REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements for the Year Ended 31 December 2023 |
for |
C & T Restaurants Limited |
REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements for the Year Ended 31 December 2023 |
for |
C & T Restaurants Limited |
C & T Restaurants Limited (Registered number: 03999351) |
Contents of the Financial Statements |
for the Year Ended 31 December 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 9 |
Income Statement | 13 |
Other Comprehensive Income | 14 |
Balance Sheet | 15 |
Statement of Changes in Equity | 16 |
Cash Flow Statement | 17 |
Notes to the Cash Flow Statement | 18 |
Notes to the Financial Statements | 19 |
C & T Restaurants Limited |
Company Information |
for the Year Ended 31 December 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants, Statutory Auditor |
Carlyle House |
78 Chorley New Road |
Bolton |
C & T Restaurants Limited (Registered number: 03999351) |
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 |
During the year the company operated 18 McDonald's franchise restaurants employing over 2000 people. |
The company has returned to profitability during 2023. The profit for the year, before taxation, amounted to £556,431 up from a loss reported in the previous year of £476,350. The turnover for the year was £77,258,358 up from £63,277,656 in 2022, this was an increase of 22.1% on the previous year.The overall net assets of the company amounted to £5,982,485 up from a total of £5,859,238 in 2022. |
PRINCIPAL RISKS AND UNCERTAINTIES |
Principal risks for the company are general inflation and price increases on food and other direct costs which could affect profit margins. This risk is generally low for the company as the buying power of the McDonalds franchise group as a whole helps to keep price increases to a minimum. The directors are aware that any matters that could arise to adversely affect the worldwide McDonalds brand could have a major impact on the company, however the directors have no control over this particular risk. |
The principal financial risk to which the company is exposed is liquidity, however this is managed on a day to day basis by the Directors to ensure sufficient funds are available to meet it's liabilities as they fall due and to enable them to take advantage of any expansion opportunities that may arise. There has been no liquidity problems in the past and they do not envisage any in the foreseeable future. There is also a financial risk with the potential increase in bank interest rates, however, the company's exposure to bank interest rate increases is low. |
Credit risk (the risk of financial loss arising from the failure of a customer to meet its payment obligations) is not a problem suffered by the company as the majority of it's sales are cash based and trade debtors are not significant. |
The other main risk area is that of regulatory risk, including food hygiene, health and safety and employment laws. The directors, along with McDonald's, constantly monitor the business operations to ensure a high level of compliance in all areas. |
C & T Restaurants Limited (Registered number: 03999351) |
Strategic Report |
for the Year Ended 31 December 2023 |
SECTION 172(1) STATEMENT |
The board of directors of C & T Restaurants Limited consider, both individually and collectively, that they have acted in ways that they believe in good faith to be most likely to promote the success of the Company for the benefit of its members as a whole (having regard to the stakeholders and matters set out in s172(1)(a-f) of the Act) in the decisions they made during the year ended 31 December 2023. |
We recognise our employees as an important asset and aim to be a responsible employer in our approach to the pay and benefits our employees receive. The health, safety and wellbeing of our employees are of the highest importance and ensuring these is one of our main considerations in the way we do business. |
We also recognise that our customers are fundamental to the success of our business and we endeavour to serve them to the very best of our ability both in our restaurants and in their own homes through our home delivery partners and online operations. We are committed to ensuring that all the products we sell offer our customers high quality and good value. |
We also aim to act responsibly and fairly in our dealings with suppliers, regulators, bankers and insurers. We aim to pay all suppliers in accordance with their agreed terms. We respond quickly and fully to queries from regulators, bankers and insurers. |
As the board of directors, our intention is always to behave responsibly and to ensure that the business operates in a responsible manner, adhering to high standards of business conduct and good governance. We recognise that the maintenance of a good reputation, founded on responsible behaviour, is fundamental to our continuing ability to achieve profitable growth for the benefit of all stakeholders in the future. |
ON BEHALF OF THE BOARD: |
C & T Restaurants Limited (Registered number: 03999351) |
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 the operation of McDonalds Restaurant franchises. |
DIVIDENDS |
Interim dividends per share were paid during the year as follows: |
Ordinary A £1 | - | £ |
- 30 April 2023 |
Ordinary B £1 | - | £ |
- 30 April 2023 |
The total distribution of dividends for the year ended 31 December 2023 will be £ |
The distribution of dividends are payable to the directors. |
The directors do not recommend payment of a further dividend. |
RESEARCH AND DEVELOPMENT |
