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REGISTERED NUMBER: 04965974 (England and Wales)


















STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

FOR

BENNETT RESTAURANTS LTD

BENNETT RESTAURANTS LTD (REGISTERED NUMBER: 04965974)

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










Page

Company Information 1

Strategic Report 2

Report of the Directors 5

Report of the Independent Auditors 10

Statement of Comprehensive Income 14

Balance Sheet 15

Statement of Changes in Equity 16

Cash Flow Statement 17

Notes to the Financial Statements 18


BENNETT RESTAURANTS LTD

COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2023







DIRECTORS: A P Bennett
A M Bennett



REGISTERED OFFICE: C/o The Accounting Centre
736 High Road
London
N12 9QD



REGISTERED NUMBER: 04965974 (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

BENNETT RESTAURANTS LTD (REGISTERED NUMBER: 04965974)

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 that despite an improvement in turnover, significant costs pressures continue to impact margins.

Gross profit margins fell due to the increase in food costs that were driven by the worldwide squeeze on grains, sunflower oil, fertilizer, energy, fuel and agricultural labour. The increase in the national living wage from April 2023 also increased labour costs, adding further pressure on operating margins.

The company achieved a turnover of £82m, representing a significant increase from the previous year’s £71m. This growth was driven by increased market demand, inflation adjusted new selling prices and the opening of three new stores.

The Company's key performance indicators are as follows:

31 December 2023 31 December 2022
£ £
Turnover 82,195,011 71,456,385
Gross profit 52,932,856 46,152,114
Gross profit % 64.4% 64.6%
Operating result (360,100) (260,809)

The average number of employees increased from 1,723 to 1,883, reflecting the company’s growth and the need for additional staff to support both new and existing stores.

The net assets of the Company are £4.4m (2022: £6.1m) 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.

The company plans to continue investing in innovative technologies to enhance operational efficiency and customer satisfaction.


BENNETT RESTAURANTS LTD (REGISTERED NUMBER: 04965974)

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 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.

Interest rate risk
Considering the debt profile of the Company, increases in interest rates presents a risk. The continued policy of regular rate monitoring and ongoing dialogue with our lenders are in place to help mitigate this 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.


BENNETT RESTAURANTS LTD (REGISTERED NUMBER: 04965974)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

SECTION 172(1) STATEMENT
The Directors of the Company, and those of all UK companies, must act in accordance with a set of general duties. These duties are set out in Section 172 of the Companies Act 2006 which are summarised as follows:

"A Director of a Company must act in the way they consider, in good faith, would be most likely to promote the success of the Company for the benefit of its shareholders as a whole, and in doing so have regard (amongst other matters) to:

a. the likely consequences of any decisions in the long term;
b. the interests of the company's employees;
c. the need to foster the company's business relationships with suppliers, customers and others;
d. the impact of the company's operations on the community and the environment;
e. the desirability of the company maintaining a reputation for high standards of business conduct; and
f. the need to act fairly as between the shareholders of the company."

The following paragraphs summarise how the Directors fulfilled his duties:

Risk Management
As we develop as a business so does the risk environment in which we operate become more complex. It is therefore vital that we effectively identify, evaluate, manage and mitigate risks that the business may encounter. We continually evolve our approach to risk management. Details of the risks encountered by the business and the steps taken to mitigate these risks are detailed on page 3.

Our people
Our people are fundamental to the delivery and success of our operations. We aim to be a responsible employer in our approach to pay and benefits received by our employees. The health, safety and wellbeing of our people are also a major concern for the business and we try to ensure we manage and monitor these as closely as possible. For our business to succeed we need to manage our people's performance, develop and bring through talent while ensuring we operate as efficiently and as effectively as possible. For further details on our people see page 5.

Business Relationships
In order to grow and develop our business we need to grow and develop our business relationships with our suppliers and strategic partners. This includes working with these partners so that we can deliver for the customers and communities we serve.

Community and Environment
It is important to the business that we interact responsibly with the communities in which it operates and the wider environment. We try to ensure we are as involved as much as possible in the local activities and work closely with local bodies to ensure that the community is best served. We try where possible to minimise our impact on the environment.

High Standards of Business Conduct
It is important to the business that we apply high standards of conduct in all areas in which we operate. This principle is closely monitored by the board and wider management team making sure the business behaves in a responsible manner in all activities it undertakes.

