Period from 2 January 2023 to
Registration number:
Seafood Trading Limited
Contents
Company Information |
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Strategic Report |
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Directors' Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Statement of Income and Retained Earnings |
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Balance Sheet |
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Notes to the Financial Statements |
Seafood Trading Limited
Company Information
Directors |
Mr C R Stein Ms J Stein Mr I Fitzgerald Mr C Stein Mr E Stein Mr J H Stein Mr R Banks Dr M Hixon Mrs K Coxhead |
Company secretary |
Mr I Fitzgerald |
Registered office |
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Bankers |
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Auditors |
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Seafood Trading Limited
Strategic Report for the Period from 2 January 2023 to 31 December 2023
The directors present their strategic report for the period from 2 January 2023 to 31 December 2023.
Principal activity
The principal activity of the company is that of the operation of restaurants, hotels, e-commerce, retail outlets, a cookery school and an internal production unit which, given their inter-related nature, the Directors regard as one business.
Business review and future developments
Trading
The results for the period are set out on page 13.
2023 continued to bring challenging times for the Hospitality industry and in turn the business. The year started off slower than previous years but the Company enjoyed a successful summer season and record-breaking results in a number of sites. Food inflation continued to drive up consumer prices but with a focus on controls and maintaining standards the erosion on profit margins was minimal. The Company profitability was, however, impacted by significant increases in both electric and gas pricing as the energy markets remained volatile and at an unprecedented level.
The Company continues to seek innovative ways to improve the efficiency of the core business and is actively seeking to grow its estate through investment in restaurants and rooms in 2024.
Key performance indicators
The Directors and Executives receive a wide range of management information for each trading unit on a weekly basis including comparatives against budget and the previous period. The principal measures that are reviewed and managed are:
- Turnover, like for like;
- Gross profit margin;
- Wages/sales margin;
- Restaurants - Average spend per head;
- Cost of sales variance reports comparing actual gross profit to budget gross profit for each site;
- Overhead costs - Purchasing manager to control cost;
- Cash flow forecasting - Rolling 12 month forecasts are prepared, which are updated each week and reviewed monthly by the directors;
- Customer feedback - Instant daily feedback using our booking systems and Trust Pilot;
Seafood Trading Limited
Strategic Report for the Period from 2 January 2023 to 31 December 2023
Key performance indicators continued
- Staff retention - Focus to reduce staff turnover;
- Staff Engagement surveys; and
- Data based size and social media following.
All potential capital projects are subjected to net present value investment appraisal techniques which are stress tested to ensure that informed investment decisions can be taken.
Principal risks and uncertainties
The key business risks and uncertainties facing the company are:
- Regulatory costs - Increases in the living wage, business rates discount being removed, taxation, auto enrolment pensions and the apprenticeship levy;
- Competition from other hospitality providers, new concepts and lower price alternatives;
- People - Being able to retain a strong executive team and recruit and retain local managers, chefs and employees with the right skills and experience. In particular, recruitment of Chefs continues to be challenging, whilst investment in learning and development requires sufficient cashflow and time;
- Supply chain - Being able to obtain consistent fresh, quality produce for our restaurants without delays, price stability and continuity of supply;
- Seasonality of the business - Pressure on cash flows and staffing considerations;
- Cost pressures on energy, food, beverages, wages and overheads due to inflation; and
- Reliance on systems infrastructure and security - Cyber/lT security.
Approved by the
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Seafood Trading Limited
Directors' Report for the Period from 2 January 2023 to 31 December 2023
The directors present their report and the financial statements for the period from 2 January 2023 to 31 December 2023.
Directors of the company
The directors who held office during the period were as follows:
Results and dividends
The loss before tax for the financial period amounted to £892,000 (1 Jan 2023 - loss of £1,179,000).
There were no dividends declared or paid during this or the previous period. The directors do not recommend the payment of a final dividend.
Charitable donations
During the period, the Company made charitable donations of £12,000 (1 Jan 2023 - £58,000).