The company does not carry out any independent research and development. However, the franchisor, McDonald's Restaurants Limited, carries out its own research and development on behalf of all franchisees. The company makes a contribution towards this through its existing payments to the franchisor. |
FUTURE DEVELOPMENTS |
There are no anticipated franchise acquisitions in 2024, however, the directors intend to continue their policy of expansion and will look to acquire further suitable McDonalds franchises should they become available. The directors also intend to continue the company's refurbishment policy to existing franchises as and when necessary throughout 2024 and beyond. |
DIRECTORS |
The directors set out in the table below have held office during the whole of the period from 1 January 2023 to the date of this report. |
The beneficial interests of the directors holding office at 31 December 2023 in the shares of the company, according to the register of directors' interests, were as follows: |
31.12.23 | 1.1.23 |
Ordinary A shares of £1 each |
6,825 | 6,825 |
- | - |
Ordinary B shares of £1 each |
- | - |
2,275 | 2,275 |
These directors did not hold any non-beneficial interests in any of the shares of the company. |
FINANCIAL INSTRUMENTS |
The company's principal financial instruments comprise of a bank overdraft facility that is in place, bank loan and credit card facilities, together with cash and short term deposits. The main purpose of these financial instruments is to manage the company's funding and liquidity requirements. The company has other financial assets and liabilities such as trade receivables and trade payables, which arise mainly from its operations. |
EMPLOYEE INVOLVEMENT |
The company's managers hold regular meetings with employees to discuss policy, procedures, products, financial performance and what's new in the business. Notice boards are also used to communicate information to employees. |
The company operates various bonus schemes to encourage employees to become involved in the company's performance. |
C & T Restaurants Limited (Registered number: 03999351) |
Report of the Directors |
for the Year Ended 31 December 2023 |
DISABLED PERSONS |
The company does not differentiate between able bodied and disabled persons in the recruitment, employment, general training, career development and promotion of it's employees. |
GOING CONCERN |
The company is in a net current liabilities position at the balance sheet date, however, this is a reflection of the nature of the fast food industry and not a reflection of the strength of the business. The company has forecasted continued profitability after controllable costs and is expected to continue to grow. |
The directors have considered the application of the going concern basis of accounting, in doing so they have considered the 12 month period from the date of signing these financial accounts. The directors have assessed the expected future financial performance of the company and have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the annual financial statements. |
STREAMLINED ENERGY AND CARBON REPORTING |
The McDonald's franchises attributed to C&T Restaurants Limited's greenhouse gas emissions, reportable under SECR from 1st January 2023 - 31st December 2023, were 2,616 tonnes of carbon dioxide equivalent (tCO2e). These include emissions associated with electricity and natural gas consumption, and refrigerants. The number of sites contributing to this report has increased from 16 in 2022 to 18 in 2023. C&T Restaurants Limited's total greenhouse gas emissions increased by 37% compared to revised 2022 figures, because purchased electricity energy consumption (kWh) has increased by 25% and natural gas energy consumption (kWh) has increased by 26%, from 2022 to 2023. |
Notable factors that could have contributed to the movement in emissions are as follows: |
- The number of sites reporting on their emissions changed from 2022 to 2023. |
- Revision of methodology to align consumption to McDonald's AI Track energy consumption figures for FY2023. |
- 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, C&T Restaurants Limited's 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 34.43 tCO2e per £million, which represents a 48% increase compared to the previous year (23.34 tCO2e per £million). |
Greenhouse gas emissions: |
Table 1: Greenhouse gas emissions by year (tCO2e) - location-based |
Emissions source |
2022 |
2022 - revised |
2023 |
% share |
% change |
Electricity |
1,530 |
1670* |
2,222 |
85% |
33% |
Natural Gas |
234 |
234 |
295 |
11% |
26% |
Purchased fuel (LPG) |
Refrigerants | 99 | 4% |
Transportation - direct |
Transportation - indirect |
Total Emissions (tCO2e) |
1,764 |
1,904 |
2,616 |
100% |
37% |
Turnover (£m) | 82 | 82 | 76 | -7% |
Intensity (tCO2e per £m) |
21.62 |
23.34 |
34.43 |
48% |
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) Page 7 Transport and Distribution. |
C & T Restaurants Limited (Registered number: 03999351) |
Report of the Directors |
for the Year Ended 31 December 2023 |
Table 2: Greenhouse gas emissions by scope (tonnes CO2e) - location-based* |
Emissions source | Scope 1 | Scope 2 | Scope 3 | Total |
Electricity | 2,045 | 177 | 2,222 |
Natural Gas | 295 | 295 |
Purchased Fuel (LPG) |
Transportation |
Refrigerants | 99 | 99 |
Total Emissions (tCO2e) | 394 | 2,045 | 177 | 2,616 |
Share of Total | 15.1% | 78.2% | 6.8% |
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: |
Table 3: Energy consumption per fuel type (kWh) |
Emissions source |
2022 |
2023 |
% Share |
% Change |
Electricity |
7,912,778 |
9,874,580* |
86% |
25% |
Natural Gas |
1,282,311 |
1,611,172* |
14% |
26% |
Purchased Fuel (LPG) |
Transportation - direct |
Transportation - indirect |
Total | 9,195,089 | 11,485,752 | 100% | 25% |
*Includes extrapolation carried out by Aligned Incentives. |
