: £122,789) and the Directors are satisfied with the level of retained reserves at period end.

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RESULTS AND DIVIDENDS

The profit for the 53 weeks, after taxation, amounted to £115,021 (2022 - £122,789).

The Directors do not recommend the payment of a final dividend.

DIRECTORS

The Directors who served during the 53 weeks were:

Adrian Caldwell (resigned 10 April 2024)
Charles Caldwell (resigned 10 April 2024)
Catherine Caldwell (resigned 10 April 2024)
Mary McLaughlin (resigned 10 April 2024)
George Bertram (appointed 10 April 2024) 
David Anderson (appointed 10 April 2024) 
Mark Hayes (appointed 10 April 2024) 

PRINCIPAL RISKS AND UNCERTAINTIES

The key risks to the Company are considered to be competition from other fast food pizza outlets, retention of key employees and timely supplies of quality product. The performance of the Company is measured through the use of three key performance indicators being sales growth and profitability versus annual budgets and number of stores.

Page 3

 
SARCON (NO.341) LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE 53 WEEKS ENDED 31 DECEMBER 2023
GROUP STRUCTURE

Sarcon (No.341) is a wholly owned subsidiary of Sarcon (No. 214) Limited, Sarcon (No.214) Limited is a wholly owned subsidiary of Shorecal Limited, a company controlled by Charles and Adrian Caldwell at the year end. Since the year end, Domino's Pizza Group PLC has acquired full control of Shorecal Limited.

ACCOUNTING RECORDS

The measures taken by the Directors to ensure compliance with the requirements of Sections 281 to 285 of the Companies Act 2014 with regard to the keeping of accounting records, are the employment of appropriately qualified accounting personnel and the maintenance of computerised accounting systems. The Company's accounting records are maintained at the Company's registered office at 7 Seven Houses, Upper English Street, Armagh, BT61 7LA.

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.

POST YEAR END EVENTS

There have been no significant events affecting the Company since the year end.

AUDITORS

The auditorsCrowe Irelandare eligible and have expressed a willingness to continue in office in accordance with section 485 of the Companies Act 2006. This report has been prepared taking advantage of the exemptions for small companies with Part 15 of the Companies Act 2006.

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



George Bertram
Director

Date: 28 June 2024
Page 4

 
SARCON (NO.341) LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SARCON (NO.341) LIMITED
 

OPINION


We have audited the financial statements of Sarcon (No.341) Limited for the 53 weeks ended 31 December 2023 which comprise the Statement of Profit or Loss and Other Comprehensive Incomethe Statement of Financial Positionthe Statement of Cash Flowsthe Statement of Changes in Equity and the related notes, including a summary of significant accounting policies set out on pages 14 - 17. The financial reporting framework that has been applied in their preparation is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the United Kingdom.

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 profit for the 53 weeks then ended;

have been properly prepared in accordance with IFRSs as adopted by the United Kingdom; 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. Our evaluation of the Directors' assessment of the Company's ability to continue to adopt the going concern basis of accounting included:


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

OTHER INFORMATION


The other information comprises the information included in the Annual Report, other than the financial statements and our Auditors' Report thereon.  The Directors are responsible for the other information contained within the Annual ReportOur 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. 

Page 5

 
SARCON (NO.341) LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SARCON (NO.341) LIMITED (CONTINUED)


We have nothing to report in this regard.

OPINION ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006


In our opinion, based on the work undertaken in the course of the audit: 

the information given in the Directors' Report for the financial 53 weeks for which the financial statements are prepared is consistent with the financial statements; and

the Directors' Report have been prepared in accordance with applicable legal requirements.


MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in 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.


RESPONSIBILITIES OF DIRECTORS

As explained more fully in the Directors' Responsibilities Statement 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:

• carrying out substantive checking to supporting documents on a sample basis of individual transactions
within income and expenditure to give comfort that on a sample basis the Company does not contain any
 
Page 6

 
SARCON (NO.341) LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SARCON (NO.341) LIMITED (CONTINUED)


irregular items;
• verifying that material balances within the Balance Sheet are supported by third party evidence to
confirm the existence and valuation of these balances at the Balance Sheet date;
• enquiring of management and those charged with governance;
• reviewing financial statement disclosures and testing to supporting documentation to assess compliance;
and
• performing audit work over the risk of management override of controls, including testing of journal
entries and other adjustments for appropriateness, evaluating the Company rationale of significant
transactions outside the normal course of business and reviewing accounting estimates for bias.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.

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.