Shareholders
As this is an owner managed business there is inherently an alignment between the goals of the management and the shareholders.

ON BEHALF OF THE BOARD:





A P Bennett - Director


6 September 2024

BENNETT RESTAURANTS LTD (REGISTERED NUMBER: 04965974)

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 £1,805,836 (2022: £1,246,553). This deficit is due to the ongoing investment in its restaurants during the past number of years, which are partly funded from operating cash flows.

The company continues to meet its day to day working capital requirements through operating cash flows 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 £1,001,053 (2022: £698,076) at £10,012 (2022: £6,981) per B share, 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 programme to upgrade the looks and feel of its restaurants with new and enhanced equipment and thereby improve its customers' and employees' experience. This forms part of its strategy to grow market share and profitability.

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

A P Bennett
A M Bennett

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.


BENNETT RESTAURANTS LTD (REGISTERED NUMBER: 04965974)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2023

ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS
Suppliers
As part of a wider business network, we primarily utilise established supply chains who manage many of our suppliers on our behalf. We are proud supporters of British and Irish agriculture and work with over 23,000 British and Irish farmers who supply quality produce for our menu, as well as businesses who help us create more sustainable packaging. Through this extensive supply chain across the UK and Ireland, enables our suppliers contribute to our success.

We have long-term partnerships with many of our suppliers. Such long-term partnerships encourage collaboration and enable suppliers to make decisions for the long term, giving them the confidence to invest in their businesses. In order to meet our continued volume growth, suppliers need to invest in future capacity, which involves significant capital investment in equipment and infrastructure. Long-term commitment to supply our company in the UK, has enabled our suppliers to grow with us and drive positive change within their own businesses. The wider Supply Chain and Sustainability function that the company is part of has a broad remit, from ensuring our products and ingredients meet our high food safety, quality and traceability expectations from farm to front counter, to the transportation of goods from supplier to restaurant, procurement of all food and paper, as well as responsibility for our nutrition, sustainability, agriculture, packaging and recycling strategies across our supply base.

Customers
Our customers are at the heart of everything we do. We acknowledge the importance of keeping our customers engaged with our business. As part of a wider franchise network we are able to utilise established customer communication channels, as well as our own tailored channels, to effectively communicate with our customers.

The Local Community
The Company recognises its responsibility to the wider community in which its restaurants are based. We actively take part in community events and work with local representative bodies that help promote the areas in which the stores operate.

STREAMLINED ENERGY AND CARBON REPORTING
In line with the government's streamlined energy and carbon reporting requirements we are required to report our organisation's carbon emissions for the period 1st January 2023 to 31st December 2023. The year ended 31 December 2022 was the first year that the company has reported.

Our emissions are reported using the financial control boundary and the methodology used aligns with Defra's Environmental reporting guidelines (2019) and uses the UK government's greenhouse gas reporting conversion factors (2023) to quantify emissions. The total greenhouse gas emissions, reportable under SECR from 1st January 2023 - 31st December 2023, were 2,543 tonnes of carbon dioxide equivalent (tCO2e). These include emissions associated with electricity and natural gas consumption. The number of sites contributing to this report has increased from 18 in 2022 to 20 in 2023. The total greenhouse gas emissions increased by 19% compared to revised 2022 figures, because purchased electricity energy consumption (kWh) has increased by 8% and natural gas energy consumption (kWh) has increased by 15%, from 2022 to 2023.

Notable factors that could have contributed to the movement in emissions are as follows:
- Increase in productivity (14% increase in revenue) which translated to an increase in total energy consumption.
- The number of sites reporting on their emissions changed from 2022 to 2023.
- Revision of methodology to align consumption to franchisor's AI Track energy consumption figures for FY 2023.
- The carbon intensity of the grid electricity increased in 2023 for the first time in a few years, by 7%.
- The methodology for calculating electricity emissions was adjusted to reflect good practice for the inclusion of electrical transport and distribution of losses (T&D losses) under the SECR regulations.
- Inclusion of refrigeration data available which has been omitted from previous reports.

As per SECR guidelines, our emission intensity is calculated as the ratio of annual emissions (tCO2e) to the turnover (in £million). For FY 2023, this resulted in an emission intensity of 31.25 tCO2e per £million, which represents a 5% increase compared to the previous year (29.87 tCO2e per £million).