Future developments
The future developments of the company are discussed within the Business Review section of the Strategic Report on page 2.
Employees
The Company is one of the largest private sector employers in Cornwall, the average number of employees for the period was 390 (1 Jan 2023 - 412).
Employee engagement
The Company is committed to the involvement of all employees in the business. Managers are measured closely on the Company’s performance targets and are incentivised with profit related bonus schemes. Performance information is shared throughout the teams.
Seafood Trading Limited
Directors' Report for the Period from 2 January 2023 to 31 December 2023
Equal opportunities
The Company is an equal opportunities employer. Its policy is to ensure that all employees are treated with the same respect and consideration regarding sex, age, colour, disability, nationality, or ethnic origin. The Company's policy is to provide training, career development and opportunities for promotion.
Financial risk management
There is little credit risk as credit sales form a very small percentage of total sales. The Company has policies in place that require appropriate credit checks on new potential customers and active credit control procedures.
With regards to liquidity risk, the Company actively manages cash and prepares rolling cash flow forecasts covering the next 12 months. The Company maintains an appropriate level of cash and bank facility funding in order to settle all financial obligations as they fall due and to meet planned activities.
Employment of disabled persons
We have clear standards to ensure fairness and flexibility in our approach - a documented dignity at work policy that details our expectations and standards in relation to inclusivity and fairness, our managers are supported to ensure that we consider all applications on merit, enabling our recruitment process to be fair and objective, with no requirement for any applicant to disclose any sensitive details during the application stage. In the event that we are advised of a disability post-job offer, reasonable adjustments are discussed and agreed upon to ensure individual potential is fulfilled.
We have not encountered a scenario where an employee of the company has become disabled during their employment with the company during the financial year, however, in such circumstances we would uphold our responsibility to ensure that any matters of physical or mental wellbeing were openly discussed with reasonable adjustments agreed to ensure that continued employment can be sustained, with any training provided as appropriate.
As an inclusive employer, we ensure that training and career opportunities are made available to every member of our team, with a dedicated approach to internal selection that ensures all applicants are invited to discuss their interest in an opportunity, with feedback provided post-interview.
Seafood Trading Limited
Directors' Report for the Period from 2 January 2023 to 31 December 2023
Going concern
These financial statements have been prepared on a going concern basis. The Board is confident that in the current circumstances the group will generate sufficient net internal cash flows and have adequate undrawn bank facilities to meet all of its needs for a period of at least 12 months from the date of signing these financial statements.
The economic outlook for the year ahead appears more stable and the hospitality sector has welcomed the continuation of government support in the form of 75% business rate relief and a freeze on alcohol duty. The largest business challenge we anticipate facing in 2024 is the ability to maximise revenue from reduced customer numbers. Although inflation is still tracking in excess of 4%, we have implemented a number of actions that reduce our exposure to excessive costs which increases our ability to be agile in reacting to our trading environment. The company has produced a financial model which allows the Board to see the impact of these cost increases on the likely forecast outturn for 2024. The model enables a variety of sensitivity analysis to be performed including assessing the impact of increased cost pressures, reducing trade and the impact on reduced operating profit.
The Board has considered an extreme downside scenario that reflects the uncertainty in the UK economy around reduced footfall & general inflationary pressures. The results of this scenario show that we would still be able to operate with adequate cashflow.
The company continues to have strong, long-term supportive relationships with its banks and remains in regular dialogue with them.
Disclosure of information to the auditors
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
Approved by the
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Seafood Trading Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities for preparing the Annual Report 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:
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select suitable accounting policies and apply them consistently; |
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make judgements and accounting estimates that are reasonable and prudent; |
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state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
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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.
Seafood Trading Limited
Independent Auditor's Report to the Members of Seafood Trading Limited
Opinion
We have audited the financial statements of Seafood Trading Limited (the 'company') for the period from 2 January 2023 to 31 December 2023, which comprise the Statement of Income and Retained Earnings, Balance Sheet, 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 loss for the period 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 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 original financial statements were 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.
