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REGISTERED NUMBER: 01370637 (England and Wales)















GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

AUDITED

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

FOR

MASSARELLA CATERING GROUP LIMITED

MASSARELLA CATERING GROUP LIMITED (REGISTERED NUMBER: 01370637)

CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS
for the Year Ended 31 December 2023










Page

Company Information 1

Group Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Consolidated Statement of Comprehensive Income 10

Consolidated Balance Sheet 11

Company Balance Sheet 12

Consolidated Statement of Changes in Equity 13

Company Statement of Changes in Equity 14

Consolidated Cash Flow Statement 15

Notes to the Consolidated Cash Flow Statement 16

Notes to the Consolidated Financial Statements 18


MASSARELLA CATERING GROUP LIMITED

COMPANY INFORMATION
for the Year Ended 31 December 2023







DIRECTORS: M S Massarella
M J Massarella
S R Massarella
Ms D M Massarella



REGISTERED OFFICE: Thurcroft Hall
Brookhouse
Laughton
Sheffield
S25 1XZ



REGISTERED NUMBER: 01370637 (England and Wales)



AUDITORS: Sowerby
Chartered Accountants and Statutory Auditors
Beckside Court
Annie Reed Road
Beverley
East Yorkshire
HU17 0LF



BANKERS: Barclays Bank PLC
Sheffield 2 City Office
South Yorkshire Group

MASSARELLA CATERING GROUP LIMITED (REGISTERED NUMBER: 01370637)

GROUP STRATEGIC REPORT
for the Year Ended 31 December 2023


The directors present their strategic report of the company and the group for the year ended 31 December 2023.

PRINCIPAL ACTIVITIES AND REVIEW OF BUSINESS
The principal activity of the group throughout the year has continued to be the provision of catering services within shopping centres, department stores, garden centres, retail and leisure outlets.

The Group has continued to adapt to the changing market conditions within the Hospitality sector and to manage its operations across its Coffee shop and Restaurant portfolio. It has generally built on the success of the trading performance the was achieved in 2022, although overall results have been affected by the failure of one of its long-standing Retail clients, resulting in site closures (noted below). The group has continued to benefit from the councils' rates discount incentive, throughout 2023. A shareholder dividend has been voted in thanks for their patience and support during the covid period.

In relation to the Group subsidiaries-

Massarella Restaurants Ltd - the company has a mix of sites operating within departments store, shopping centres, garden centres and retail environments. The company has maintained positive relationship with all it stores clients and landlords. However, the failure of one retail client did affect the overall performance and eventually led to the closure of 10 restaurant sites. The company had to contend with redundancy and closure costs and the write off of assets.

Where further leases are due to expire in 2023 a review has been undertaken to ensure that these locations meet the company investment strategy, resulting in one site being surrendered and noticed served to close a further site in 2024. Overhead costs remain at the forefront of the directors concerns as energy and food costs continue to be variable and minimum wage increases continue to put pressure on consumer prices. The company is actively looking for new investments to replace the closed sites.

Caffe Ori Ltd - operates solely within department store sector. The company has maintained positive relations with its client and has seen good organic sales growth throughout the year. It was expecting to expand its portfolio by a further 2 sites however delays in contract negotiations resulted in these being delayed until 2024. Whilst the company is not exposed to the current energy market, the directors are conscious of the upward trend in increased food prices and remain optimistic that Gross profit margins will be maintained.

The group's key financial performance indicators during the year were as follows:

2023 2022

Gross profit margin 16.94% 18.09%

EBITDA 1,315,537 1,391,315



MASSARELLA CATERING GROUP LIMITED (REGISTERED NUMBER: 01370637)

GROUP STRATEGIC REPORT
for the Year Ended 31 December 2023

PRINCIPAL RISKS AND UNCERTAINTIES
The directors believe the key risks of the company include:

Produce, energy costs and delivery costs - the group has managed to maintain its food costs and margin whilst agreeing new terms with its suppliers.

Staffing - the group has always tried to maintain a positive relationship with its staff and will look to support them through this period of high inflation. Challenging recruitment is becoming a detriment to the business and leading to staff shortages in certain parts of the country. However, the group has been rewarded with staff loyalty which has ensured that the group has been able to maintain its customer facing services at a high level.

Cash Reserves - the group has maintained it cashflows, and removed all none essential costs, including capital expenditure to ensure it maintains and grows a cash surplus within the group to ensure it is able to weather any unforeseen events. It is now in a strong position to make new investments to expand its portfolio and to commence with a measured refurbishment strategy for existing sites to assist with organic growth.