 
 
George Kennington (Senior Statutory Auditor)
for and on behalf of
Crowe Ireland
40 Mespil Road
Dublin 4
D04 C2N4

28 June 2024
Page 7

 
SARCON (NO.341) LIMITED
 
 
 
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE 53 WEEKS ENDED 31 DECEMBER 2023


2023
2022
Note
£
£

  

Revenue
 6 
1,369,060
1,247,357

Cost of sales
  
(1,070,783)
(960,038)

GROSS PROFIT
  
298,277
287,319

  

Administrative expenses
  
(144,510)
(137,798)

PROFIT FROM OPERATIONS
  
153,767
149,521

  

Finance expense
 9 
(1,016)
(580)

PROFIT BEFORE TAX
  
152,751
148,941

  

Tax expense
 10 
(37,730)
(26,152)

PROFIT FOR THE 53 WEEKS
  
115,021
122,789


TOTAL COMPREHENSIVE INCOME
  
115,021
122,789

The notes on pages 14 to 33 form part of these financial statements.

Page 8

 
SARCON (NO.341) LIMITED
REGISTERED NUMBER: NI603526
 
 
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023


31 December
25 December
2023
2022
Note
£
£


Assets

NON-CURRENT ASSETS
  

Property, plant and equipment
 11 
57,944
88,204

  
57,944
88,204

CURRENT ASSETS
  

Inventories
 13 
8,233
8,492

Trade and other receivables
 14 
786,406
647,825

Cash and cash equivalents
 21 
413,788
414,564

  
1,208,427
1,070,881

  

TOTAL ASSETS

  

1,266,371
1,159,085

Liabilities

NON-CURRENT LIABILITIES
  

Lease liabilities
 16 
17,123
39,612

Deferred tax liability
 10 
4,244
4,244

  
21,367
43,856

CURRENT LIABILITIES
  

Trade and other payables
 15 
155,612
141,263

Lease liabilities
 16 
22,491
22,086

  
178,103
163,349

  

TOTAL LIABILITIES
  
199,470
207,205

  

  

Net assets
  
1,066,901
951,880
Page 9

 
SARCON (NO.341) LIMITED
REGISTERED NUMBER: NI603526
 
 
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 DECEMBER 2023


31 December
25 December
2023
2022
Note
£
£


Issued capital and reserves
  

Share capital
 17 
100
100

Retained earnings
  
1,066,801
951,780

TOTAL EQUITY
  
1,066,901
951,880

The financial statements on pages 8 to 33 were approved and authorised for issue by the Board of Directors and were signed on its behalf by:




George Bertram
David Anderson
Director
Director


Date: 28 June 2024
Date:28 June 2024

The notes on pages 14 to 33 form part of these financial statements.

Page 10

 
SARCON (NO.341) LIMITED

 
 
STATEMENT OF CHANGES IN EQUITY
FOR THE 53 WEEKS ENDED 31 DECEMBER 2023



Share capital
Retained earnings
Total equity


£
£
£

At 26 December 2022
100
951,780
951,880

Comprehensive income for the 53 weeks


Profit for the 53 weeks
-
115,021
115,021

Total comprehensive income for the 53 weeks
-
115,021
115,021

At 31 December 2023
100
1,066,801
1,066,901



Share capital
Retained earnings
Total equity


£
£
£

At 27 December 2021
100
828,991
829,091

Comprehensive income for the 52 weeks


Profit for the 52 weeks
-
122,789
122,789

Total comprehensive income for the 52 weeks
-
122,789
122,789

At 25 December 2022
100
951,780
951,880

The notes on pages 14 to 33 form part of these financial statements.

Page 11

 
SARCON (NO.341) LIMITED

 
 
STATEMENT OF CASH FLOWS
FOR THE 53 WEEKS ENDED 31 DECEMBER 2023


31 December
25 December
2023
2022
Note
£
£

CASH FLOWS FROM OPERATING ACTIVITIES
  

Profit for the 53 weeks
  
115,021
122,789

ADJUSTMENTS FOR
  

Depreciation of property, plant and equipment
 11 
31,122
30,923

Amortisation of intangible fixed assets
 12 
-
256

Finance expense
 9 
1,016
580

Taxation expense
 10 
37,730
26,152

  
184,889
180,700

MOVEMENTS IN WORKING CAPITAL:
  

(Increase)/decrease in trade and other receivables
  
(138,581)
78,537

Decrease/(increase) in inventories
  
259
(3,952)

Increase in trade and other payables
  
6,437
38,479

CASH GENERATED FROM OPERATIONS
  
53,004
293,764

Corporation tax paid
  
(29,818)
(62,766)