Seafood Trading Limited
Independent Auditor's Report to the Members of Seafood Trading Limited
Other information
The directors 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.
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 Directors' Report for the financial period for which the financial statements are prepared is consistent with the financial statements; and |
• |
the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of 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 Directors' 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 directors' remuneration specified by law are not made; or |
• | we have not received all the information and explanations we require for our audit. |
Seafood Trading Limited
Independent Auditor's Report to the Members of Seafood Trading Limited
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page 7, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
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.
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 auditor's report.
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud
The objectives of our audit, in respect to fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the company and management.
We obtained an understanding of the legal and regulatory frameworks that are applicable to the company at the planning stage of the audit. Firstly, the company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation (including related company legislation) and taxation legislation and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items. Secondly, the company is subject to other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation or the loss of the company’s licence to operate. In making this assessment we determined that the most significant elements of legislation which impact the restaurant and hotel operations of the group include food standards and licencing laws, employment laws and regulations, and health and safety legislation.
Seafood Trading Limited
Independent Auditor's Report to the Members of Seafood Trading Limited
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud (continued)
Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved the following:
• Enquiries of management regarding their knowledge of any non compliance with laws and regulations that could affect the financial statements. As part of these enquiries we also discussed with management whether there have been any known instances, allegations or suspicions of fraud, of which there were none in the year.
• Considering the filings made at Companies House, and any omissions thereon of which there were none identified.
• Reviewing the most recent Food Hygiene Ratings awarded to the restaurants, and where there had been visits discussing with management their findings.
• Reviewing external fire risk assessment reports in addition to external health and safety compliance reviews and workplans.
• Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale for significant transactions outside the normal course of business, of which there were none.
• Reviewing estimates and judgements made in the accounts for any indication of bias and challenging assumptions used by management in making the estimates.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls.
We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
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.
Seafood Trading Limited
Independent Auditor's Report to the Members of Seafood Trading 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 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.
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Lowin House
Tregolls Road
Cornwall
TR1 2NA
Seafood Trading Limited
Statement of Income and Retained Earnings
Period from 2 January 2023 to 31 December 2023
Note |
2 January 2023 to 31 December 2023 |
(As restated) |
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Turnover |
|
|
|
Cost of sales |
( |
( |
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Gross profit |
|
|
|
Administrative expenses |
( |
( |
|
Other operating income |
|
|
|
Operating loss |
( |
( |
|
Other interest receivable and similar income |
|
- |
|
Interest payable and similar charges |
( |
( |
|
Loss before tax |
( |
( |
|
Taxation |
( |
|
|
Loss for the financial period |
( |
( |
|
Retained earnings brought forward |
8,149 |
9,292 |
|
Retained earnings carried forward |
7,217 |
8,149 |
Seafood Trading Limited
Balance Sheet
31 December 2023
Note |
31 December |
(As restated) |
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Fixed assets |
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Intangible assets |
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Tangible assets |
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Current assets |
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Stocks |
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Debtors |
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Cash at bank and in hand |
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||
Creditors: Amounts falling due within one year |
( |
( |
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Net current assets |
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Total assets less current liabilities |
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Provisions for liabilities |
( |
( |
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Net assets |
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Capital and reserves |
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Called up share capital |
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Profit and loss account |
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Shareholders' funds |
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Approved and authorised by the
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Company Registration Number: 03031916
Seafood Trading Limited
Notes to the Financial Statements
Period from 2 January 2023 to 31 December 2023
General information |
The company is a private company limited by share capital, incorporated in England & Wales.
The address of its registered office is:
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.
Summary of disclosure exemptions
FRS 102 grants entities from exemptions from the full requirements on FRS102. The following disclosure exemptions have been taken in these financial statements as the company is seemed to be a qualifying entity.