BENNETT RESTAURANTS LTD (REGISTERED NUMBER: 04965974)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2023


Greenhouse gas emissions

Greenhouse gas emissions by year (tCO2e) – location-based


Emissions source

2023
2022
(revised*

)

% Share
%
Change

Electricity 2,103 1,858 83% 13%
Natural Gas 214 186 8% 15%
Purchased fuel (LPG) 38 70 1% (46% )
Refrigerants 172 - 7% -
Transportation - direct 16 15 1% 3%
Transportation - indirect - - - -
Total Emissions (tCO2e) 2,543 2,129 100% 19%
Turnover (£m) 81 71 14%
Intensity (tCO2e per £m) 31.25 29.87 5%

(Location-based reporting uses a national carbon emissions factor to calculate the emissions from the generation of electricity, reflecting the diverse source of electricity generation supplied to the national grid.)
*The emissions reported for electricity in 2022 has been revised to include Transmission and Distribution losses (T&D) UK Greenhouse Gas Conversion Factors (publishing.service.gov.uk)

Greenhouse gas emissions by scope (tonnes CO2e) - location-based

Emissions source Scope 1 Scope 2 Scope 3 Total

Electricity - 1,936 167 2,103
Natural Gas 214 - - 214
Purchased fuel (LPG) 38 - - 38
Refrigerants 172 - - 16
Transportation 16 - - 172
Total Emissions (tCO2e) 440 1,936 167 2,543
Share of Total 17.3% 76.1% 6.6%

Scope 1: Natural gas and purchased fuel (LPG). Scope 2: Electricity (generation). Scope 3: Losses from electricity distribution and transmission (T&D). This only includes emissions reportable under SECR and may not reflect the entire carbon footprint of the organisation.

Energy consumption

Energy consumption per fuel type (kWh)


Emissions source

2023
2022
(revised*

)

% Share
%
Change
Electricity 9,349,017 8,802,565 86% 6%
Natural Gas 1,167,451 1,017,242 11% 15%
Purchased fuel (LPG) 177,228 314,636 2% (44% )
Transportation - direct 63,978 61,930 1% 3%
Transportation - indirect - - -
Total Emissions (tCO2e) 10,757,674 10,196,373 100% 6%

Greenhouse Gas (GHG) Reporting Methodology Statement

Reporting Period
Emissions are reported against accounting year covering the period 1st January to 31st December 2023.

Boundary, methodology and exclusions
An 'operational control' approach has been used to define the Greenhouse Gas emissions boundary.


BENNETT RESTAURANTS LTD (REGISTERED NUMBER: 04965974)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2023

This approach captures emissions associated with operations in the restaurants. This report covers UK operations only, as required by SECR for Non-Quoted Large Companies.

This information was collected and reported in line with the methodology set out in the UK Government's Environmental Reporting Guidelines, 2019.

Emissions have been calculated using the latest conversion factors provided by the UK Government. No other material omissions from the mandatory reporting scope. For Refrigerant emissions, GWP conversion factors have been used (High-GWP Refrigerants | California Air Resources Board, Greenhouse Gas Inventory Guidance: Fugitive Emissions (epa.gov).

The company's 2022 electricity emissions have been revised. This update and the inclusion of Transport and Distribution factors for emissions calculation is to reflect good practice in UK reporting as detailed in the GHG Conversion Factors: Greenhouse gas reporting: conversion factors 2023 - GOV.UK (www.gov.uk). This revision also incorporates updated conversion factors.

Energy consumption (in kWh) for periods 1st January 2023 - 31st December 2023 have been used to calculate emissions for FY2023, ending in December 2023.

2023 consumption data from Franchisor's AI Track were used for the gas, electricity, purchased fuel and refrigerants figures. Gas and electricity consumption includes extrapolation carried out by Aligned Incentives.

Energy efficiency initiatives
The company has continued to seek and progress energy efficiency measures, within both the work processes and the use of work equipment. The franchisor is actively taking part in mandatory compliance schemes, such as the Energy Savings Opportunity Scheme, TCFD and considering the implementation of recommendations outlined in the ESOS audit reports.