NET CASH FROM OPERATING ACTIVITIES

  
23,186
230,998

CASH FLOWS FROM INVESTING ACTIVITIES
  

Purchases of property, plant and equipment
  
(862)
(1,102)

NET CASH USED IN INVESTING ACTIVITIES

  
(862)
(1,102)

CASH FLOWS FROM FINANCING ACTIVITIES
  

Interest paid on leases
  
(1,016)
(580)

Payment of lease liabilities
  
(22,084)
(21,695)

NET CASH USED IN FINANCING ACTIVITIES
  
(23,100)
(22,275)

NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS
  
(776)
207,621

Cash and cash equivalents at the beginning of 53 weeks
  
414,564
206,943

CASH AND CASH EQUIVALENTS AT THE END OF THE 53 WEEKS
 21 
413,788
414,564

The notes on pages 14 to 33 form part of these financial statements.

Page 12

 
SARCON (NO.341) LIMITED
 
 
 
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE 53 WEEKS ENDED 31 DECEMBER 2023




Page
1.
Accounting policies
14
2.
Reporting entity
17
3.
Basis of preparation
18
4.
Functional and presentation currency
19
5.
Accounting estimates and judgments
20
6.
Revenue
20
7.
Operating profit
21
8.
Employee benefits expenses
21
9.
Finance income and expense
22
10.
Tax expense
22
11.
Property, plant and equipment
24
12.
Intangible assets
26
13.
Inventories
27
14.
Trade and other receivables
28
15.
Trade and other payables
28
16.
Lease liabilities
28
17.
Share capital
29
18.
Financial instruments - fair value and risk management
29
19.
Related party transactions
32
20.
Bank security
32
21.
Notes supporting statement of cash flows
32
22.
Capital management
33






























Page 13

 
SARCON (NO.341) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 53 WEEKS ENDED 31 DECEMBER 2023

1.ACCOUNTING POLICIES

 
1.1

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.


(i) Sale of goods

Revenue from the sale of goods is recognised on the satisfaction of performance obligations, such as the transfer of a promised good, identified in the contract between the Company and the customer.

A receivable is recognised when the goods are delivered as this is the point in time that the consideration is unconditional because only the passage of time is required before the payment is due.


(ii) Rendering of services

Revenue from providing services is recognised in the accounting period in which the services are rendered.

For fixed-price contracts, revenue is recognised based on the actual service provided to the end of the reporting period as a proportion of the total services to be provided because the customer receives and uses the benefits simultaneously.

 
1.2

Foreign currency

In preparing the financial statements of each individual group entity, transactions in currencies other than the entity's functional currency (foreign currencies) are recognised at the rates of exchange prevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the date when the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated.

Exchange differences on monetary items are recognised in profit or loss in the period in which they arise except for:
exchange differences on foreign currency borrowings relating to assets under construction for future productive use, which are included in the cost of those assets when they are regarded as an adjustment to interest costs on those foreign currency borrowings;
exchange differences on transactions entered into in order to hedge certain foreign currency risks (see  for hedging accounting policies); and
exchange differences on monetary items receivable from or payable to foreign operation for which settlement is neither planned nor likely to occur (therefore forming part of the net investment in the foreign operation), which are recognised initially in other comprehensive income and reclassified from equity to profit or loss on repayment of the monetary items.

For the purposes of presenting these financial statements, the assets and liabilities of the Company's foreign operations are translated into pounds using exchange rates prevailing at the end of each reporting period. Income and expense items are translated at the average exchange rates for the period, unless exchange rates fluctuate significantly during that period, in which case the exchange rates at the dates of the transactions are used. Exchange differences arising, if any, are recognised in other comprehensive income and accumulated in equity (and attributed to non-controlling interests as appropriate).

Page 14

 
SARCON (NO.341) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 53 WEEKS ENDED 31 DECEMBER 2023

1.ACCOUNTING POLICIES (CONTINUED)


1.2
Foreign currency (continued)

On the disposal of a foreign operation (i.e. a disposal of the Company's entire interest in a foreign operation, a disposal involving loss of control over a subsidiary that includes a foreign operation, or a partial disposal of an interest in a joint arrangement or an associate that includes a foreign operation of which the retained interest becomes a financial asset), all of the exchange differences accumulated in equity in respect of that operation attributable to the owners of the Company are reclassified to profit or loss.

In addition, in relation to a partial disposal of a subsidiary that includes a foreign operation that does not result in the Group losing control over the subsidiary, the proportionate share of accumulated exchange differences are re-attributed to non-controlling interests and are not recognised in profit or loss. For all other partial disposals (i.e. partial disposals of associates or joint arrangements that do not result in the Group losing significant influence or joint control), the proportionate share of the accumulated exchange differences is reclassified to profit or loss.

