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REGISTERED NUMBER: 12423563 (England and Wales)


















STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

FOR

DYNAMIC RESTAURANTS LIMITED

DYNAMIC RESTAURANTS LIMITED (REGISTERED NUMBER: 12423563)

CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023










Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Statement of Comprehensive Income 10

Balance Sheet 11

Statement of Changes in Equity 12

Cash Flow Statement 13

Notes to the Financial Statements 14


DYNAMIC RESTAURANTS LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2023







DIRECTORS: S Fraser
A R Fraser



REGISTERED OFFICE: 6-10 East Gates
Leicester
LE1 4FB



REGISTERED NUMBER: 12423563 (England and Wales)



SENIOR STATUTORY
AUDITOR:
Andrew Green LLB FCA



AUDITORS: THP Limited
Chartered Accountants
and Statutory Auditors
34-40 High Street
Wanstead
London
E11 2RJ

DYNAMIC RESTAURANTS LIMITED (REGISTERED NUMBER: 12423563)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023


The directors present their strategic report for the year ended 31 December 2023.

REVIEW OF BUSINESS
The Directors report an improvement in turnover, gross profit margins and operating profit.

The Company's key performance indicators are as follows:

31 December 2023 31 December 2022
£ £
Turnover 21,068,734 18,605,426
Gross profit 13,647,299 11,906,406
Gross profit % 64.78% 64.00%
Operating result 470,910 (9,317)

The net assets of the Company were £394k (2022: £266k) at the balance sheet date, reflecting the solid
position of the Company from a solvency and liquidity point of view, and this strong balance sheet is the
foundation on which the Company can continue to grow and prosper.


DYNAMIC RESTAURANTS LIMITED (REGISTERED NUMBER: 12423563)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

PRINCIPAL RISKS AND UNCERTAINTIES
The management of the business and the nature of the company's strategy are subject to a number of risks. The Directors have set out below the principal risks facing the business.
The Directors are of the opinion that a thorough risk management process is adopted which involves a formal review of all risks identified below. Where possible, processes are in place to mitigate such risks.

Economic downturn
The success of the business is reliant on consumer spending.
In response to this continuous risk, senior management aim to keep abreast of economic conditions. In cases of severe economic downturn, marketing and pricing strategies will be modified to reflect the new market conditions.

Inflation and the cost of living crisis
Global inflationary pressures that have arisen due to recent geo-political uncertainty and the conflicts in Ukraine and the Middle East continue to represent the largest risk to the business. These pressures are seen most clearly in relation to:

Food cost inflation
The Company is continually assessing all risks that food cost inflation may bring with the aim to mitigate future threats this may have on the business.

Wage cost inflation
The Company is continually affected by wage cost inflation and pressures within the labour market. The Company monitors the market to ensure complete compliance with labour market regulations, and maintains employment policies, remuneration and benefits packages that are designed to be competitive with other companies, as well as providing employees with fulfilling career opportunities.

Utilities costs
Increasing volatility, uncertainty, cost pressures and general environmental awareness in the UK market has resulted in increased pressure on the company in recent times. To manage and help mitigate the risk associated with these pressures, the company is party to a number of Power Purchase Agreements (PPAs) for the provision of cost-effective clean energy from environmentally friendly energy sources.

Competition
The market in which the Company operates is highly competitive. As a result, the Company is subject to a high level of price sensitivities in its consumer-led market. Policies of constantly assessing our pricing strategy and ongoing market research are in place to mitigate such risks.

Liquidity risk
As a result of the positive cash flows from operating activities achieved in the year and expected in future periods, the Directors do not consider liquidity or cashflow risk to be an issue. The Company makes use of bank facilities in order to finance long term capital and refurbishment expenditure. The Directors also continually monitor cash flow forecasts in order to further manage liquidity risk.

Brexit
The areas where Brexit has impacted our business include the access and cost of both labour and food and we continue to work with our business partners to mitigate this.

With these risks and uncertainties in mind, we are aware that any plans for the future development of the business may be subject to unforeseen future events outside of our control; hence, we are constantly assessing our plans in line with the current environment.

