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Registration number: 10223616

Luma Restaurants Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2023

 

Luma Restaurants Limited

Contents

Company Information

1

Strategic Report

2

Director's Report

3 to 4

Statement of Director's Responsibilities

5

Independent Auditor's Report

6 to 9

Income Statement

10

Statement of Financial Position

11

Statement of Changes in Equity

12

Statement of Cash Flows

13

Notes to the Financial Statements

14 to 24

 

Luma Restaurants Limited

Company Information

Director

Mr J Calaza Pernas

Registered office

Mcdonald's Restaurant
31-33 West Street
Havant
PO9 1ER

Bankers

Barclays
1 Churchill Place
Leicester
Leicestershire
LE87 2BB

Accountants

Munslows Accountants Ltd
Chartered Certified Accountants
32 High Street
Wall Heath
Kingswinford
West Midlands
DY6 0HB

Auditors

Manex Accountants Ltd
Chartered Accountants and Statutory Auditors
9 Castle Court 2
Castlegate Way
Dudley
West Midlands
DY1 4RD

 

Luma Restaurants Limited

Strategic Report for the Year Ended 31 December 2023

The director presents his strategic report for the year ended 31 December 2023.

Principal activity

The principal activity of the company is an operator of a group of McDonald's restaurants.

Fair review of the business

As an operator of a chain of McDonald's restaurants the directors consider the company's key performance indicators to be turnover and gross profit. During the year the company has relocated from it's previous base in central London to operate 10 restaurants on the south coast in and around Southampton. This has resulted in an increase inTurnover for the year of 124.90% and gross profit of 112.55%.

In common with many other businesses and industries the director believes the trading environment in which the company operates will continue to be challenging but remains optimistic regarding future trading and is committed to increasing both future turnover and profitability and to continuing the company’s reinvestment program.

Principal risks and uncertainties

The company operates in a highly competitive market with high levels of price sensitivity. Consumer behaviour can impact the company's turnover and profitability. The company continually assesses these risks and mitigates them by adopting a policy of constantly assessing its pricing strategy with ongoing market research.

The company remains exposed to periods of food cost inflation together with the variability of commodity prices both of which impact on profitability. In addition, the effects of Brexit have the possibility of impacting the business in terms of the access to, and cost of, both food and labour. The company continually assesses any risks identified, with the aim of mitigating the threats these may have on the company's operations and profitability. The company's supply chain is closely maintained by McDonald's, who endeavour to negotiate effectively on behalf of all franchisees to ensure better purchasing terms. This helps as much as possible to protect the company from risks associated with fluctuating food costs.

The company is also inherently exposed to pressures within the labour market and to wage cost inflation. The company mitigates this risk by a policy of adopting remuneration and benefits packages designed to be competitive within the market as well as ensuring full compliance with labour market regulations, with employment policies to allow fulfilling career opportunities for all employees.

By its very nature, the fast-food market is extremely competitive, with large numbers of companies operating in the sector. In order to remain at the forefront, McDonald’s have dedicated teams whose focus is on ensuring they remain the leading business in the market.

Approved and authorised by the director on 16 September 2024
 

.........................................
Mr J Calaza Pernas
Director

 

Luma Restaurants Limited

Director's Report for the Year Ended 31 December 2023

The director presents his report and the financial statements for the year ended 31 December 2023.

Director of the company

The director who held office during the year was as follows:

Mr J Calaza Pernas

Financial instruments

Objectives and policies

The company’s principle financial instruments comprise bank balances, trade creditors and bank loans. The main purpose of these instruments is to finance the company’s operations and to ensure the smooth running of the company’s operations.

Due to the nature of the financial instruments used by the company there is no exposure to price risk.

In respect of bank balances, the liquidity risk is managed by maintaining a balance to ensure the continuity of trading, through the use of detailed cash flow analysis, forecasts and projections which are regularly updated. In addition, the company has access to overdraft facilities from its bankers which are repayable on demand, should the business require them.

In respect of bank loans, these are provided by financial institutions. The interest rate on these loans is variable, although usually the monthly repayments are fixed. The company manages the liquidity risk by ensuring that there are sufficient funds to meet the payments through the constant review and updating of cashflow forecasts. The interest rate is managed through regular reviews of current and expected future interest rates.

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

Price risk, credit risk, liquidity risk and cash flow risk

The main risks arising from the company’s financial instruments are interest risk and liquidity risk. The board reviews and agrees policies for managing each of these risks as summarised below –

Interest rate risk – the company’s exposure to market risk for changes in interest rates is limited to bank loans. Additional requirements for medium to long term debt are reviewed by the directors based on the company’s forecast requirements

Liquidity risk – the company’s objective is to maintain a balance between continuity of funding and flexibility, by the utilisation of cash and bank loans.