Goodwill and fair value adjustments to identifiable assets acquired and liabilities assumed through acquisition of a foreign operation are treated as assets and liabilities of the foreign operation and translated at the rate of exchange prevailing at the end of each reporting period. Exchange differences arising are recognised in other comprehensive income.

 
1.3

Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.


(i) Current tax

The tax currently payable is based on taxable profit for the 53 weeks. Taxable profit differs from ‘profit before tax’ as reported in the Statement of Profit or Loss and Other Comprehensive Income because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Company's current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.


(ii) Deferred tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the consolidated financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. Such deferred tax assets and liabilities are not recognised if the temporary difference arises from the initial recognition (other than in a business combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. In addition, deferred tax liabilities are not recognised if the temporary difference arises from the initial recognition of goodwill.

Deferred tax liabilities are recognised for taxable temporary differences associated with investments in subsidiaries and associates, and interests in joint ventures, except where the Company is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments and interests are only recognised to the extent that it is probable that there will be sufficient taxable profits against which to utilise the benefits of the temporary differences and they are expected to reverse in the foreseeable future.

Page 15

 
SARCON (NO.341) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 53 WEEKS ENDED 31 DECEMBER 2023

1.ACCOUNTING POLICIES (CONTINUED)


1.3
Taxation (continued)


(ii) Deferred tax (CONTINUED)

The carrying amount of deferred tax assets is reviewed at the end of each reporting period 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 liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.


(iii) Current and deferred tax for the 53 weeks

Current and deferred tax are recognised in profit or loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognised in other comprehensive income or directly in equity respectively. Where current tax or deferred tax arises from the initial accounting for a business combination, the tax effect is included in the accounting for the business combination.

 
1.4

Property, plant and equipment

Items of property, plant and equipment are measured at cost less accumulated depreciation and any accumulated impairment losses.

If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as separate items (major components) of property, plant and equipment. Any gain or loss on disposal of an item of property, plant and equipment is recognised in profit or loss. Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the expenditure will flow to the Company.

Depreciation is provided on all other items of property, plant and equipment so as to write off their carrying value over their expected useful economic lives. It is provided at the following rates:

Fixtures and fittings
12.5% Straight Line
Leasehold land and buildings
Over the period of the lease

Page 16

 
SARCON (NO.341) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 53 WEEKS ENDED 31 DECEMBER 2023

1.ACCOUNTING POLICIES (CONTINUED)

 
1.5

Intangible assets


Intangible assets acquired separately

Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated amortisation and accumulated impairment losses. Amortisation is recognised on a straight-line basis over their estimated useful lives. The estimated useful life and amortisation method are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis. Intangible assets with indefinite useful lives that are acquired separately are carried at cost less accumulated impairment losses.

Franchise Fee
10% Straight Line

 
1.6

Inventories

Inventories are stated at the lower of cost and net realisable value. Costs of inventories are determined on a first in, first out basis. Net realisable value represents the estimated selling price for inventories less all estimated costs of completion and costs necessary to make the sale.

 
1.7

Financial instruments

Financial assets and financial liabilities are recognised when an entity becomes a party to the contractual provisions of the instruments.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in profit or loss.


2.


REPORTING ENTITY

Sarcon (No.341) Limited (the 'Company') is a limited company incorporated in the United Kingdom. The Company's registered office is at 7 Seven Houses, Upper English Street, Armagh. The Company's principal activity is the sale and delivery of pizzas. The Company's registration number is NI603526.

Page 17

 
SARCON (NO.341) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 53 WEEKS ENDED 31 DECEMBER 2023

3.


BASIS OF PREPARATION

The financial statements have been prepared in accordance with International Financial Reporting Standards, International Accounting Standards and Interpretations as adopted by the UK (collectively IFRSs). They were authorised for issue by the Company's Board of Directors on 28 June 2024.

Details of the Company's accounting policies, including changes during the 53 weeks, are included in note 1.

In preparing these financial statements, management has made judgments, estimates and assumptions that affect the application of the Company accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognised prospectively.

The areas where judgments and estimates have been made in preparing the financial statements and their effects are disclosed in note 5.


3.1 BASIS OF MEASUREMENT

The financial statements have been prepared on the historical cost basis.