ON BEHALF OF THE BOARD:





A R Fraser - Director


6 September 2024

DYNAMIC RESTAURANTS LIMITED (REGISTERED NUMBER: 12423563)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2023


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

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of operating quick service restaurants.

GOING CONCERN
The company continued to generate significant operating cash flows and continued to increase operations year-on-year. Despite this, the balance sheet as at 31 December 2023 shows a net current liability position of £821,290 (2022: £1,039,534). This deficit is in due to the ongoing investment in its restaurants during the past number of years, which are partly from operating cash flows.

The company continues to meet its day to day working capital requirements through operating cash flows and where necessary the support of the Directors and finances all significant refurbishments via a combination of bank finance and working capital.

The Directors have produced detailed cash flow and profits forecasts that show that current positive cash flows from trading will be sufficient to meet working capital and financing obligations as they fall due.

Having considered all the relevant facts the directors consider it is appropriate to prepare the financial statements on a going concern basis.

DIVIDENDS
Interim dividends of £14,062 (2022 : £2,000) were paid during the year. The Directors do not recommend payment of a final dividend.

FUTURE DEVELOPMENTS
The Company continues to substantially invest in its restaurants as part of a plan to upgrade the look and feel of its restaurants with new and enhanced equipment and thereby improve its customers' and employees' experience.

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

S Fraser
A R Fraser

ENGAGEMENT WITH EMPLOYEES
The Company does not discriminate between employees or potential employees on grounds of colour, race, ethnic or national origin, sex, disability, age, marital status or religious beliefs. Full consideration is given to applications for employment from those with disabilities who are able to demonstrate that they have the necessary abilities.

The importance of staff training, equal opportunity, health and safety, environmental matters and the avoidance of sexual harassment is recognised at all levels and is monitored on a regular basis by committees chaired by a director or senior manager reporting directly to the Board.

The Company gives full and fair consideration to applications for employment from those with disabilities. In the event of employees becoming disabled whilst in service of the Company, every effort is made to continue their employment by transfer to alternative duties, if required and by provision of such retraining as is appropriate.

DISCLOSURE IN THE STRATEGIC REPORT
The Company has chosen to make disclosures in relation to financial risk management and other matters considered to be of strategic importance which would otherwise be in the Directors report within the Strategic Report.


DYNAMIC RESTAURANTS LIMITED (REGISTERED NUMBER: 12423563)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2023

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the 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). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;
- make judgements and accounting estimates that are reasonable and prudent;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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

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 company'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 company's auditors are aware of that information.

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 company'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 company's auditors are aware of that information.

AUDITORS
The auditors, THP Limited, will be proposed for re-appointment.

ON BEHALF OF THE BOARD:





A R Fraser - Director


6 September 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
DYNAMIC RESTAURANTS LIMITED


Opinion
We have audited the financial statements of Dynamic Restaurants Limited (the 'company') for the year ended 31 December 2023 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

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

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

Other information
The directors are responsible for the other information. The other information comprises the information in the 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.

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 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 Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
DYNAMIC RESTAURANTS LIMITED


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the 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, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the 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 company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
DYNAMIC RESTAURANTS 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:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
- we identified the laws and regulations applicable to the company through discussions with the directors and other management, and from our commercial knowledge and experience of the sector in which the company operates;
- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental, food hygiene and health and safety legislation;
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:
- performed analytical procedures to identify any unusual or unexpected relationships;
- tested journal entries to identify unusual transactions;
- assessed whether judgements and assumptions made in determining the accounting estimates set out in note 3 were indicative of potential bias; and
- investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
- agreeing financial statement disclosures to underlying supporting documentation;
- enquiring of management as to actual and potential litigation and claims; and
- reviewing correspondence with HMRC and any other relevant regulators as required.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
DYNAMIC RESTAURANTS LIMITED


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.