Boundary, methodology and exclusions: |
An 'operational control' approach has been used to define the Greenhouse Gas emissions boundary[1]. |
This approach captures emissions associated with your 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). |
C&T Restaurants Limited'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 C&T Restaurants Limited's FY2023, ending in December 2023. |
2023 consumption data from McDonald'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. |
[1] An operational control approach to GHG emissions boundary is defined as: "Your organisation has operational control over an operation if it, or one of its subsidiaries, has the full authority to introduce and implement its operating policies at the operation". |
C & T Restaurants Limited (Registered number: 03999351) |
Report of the Directors |
for the Year Ended 31 December 2023 |
Energy efficiency initiatives: |
C&T Restaurants Limited has continued to seek and progress energy efficiency measures, within both the work processes and the use of work equipment. McDonald's are 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 McDonald's Restaurants Limited 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 |
The following approaches to energy efficiency are being undertaken by the company and will be expanded over the following years: |
- We are monitoring actual electricity / gas and water usage on a monthly basis. We are testing weekly monitoring in 6 of our 18 restaurants with a view to introducing weekly monitoring across all our restaurants. |
- We have utility managers in all of our restaurants to monitor usage and monitor best practice. |
- We have established best practice on a individual restaurant basis to fire up and close down equipment not necessary for the volume of the restaurant. |
- An Area Supervisor has taken overall responsibility for energy efficiency. |
- We have started an investment to replace broken windows, as necessary, with double glazing. |
- We have reached out to our third party equipment suppliers to ensure that new equipment development is as efficient as possible. |
- The company is investigating its HVAC (air conditioning) to ensure that any replacements meets our goal to increase efficiency. |
DISCLOSURE IN THE STRATEGIC REPORT |
Statements relating to Review of Business and Principal Risks and Uncertainties are included in the Strategic Report on page 2. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
C & T Restaurants Limited (Registered number: 03999351) |
Report of the Directors |
for the Year Ended 31 December 2023 |
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 |
In accordance with the company's articles, a resolution proposing that Barlow Andrews LLP be reappointed as auditor of the company will be put at a General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
C & T Restaurants Limited |
Opinion |
We have audited the financial statements of C & T Restaurants Limited (the 'company') for the year ended 31 December 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
C & T Restaurants Limited |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page seven, 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 |
C & T Restaurants Limited |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below. |
- 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 members and from out commercial knowledge and experience of the media sector; |
- 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; 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; and |
- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of |
potential bias. |
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; and |
- enquiring of management as to actual and potential litigation and claims. |
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 |
C & T Restaurants Limited |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Chartered Accountants, Statutory Auditor |
Carlyle House |
78 Chorley New Road |
Bolton |
C & T Restaurants Limited (Registered number: 03999351) |
Income Statement |
for the Year Ended 31 December 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ |
TURNOVER |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
851,267 | (378,810 | ) |
Other operating income |
OPERATING PROFIT/(LOSS) | 5 | ( |
) |
Interest receivable and similar income |
851,605 | (367,705 | ) |
Interest payable and similar expenses | 6 |
PROFIT/(LOSS) BEFORE TAXATION | ( |
) |
Tax on profit/(loss) | 7 |
PROFIT/(LOSS) FOR THE FINANCIAL YEAR |
( |
) |
C & T Restaurants Limited (Registered number: 03999351) |
Other Comprehensive Income |
for the Year Ended 31 December 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ |
PROFIT/(LOSS) FOR THE YEAR | ( |
) |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
( |
) |
C & T Restaurants Limited (Registered number: 03999351) |
Balance Sheet |
31 December 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 |
Tangible assets | 11 |
Investments | 12 |
CURRENT ASSETS |
Stocks | 13 |
Debtors | 14 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 15 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
16 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 20 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 21 |
Retained earnings | 22 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
C & T Restaurants Limited (Registered number: 03999351) |
Statement of Changes in Equity |
for the Year Ended 31 December 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 January 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 31 December 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2023 |
C & T Restaurants Limited (Registered number: 03999351) |