In managing the business the directors have established controls to enable them to respond to and mitigate the impact of such risks and having reviewed the company's cost base are making positive strides to mitigate excessive overheads and risks.

ON BEHALF OF THE BOARD:





M S Massarella - Director


19 August 2024

MASSARELLA CATERING GROUP LIMITED (REGISTERED NUMBER: 01370637)

REPORT OF THE DIRECTORS
for the Year Ended 31 December 2023


The directors present their report with the financial statements of the company and the group for the year ended 31 December 2023.

DIVIDENDS
The total distribution of dividends for the year ended 31 December 2023 will be £ 200,000 .

FUTURE DEVELOPMENTS
There are positive discussions on going with the client for expanding the brand and it is expected that this will gather pace in 2024. The group has positive cash flow and the reserves to expand operations without incurring debt.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report.

M S Massarella
M J Massarella
S R Massarella

Other changes in directors holding office are as follows:

Ms D M Massarella - appointed 21 June 2023

FINANCIAL INSTRUMENTS
The groups principal financial instruments comprise trade debtors, trade creditors, bank balances, bank overdrafts and hire purchase agreements. The main purpose of these instruments is to raise funds to finance the group's operations.

The group's approach to managing risks applicable to the financial instruments is shown below.

Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits.

Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

In respect of bank balances the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of overdrafts at floating rates of interest.

The group is a lessee in respect of finance leased assets. The monthly repayments on finance lease agreements are fixed and liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

EMPLOYEES
The groups employment policy provides equal opportunity, irrespective of sex, religion, race or marital status. Applications by persons with disabilities are given full and fair consideration and, wherever practicable, provision is made for their special needs. The same criteria for training and promotion apply to persons with disabilities as to any other employee. If employees become disabled, every effort is made to ensure their continued employment.

The group places considerable value on the involvement of its employees and has continued its previous practice of keeping them informed on matters affecting them as employees and on the various factors affecting the performance of the group. This is achieved through formal and informal meetings and briefings. Employee representatives are consulted regularly on a wide range of matters affecting the current and future interest of the employees.


MASSARELLA CATERING GROUP LIMITED (REGISTERED NUMBER: 01370637)

REPORT OF THE DIRECTORS
for the Year Ended 31 December 2023

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group 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;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in
the financial statements;
- 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

ON BEHALF OF THE BOARD:





M S Massarella - Director


19 August 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
MASSARELLA CATERING GROUP LIMITED


Opinion
We have audited the financial statements of Massarella Catering Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the group's and of the parent company affairs as at 31 December 2023 and of the group's profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
MASSARELLA CATERING GROUP LIMITED


Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Group Strategic Report and the Report of the Directors 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent company 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 Statement of Directors' Responsibilities set out on page five, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
MASSARELLA CATERING GROUP LIMITED


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 a Report of the Auditors 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:

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect irregularities, including fraud. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management.

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, control environment and business performance;

- we also obtained an understanding of the legal and regulatory frameworks that the group operates in and determined that the most significant are those that relate to the reporting framework, FRS 102, the Companies Act 2006 and the relevant tax laws and regulations in the UK. In addition, we concluded that there are certain significant laws and regulations which may have an effect on the determination of the amounts and disclosures in the financial statements, relating in majority to general health and safety, employee matters and specific food hygiene regulations;

- we reviewed results of our enquiries of management about their own identification and assessment of the risks of irregularities; and assessed how the entity identifies, evaluates and complies with laws and regulations and whether management were aware of any instances of non-compliance. We corroborated our enquiries through our review of board minutes and consideration of the results of our audit procedures across the group;

- we also considered how the entity detects and responds to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud, and;

- we considered the controls that the company has established to address risks identified, or that otherwise prevent, deter and detect fraud; and how management monitors those controls

- the internal controls established to mitigate risks of non-compliance with laws and regulations were also investigated.

- we also considered the existence of performance targets and their potential influence on management to manage earnings.

- where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk.
These procedures were designed to provide reasonable assurance that the financial statements were free from fraud or error.

We reviewed financial statement disclosures and performed testing to supporting documentation to assess compliance with applicable laws and regulations.


REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
MASSARELLA CATERING GROUP LIMITED

We also tested the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. There was a focus on manual journals and journals indicating large or unusual transactions; enquiries of group management; and challenging the assumptions and judgements made by management by reviewing third party evidence wherever possible.

The results of our procedures did not identify any instances or irregularities, including fraud.