The following approaches to energy efficiency are being undertaken by the franchisor and will be
expanded over the following years:
- Baselining resource use by bringing online increased effort to collate the data on a range of resources
- Implementation Strategy being developed and deployed to create significant energy and carbon
reduction
- Engagement Strategy with the Supply chain to reduce the associated emissions further
- Developing Metrics and Targets to reflect performance across our portfolio at the most granular level
and more in depth data tracking of the use of resources
- Governance including Board oversight, culture, training and incentives being developed.

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.

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;
-state whether applicable accounting standards have been followed, subject to any material departures
disclosed and explained in the financial statements;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.


BENNETT RESTAURANTS LTD (REGISTERED NUMBER: 04965974)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2023

STATEMENT OF DIRECTORS' RESPONSIBILITIES - continued
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.

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

ON BEHALF OF THE BOARD:





A P Bennett - Director


6 September 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
BENNETT RESTAURANTS LTD


Opinion
We have audited the financial statements of Bennett Restaurants Ltd (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 loss 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
BENNETT RESTAURANTS LTD


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 pages eight and nine, 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
BENNETT RESTAURANTS LTD


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, the franchisor 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
BENNETT RESTAURANTS LTD


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

BENNETT RESTAURANTS LTD (REGISTERED NUMBER: 04965974)

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
Notes £    £   

TURNOVER 82,195,011 71,456,385

Cost of sales 29,262,155 25,304,271
GROSS PROFIT 52,932,856 46,152,114

Administrative expenses 53,292,956 46,412,923
OPERATING LOSS 5 (360,100 ) (260,809 )

Interest receivable and similar income 38,063 3,668
(322,037 ) (257,141 )

Interest payable and similar expenses 6 136,553 9,134
LOSS BEFORE TAXATION (458,590 ) (266,275 )

Tax on loss 7 170,156 (57,296 )
LOSS FOR THE FINANCIAL YEAR (628,746 ) (208,979 )

BENNETT RESTAURANTS LTD (REGISTERED NUMBER: 04965974)

BALANCE SHEET
31 DECEMBER 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 9 2,418,678 2,464,587
Tangible assets 10 6,297,857 6,175,862
Investments 11 25,000 22,500
8,741,535 8,662,949

CURRENT ASSETS
Stocks 12 443,950 393,964
Debtors 13 687,461 1,081,769
Cash at bank 3,515,170 3,040,471
4,646,581 4,516,204
CREDITORS
Amounts falling due within one year 14 6,452,417 5,762,757
NET CURRENT LIABILITIES (1,805,836 ) (1,246,553 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

6,935,699

7,416,396

CREDITORS
Amounts falling due after more than
one year

15

(1,731,220

)

(752,274

)

PROVISIONS FOR LIABILITIES 18 (768,142 ) (597,986 )
NET ASSETS 4,436,337 6,066,136

CAPITAL AND RESERVES
Called up share capital 19 200 200
Retained earnings 20 4,436,137 6,065,936
SHAREHOLDERS' FUNDS 4,436,337 6,066,136

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 P Bennett - Director



A M Bennett - Director


BENNETT RESTAURANTS LTD (REGISTERED NUMBER: 04965974)

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 200 6,972,991 6,973,191

Changes in equity
Dividends - (698,076 ) (698,076 )
Total comprehensive income - (208,979 ) (208,979 )
Balance at 31 December 2022 200 6,065,936 6,066,136

Changes in equity
Dividends - (1,001,053 ) (1,001,053 )
Total comprehensive income - (628,746 ) (628,746 )
Balance at 31 December 2023 200 4,436,137 4,436,337

BENNETT RESTAURANTS LTD (REGISTERED NUMBER: 04965974)

CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 23 2,696,975 3,323,731
Interest paid (136,553 ) (9,134 )
Tax paid 33,273 (750,000 )
Net cash from operating activities 2,593,695 2,564,597

Cash flows from investing activities
Purchase of intangible fixed assets (104,496 ) -
Purchase of tangible fixed assets (2,304,571 ) (1,954,514 )
Purchase of fixed asset investments (2,500 ) -
Interest received 38,063 3,668
Net cash from investing activities (2,373,504 ) (1,950,846 )

Cash flows from financing activities
New loans in year 1,680,000 1,000,000
Loan repayments in year (424,439 ) (641,464 )
Equity dividends paid (1,001,053 ) (698,076 )
Net cash from financing activities 254,508 (339,540 )

Increase in cash and cash equivalents 474,699 274,211
Cash and cash equivalents at
beginning of year

24

3,040,471

2,766,260

Cash and cash equivalents at end
of year

24

3,515,170

3,040,471

BENNETT RESTAURANTS LTD (REGISTERED NUMBER: 04965974)

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


1. STATUTORY INFORMATION

Bennett Restaurants Ltd 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 and going concern
The financial statements have been prepared under the historical cost convention.