Andrew Green LLB FCA (Senior Statutory Auditor)
for and on behalf of THP Limited
Chartered Accountants
and Statutory Auditors
34-40 High Street
Wanstead
London
E11 2RJ

6 September 2024

DYNAMIC RESTAURANTS LIMITED (REGISTERED NUMBER: 12423563)

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
Notes £    £   

TURNOVER 21,068,734 18,605,426

Cost of sales 7,421,435 6,699,020
GROSS PROFIT 13,647,299 11,906,406

Administrative expenses 13,176,389 11,915,723
OPERATING PROFIT/(LOSS) 5 470,910 (9,317 )


Interest payable and similar expenses 6 174,751 85,649
PROFIT/(LOSS) BEFORE TAXATION 296,159 (94,966 )

Tax on profit/(loss) 7 154,290 (9,885 )
PROFIT/(LOSS) FOR THE
FINANCIAL YEAR

141,869

(85,081

)

DYNAMIC RESTAURANTS LIMITED (REGISTERED NUMBER: 12423563)

BALANCE SHEET
31 DECEMBER 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 9 1,946,191 2,086,792
Tangible assets 10 1,669,255 2,162,192
Investments 11 5,000 5,000
3,620,446 4,253,984

CURRENT ASSETS
Stocks 12 110,572 97,113
Debtors 13 150,583 295,551
Cash at bank 1,601,924 1,515,323
1,863,079 1,907,987
CREDITORS
Amounts falling due within one year 14 2,684,369 2,947,521
NET CURRENT LIABILITIES (821,290 ) (1,039,534 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

2,799,156

3,214,450

CREDITORS
Amounts falling due after more than
one year

15

(2,096,275

)

(2,671,881

)

PROVISIONS FOR LIABILITIES 18 (308,811 ) (276,306 )
NET ASSETS 394,070 266,263

CAPITAL AND RESERVES
Called up share capital 19 100 100
Retained earnings 20 393,970 266,163
SHAREHOLDERS' FUNDS 394,070 266,263

The financial statements were approved by the Board of Directors and authorised for issue on 6 September 2024 and were signed on its behalf by:





A R Fraser - Director


DYNAMIC RESTAURANTS LIMITED (REGISTERED NUMBER: 12423563)

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 100 353,244 353,344

Changes in equity
Dividends - (2,000 ) (2,000 )
Total comprehensive income - (85,081 ) (85,081 )
Balance at 31 December 2022 100 266,163 266,263

Changes in equity
Dividends - (14,062 ) (14,062 )
Total comprehensive income - 141,869 141,869
Balance at 31 December 2023 100 393,970 394,070

DYNAMIC RESTAURANTS LIMITED (REGISTERED NUMBER: 12423563)

CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 23 1,349,182 1,256,758
Interest paid (174,751 ) (85,649 )
Tax paid - (124,900 )
Net cash from operating activities 1,174,431 1,046,209

Cash flows from investing activities
Purchase of intangible fixed assets - (30,000 )
Purchase of tangible fixed assets (112,220 ) (1,073,352 )
Purchase of fixed asset investments - (1,250 )
Sale of tangible fixed assets 70,414 -
Net cash from investing activities (41,806 ) (1,104,602 )

Cash flows from financing activities
New loans in year - 725,000
Loan repayments in year (645,939 ) (416,920 )
Amount introduced by directors 40,704 2,000
Amount withdrawn by directors (426,727 ) (452,410 )
Equity dividends paid (14,062 ) (2,000 )
Net cash from financing activities (1,046,024 ) (144,330 )

Increase/(decrease) in cash and cash equivalents 86,601 (202,723 )
Cash and cash equivalents at
beginning of year

24

1,515,323

1,718,046

Cash and cash equivalents at end
of year

24

1,601,924

1,515,323

DYNAMIC RESTAURANTS LIMITED (REGISTERED NUMBER: 12423563)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023


1. STATUTORY INFORMATION

Dynamic Restaurants Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

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


2. STATEMENT OF COMPLIANCE

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

3. ACCOUNTING POLICIES

Basis of preparing the financial statements
The financial statements have been prepared under the historical cost convention.

Going Concern
The company continued to generate significant operating cash flows and continued to increase operations year-on-year. Despite this, the balance sheet as at 31 December 2023 shows a net current liability position of £821,290 (2022: £1,039,534). This deficit is in due to the ongoing investment in its restaurants during the past number of years, which are partly from operating cash flows.