The company has taken advantage of the exemption under FRS 102 paragraph 1.12(b), from preparing a Statement of Cash Flows on the basis that it is a qualifying entity and its ultimate parent company, The Seafood Restaurant (Padstow) Limited, includes the company’s cash flows in its own consolidated financial statements. The company is also taking exemption from disclosure of key management personnel compensation and exemption from disclosure of related party transactions entered into between the company and other wholly owned members of the The Seafood Restaurant (Padstow) Limited group. The company has also taken advantage of the exemption of the disclosures required by section 11: Basic financial instruments and Section 12: Other financial instruments on the basis that the equivalent disclosures are included in the consolidated financial statements of the group in which the company is consolidated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
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.
Seafood Trading Limited
Notes to the Financial Statements
Period from 2 January 2023 to 31 December 2023
Going concern
These financial statements have been prepared on a going concern basis. The Board is confident that in the current circumstances the group will generate sufficient net internal cash flows and have adequate undrawn bank facilities to meet all of its needs for a period of at least 12 months from the date of signing these financial statements.
The economic outlook for the year ahead appears more stable and the hospitality sector has welcomed the continuation of government support in the form of 75% business rate relief and a freeze on alcohol duty. The largest business challenge we anticipate facing in 2024 is the ability to maximise revenue from reduced customer numbers. Although inflation is still tracking at c.4%, we feel we have implemented a number of actions that reduce our exposure to excessive costs and increases our ability to be agile in reacting to our trading environment. The company has produced a financial model which allows the Board to see the impact of these cost increases on the likely forecast outturn for 2024. The model enables a variety of sensitivity analysis to be performed including assessing the impact of increased cost pressures, reducing trade and the impact on reduced operating profit.
The Board has considered an extreme downside scenario that reflects the uncertainty in the UK economy around reduced footfall & general inflationary pressures. The results of this scenario show that we would still be able to operate with adequate cashflow.
The company continues to have strong, long-term supportive relationships with its bank and remains in regular dialogue with them.
Judgements and key sources of estimation uncertainty
In the application of the Company’s accounting policies, which are described in this note, management is required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historically known factors and experience. The key estimates applied by management are as outlined below:
Depreciation and useful economic lives of tangible assets - Management have carefully considered the depreciation estimates applied on the tangible assets held by the group. This assessment is performed on an annual basis, and would be amended when necessary to reflect current estimates, based on technological advancements, future investments, economic utilisation and the physical condition of each asset;
Stock provision - The Directors consider whether any slow moving or obsolete stocks are held that should be provided against;
Dilapidations provision - Management provide for their best estimate of the costs that will be incurred, based on contractual requirements, on the termination of leases. The estimated cost is considered annually and is charged to profit and loss evenly over the lease period; and
Gift voucher provision - Management apply an annual provision against the payments on account creditor to release a proportion of gift vouchers which are unlikely to be redeemed into revenue. The provision is calculated as a proportion of unredeemed gift vouchers within certain specified age groups with the older vouchers being more heavily provided against.
Seafood Trading Limited
Notes to the Financial Statements
Period from 2 January 2023 to 31 December 2023
Prior period errors
Post year end the company received invoices which were not accrued for. These invoices relate to costs incurred in the years ending 1 January 2023, 31 December 2023 and post year end. A prior period adjustment is required to ensure the accounts are materially correct.
The table below illustrates the increase/(decrease) in each financial statement line:
Relating to the current period disclosed in these financial statements | Relating to the prior period disclosed in these financial statements | |
Administrative expenses | 161 | 145 |
Creditors: Amounts falling due within one year | 305 | 145 |
Profit and loss account (cumulative) | (305) | (145) |
Revenue recognition
Turnover 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. Turnover is shown net of value added tax, returns, rebates and discounts and after eliminating sales within the company.
The company recognises food and beverage revenue at the point of sale.
Accommodation revenue is recognised at the point of the customer staying in the room. Deposits received in advance of customer stays are treated as payments on account and recognised within creditors less than one year.
Turnover derives from the company activities which are wholly undertaken within the UK.