Employment of disabled persons

The company operates an equal opportunities policy with regard to recruitment and seeks to offer suitable work and training wherever practicable to persona with disabilities. The policy of the company is to ensure that disabled applicants are given full and fair consideration having regards to their particular aptitudes and abilities. Exisiting disabled employees are given equal access to appropriate training, career development and promotion opportunities within the company. In the event of employees becoming disabled while in the employmeny of the company, all reasonable means are explored to achieve retention in employment in the same or an alternative capacity.

 

Luma Restaurants Limited

Director's Report for the Year Ended 31 December 2023

Employee involvement

The company aims to promote a working environment free from harassment, victimisation, bullying and discrimination. The company regards all employees as members of a team, where opinions are valued, and everyone is regarded as equal in status and treated with fairness and respect.

The company's recruitment procedures are intended to ensure that employees are selected, promoted, and treated according to their ability and that everyone has an equal opportunity to receive training and development.

The company communicates regularly with all employees on matters relating to its performance, with employees encouraged to contribute to the decision-making process through regular staff meetings. In addition, there is a bulletin board in each restaurant where memoranda relating to company policy are displayed. There is also an online portal known as Our Lounge, which contains news and information for McDonald's employees.

Disclosure of information to the auditors

The director has taken steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. The director confirms that there is no relevant information that he knows of and of which he knows the auditors are unaware.

Reappointment of auditors

The auditors Manex Accountants Ltd are deemed to be reappointed under section 487(2) of the Companies Act 2006.

Approved and authorised by the director on 16 September 2024
 

.........................................
Mr J Calaza Pernas
Director

 

Luma Restaurants Limited

Statement of Director's Responsibilities

The director acknowledges his responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the director is required to:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable him to ensure that the financial statements comply with the Companies Act 2006 and in accordance with FRS 102. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

 

Luma Restaurants Limited

Independent Auditor's Report to the Members of Luma Restaurants Limited

Opinion

We have audited the financial statements of Luma Restaurants Limited (the 'company') for the year ended 31 December 2023, which comprise the Income Statement, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows, and 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 company's affairs as at 31 December 2023 and of its profit for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The director are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

 

Luma Restaurants Limited

Independent Auditor's Report to the Members of Luma Restaurants Limited

Opinion on other matter prescribed by the Companies Act 2006

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

the information given in the Strategic Report and Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Director's Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Director's Report.

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, or returns adequate for our audit have not been received from branches not visited by us; or

the financial statements are not in agreement with the accounting records and returns; or

certain disclosures of director's remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

Responsibilities of the director

As explained more fully in the Statement of Director's Responsibilities [set out on page 5], the director is 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 director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the director is responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor Responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

 

Luma Restaurants Limited

Independent Auditor's Report to the Members of Luma Restaurants Limited

We obtained an understanding of the legal and regulatory frameworks applicable to the company and the industry in which it operates. We determined that the following laws and regulations were most significant: The Companies Act 2006/FRS 102, Employment Law and Waste, Health and Safety. We enquired of management and those responsible for legal and compliance procedures to obtain an understanding of how the company is complying with those legal and regulatory frameworks and whether they had any knowledge of actual or suspected fraud. We corroborated the results of our enquiries through our discussions with the directors and management. We did not identify any matters relating to non-compliance with laws and regulations or matters in relation to fraud.

In assessing the potential risks of material misstatements, we obtained an understanding of the company’s operations, including its objectives and strategies to understand the expected financial statement disclosures and business risks that may result in risks of material misstatement;

In assessing the appropriateness of the collective competence and capabilities of the engagement team the engagement partner considered the engagement team’s :
 Understanding of, and practical experience with, audit engagements of a similar nature and complexity through appropriate training and participation,
 The specialist skills required and
 Knowledge of the industry in which the client operates.