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 £1,805,836 (2022: £1,246,553). This deficit is due to the ongoing investment in its restaurants during the past number of years, which are partly funded from operating cash flows.

The company continues to meet its day to day working capital requirements through operating cash flows 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.

BENNETT RESTAURANTS LTD (REGISTERED NUMBER: 04965974)

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 FRS102 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 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.

Plant and machinery- Straight line over 5-7 years
Fixtures and fittings- Straight line over 5-7 years
Motor vehicles- Straight line over 4 years



BENNETT RESTAURANTS LTD (REGISTERED NUMBER: 04965974)

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 recognised.

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 Sections 11 and 12 of FRS102 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.


BENNETT RESTAURANTS LTD (REGISTERED NUMBER: 04965974)

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 a reliable 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.

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.

4. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 21,941,137 18,991,560
Social security costs 1,077,400 956,148
Other pension costs 240,152 218,874
23,258,689 20,166,582

BENNETT RESTAURANTS LTD (REGISTERED NUMBER: 04965974)

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


4. EMPLOYEES AND DIRECTORS - continued

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

Managers 67 55
Crew 1,816 1,668
1,883 1,723

2023 2022
£    £   
Directors' remuneration 18,000 18,635
Directors' pension contributions to money purchase schemes 6,557 6,865

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

Money purchase schemes 2 2

5. OPERATING LOSS

The operating loss is stated after charging:

2023 2022
£    £   
Depreciation - owned assets 2,182,576 2,136,855
Franchise rights amortisation 123,510 167,607
Franchise fees amortisation 26,895 25,037
Auditors' remuneration 7,875 7,500
Taxation compliance services 525 500
Bad debts 545,000 545,000

6. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank loan interest 136,553 9,134

7. TAXATION

Analysis of the tax charge/(credit)
The tax charge/(credit) on the loss for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax - 12,332

Deferred tax 170,156 (69,628 )
Tax on loss 170,156 (57,296 )

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

BENNETT RESTAURANTS LTD (REGISTERED NUMBER: 04965974)

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
£    £   
Loss before tax (458,590 ) (266,275 )
Loss multiplied by the standard rate of corporation tax in the UK
of 23.500% (2022 - 19%)

(107,769

)

(50,592

)

Effects of:
Expenses not deductible for tax purposes 135,395 106,691
Capital allowances in excess of depreciation (102,023 ) (43,767 )
Utilisation of tax losses 74,397 -
Deferred tax 170,156 (69,628 )
Total tax charge/(credit) 170,156 (57,296 )

The Company has corporation tax losses of £316,582 to carry forward against future trading profits.

8. DIVIDENDS
2023 2022
£    £   
Ordinary B shares of £1 each
Interim 1,001,053 698,076

9. INTANGIBLE FIXED ASSETS
Franchise Franchise
rights fees Totals
£    £    £   
COST
At 1 January 2023 3,474,790 561,243 4,036,033
Additions 14,496 90,000 104,496
At 31 December 2023 3,489,286 651,243 4,140,529
AMORTISATION
At 1 January 2023 1,287,966 283,480 1,571,446
Amortisation for year 123,510 26,895 150,405
At 31 December 2023 1,411,476 310,375 1,721,851
NET BOOK VALUE
At 31 December 2023 2,077,810 340,868 2,418,678
At 31 December 2022 2,186,824 277,763 2,464,587

BENNETT RESTAURANTS LTD (REGISTERED NUMBER: 04965974)

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


10. TANGIBLE FIXED ASSETS
Plant and Motor
equipment vehicles Totals
£    £    £   
COST
At 1 January 2023 16,663,748 20,739 16,684,487
Additions 2,304,571 - 2,304,571
At 31 December 2023 18,968,319 20,739 18,989,058
DEPRECIATION
At 1 January 2023 10,490,530 18,095 10,508,625
Charge for year 2,180,906 1,670 2,182,576
At 31 December 2023 12,671,436 19,765 12,691,201
NET BOOK VALUE
At 31 December 2023 6,296,883 974 6,297,857
At 31 December 2022 6,173,218 2,644 6,175,862