3.2 CHANGES IN ACCOUNTING POLICIES

i) New standards, interpretations and amendments effective from 26 December 2022

Amendments to IFRS 3 Business Combinations; IAS Property, Plant and Equipment; IAS 37 Provisions, Contingent Liabilities and Contingent Assets; and Annual Improvements 2018-2020 was effective on 1 January 2022 and was endorsed on 28 June 2021.

ii) 

New standards, interpretations and amendments not yet effective

The following standards and interpretations to published standards are not yet effective:


New standard or interpretation

EU Endorsement status

Mandatory effective date (period beginning)


Amendments to IAS 7 Statement of Cash Flows and IFRS 7
Financial Instruments: Disclosures: Supplier Finance
Arrangements (Issued on 25 May 2023)
4 October 2023
1 January 2024

Amendments to IFRS 16 Leases: Lease Liability in a Sale and
Leaseback (issued on 22 September 2022)
20 November 2023
1 January 2024

Amendments to IAS 1 Presentation of Financial Statements:
- Classification of Liabilities as Current or Non-Current (issued
on 23 January 2020);
- Classification of Liabilities as Current or Non-Current - Deferral of Effective Date (Issued on 15 July 2020); and
- Non-Current Liabilities with Covenants (issued on 31 October
2022)
19 December 2023
1 January 2024
Page 18

 
SARCON (NO.341) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 53 WEEKS ENDED 31 DECEMBER 2023

3.BASIS OF PREPARATION (CONTINUED)


ii) New standards, interpretations and amendments not yet effective (CONTINUED)


Amendments to IAS 8 Accounting policies, Changes in
Accounting Estimates and Errors: Definition of Accounting
Estimates (issued on 12 February 2021)
2 March 2022
1 January 2023

Amendments to IAS 1 Presentation of Financial Statements
and IFRS Practice Statement 2: Disclosure of Accounting
policies (issued on 12 February 2021)
2 March 2022
1 January 2023

Amendments to IAS 12 Income Taxes: Deferred Tax related to
Assets and Liabilities arising from a Single Transaction (issued
on 7 May 2021)
11 August 2022
1 January 2023

Amendments to IFRS 17 Insurance contracts: Initial Application
of IFRS 17 and IFRS 9 – Comparative Information (issued on 9
December 2021)
8 September 2022
1 January 2023

Amendments to IAS 12 Income Taxes: International Tax
Reform - Pillar Two Model Rules (issued on 23 May 2023)
8 November 2023
1 January 2023

The Directors anticipate that the adoption of these Standards in future periods may have an impact on the results and net assets of the Company, however, it is too early to quantify this.

The Directors anticipate that the adoption of other Standards and interpretations that are not yet effective in future periods will only have an impact on the presentation in the financial statements of the Company.


4.


FUNCTIONAL AND PRESENTATION CURRENCY

These financial statements are presented in pounds Sterling, which is the Company's functional currency. All amounts have been rounded to the nearest pound, unless otherwise indicated.

Page 19

 
SARCON (NO.341) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 53 WEEKS ENDED 31 DECEMBER 2023

5.


ACCOUNTING ESTIMATES AND JUDGMENTS

The preparation of these financial statements requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses.
Judgements and estimates are continually evaluated and are based on historical experiences and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The Company  makes estimates and assumptions concerning the future. The resulting accounting estimates, will by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of the assets and liabilities within the next financial year are discussed below.


5.1 ESTIMATES AND ASSUMPTIONS

Establishing lives for depreciation purposes of property, plant and equipment

Long-lived assets, consisting primarily of property, plant and equipment, comprise a significant portion of the total assets. The annual depreciation charge depends primarily on the estimated lives of each type of assets and estimates of residual values. The group regularly review these asset lives and change them as necessary to reflect current thinking on remaining lives in light of prospective economic utilisation and physical condition of the assets concerned. Changes in asset lives can have a significant impact on depreciation and amortisation charges for the period. Detail of the useful lives is included in the accounting policies.


6.


REVENUE


The following is an analysis of the Company's revenue for the 53 weeks from continuing operations:


2023
2022
£
£


Sale and delivery of pizzas and other products
1,369,060
1,247,357

1,369,060
1,247,357

Page 20

 
SARCON (NO.341) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 53 WEEKS ENDED 31 DECEMBER 2023

7.


OPERATING PROFIT

The operating profit is stated after charging:


31 December
25 December
2023
2022
£
£



Depreciation of tangible fixed assets
31,122
30,923

Amortisation of intangible assets
-
256

Operating lease rentals
-
-

31,122
31,179


8.


EMPLOYEE BENEFITS EXPENSES

2023
2022
£
£

EMPLOYEE BENEFIT EXPENSES (INCLUDING DIRECTORS) COMPRISE:

Wages and salaries
247,800
208,344

Social security costs
11,098
10,693

Staff pension
2,363
964

261,261
220,001

Key management personnel compensation

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Company, including the Directors of the Company listed on page 1, and the Financial Controller of the Company. Directors remuneration for the period was £NIL (2022: £NIL).