No inherent difficulties were found in the standard processes for detecting irregularities; there was no significant shift in the control environment in the current year.

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 Report of the Auditors.

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 a Report of the Auditors 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.




Elizabeth Blanchard BA(Hons) BFP ACA PGCE (Senior Statutory Auditor)
for and on behalf of Sowerby
Chartered Accountants and Statutory Auditors
Beckside Court
Annie Reed Road
Beverley
East Yorkshire
HU17 0LF

19 August 2024

MASSARELLA CATERING GROUP LIMITED (REGISTERED NUMBER: 01370637)

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the Year Ended 31 December 2023

2023 2022
Notes £    £    £    £   

TURNOVER 21,614,797 19,823,078

Cost of sales 17,953,760 16,237,889
GROSS PROFIT 3,661,037 3,585,189

Distribution costs 2,020,374 1,899,683
Administrative expenses 976,549 859,910
2,996,923 2,759,593
664,114 825,596

Other operating income - 20,000
OPERATING PROFIT 5 664,114 845,596

Interest receivable and similar income 48,956 -
713,070 845,596

Interest payable and similar expenses 6 10,199 53,217
PROFIT BEFORE TAXATION 702,871 792,379

Tax on profit 7 145,603 110,961
PROFIT FOR THE FINANCIAL YEAR 557,268 681,418

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

557,268

681,418

Profit attributable to:
Owners of the parent 557,268 681,418

Total comprehensive income attributable to:
Owners of the parent 557,268 681,418

MASSARELLA CATERING GROUP LIMITED (REGISTERED NUMBER: 01370637)

CONSOLIDATED BALANCE SHEET
31 December 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 10 - -
Tangible assets 11 1,959,926 2,398,992
Investments 12 - -
1,959,926 2,398,992

CURRENT ASSETS
Stocks 13 373,220 443,368
Debtors 14 811,597 657,162
Cash at bank and in hand 7,522,799 7,573,094
8,707,616 8,673,624
CREDITORS
Amounts falling due within one year 15 4,817,715 5,024,710
NET CURRENT ASSETS 3,889,901 3,648,914
TOTAL ASSETS LESS CURRENT
LIABILITIES

5,849,827

6,047,906

CREDITORS
Amounts falling due after more than one year 16 - (475,000 )

PROVISIONS FOR LIABILITIES 20 (336,602 ) (416,949 )
NET ASSETS 5,513,225 5,155,957

CAPITAL AND RESERVES
Called up share capital 21 100,000 100,000
Retained earnings 22 5,413,225 5,055,957
SHAREHOLDERS' FUNDS 5,513,225 5,155,957

The financial statements were approved by the Board of Directors and authorised for issue on 19 August 2024 and were signed on its behalf by:





M S Massarella - Director


MASSARELLA CATERING GROUP LIMITED (REGISTERED NUMBER: 01370637)

COMPANY BALANCE SHEET
31 December 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 10 - -
Tangible assets 11 85,161 105,319
Investments 12 76,100 76,100
161,261 181,419

CURRENT ASSETS
Debtors 14 70,719 115,123
Cash at bank and in hand 1,950,250 2,237,162
2,020,969 2,352,285
CREDITORS
Amounts falling due within one year 15 856,343 1,190,636
NET CURRENT ASSETS 1,164,626 1,161,649
TOTAL ASSETS LESS CURRENT
LIABILITIES

1,325,887

1,343,068

CAPITAL AND RESERVES
Called up share capital 21 100,000 100,000
Retained earnings 22 1,225,887 1,243,068
SHAREHOLDERS' FUNDS 1,325,887 1,343,068

Company's profit/(loss) for the financial year 182,819 (65,098 )

The financial statements were approved by the Board of Directors and authorised for issue on 19 August 2024 and were signed on its behalf by:





M S Massarella - Director


MASSARELLA CATERING GROUP LIMITED (REGISTERED NUMBER: 01370637)

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the Year Ended 31 December 2023

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 January 2022 100,000 4,474,539 4,574,539

Changes in equity
Dividends - (100,000 ) (100,000 )
Total comprehensive income - 681,418 681,418
Balance at 31 December 2022 100,000 5,055,957 5,155,957

Changes in equity
Dividends - (200,000 ) (200,000 )
Total comprehensive income - 557,268 557,268
Balance at 31 December 2023 100,000 5,413,225 5,513,225

MASSARELLA CATERING GROUP LIMITED (REGISTERED NUMBER: 01370637)