11. FIXED ASSET INVESTMENTS
Unlisted
investments
£   
COST
At 1 January 2023 22,500
Additions 2,500
At 31 December 2023 25,000
NET BOOK VALUE
At 31 December 2023 25,000
At 31 December 2022 22,500

12. STOCKS
2023 2022
£    £   
Stocks 443,950 393,964

13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 274,412 490,758
Corporation tax recoverable - 33,273
Prepayments and accrued income 413,049 557,738
687,461 1,081,769

BENNETT RESTAURANTS LTD (REGISTERED NUMBER: 04965974)

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)
480,325

203,084
Trade creditors 2,408,983 2,184,498
Social security and other taxes 365,076 215,763
VAT 1,169,703 1,435,372
Other creditors 872,631 42,412
Accrued expenses 1,155,699 1,681,628
6,452,417 5,762,757

15. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2023 2022
£    £   
Bank loans (see note 16) 1,731,220 752,274

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 480,325 203,084

Amounts falling due between one and two years:
Bank loans 480,325 203,085

Amounts falling due between two and five years:
Bank loans - 2-5 years 1,250,895 549,189

The bank loan is unsecured and repayable over a period of 5 years from inception, at a rate of 1.4% above 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 1,233,215 1,150,728
Between one and five years 4,515,858 4,483,918
In more than five years 7,571,182 7,135,853
13,320,255 12,770,499

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

BENNETT RESTAURANTS LTD (REGISTERED NUMBER: 04965974)

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


18. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax
Tax losses carried forward (79,146 ) -
Accelerated capital allowances 847,288 597,986
768,142 597,986

Deferred
tax
£   
Balance at 1 January 2023 597,986
Provided during year 170,156
Balance at 31 December 2023 768,142

19. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
100 Ordinary A £1 100 100
100 Ordinary B £1 100 100
200 200

The Ordinary A shares have full rights in respect of voting, participation in the assets available for distribution on a winding up and to receive dividends. The Ordinary B shares have full rights with regards to dividends, but no rights with regards to participation or voting.

20. RESERVES
Retained
earnings
£   

At 1 January 2023 6,065,936
Deficit for the year (628,746 )
Dividends (1,001,053 )
At 31 December 2023 4,436,137

21. RELATED PARTY DISCLOSURES

During the year, total dividends of £1,001,053 (2022 - £698,076) were paid to the directors .

Included in debtors is an amount of £1,090,000 (2022: £545,000) due from a company controlled by a member of the Directors close family. The loan is unsecured, interest free and repayable on demand. Due to uncertainty as to the recoverability of this balance, a provision of £1,090,000 (2022: £545,000) was made against this amount at the year end.

22. ULTIMATE CONTROLLING PARTY

The ultimate controlling party is A P Bennett.

BENNETT RESTAURANTS LTD (REGISTERED NUMBER: 04965974)

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


23. RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
2023 2022
£    £   
Loss before taxation (458,590 ) (266,275 )
Depreciation charges 2,333,607 2,329,499
Finance costs 136,553 9,134
Finance income (38,063 ) (3,668 )
1,973,507 2,068,690
Increase in stocks (49,986 ) (113,910 )
Decrease/(increase) in trade and other debtors 361,035 (144,623 )
Increase in trade and other creditors 412,419 1,513,574
Cash generated from operations 2,696,975 3,323,731

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 3,515,170 3,040,471
Year ended 31 December 2022
31.12.22 1.1.22
£    £   
Cash and cash equivalents 3,040,471 2,766,260


25. ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.23 Cash flow At 31.12.23
£    £    £   
Net cash
Cash at bank 3,040,471 474,699 3,515,170
3,040,471 474,699 3,515,170
Debt
Debts falling due within 1 year (203,084 ) (277,241 ) (480,325 )
Debts falling due after 1 year (752,274 ) (978,946 ) (1,731,220 )
(955,358 ) (1,256,187 ) (2,211,545 )
Total 2,085,113 (781,488 ) 1,303,625