The company continues to meet its day to day working capital requirements through operating cash flows and where necessary the support of the Directors and finances all significant refurbishments via a combination of bank finance and working capital.

The Directors have produced detailed cash flow and profits forecasts that show that current positive cash flows from trading will be sufficient to meet working capital and financing obligations as they fall due.

Having considered all the relevant facts the directors consider it is appropriate to prepare the financial statements on a going concern basis.

DYNAMIC RESTAURANTS LIMITED (REGISTERED NUMBER: 12423563)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


3. ACCOUNTING POLICIES - continued

Significant judgements and estimates
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

a) Critical judgements in applying the entity's accounting policies

There are no specific judgements, apart from those involving estimates as detailed below, that management has made in the process of applying the entity's accounting policies that have a significant effect on the amounts recognised in the financial statements.

b) Critical accounting estimates and assumptions

(i) Useful economic lives of tangible assets

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates based on technological advancement, future investments, economic utilisation and the physical condition of the assets.

(ii) Useful economic live of intangible assets

Intangible assets are amortised over their useful economic lives and are assessed annually for indications of impairment.

iii) Treatment of significant capital projects

The allocation of store refurbishment expenditure between capital and revenue is an area that requires judgement on the part of management. Costs are allocated in line with the asset recognition contained within FRS 102 and on the basis of all available evidence as to their nature. The management uses professional advisors to assist them with this process.

Revenue recognition
Revenue is measured at the fair value of the consideration received or receivable and represents the amount receivable for goods supplied, net of returns, discounts and value added taxes.

Sales of goods are recognised on sale to the customer, which is considered to be the point of sale and when the significant risks and rewards of the goods have been passed to the customer.

Franchise rights and franchise fees
Franchise rights and fees are recognised at cost and are amortised over the period of the franchise agreement.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Short leasehold - Straight line over 20 years
Plant and machinery - Straight line over 5 - 7 years
Fixtures and fittings and computer - Straight line over 5 years

DYNAMIC RESTAURANTS LIMITED (REGISTERED NUMBER: 12423563)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


3. ACCOUNTING POLICIES - continued

Stocks
Stock is stated at the lower of cost and selling price less costs to complete and sell, after making due allowance for obsolete and slow moving items. Stocks are recognized as an expense in the period in which the related revenue is recognized.

Cost is determined on the first-in, first-out (FIFO) method. Cost includes the purchase price, including taxes and duties, transport and handling directly attributable to bringing the stock to its present location and condition.

Financial instruments
The company has chosen to adopt Section 11 and 12 of FRS 102 in respect of financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently carried at this value less any provision for impairment.

Cash and cash equivalents
Cash and cash equivalents in the balance sheet represent cash at bank and in hand.

Short-term debtors and creditors
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in profit or loss under operating expenses.

The carrying value of all short-term financial assets and liabilities are measured at amortised cost.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the 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.

Pension costs and other post-retirement benefits
(i) Holiday pay

Holiday pay entitlements (where material) are recognised as an expense in the period in which the service is received.

(ii) Pension Scheme

The company operates a defined contribution pension scheme for its employees. The contributions are recognised as an expense when they are due. Amounts not paid are shown as a creditor on the balance sheet. The assets of the scheme are held separately from the company in independently administered funds

DYNAMIC RESTAURANTS LIMITED (REGISTERED NUMBER: 12423563)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


3. ACCOUNTING POLICIES - continued

Hire purchase and leasing commitments
The Company's restaurant premises are leased from the franchisor under a non-cancellable lease with an expiry term of more than five years. The rental payments are calculated on a monthly basis and are substantially based on annual sales income generated.

Assets obtained under hire purchase contracts or finance leases are capitalised on 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 lease term, whichever is shorter.

The interest element of these obligations is charged to the Profit and Loss over the relevant period. The capital element of future payments is treated as a liability.

Borrowing costs
All borrowing costs are recognised in the Profit and Loss Account in the period in which they are incurred.