COMPANY STATEMENT OF CHANGES IN EQUITY
for the Year Ended 31 December 2023

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 January 2022 100,000 1,408,166 1,508,166

Changes in equity
Dividends - (100,000 ) (100,000 )
Total comprehensive loss - (65,098 ) (65,098 )
Balance at 31 December 2022 100,000 1,243,068 1,343,068

Changes in equity
Dividends - (200,000 ) (200,000 )
Total comprehensive income - 182,819 182,819
Balance at 31 December 2023 100,000 1,225,887 1,325,887

MASSARELLA CATERING GROUP LIMITED (REGISTERED NUMBER: 01370637)

CONSOLIDATED CASH FLOW STATEMENT
for the Year Ended 31 December 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 1,076,912 2,340,692
Interest paid (9,712 ) (46,878 )
Interest element of hire purchase payments paid (487 ) (6,339 )
Tax paid - (77,834 )
Net cash from operating activities 1,066,713 2,209,641

Cash flows from investing activities
Purchase of tangible fixed assets (213,809 ) (520,793 )
Sale of tangible fixed assets 1,452 166,457
Interest received 48,956 -
Net cash from investing activities (163,401 ) (354,336 )

Cash flows from financing activities
Loan repayments in year (791,690 ) (783,336 )
Capital repayments in year (5,237 ) (49,992 )
Amount introduced by directors 40,000 (136,795 )
Amount withdrawn by directors (66,680 ) -
Equity dividends paid (130,000 ) -
Net cash from financing activities (953,607 ) (970,123 )

(Decrease)/increase in cash and cash equivalents (50,295 ) 885,182
Cash and cash equivalents at beginning of
year

2

7,573,094

6,687,912

Cash and cash equivalents at end of year 2 7,522,799 7,573,094

MASSARELLA CATERING GROUP LIMITED (REGISTERED NUMBER: 01370637)

NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT
for the Year Ended 31 December 2023


1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
2023 2022
£    £   
Profit before taxation 702,871 792,379
Depreciation charges 516,987 543,143
Loss on disposal of fixed assets 134,408 2,576
Finance costs 10,199 53,217
Finance income (48,956 ) -
1,315,509 1,391,315
Decrease/(increase) in stocks 70,148 (54,890 )
Increase in trade and other debtors (154,435 ) (127,602 )
(Decrease)/increase in trade and other creditors (154,310 ) 1,131,869
Cash generated from operations 1,076,912 2,340,692

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2023
31/12/23 1/1/23
£    £   
Cash and cash equivalents 7,522,799 7,573,094
Year ended 31 December 2022
31/12/22 1/1/22
£    £   
Cash and cash equivalents 7,573,094 6,687,912


MASSARELLA CATERING GROUP LIMITED (REGISTERED NUMBER: 01370637)

NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT
for the Year Ended 31 December 2023


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1/1/23 Cash flow At 31/12/23
£    £    £   
Net cash
Cash at bank and in hand 7,573,094 (50,295 ) 7,522,799
7,573,094 (50,295 ) 7,522,799
Debt
Finance leases (5,237 ) 5,237 -
Debts falling due within 1 year (316,667 ) 316,667 -
Debts falling due after 1 year (475,000 ) 475,000 -
(796,904 ) 796,904 -
Total 6,776,190 746,609 7,522,799

MASSARELLA CATERING GROUP LIMITED (REGISTERED NUMBER: 01370637)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the Year Ended 31 December 2023


1. STATUTORY INFORMATION

Massarella Catering Group Limited is a private company, limited by shares and incorporated and domiciled in England. It has its registered office at Thurcroft Hall, Sheffield, S25 1XZ.

The principle activity of the company is that of a holding company incurring central costs.

The principle activity of the group is the provision of catering services.

The presentational currency of the financial statements is Pound Sterling (£).

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Having regard to liquidity risk, current market conditions and other factors affecting the group, including the impact of the economic environment, the use of the going concern basis of accounting is appropriate as, in the opinion of the directors, there are no material uncertainties related to events or conditions that may cast significant doubt about the ability of the company to continue as a going concern.

The financial statements have been prepared on a going concern basis.

The directors have considered the impact of the economy on the company's business operations and the future prospects of the group. The group's financial forecasts, taking into consideration the current environment, show that the company is expected to make profit and generate positive cashflows going forward. These positive cashflows and current strong cash holding give the company the ability to continue to operate for the foreseeable future.

Based on these facts and the current financial position, forecasts and cash flows of the company, the directors have concluded it is appropriate for the financial statements to be prepared on a going concern basis.