We assessed the susceptibility of the company’s financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:
 Assessing the design effectiveness of controls management has in place to prevent and detect fraud;
 Challenging assumptions and judgements made by management in its significant accounting estimates;
 Identifying and testing journal entries, in particular manual journal entries made at year end for financial statement preparation; and
 Assessing the extent of compliance with the relevant laws and regulations as part of our procedures on the related financial statement item.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

 

Luma Restaurants Limited

Independent Auditor's Report to the Members of Luma Restaurants Limited

......................................
Clinton Meehan BSc FCA (Senior Statutory Auditor)
For and on behalf of Manex Accountants Ltd, Statutory Auditor

9 Castle Court 2
Castlegate Way
Dudley
West Midlands
DY1 4RD

16 September 2024

 

Luma Restaurants Limited

Income Statement for the Year Ended 31 December 2023

Note

2023
£

2022
£

Revenue

3

39,276,265

17,463,159

Cost of sales

 

(23,777,844)

(10,171,568)

Gross profit

 

15,498,421

7,291,591

Administrative expenses

 

(12,564,497)

(6,540,567)

Other operating income

4

4,164

2,910

Operating profit

6

2,938,088

753,934

Interest payable and similar expenses

7

(198,498)

(26,848)

Profit before tax

 

2,739,590

727,086

Tax on profit

11

(662,063)

(140,072)

Profit for the financial year

 

2,077,527

587,014

The above results were derived from continuing operations.

The company has no recognised gains or losses for the year other than the results above.

 

Luma Restaurants Limited

(Registration number: 10223616)
Statement of Financial Position as at 31 December 2023

Note

2023
£

2022
£

Non current assets

 

Intangible assets

12

4,553,619

928,468

Property, plant and equipment

13

2,674,528

561,071

Other financial assets

14

12,500

6,250

 

7,240,647

1,495,789

Current assets

 

Inventories

15

207,232

118,632

Debtors

16

391,438

203,740

Cash at bank and in hand

17

5,189,140

2,338,946

 

5,787,810

2,661,318

Creditors: Amounts falling due within one year

18

(5,757,070)

(2,212,660)

Net current assets

 

30,740

448,658

Total assets less current liabilities

 

7,271,387

1,944,447

Creditors: Amounts falling due after more than one year

18

(3,928,572)

(523,835)

Provisions for liabilities

19

(319,878)

(75,202)

Net assets

 

3,022,937

1,345,410

Equity

 

Called up share capital

100

100

Retained earnings

3,022,837

1,345,310

Shareholders' funds

 

3,022,937

1,345,410

Approved and authorised by the director on 16 September 2024
 

.........................................
Mr J Calaza Pernas
Director

 

Luma Restaurants Limited

Statement of Changes in Equity for the Year Ended 31 December 2023

Share capital
£

Retained earnings
£

Total
£

At 1 January 2023

100

1,345,310

1,345,410

Profit for the year

-

2,077,527

2,077,527

Dividends

-

(400,000)

(400,000)

At 31 December 2023

100

3,022,837

3,022,937

Share capital
£

Retained earnings
£

Total
£

At 1 January 2022

100

1,008,296

1,008,396

Profit for the year

-

587,014

587,014

Dividends

-

(250,000)

(250,000)

At 31 December 2022

100

1,345,310

1,345,410

 

Luma Restaurants Limited

Statement of Cash Flows for the Year Ended 31 December 2023

Note

2023
£

2022
£

Cash flows from operating activities

Profit for the year

 

2,077,527

587,014

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

6

367,810

308,901

Loss on disposal of property, plant and equipment

5

265,733

-

Profit on disposal of intangible assets

5

(2,352,989)

-

Finance costs

7

198,498

26,848

Income tax expense

11

662,063

140,072

 

1,218,642

1,062,835

Working capital adjustments

 

Increase in inventories

15

(88,600)

(45,447)

Increase in receivables

16

(187,698)

(35,874)

Increase in payables

18

2,883,744

258,963

Cash generated from operations

 

3,826,088

1,240,477

Income taxes paid

11

(157,960)

(261,375)

Net cash flow from operating activities

 

3,668,128

979,102

Cash flows from investing activities

 

Acquisitions of property, plant and equipment

13

(2,943,740)

(101,878)

Proceeds from sale of property, plant and equipment

 

333,544

-

Acquisition of intangible assets

12

(4,690,423)

-

Proceeds from sale of intangible assets

 

3,281,457

-

Acquisition of financial investments other than trading investments

14

(12,500)

-

Proceeds from disposal of financial investments other than trading investments

 

6,250

-

Net cash flows from investing activities

 

(4,025,412)

(101,878)

Cash flows from financing activities

 

Interest paid

7

(198,498)

(26,848)

Proceeds from bank borrowing draw downs

 

3,805,976

-

Repayment of bank borrowing

 

-

(313,047)

Dividends paid

24

(400,000)

(250,000)

Net cash flows from financing activities

 

3,207,478

(589,895)

Net increase in cash and cash equivalents

 

2,850,194

287,329

Cash and cash equivalents at 1 January

 

2,338,946

2,051,617

Cash and cash equivalents at 31 December

17

5,189,140

2,338,946

 

Luma Restaurants Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

1

General information

The company is a private company limited by share capital, incorporated in England.