Finance income and costs policy
Finance costs are charged to the Statement of Income and Retained Earnings over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
Interest income is recognised in the Statement of Income and Retained Earnings using the effective interest method.
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.
The current corporation 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.
Seafood Trading Limited
Notes to the Financial Statements
Period from 2 January 2023 to 31 December 2023
Deferred tax is recognised on all timing differences at the balance sheet date unless indicated below. Timing differences are differences between taxable profits and the results as stated in the profit and loss account and other comprehensive income. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.
Goodwill
Goodwill represents the difference between amounts paid on the cost of a business combination and
the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the Statement of Income and Retained Earnings over its useful economic life.
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 20 years |
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets 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 |
Leasehold land and buildings |
Straight line over the term of the lease |
Fixtures, fittings and equipment |
7% - 33% straight line |
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the weighted average method.
The cost of finished goods and work in progress 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. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Seafood Trading Limited
Notes to the Financial Statements
Period from 2 January 2023 to 31 December 2023
Defined contribution pension obligation
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in the Statement of Income and Retained Earnings when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.
Financial instruments
Classification
• Short term trade and other debtors and creditors; and
• Cash and bank balances.
All financial instruments are classified as basic.
Recognition and measurement
Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company’s obligations are discharged, expire or are cancelled.
Such instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.
Turnover |
The whole of the turnover is attributable to the principal activity of the Company.
All turnover arose within the United Kingdom.
Other operating income |
The analysis of the company's other operating income for the period is as follows:
2 January 2023 to |
3 January 2022 to |
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Recharged staff costs |
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Seafood Trading Limited
Notes to the Financial Statements
Period from 2 January 2023 to 31 December 2023
Operating loss |
Arrived at after charging/(crediting)
2 January 2023 to |
3 January 2022 to |
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Depreciation expense |
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Operating lease expense - property |
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Operating lease rentals |
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Loss on disposal of property, plant and equipment |
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- |
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
2 January 2023 to |
3 January 2022 to |
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Wages and salaries |
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Social security costs |
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Employer pension costs |
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The average number of persons employed by the company (including directors) during the period, analysed by category was as follows:
2 January 2023 to |
3 January 2022 to |
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Administration |
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Operations |
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Seafood Trading Limited
Notes to the Financial Statements
Period from 2 January 2023 to 31 December 2023
Directors' remuneration |
The directors' remuneration for the period was as follows:
2 January 2023 to |
3 January 2022 to |
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Remuneration |
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Contributions paid to money purchase schemes |
|
|
1,111 |
904 |
During the period the number of directors who were receiving benefits and share incentives was as follows:
2 January 2023 to |
3 January 2022 to |
|
Accruing benefits under money purchase pension scheme |
|
|
In respect of the highest paid director:
2 January 2023 to |
3 January 2022 to |
|
Remuneration |
|
|
Auditor's remuneration |
2 January 2023 to |
3 January 2022 to |
|
Audit of the financial statements |
|
|
Seafood Trading Limited
Notes to the Financial Statements
Period from 2 January 2023 to 31 December 2023
Interest payable and similar expenses |
2 January 2023 to |
3 January 2022 to |
|
Interest on bank overdrafts and borrowings |
- |
|
Interest on obligations under finance leases and hire purchase contracts |
|
|
Interest on Directors' loans |
- |
|
|
|
Taxation |
Tax charged/(credited) in the profit and loss account
2 January 2023 to 31 December 2023 |
3 January 2022 to 1 January 2023 |
|
Current taxation |
||
UK corporation tax adjustment to prior periods |
|
( |
Deferred taxation |
||
Arising from origination and reversal of timing differences |
( |
|
Tax expense/(receipt) in the income statement |
|
( |
Seafood Trading Limited
Notes to the Financial Statements
Period from 2 January 2023 to 31 December 2023
The tax on profit before tax for the period is higher than the standard rate of corporation tax in the UK (2023 - higher than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
2 January 2023 to |
(As restated) |
|
Loss before tax |
( |
( |
Corporation tax at standard rate |
( |
( |
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
Effect of tax losses |
- |
|
Deferred tax expense relating to changes in tax rates or laws |
|
|
Decrease from effect of tax incentives |
- |
( |
Deferred tax (credit)/expense from unrecognised temporary difference from a prior period |
( |
|
Increase/(decrease) in UK and foreign current tax from adjustment for prior periods |
|
( |
Tax increase from effect of capital allowances and depreciation |
|
- |
Tax increase arising from group relief |
|
|
Total tax charge/(credit) |
|
( |
On 1 April 2023 there was an increase in the main rate of corporation tax to 25%, with the rate prior to that date being 19%. Consequently there has been an increase in the applicable tax rate to 23.52% (2022 - 19%), being the average rate for the year.