Provisions for liabilities
Provisions are made where an event has taken place that gives the company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and are liable estimate can be made of the amount of the obligation.

Provisions are charged as an expense to the Profit and Loss Account in the year that the company becomes aware of the obligation, and are measured at the best estimate at the Balance Sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.

When payments are eventually made, they are charged to the provision carried in the Balance Sheet.

4. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 5,582,165 4,823,822
Social security costs 287,413 233,735
Other pension costs 138,256 67,763
6,007,834 5,125,320

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

Restaurant team 504 461
Management 14 13
518 474

2023 2022
£    £   
Directors' remuneration 12,000 12,000
Directors' pension contributions to money purchase schemes 60,000 36,922

DYNAMIC RESTAURANTS LIMITED (REGISTERED NUMBER: 12423563)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


4. EMPLOYEES AND DIRECTORS - continued

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 1 1

The Directors are considered to be the key management for the purposes of disclosure under FRS 102.

5. OPERATING PROFIT/(LOSS)

The operating profit (2022 - operating loss) is stated after charging:

2023 2022
£    £   
Depreciation - owned assets 534,743 491,425
Franchise rights amortisation 134,601 134,601
Franchise fees amortisation 6,000 5,563
Auditors' remuneration 6,500 6,500

6. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank interest 88,813 49,649
Director's loan interest 85,938 36,000
174,751 85,649

7. TAXATION

Analysis of the tax charge/(credit)
The tax charge/(credit) on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 121,785 (124,933 )

Deferred tax 32,505 115,048
Tax on profit/(loss) 154,290 (9,885 )

UK corporation tax has been charged at 23.50% (2022 - 19%).

DYNAMIC RESTAURANTS LIMITED (REGISTERED NUMBER: 12423563)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


7. TAXATION - continued

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

2023 2022
£    £   
Profit/(loss) before tax 296,159 (94,966 )
Profit/(loss) multiplied by the standard rate of corporation tax in
the UK of 23.500% (2022 - 19%)

69,597

(18,044

)

Effects of:
Expenses not deductible for tax purposes 20,891 422
Capital allowances in excess of depreciation - (171,927 )
Depreciation in excess of capital allowances 102,749 -
Utilisation of tax losses (71,452 ) 64,616
Movement in deferred tax provision 32,505 115,048
Total tax charge/(credit) 154,290 (9,885 )

8. DIVIDENDS
2023 2022
£    £   
Ordinary A shares of £1 each
Interim 14,062 2,000

9. INTANGIBLE FIXED ASSETS
Franchise Franchise
rights fees Totals
£    £    £   
COST
At 1 January 2023
and 31 December 2023 2,199,098 109,000 2,308,098
AMORTISATION
At 1 January 2023 213,118 8,188 221,306
Amortisation for year 134,601 6,000 140,601
At 31 December 2023 347,719 14,188 361,907
NET BOOK VALUE
At 31 December 2023 1,851,379 94,812 1,946,191
At 31 December 2022 1,985,980 100,812 2,086,792

DYNAMIC RESTAURANTS LIMITED (REGISTERED NUMBER: 12423563)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


10. TANGIBLE FIXED ASSETS
Fixtures,
Short fittings
leasehold Plant and and
property equipment computers Totals
£    £    £    £   
COST
At 1 January 2023 75,917 2,795,866 1,364 2,873,147
Additions - 99,047 13,173 112,220
Disposals - (70,414 ) - (70,414 )
At 31 December 2023 75,917 2,824,499 14,537 2,914,953
DEPRECIATION
At 1 January 2023 5,570 705,237 148 710,955
Charge for year 4,191 529,328 1,224 534,743
At 31 December 2023 9,761 1,234,565 1,372 1,245,698
NET BOOK VALUE
At 31 December 2023 66,156 1,589,934 13,165 1,669,255
At 31 December 2022 70,347 2,090,629 1,216 2,162,192

11. FIXED ASSET INVESTMENTS
Unlisted
investments
£   
COST
At 1 January 2023
and 31 December 2023 5,000
NET BOOK VALUE
At 31 December 2023 5,000
At 31 December 2022 5,000

12. STOCKS
2023 2022
£    £   
Stocks 110,572 97,113

13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 92,764 298
Other debtors - 126,720
Corporation tax recoverable 3,115 124,900
Prepayments and accrued income 54,704 43,633
150,583 295,551

Balances owed at the year end from third party delivery partners have been classified as trade debtors. In prior period they were included as other debtors.