The address of its registered office is:
Mcdonald's Restaurant
31-33 West Street
Havant
PO9 1ER

These financial statements were authorised for issue by the director on 16 September 2024.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Going concern

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

Revenue recognition

Revenue comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Revenue is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Government grants

Government grants are recognised in the financial statements when there is reasonable assurance that the company has complied with all applicable conditions and that the grants will be received. Under FRS 102 the company accounts for government grants using the accrual model. Under the accrual model government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grants are intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred, or for the purpose of giving immediate financial support to the entity with no future related costs, are recognised in income in the period in which it becomes receivable.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

 

Luma Restaurants Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

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

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

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

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Property, plant and equipment

Property, plant and equipment are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of property, plant and equipment includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Plant and equipment

straight line over 3 to 10 years

Motor vehicles

straight line over 5 years

Goodwill

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

Intangible assets

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the Company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date.

Licences have a finite useful life and are carried at cost less accumulated amortisation and any accumulated impairment losses.

 

Luma Restaurants Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Goodwill

straight line over the remaining life of the licence

Licence fees

straight line over the remaining life of the licence

Stamp duty

straight line over the shorter of the remaining life of the lease and 20 years

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Inventories

Stocks are stated at the lower of average cost and net realisable value. Net realisable value is based on estimated selling price less further costs expected to be incurred prior to completion and disposal.

Payables

Payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Payables are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the income statement over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

 

Luma Restaurants Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3

Revenue

The analysis of the company's revenue for the year from continuing operations is as follows:

2023
£

2022
£

Sales of food and drink

38,875,341

17,364,803

Sales of non-product goods

400,924

98,356

39,276,265

17,463,159

4

Other operating income

The analysis of the company's other operating income for the year is as follows:

2023
£

2022
£

Miscellaneous other operating income

4,164

2,910

5

Other gains and losses

The analysis of the company's other gains and losses for the year is as follows:

2023
£

2022
£

Loss on disposal of Property, plant and equipment

(265,733)

-

Gain on disposal of intangible assets

2,352,989

-

2,087,256

-

6

Operating profit

Arrived at after charging/(crediting)

2023
£

2022
£

Depreciation expense

231,006

247,029

Amortisation expense

136,804

61,872

Loss on disposal of property, plant and equipment

265,733

-

 

Luma Restaurants Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

7

Interest payable and similar expenses

2023
£

2022
£

Interest on bank overdrafts and borrowings

196,831

26,789

Interest expense on other finance liabilities

1,667

59

198,498

26,848

8

Staff costs

The aggregate payroll costs (including director's remuneration) were as follows:

2023
£

2022
£

Wages and salaries

10,991,066

4,745,443

Social security costs

467,442

292,973

Pension costs, defined contribution scheme

102,278

59,650

Other employee expense

76,934

41,357

11,637,720

5,139,423

The average number of persons employed by the company (including the director) during the year, analysed by category was as follows:

2023
No.

2022
No.

Crew labour

832

301

Management labour

26

13

858

314

9

Director's remuneration

The director's remuneration for the year was as follows:

2023
£

2022
£

Remuneration

8,280

8,280

10

Auditors' remuneration

2023
£

2022
£

Audit of the financial statements

5,450

3,000


 

 

Luma Restaurants Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

11

Taxation

Tax charged/(credited) in the income statement

2023
£

2022
£

Current taxation

UK corporation tax

417,387

157,960

Deferred taxation

Arising from origination and reversal of timing differences

244,676

(17,888)

Tax expense in the income statement

662,063

140,072

The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2022 - the same as the standard rate of corporation tax in the UK) of 25% (2022 - 19%).

The differences are reconciled below:

2023
£

2022
£

Profit before tax

2,739,590

727,086

Corporation tax at standard rate

684,898

138,146

Tax increase/(decrease) from effect of capital allowances and depreciation

2,872

(9,484)

Decrease from effect of different UK tax rates on some earnings

(26,254)

-

Effect of expense not deductible in determining taxable profit (tax loss)

547

11,410

Total tax charge

662,063

140,072

Deferred tax

Deferred tax assets and liabilities

2023

Asset
£

Liability
£

Accelerated capital allowances

-

319,878

-

319,878

2022

Asset
£

Liability
£

Accelerated capital allowances

-

75,203

-

75,203

 

Luma Restaurants Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

12

Intangible assets

Goodwill
 £

Licence fees
 £

Stamp duty
 £

Total
£

Cost or valuation

At 1 January 2023

1,016,064

120,000

50,473

1,186,537

Additions acquired separately

4,401,390

210,000

79,033

4,690,423

Disposals

(1,016,064)

(120,000)