The company has a mix of sites operating within departments store, shopping centres, garden centres and high street sites. The company has maintained positive relationship with all it landlords and negotiated new rental terms were possible to ensure they are commercially viable, and ensure it banks its own cash wherever possible within its Department store sites.

The group has maintained it cashflows, and removed all none essential costs, including capital expenditure to ensure it maintains and grows a cash surplus within the group to ensure it is able to weather any unforeseen events. It is now in a strong position to make new investments to expand its portfolio and to commence with a measured refurbishment strategy for existing sites to assist with organic growth.

MASSARELLA CATERING GROUP LIMITED (REGISTERED NUMBER: 01370637)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2023


2. ACCOUNTING POLICIES - continued

Basis of consolidation
Having regard to liquidity risk, current market conditions and other factors affecting the group, the use of the going concern basis of accounting is appropriate as, in the opinion of the directors, there are no material uncertainties related to events or conditions that may cast significant doubt about the ability of the group to continue as a going concern.

The groups financial statements consolidate the financial statements of Massarella Catering Group Limited and the following subsidiary undertakings:

Massarella Restaurants Limited
Massarella Catering Limited - Dormant
Massarella Supplies Limited - Dormant
Caffe Ori Limited (previously Cafe Nova Limited)

Intra-group balances and transactions are eliminated fully on consolidation. The results of subsidiaries acquired or disposed of during the year are included in total comprehensive income from the effective date of acquisition and up to the effective date of disposal, as appropriate using accounting policies consistent with those of the parent.

Related party exemption
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

Significant judgements and estimates
In the application of the Company's accounting policies management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

No key sources of estimation uncertainty are noted by management that have a significant effect on the amounts recognised in the financial statements.

Turnover
Turnover is the amount derived from ordinary activities, measured at the fair value of the consideration received or receivable. Turnover excludes value added tax and trade discounts.

Sales are recognised at the point which the company has fulfilled its contractual obligations and the risks and rewards attached to the product, have been transferred to the customer.

Goodwill
Goodwill arising on consolidation represents the excess of the fair value of the consideration given over the fair value of the identifiable net assets acquired. Amortisation is calculated so as to write off the cost of the asset, less its estimated residual value, over the useful economic life of 10 years.

MASSARELLA CATERING GROUP LIMITED (REGISTERED NUMBER: 01370637)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2023


2. ACCOUNTING POLICIES - continued

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Short leasehold - 4% on cost and over the period of the lease
Plant and machinery - 10% on cost
Motor vehicles - 20% on cost

Assets are recognised under the historical cost model.

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. Impairment loss is recognised as an expense immediately.

Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, to the extent that the increased carrying amount does not exceed the carrying amount that would have been determined (net of depreciation) had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised as income immediately.

Stocks
Stocks are stated at the lower of cost, using the first in first out method, and selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

MASSARELLA CATERING GROUP LIMITED (REGISTERED NUMBER: 01370637)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2023


2. ACCOUNTING POLICIES - continued

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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

Pension costs and other post-retirement benefits
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.

The assets of the scheme are held separately from those of the company in an independent administered fund.

Short-term employee benefits are recognised as an expense in the period they are incurred.

Accounting period
The company's accounting reference period date is 31 December. Financial statements are made up for a 52 or 53 week period ending on a Sunday adjacent to 31 December in each year. The financial statements are for a 52 week period ending 31 December 2023. The comparative figures are for a 52 week period.

Investments
Investments held as fixed assets are stated at cost less any provision for a permanent diminution in value.

MASSARELLA CATERING GROUP LIMITED (REGISTERED NUMBER: 01370637)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2023


2. ACCOUNTING POLICIES - continued

Trade and other debtors
Trade and other debtors are initially recognised at the transaction price and thereafter stated at amortised cost using the effective interest method, less impairment losses for bad and doubtful debts except where the effect of discounting would be immaterial. In such case the receivables are stated at cost less impairment losses for bad and doubtful debts.

Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and on hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. In the balance sheet, bank overdrafts are shown within borrowings or current liabilities.

Trade and other creditors

Trade and other creditors are initially recognised at the transaction price and are thereafter stated at amortised cost using the effective interest method unless the effect of discounting would be immaterial, in which case they are stated at cost.

Interest bearing borrowings

Interest-bearing borrowings are recognised initially at fair value less attributable transaction costs. Subsequent to initial recognition, interest-bearing borrowings are stated at amortised cost with any difference between the amount initially recognised and redemption value being recognised in the statement of comprehensive income over the period of the borrowings, together with any interest and fees payable, using the effective interest method.

