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 |
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: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
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: |
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. |
Other changes in directors holding office are as follows: |
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: |
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. |
for and on behalf of |
Chartered Accountants and Statutory Auditors |
Beckside Court |
Annie Reed Road |
Beverley |
East Yorkshire |
HU17 0LF |
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 |
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 |
Investments | 12 |
CURRENT ASSETS |
Debtors | 14 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 15 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 21 |
Retained earnings | 22 |
SHAREHOLDERS' FUNDS |
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 |
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 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive loss | - | ( |
) | ( |
) |
Balance at 31 December 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2023 |
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 |
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 |
Short leasehold | - |
Plant and machinery | - |
Motor vehicles | - |
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 |
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 |
Additions |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Motor |
vehicles |
£ |
COST |
At 1 January 2023 |
Transfer to ownership | (48,416 | ) |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
Transfer to ownership | (34,626 | ) |
At 31 December 2023 |
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 |
12. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: |
Nature of business: |
% |
Class of shares: | holding |
Registered office: |
Nature of business: |
% |
Class of shares: | holding |
Registered office: |
Nature of business: |
% |
Class of shares: | holding |
Registered office: |
Nature of business: |
% |
Class of shares: | holding |
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 |
Amounts owed by group undertakings | - | - |
Deferred tax asset | - | - | 22,361 | 17,710 |
Prepayments and accrued income | 185,650 | 215,022 |
811,597 | 657,162 |
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 |
Trade creditors | 2,013,824 | 1,858,117 |
Amounts owed to group undertakings | 2,300 | 2,351 |
Tax | 385,293 | 159,343 |
Social security and other taxes | 216,899 | 218,274 |
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 |
4,817,715 | 5,024,710 |
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 |
Finance charges repayable: |
Within one year |
Net obligations repayable: |
Within one year |
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 |
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 |
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 | ( |
) |
Provided during year | ( |
) |
Balance at 31 December 2023 | ( |
) |
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: | £ | £ |
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 |
Profit for the year |
Dividends | ( |
) |
At 31 December 2023 |
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. |