The monthly average number of persons, including the Directors, employed by the Company during the 53 weeks was as follows:


2023
2022
No.
No.

Average number of employees
17
19

17
19

Page 21

 
SARCON (NO.341) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 53 WEEKS ENDED 31 DECEMBER 2023

9.


FINANCE INCOME AND EXPENSE

Recognised in profit or loss


2023
2022
£
£



FINANCE EXPENSE

Other interest payable
1,016
580


NET FINANCE EXPENSE RECOGNISED IN PROFIT OR LOSS
1,016
580







10.


TAX EXPENSE

10.1 INCOME TAX RECOGNISED IN PROFIT OR LOSS



2023
2022
£
£

CURRENT TAX

Current tax on profits for the 53 weeks
37,730
31,055

TOTAL CURRENT TAX
37,730
31,055


DEFERRED TAX EXPENSE

Origination and reversal of timing differences
-
(4,903)

TOTAL DEFERRED TAX
-
(4,903)


37,730
26,152


TOTAL TAX EXPENSE

Tax expense excluding tax on sale of discontinued operation and share of tax of equity accounted associates and joint ventures
37,730
26,152

37,730
26,152

Page 22

 
SARCON (NO.341) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 53 WEEKS ENDED 31 DECEMBER 2023

10.TAX EXPENSE (CONTINUED)


10.1 INCOME TAX RECOGNISED IN PROFIT OR LOSS (CONTINUED)

The reasons for the difference between the actual tax charge for the 53 weeks and the standard rate of corporation tax in the United Kingdom applied to profits for the 53 weeks are as follows:


2023
2022
£
£


Profit for the 53 weeks
115,021
122,789

Income tax expense (including income tax on associate, joint venture and discontinued operations)
37,730
26,152

PROFIT BEFORE INCOME TAXES
152,751
148,941


Tax using the Company's domestic tax rate of 23.5% (2022: 19%)
35,896
28,299

Other differences leading to an increase/(decrease) in the tax charge
1,834
(2,147)

TOTAL TAX EXPENSE
37,730
26,152

Changes in tax rates and factors affecting the future tax charges

There were no factors that may affect future tax charges.
The Directors are not aware of any factors that will materially affect the rate of corporation tax in the foreseeable future.
The rate of corporation tax increased on 1 April 2023 from 19% to 23% on profits over £250,000. The rate for small profits under £50,000 remains at 19% and there will be taper relief for businesses with profits between £50,000 and £250,000, so that their average rate is less than the main rate. The effective blended tax rate for 2023 was 23.5%.

10.2 CURRENT TAX ASSETS AND LIABILITIES

2023
2022
£
£


CURRENT TAX LIABILITIES

CORPORATION TAX PAYABLE
37,947
30,035

37,947
30,035

Page 23

 
SARCON (NO.341) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 53 WEEKS ENDED 31 DECEMBER 2023

10.TAX EXPENSE (CONTINUED)

10.3 DEFERRED TAX BALANCES

The following is the analysis of deferred tax assets/(liabilities) presented in the statement of financial position:


2023
2022
£
£


Deferred tax liabilities
(4,244)
(4,244)

(4,244)
(4,244)

ole3698.png
 

11.


PROPERTY, PLANT AND EQUIPMENT







Fixtures and fittings
Leasehold land and buildings
Total

£
£
£



Cost or valuation





At 27 December 2021
207,108
88,588
295,696


Additions
1,102
-
1,102



At 25 December 2022
208,210
88,588
296,798


Additions
862
-
862



At 31 December 2023
209,072
88,588
297,660
Page 24

 
SARCON (NO.341) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 53 WEEKS ENDED 31 DECEMBER 2023

11.PROPERTY, PLANT AND EQUIPMENT (CONTINUED)



Fixtures and fittings
Other property, plant and equipment
Total

£
£
£



ACCUMULATED DEPRECIATION AND IMPAIRMENT





At 27 December 2021
172,101
5,570
177,671


Charge owned for the 53 weeks
9,727
21,196
30,923



At 25 December 2022
181,828
26,766
208,594


Charge owned for the 53 weeks
9,926
21,196
31,122



At 31 December 2023
191,754
47,962
239,716



Net book value


At 27 December 2021
35,007
83,018
118,025


At 25 December 2022
26,382
61,822
88,204


At 31 December 2023
17,318
40,626
57,944


11.1. Assets held under leases


The net book value of owned and leased assets included as "Property, plant and equipment" in the Statement of Financial Position is as follows:

31 December 2023
25 December 2022
£
£


Property, plant and equipment owned
18,330
26,382

Right-of-use assets, excluding investment property
39,614
61,822

57,944
88,204

Information about right-of-use assets is summarised below:

Net book value

31 December 2023
25 December 2022
£
£

Leasehold land and buildings
39,614
61,822

Page 25

 
SARCON (NO.341) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 53 WEEKS ENDED 31 DECEMBER 2023

11.PROPERTY, PLANT AND EQUIPMENT (CONTINUED)


11.1 Assets held under leases (CONTINUED)

Depreciation charge for the 53 weeks ended

31 December 2023
25 December 2022
£
£

Leasehold land and buildings
21,196
21,196











12.


INTANGIBLE ASSETS







Franchise Fee

£



COST



At 27 December 2021
46,036



At 25 December 2022
46,036



At 31 December 2023
46,036


Franchise Fee

£



ACCUMULATED AMORTISATION AND IMPAIRMENT



At 27 December 2021
45,780


Charge for the period - owned
256



At 25 December 2022
46,036


At 31 December 2023
46,036



Net book value


At 27 December 2021
256


At 25 December 2022
-


At 31 December 2023
-

Page 26

 
SARCON (NO.341) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 53 WEEKS ENDED 31 DECEMBER 2023

13.


INVENTORIES

31 December
25 December
2023
2022
£
£



Raw materials
8,233
8,492

8,233
8,492

Page 27

 
SARCON (NO.341) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 53 WEEKS ENDED 31 DECEMBER 2023

14.


TRADE AND OTHER RECEIVABLES


31 December
25 December
2023
2022
£
£


CURRENT

Trade receivables
27,457
25,426

Receivables from related parties
757,065
619,918

Prepayments and accrued income
1,884
2,481

TOTAL CURRENT TRADE AND OTHER RECEIVABLES
786,406
647,825


15.


TRADE AND OTHER PAYABLES


31 December
25 December
2023
2022
£
£


CURRENT

Trade payables
35,557
39,294

Accruals
25,435
20,673

Other payables - tax and social security payments
94,620
81,296

TOTAL CURRENT TRADE AND OTHER PAYABLES
155,612
141,263


16.

LEASE LIABILITIES

31 December
25 December
2023
2022
£
£

Current
22,491
22,086

Non-current
17,123
39,612

39,614
61,698



Page 28

 
SARCON (NO.341) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 53 WEEKS ENDED 31 DECEMBER 2023
17.


SHARE CAPITAL

Authorised

31 December
31 December
25 December
25 December
2023
2023
2022
2022
Number
£
Number
£

SHARES TREATED AS EQUITY
Ordinary shares of £1.00 each

100

100

100
 
100
 
100

100

100
 
100
 

Issued and fully paid


31 December
31 December
25 December
25 December
2023
2023
2022
2022
Number
£
Number
£

ORDINARY SHARES OF £1.00 each

At 31 December and 25 December
100

100

100
 
100
 


18.


FINANCIAL INSTRUMENTS - FAIR VALUE AND RISK MANAGEMENT

18.1 ACCOUNTING CLASSIFICATIONS AND FAIR VALUES

The following table shows the carrying amounts and fair values of financial assets and financial liabilities. It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value.


Carrying amount
31 December 2023
Note
Amortised cost
Total


        £
        £

FINANCIAL ASSETS NOT MEASURED AT FAIR VALUE


  




Trade and other receivables

 14 

784,522

784,522

Cash and cash equivalents

 21 

413,788

413,788

FINANCIAL LIABILITIES NOT MEASURED AT FAIR VALUE


  




Trade payables

 15 

(35,557)

(35,557)


Page 29

 
SARCON (NO.341) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 53 WEEKS ENDED 31 DECEMBER 2023

18.FINANCIAL INSTRUMENTS - FAIR VALUE AND RISK MANAGEMENT (CONTINUED)


18.1 Accounting classifications and fair values (continued)


Carrying amount
25 December 2022
Note
Amortised cost
Total


        £
        £

FINANCIAL ASSETS NOT MEASURED AT FAIR VALUE


  




Trade and other receivables

 14 

645,344

645,344

Cash and cash equivalents

 21 

414,564

414,564

FINANCIAL LIABILITIES NOT MEASURED AT FAIR VALUE


  




Trade payables

 15 

(39,294)

(39,294)


Prepayments, accrued income, accruals and other taxes and social security payables are not financial assets
or liabilities and are therefore excluded from the analysis above.