Impairment of Financial assets

Financial assets, are assessed for indicators of impairment at the end of each reporting period. Financial assets are considered to be impaired when there is objective evidence that, as a result of one or more events that have occurred after the initial recognition of the financial asset, the estimated future cash flows of the investment have been affected.

Related parties

For the purposes of these financial statements, a party is considered to be related to the company if:

(i) the party has the ability, directly or indirectly, through one or more intermediaries, to control the company or exercise significant influence over the company in making financial and operating policy decisions, or has joint control over the company;

(ii) the company and the party are subject to common control;

(iii) the party is an associate of the company or a joint venture in which the company is a venture

(iv) the party is a member of key management personnel of the company or the company's parent, or a close family member of such an individual, or is an entity under the control, joint control or significant influence of such individuals;

(v) the party is a close family member of a party referred to in (i) or is an entity under the control, joint control or significant influence of such individuals; or

(vi) the party is a post-employment benefit plan which is for the benefit of employees of the company or of any entity that is a related party of the company

MASSARELLA CATERING GROUP LIMITED (REGISTERED NUMBER: 01370637)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2023


2. ACCOUNTING POLICIES - continued

(vii) the party, or any member of a group of which it is part, provides key management personnel services to the company or its parent.

Close family members of an individual are those family members who may be expected to influence, or be influenced by, that individual in their dealings with the entity.

Employee benefits

Short-term employee benefits are recognised as an expense in the period they are incurred

3. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 9,106,241 8,106,938
Social security costs 522,252 482,541
Other pension costs 162,666 136,526
9,791,159 8,726,005

The average number of employees during the year was as follows:
2023 2022

Selling 695 663
Management and administration 21 21
716 684

4. DIRECTORS' EMOLUMENTS
2023 2022
£    £   
Directors' remuneration 166,905 105,000

5. OPERATING PROFIT

The operating profit is stated after charging:

2023 2022
£    £   
Rent 1,036 8,587
Depreciation - owned assets 513,787 533,459
Depreciation - assets on hire purchase contracts 3,228 9,683
Loss on disposal of fixed assets 134,408 2,576
Auditors' remuneration 58,680 58,082
Auditors' remuneration for non audit work 16,417 16,502

MASSARELLA CATERING GROUP LIMITED (REGISTERED NUMBER: 01370637)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2023


6. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank interest 9,712 46,878
Hire purchase 487 6,339
10,199 53,217

7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 225,950 120,350

Deferred tax (80,347 ) (9,389 )
Tax on profit 145,603 110,961

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£    £   
Profit before tax 702,871 792,379
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2022
- 19 %)

175,718

150,552

Effects of:
Expenses not deductible for tax purposes 40 734
Income not taxable for tax purposes (5,750 ) (5,081 )
Depreciation in excess of capital allowances 91,572 9,877

Change in rate of corporation tax (14,623 ) -
Deferred tax charge to profit (80,347 ) (9,389 )

Adjustment to tax charge in respect of previous periods (21,007 ) (35,732 )
Total tax charge 145,603 110,961

Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the period end and that are expected to apply to the reversal of the timing difference. In the year to 31 December 2023, deferred tax is charged at 25% (2022 - 25%).

MASSARELLA CATERING GROUP LIMITED (REGISTERED NUMBER: 01370637)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2023


8. INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME

As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements.


9. DIVIDENDS
2023 2022
£    £   
Final 200,000 100,000

10. INTANGIBLE FIXED ASSETS

Group
Goodwill
£   
COST
At 1 January 2023
and 31 December 2023 172,000
AMORTISATION
At 1 January 2023
and 31 December 2023 172,000
NET BOOK VALUE
At 31 December 2023 -
At 31 December 2022 -

MASSARELLA CATERING GROUP LIMITED (REGISTERED NUMBER: 01370637)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2023


11. TANGIBLE FIXED ASSETS

Group
Short Plant and Motor
leasehold machinery vehicles Totals
£    £    £    £   
COST
At 1 January 2023 385,067 8,539,880 143,148 9,068,095
Additions - 192,059 21,750 213,809
Disposals - (1,204,667 ) - (1,204,667 )
At 31 December 2023 385,067 7,527,272 164,898 8,077,237
DEPRECIATION
At 1 January 2023 381,865 6,194,730 92,508 6,669,103
Charge for year 1,150 488,245 27,620 517,015
Eliminated on disposal - (1,068,807 ) - (1,068,807 )
At 31 December 2023 383,015 5,614,168 120,128 6,117,311
NET BOOK VALUE
At 31 December 2023 2,052 1,913,104 44,770 1,959,926
At 31 December 2022 3,202 2,345,150 50,640 2,398,992