DYNAMIC RESTAURANTS LIMITED (REGISTERED NUMBER: 12423563)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans and overdrafts (see note 16)
378,370

448,702
Trade creditors 448,371 330,782
Social security and other taxes 100,134 57,457
VAT 707,361 670,108
Other creditors 371,314 180,697
Directors' current accounts 402,084 788,108
Accrued expenses 276,735 471,667
2,684,369 2,947,521

15. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2023 2022
£    £   
Bank loans (see note 16) 596,275 1,171,881
Directors' loan accounts 1,500,000 1,500,000
2,096,275 2,671,881

16. LOANS

An analysis of the maturity of loans is given below:

2023 2022
£    £   
Amounts falling due within one year or on demand:
Bank loans - less than 1 year 378,370 448,702

Amounts falling due between two and five years:
Bank loans - 2-5 years 596,275 1,171,881

The loans are unsecured and repayable over a period of 5 years from inception, at rates between 1.25% and 1.7% above the Bank of England base rate.

17. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2023 2022
£    £   
Within one year 1,101,048 1,101,048
Between one and five years 4,404,192 4,404,192
In more than five years 12,017,655 12,875,647
17,522,895 18,380,887

The above amounts relate to annual commitments to pay a base rent for leased trading premises.

DYNAMIC RESTAURANTS LIMITED (REGISTERED NUMBER: 12423563)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


18. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax
Accelerated capital allowances 308,811 276,306

Deferred
tax
£   
Balance at 1 January 2023 276,306
Provided during year 32,505
Balance at 31 December 2023 308,811

19. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
75 Ordinary A £1 75 75
25 Ordinary B £1 25 25
100 100

A and B shares are both irredeemable and carry full rights for voting, dividends, and capital distributions. However, dividends for each class can be declared separately and do not affect the other, with the directors having the authority to recommend and declare dividends at different rates for each class.

20. RESERVES
Retained
earnings
£   

At 1 January 2023 266,163
Profit for the year 141,869
Dividends (14,062 )
At 31 December 2023 393,970

21. RELATED PARTY DISCLOSURES

During the year total dividends of £14,062 (2022 - £2,000) were paid to the directors.

During the year, total interest of £85,938 (2022 - £36,000) was charged to the company by a director.

At the balance sheet date the company owed a director £1,902,084 (2022 - £2,288,108).

22. ULTIMATE CONTROLLING PARTY

The controlling party is A R Fraser.

DYNAMIC RESTAURANTS LIMITED (REGISTERED NUMBER: 12423563)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


23. RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
2023 2022
£    £   
Profit/(loss) before taxation 296,159 (94,966 )
Depreciation charges 675,344 631,589
Finance costs 174,751 85,649
1,146,254 622,272
Increase in stocks (13,459 ) (46,109 )
Decrease/(increase) in trade and other debtors 23,183 (38,988 )
Increase in trade and other creditors 193,204 719,583
Cash generated from operations 1,349,182 1,256,758

24. 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 1,601,924 1,515,323
Year ended 31 December 2022
31.12.22 1.1.22
£    £   
Cash and cash equivalents 1,515,323 1,718,046


25. ANALYSIS OF CHANGES IN NET (DEBT)/FUNDS

At 1.1.23 Cash flow At 31.12.23
£    £    £   
Net cash
Cash at bank 1,515,323 86,601 1,601,924
1,515,323 86,601 1,601,924
Debt
Debts falling due within 1 year (448,702 ) 70,332 (378,370 )
Debts falling due after 1 year (1,171,881 ) 575,606 (596,275 )
(1,620,583 ) 645,938 (974,645 )
Total (105,260 ) 732,539 627,279