18.2 FINANCIAL RISK MANAGEMENT OBJECTIVES

The Group’s financial risk management objectives consist of identifying and monitoring risks which might have an adverse impact on the value of the Group’s financial assets and liabilities, reported profitability or cash flows.
The main risks are foreign currency risk, credit risk, liquidity risk and interest rate risk. The Board reviews and agrees policies for managing each of these risks, which are summarised below.
The Group has various financial assets such as trade receivables and cash, which arise directly from its operations. The Group’s principal financial liabilities comprise trade payables.
The Group has not entered into any derivative transactions such as interest rate swaps or foreign currency contracts.


18.3 MARKET RISK

Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates will affect the Company’s income or the value of its holding of financial instruments.
The Company is engaged in the sale and delivery of pizzas on a cash sales basis. The Company does not engage in speculative transactions nor do the Company hold or issue financial instruments for trading purposes.

Page 30

 
SARCON (NO.341) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 53 WEEKS ENDED 31 DECEMBER 2023

18.FINANCIAL INSTRUMENTS - FAIR VALUE AND RISK MANAGEMENT (CONTINUED)


18.4 CREDIT RISK MANAGEMENT

Credit risk refers to the risk of financial loss to the Company if a counterparty defaults on its contractual obligations on financial assets held in the Company Balance Sheet. Due to the nature of the pizza delivery business there is minimal credit risk as credit is not extended to customers therefore the Company consider the Company's Credit Risk to be low.
The Company manages its exposure to credit risk by placing all cash with Bank of Ireland and Allied Irish Banks, both recognised financial institutions. The S&P credit ratings of Bank of Ireland and Allied Irish Banks Plc is BBB- as of 31 December 2023 (2022: BBB-) The maximum exposure to credit risk at the reporting date is £Nil (2022: £Nil)



18.5 LIQUIDITY RISK MANAGEMENT

Liquidity and interest risk tables

The following tables detail the Company's remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. The tables include both interest and principal cash flows. To the extent that interest flows are floating rate, the undiscounted amount is derived from interest rate curves at the end of the reporting period. The contractual maturity is based on the earliest date on which the Company may be required to pay.

Carrying amount
Contractual cashflows Total
<1 year
1 - 5 years
More than 5 years
        £
        £
        £
        £
        £
31 DECEMBER 2023







Trade payables

35,557

35,557

35,557

-

-

Lease liabilities

39,614

40,425

23,100

17,325

-



75,171
75,982
58,657
17,325
-

Carrying amount
Contractual cashflows Total
<1 year
1 - 5 years
More than 5 years
        £
        £
        £
        £
        £
25 DECEMBER 2022







Trade payables

39,294

39,294

39,294

-

-

Lease liabilities

61,698

63,525

23,100

40,425

-



100,992
102,819
62,394
40,425
-

Page 31

 
SARCON (NO.341) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 53 WEEKS ENDED 31 DECEMBER 2023

18.FINANCIAL INSTRUMENTS - FAIR VALUE AND RISK MANAGEMENT (CONTINUED)

18.6 FAIR VALUE MEASUREMENTS

This note provides information about how the Company determines fair values of various financial assets and liabilities.

Fair value of financial assets and liabilities that are not measured at fair value (but fair value disclosures are required)

The Directors consider that the carrying amounts of financial assets and financial liabilities recognised in the financial statements approximates their fair values.






19.


RELATED PARTY TRANSACTIONS

Details of transactions between the Company and its related parties are disclosed below.

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20.


BANK SECURITY

The Company is party to security on group borrowings whereby AIB holds fixed and floating charges over all the assets of the Company.


21.

NOTES SUPPORTING STATEMENT OF CASH FLOWS

31 December
25 December
2023
2022
£
£


Cash at bank available on demand
413,788
414,564

CASH AND CASH EQUIVALENTS IN THE STATEMENT OF FINANCIAL POSITION

413,788
414,564


CASH AND CASH EQUIVALENTS IN THE STATEMENT OF CASH FLOWS
413,788
414,564

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SARCON (NO.341) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 53 WEEKS ENDED 31 DECEMBER 2023

22.


CAPITAL MANAGEMENT

The Company's capital management objectives are: 
- to ensure the Company's ability to continue as a going concern, and
- to provide returns for shareholders and benefits for other stakeholders.
The Company monitors capital on the basis of the carrying amount of equity plus its subordinated loan, less cash and cash equivalents as presented in the financial position.
Management assesses the Company's capital requirements in order to maintain an efficient overall financing structure while avoiding excessive leverage. This takes into account the subordination levels of the Company's various classes of debt. The Company manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders.
During the 53 weeks ended 31 December 2023 the Company did not pay a dividend (2022: £NIL).

Page 33