Deferred tax
Deferred tax assets and liabilities
31 December 2023 |
Liability |
Accelerated capital allowances |
|
Short term timing differences |
( |
|
1 January 2023 |
Liability |
Accelerated capital allowances |
|
Short term timing differences |
( |
|
Seafood Trading Limited
Notes to the Financial Statements
Period from 2 January 2023 to 31 December 2023
Intangible assets |
Goodwill |
|
Cost or valuation |
|
At 2 January 2023 |
|
At 31 December 2023 |
|
Amortisation |
|
At 2 January 2023 |
|
At 31 December 2023 |
|
Carrying amount |
|
At 31 December 2023 |
|
At 1 January 2023 |
|
Tangible assets |
Land and buildings |
Furniture, fittings and equipment |
Total |
|
Cost or valuation |
|||
At 2 January 2023 |
|
|
|
Additions |
- |
|
|
Disposals |
- |
( |
( |
At 31 December 2023 |
|
|
|
Depreciation |
|||
At 2 January 2023 |
|
|
|
Charge for the period |
|
|
|
Eliminated on disposal |
- |
( |
( |
At 31 December 2023 |
|
|
|
Carrying amount |
|||
At 31 December 2023 |
|
|
|
At 1 January 2023 |
|
|
|
Included within the net book value of land and buildings above is £5,000 (1 Jan 2023 - £19,000) in respect of long leasehold land and buildings.
Seafood Trading Limited
Notes to the Financial Statements
Period from 2 January 2023 to 31 December 2023
Stocks |
31 December |
1 January |
|
Finished goods and goods for resale |
819 |
904 |
Debtors |
Note |
31 December |
1 January |
|
Trade debtors |
|
|
|
Amounts owed by group undertakings |
|
|
|
Amounts owed by associate companies |
2,987 |
- |
|
Other debtors |
|
|
|
Prepayments and accrued income |
|
|
|
Corporation tax recoverable |
|
|
|
|
|
Cash and cash equivalents |
31 December |
1 January |
|
Cash on hand |
|
|
Cash at bank |
|
|
|
|
Seafood Trading Limited
Notes to the Financial Statements
Period from 2 January 2023 to 31 December 2023
Creditors |
31 December |
(As restated) |
|
Due within one year |
||
Payments on account |
|
|
Trade creditors |
|
|
Amounts due to associated companies |
|
|
Social security and other taxes |
|
|
Outstanding defined contribution pension costs |
|
|
Other creditors |
|
|
Accrued expenses |
|
|
|
|
Obligations under leases and hire purchase contracts |
Operating leases
The total of future minimum lease payments is as follows:
31 December |
1 January |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
Later than five years |
|
|
|
|
Seafood Trading Limited
Notes to the Financial Statements
Period from 2 January 2023 to 31 December 2023
Deferred tax and other provisions |
Deferred tax |
Dilapidations provision |
Total |
|
At 2 January 2023 |
|
- |
|
Increase (decrease) in existing provisions |
( |
|
|
At 31 December 2023 |
|
|
|
|
Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge for the period represents contributions payable by the Company to the scheme and amounted to £
Contributions totalling £
Share capital |
Allotted, called up and fully paid shares
31 December |
1 January |
|||
No. 000 |
£ 000 |
No. 000 |
£ 000 |
|
|
|
135 |
|
135 |
Contingent liabilities |
The bank borrowings of an associated company, Stein's Trading Limited, are secured by a Cross Guarantee from The Seafood Restaurant (Padstow) Limited Group and by Legal Charges over two of its freehold properties: The Seafood Restaurant Complex and St. Petrocs House Hotel.