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Motor
vehicles
£   
COST
At 1 January 2023 48,416
Transfer to ownership (48,416 )
At 31 December 2023 -
DEPRECIATION
At 1 January 2023 31,398
Charge for year 3,228
Transfer to ownership (34,626 )
At 31 December 2023 -
NET BOOK VALUE
At 31 December 2023 -
At 31 December 2022 17,018

MASSARELLA CATERING GROUP LIMITED (REGISTERED NUMBER: 01370637)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2023


11. TANGIBLE FIXED ASSETS - continued

Company
Short Plant and Motor
leasehold machinery vehicles Totals
£    £    £    £   
COST
At 1 January 2023 338,395 168,988 143,148 650,531
Additions - 956 21,750 22,706
At 31 December 2023 338,395 169,944 164,898 673,237
DEPRECIATION
At 1 January 2023 335,193 117,511 92,508 545,212
Charge for year 1,150 14,094 27,620 42,864
At 31 December 2023 336,343 131,605 120,128 588,076
NET BOOK VALUE
At 31 December 2023 2,052 38,339 44,770 85,161
At 31 December 2022 3,202 51,477 50,640 105,319

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Motor
vehicles
£   
COST
At 1 January 2023 48,416
Transfer to ownership (48,416 )
At 31 December 2023 -
DEPRECIATION
At 1 January 2023 31,398
Charge for year 3,228
Transfer to ownership (34,626 )
At 31 December 2023 -
NET BOOK VALUE
At 31 December 2023 -
At 31 December 2022 17,018

MASSARELLA CATERING GROUP LIMITED (REGISTERED NUMBER: 01370637)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2023


12. FIXED ASSET INVESTMENTS

Company
Shares in
group
undertakings
£   
COST
At 1 January 2023
and 31 December 2023 76,100
NET BOOK VALUE
At 31 December 2023 76,100
At 31 December 2022 76,100

The group or the company's investments at the Balance Sheet date in the share capital of companies include the following:

Subsidiaries


Massarella Catering Limited
Registered office:
Nature of business: Dormant
%
Class of shares: holding
Ordinary £1 100.00

Massarella Restaurants Limited
Registered office:
Nature of business: Retail catering
%
Class of shares: holding
Ordinary £1 100.00

Massarella Supplies Limited
Registered office:
Nature of business: Dormant
%
Class of shares: holding
Ordinary £1 100.00

Caffe Ori Limited (previously Cafe Nova Limited)
Registered office:
Nature of business: Retail catering
%
Class of shares: holding
Ordinary 100.00


MASSARELLA CATERING GROUP LIMITED (REGISTERED NUMBER: 01370637)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2023


13. STOCKS

Group
2023 2022
£    £   
Goods for resale and consumables 373,220 443,368

14. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2023 2022 2023 2022
£    £    £    £   
Trade debtors 625,947 442,140 9,822 23,490
Amounts owed by group undertakings - - 24,376 21,773
Deferred tax asset - - 22,361 17,710
Prepayments and accrued income 185,650 215,022 14,160 52,150
811,597 657,162 70,719 115,123

15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2023 2022 2023 2022
£    £    £    £   
Bank loans and overdrafts (see note 17) - 316,667 - -
Hire purchase contracts (see note 18) - 5,237 - 5,237
Trade creditors 2,013,824 1,858,117 29,110 37,282
Amounts owed to group undertakings 2,300 2,351 583,099 926,047
Tax 385,293 159,343 649 649
Social security and other taxes 216,899 218,274 50,465 47,672
VAT 944,687 922,833 46,811 45,515
Directors' current accounts 43,977 657 43,977 657
Accruals and deferred income 1,210,735 1,541,231 102,232 127,577
4,817,715 5,024,710 856,343 1,190,636

16. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Group
2023 2022
£    £   
Bank loans (see note 17) - 475,000

MASSARELLA CATERING GROUP LIMITED (REGISTERED NUMBER: 01370637)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2023


17. LOANS

An analysis of the maturity of loans is given below:

Group
2023 2022
£    £   
Amounts falling due within one year or on demand:
Bank loans - 316,667
Amounts falling due between one and two years:
Bank loans - 1-2 years - 316,667
Amounts falling due between two and five years:
Bank loans - 2-5 years - 158,333

Loans comprise:


Maturity date 2023 2022
£ £

CBIL 2025 - 791,667
- 791,667

The loan was repaid in full in the current year.

18. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Group
Hire purchase contracts
2023 2022
£    £   
Gross obligations repayable:
Within one year - 5,724

Finance charges repayable:
Within one year - 487

Net obligations repayable:
Within one year - 5,237

MASSARELLA CATERING GROUP LIMITED (REGISTERED NUMBER: 01370637)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2023


18. LEASING AGREEMENTS - continued

The directors consider that the carrying amount of the obligations under finance leases approximate to their fair value.

Company
Hire purchase contracts
2023 2022
£    £   
Gross obligations repayable:
Within one year - 5,724

Finance charges repayable:
Within one year - 487

Net obligations repayable:
Within one year - 5,237

Group
Non-cancellable operating leases
2023 2022
£    £   
Within one year 449,905 490,971
Between one and five years 431,364 674,109
In more than five years 180,417 242,917
1,061,686 1,407,997

Company
Non-cancellable operating leases
2023 2022
£    £   
Within one year 40,000 40,000

MASSARELLA CATERING GROUP LIMITED (REGISTERED NUMBER: 01370637)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2023


19. SECURED DEBTS

The following secured debts are included within creditors:

Group Company
2023 2022 2023 2022
£    £    £    £   
Bank loans - 791,667 - -
Hire purchase contracts - 5,237 - 5,237
- 796,904 - 5,237

Bank overdrafts and other creditors are secured by a composite accounting agreement cross guarantee and debenture over the assets of the group members. Hire purchase contracts were secured on the assets to which the agreements relate.

A CBILs loan was drawn down in May 2020 for an amount of £1,800,000 this is the limit of the facility. The expiry date of the facility was 29 June 2025. The CBIL loan included a limited guarantee given by the Secretary of State for Business Energy and Industrial Strategy amounting to £1,440,000, dated 25/6/2020. The loan was repaid in full in the current year.

20. PROVISIONS FOR LIABILITIES

Group
2023 2022
£    £   
Deferred tax
Accelerated capital allowances 336,602 416,949

Group
Deferred
tax
£   
Balance at 1 January 2023 416,949
Credit to Statement of Comprehensive Income during year (80,347 )
Balance at 31 December 2023 336,602

Company
Deferred
tax
£   
Balance at 1 January 2023 (17,710 )
Provided during year (4,651 )
Balance at 31 December 2023 (22,361 )

MASSARELLA CATERING GROUP LIMITED (REGISTERED NUMBER: 01370637)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2023


21. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
100,000 Ordinary £1 100,000 100,000

22. RESERVES

Group
Retained
earnings
£   

At 1 January 2023 5,055,957
Profit for the year 557,268
Dividends (200,000 )
At 31 December 2023 5,413,225

Company
Retained
earnings
£   

At 1 January 2023 1,243,068
Profit for the year 182,819
Dividends (200,000 )
At 31 December 2023 1,225,887


23. CONTINGENT LIABILITIES

Cross guarantees and debentures exist with the group's bankers between the following group companies:

Massarella Catering Group Limited
Massarella Restaurants Limited
Massarella Catering Limited
Caffe Ori Limited (previously Cafe Nova Limited)

The group's bankers also have a fixed and floating charge over the assets and undertaking of the group. At the year end the group owed £nil (2022: £791,667) to its bankers

24. RELATED PARTY DISCLOSURES

During the year, total dividends of £150,000 (2022 - £75,000) were paid to the directors .

MASSARELLA CATERING GROUP LIMITED (REGISTERED NUMBER: 01370637)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2023


24. RELATED PARTY DISCLOSURES - continued

The Trustees of the Massarella Retirement and Death Benefit Scheme, in which some of the Directors and Shareholders are trustees have a fixed and floating charge over the assets of the company. The amount outstanding at the year end amounted to £nil (2022 - £nil).

Entities over which the entity has control, joint control or significant influence
2023 2022
£    £   
Sales with Massarella & Co Limited 10,942 117,397
Purchases with Massarella & Co Limited (66,947 ) -
Management charges - 1,000
Amount due from related party 4,224 -

Key management personnel of the entity or its parent (in the aggregate)
2023 2022
£    £   
Key Management Personnel Compensation 166,905 105,000

Other related parties
2023 2022
£    £   
Cost to lease office space in a building owned by the shareholders 40,000 40,000

25. ULTIMATE CONTROLLING PARTY

The group is not under the control of any one individual or party.