(50,473)

(1,186,537)

At 31 December 2023

4,401,390

210,000

79,033

4,690,423

Amortisation

At 1 January 2023

202,112

28,000

27,957

258,069

Amortisation charge

128,374

6,125

2,305

136,804

Amortisation eliminated on disposals

(202,112)

(28,000)

(27,957)

(258,069)

At 31 December 2023

128,374

6,125

2,305

136,804

Carrying amount

At 31 December 2023

4,273,016

203,875

76,728

4,553,619

At 31 December 2022

813,952

92,000

22,516

928,468

13

Property, plant and equipment

Plant and equipment
 £

Motor vehicles
 £

Total
£

Cost or valuation

At 1 January 2023

1,723,675

42,090

1,765,765

Additions

2,943,740

-

2,943,740

Disposals

(1,792,747)

-

(1,792,747)

At 31 December 2023

2,874,668

42,090

2,916,758

Depreciation

At 1 January 2023

1,193,470

11,224

1,204,694

Charge for the year

222,588

8,418

231,006

Eliminated on disposal

(1,193,470)

-

(1,193,470)

At 31 December 2023

222,588

19,642

242,230

Carrying amount

At 31 December 2023

2,652,080

22,448

2,674,528

At 31 December 2022

530,205

30,866

561,071

 

Luma Restaurants Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

14

Other financial assets (current and non-current)

2023
£

2022
£

Non-current financial assets

Financial assets at cost less impairment

12,500

6,250

15

Inventories

2023
£

2022
£

Stocks of food, drink and paper

207,232

118,632

16

Debtors

Current

2023
£

2022
£

Receivables

39,440

-

Other debtors

70,757

-

Prepayments

281,241

203,740

 

391,438

203,740

17

Cash and cash equivalents

2023
£

2022
£

Cash on hand

28,300

10,500

Cash at bank

5,160,840

2,328,446

5,189,140

2,338,946

 

Luma Restaurants Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

18

Creditors

Note

2023
£

2022
£

Due within one year

 

Loans and borrowings

22

714,286

313,047

Payables

 

1,768,506

514,279

Amounts due to related parties

10,485

23,163

Social security and other taxes

 

1,667,033

671,311

Outstanding defined contribution pension costs

 

28,491

3,994

Other payables

 

556,393

3,347

Accruals

 

594,489

525,559

Income tax liability

11

417,387

157,960

 

5,757,070

2,212,660

Due after one year

 

Loans and borrowings

22

3,928,572

523,835

19

Provisions for liabilities

Deferred tax
£

Total
£

At 1 January 2023

75,202

75,202

Increase (decrease) in existing provisions

244,676

244,676

At 31 December 2023

319,878

319,878

20

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £102,278 (2022 - £59,650).

Contributions totalling £28,491 (2022 - £3,994) were payable to the scheme at the end of the year and are included in creditors.

21

Share capital

Allotted, called up and fully paid shares

2023

2022

No.

£

No.

£

Ordinary share of £1 each

100

100

100

100

       
 

Luma Restaurants Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

22

Loans and borrowings

Non-current loans and borrowings

2023
£

2022
£

Bank borrowings

3,928,572

523,835

Current loans and borrowings

2023
£

2022
£

Bank borrowings

714,286

313,047

Included in the loans and borrowings are the following amounts due after more than five years:

2023
£

2022
£

After more than five years by instalments

1,071,429

-

-

-

Bank loans and overdrafts after five years

Bank loans due after five years are repayable by regular monthly instalments at an interest rate of 1.7% over base.

23

Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

2023
£

2022
£

Not later than one year

2,170,080

3,050,844

Later than one year and not later than five years

5,784,324

9,894,456

Later than five years

9,969,222

19,669,976

17,923,626

32,615,276

The amount of non-cancellable operating lease payments recognised as an expense during the year was £3,457,420 (2022 - £1,037,222).

24

Dividends

Interim dividends paid

2023
£

2022
£

Interim dividend of £4,000.00 (2022 - £2,500.00) per each Ordinary share

400,000

250,000

 

 
 

Luma Restaurants Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

25

Analysis of changes in net debt

At 1 January 2023
£

Financing cash flows
£

At 31 December 2023
£

Cash and cash equivalents

Cash

10,500

17,800

28,300

Cash equivalents

2,328,446

2,832,394

5,160,840

2,338,946

2,850,194

5,189,140

Borrowings

Long term borrowings

(523,835)

(3,404,737)

(3,928,572)

Short term borrowings

(313,047)

(401,239)

(714,286)

(836,882)

(3,805,976)

(4,642,858)

 

1,502,064

(955,782)

546,282