Seafood Trading Limited
Notes to the Financial Statements
Period from 2 January 2023 to 31 December 2023
Related party transactions |
Transactions with directors |
Loans (from) Directors are interest bearing at 4.0% above bank base rate and are included within other creditors.
Loans to Directors are interest bearing at 2.25% and are included within other debtors.
At 2 January 2023 |
Advances to director |
Repayments by director |
At 31 December 2023 |
|
Mr C R Stein |
||||
Director's unsecured, repayable on demand loan account |
( |
|
( |
( |
Ms J Stein |
||||
Director's unsecured, repayable on demand loan account |
|
- |
( |
|
Mr C Stein |
||||
Director's unsecured, repayable on demand loan account |
|
- |
( |
- |
Mr E Stein |
||||
Director's unsecured, repayable on demand loan account |
|
- |
- |
|
Mr J H Stein |
||||
Director's unsecured, repayable on demand loan account |
|
|
- |
|
Seafood Trading Limited
Notes to the Financial Statements
Period from 2 January 2023 to 31 December 2023
At 3 January 2022 |
Advances to director |
Repayments by director |
At 1 January 2023 |
|
Mr C R Stein |
||||
Director's unsecured, repayable on demand loan account |
( |
|
( |
( |
Ms J Stein |
||||
Director's unsecured, repayable on demand loan account |
- |
|
( |
|
Mr C Stein |
||||
Director's unsecured, repayable on demand loan account |
|
|
( |
|
Mr E Stein |
||||
Director's unsecured, repayable on demand loan account |
|
|
( |
|
Mr J H Stein |
||||
Director's unsecured, repayable on demand loan account |
|
|
( |
|
Summary of transactions with associates
During the period the Company entered into transactions with Stein's Trading Limited, a Company related by way of ultimate shareholders. At the period end Stein's Trading Limited owed the Company £2,987,000 (1 Jan 2023 - the Company owed Stein's Trading Limited £1,220,000).
During the period the Company paid property rental costs totalling £63,000 (1 Jan 2023 - £63,000) to a Limited Liability Partnership controlled by the ultimate owners of the Company. At the period end the Company owed this LLP £61,000 (1 Jan 2023 - £61,000).
Summary of transactions with other related parties
During the period the Company paid professional fees to the spouse of one of the directors totalling £9,000 (1 Jan 2023 - £25,000). At the period end the Company owed £nil (1 Jan 2023 - £3,000) to this individual.
During the period the Company purchased goods from a company controlled by one of the directors totalling £3,000 (1 Jan 2023 - £nil). At the period end the Company owed £nil (1 Jan 2023 - £nil) to this company.
During the period the Company sold goods and services to a company controlled by one of the directors totalling £4,000 (1 Jan 2023 - £6,000). At the period end the Company owed £nil (1 Jan 2023 - £1,000) to this company.
During the period the Company sold goods and services to a company controlled by one of the directors totalling £4,000 (1 Jan 2023 - £4,000). At the period end the Company owed £nil (1 Jan 2023 - £nil) to this company.
Seafood Trading Limited
Notes to the Financial Statements
Period from 2 January 2023 to 31 December 2023
Parent and ultimate parent undertaking |
The company's immediate, and ultimate, parent is
These financial statements are available upon request from Companies House.
The parent of the smallest, and largest, group in which these financial statements are consolidated is
The address of The Seafood Restaurant (Padstow) Limited is:
Riverside
Padstow
Cornwall
PL28 8BY