Cash Flow Statement |
for the Year Ended 31 December 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( |
) | ( |
) |
Tax paid | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of intangible fixed assets | ( |
) |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Purchase of fixed asset investments | - | (2,500 | ) |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
New loans in year |
Loan repayments in year | ( |
) | ( |
) |
Amount introduced by directors | 3,462 | 22 |
Amount withdrawn by directors | 2,762 | - |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) |
Decrease in cash and cash equivalents | ( |
) | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
6,042,174 |
Cash and cash equivalents at end of year | 2 | 4,895,308 | 5,395,888 |
C & T Restaurants Limited (Registered number: 03999351) |
Notes to the Cash Flow Statement |
for the Year Ended 31 December 2023 |
1. | RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
31.12.23 | 31.12.22 |
£ | £ |
Profit/(loss) before taxation | ( |
) |
Depreciation charges |
Finance costs | 295,174 | 108,645 |
Finance income | (338 | ) | (7,790 | ) |
3,129,348 | 1,499,866 |
Increase in stocks | ( |
) | ( |
) |
Decrease/(increase) in trade and other debtors | ( |
) |
(Decrease)/increase in trade and other creditors | ( |
) |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 December 2023 |
31.12.23 | 1.1.23 |
£ | £ |
Cash and cash equivalents | 4,895,308 | 5,395,888 |
Year ended 31 December 2022 |
31.12.22 | 1.1.22 |
£ | £ |
Cash and cash equivalents | 5,395,888 | 6,042,174 |
3. | ANALYSIS OF CHANGES IN NET (DEBT)/FUNDS |
At 1.1.23 | Cash flow | At 31.12.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 5,395,888 | (500,580 | ) | 4,895,308 |
5,395,888 | ( |
) | 4,895,308 |
Debt |
Debts falling due within 1 year | (2,415,137 | ) | 1,669,091 | (746,046 | ) |
Debts falling due after 1 year | (3,404,909 | ) | 257,983 | (3,146,926 | ) |
(5,820,046 | ) | 1,927,074 | (3,892,972 | ) |
Total | (424,158 | ) | 1,426,494 | 1,002,336 |
C & T Restaurants Limited (Registered number: 03999351) |
Notes to the Financial Statements |
for the Year Ended 31 December 2023 |
1. | STATUTORY INFORMATION |
C & T Restaurants Limited is a |
2. | STATEMENT OF COMPLIANCE |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements have been prepared under the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value. |
The financial statements are presented in British Pounds Sterling which is the functional currency. Figures are shown to the nearest whole pound. |
Significant judgements and estimates |
Preparation of the financial statements requires management to make significant judgements and estimates that affect the amounts reported. These judgements and estimates are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the current circumstances. |
Revenue recognition |
Turnover comprises the fair value of consideration received or receivable for the sale of goods in the ordinary course of the company's activities. Turnover is shown net of value added tax, returns, rebates and discounts. |
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer at the point of sale, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably. |
Goodwill and intangible assets |
Goodwill, franchise fees and franchise rights being the amounts paid in connection with the acquisition of fast food franchises between 2006 and 2022 less any accumulated impairment losses, are being amortised at varying rates over the remaining terms of the franchise agreements. |
Tangible fixed assets |
Improvements to property | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Tangible assets are stated in the Balance Sheet at cost less any subsequent accumulated depreciation and subsequent accumulated impairment losses. |
Going concern |
The company is in a net current liabilities position at the balance sheet date, however, this is a reflection of the nature of the fast food industry and not a reflection of the strength of the business. The company has forecasted continued profitability and is expected to continue to grow. |
The directors have considered the application of the going concern basis of accounting, in doing so they have considered the 12 month period from the date of signing these financial accounts. The directors have assessed the expected future financial performance of the company and have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the annual financial statements. |
C & T Restaurants Limited (Registered number: 03999351) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
3. | ACCOUNTING POLICIES - continued |
Stocks |
Stocks are stated at the lower of cost, using the first in first out method, and estimated selling price less costs to complete and sell. |
Impairment of assets |
At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with it's carrying amount. If the estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in the profit and loss account. |
If an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of it's recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in the profit and loss account. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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 taxation |
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. |
Employee benefits |
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets. |
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received. |
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
Fixed asset investments |
Fixed asset investments relates to shares held in an offshore insurance company set up by McDonalds franchisees. As fair value cannot be measured reliably the investment is shown at cost less any impairment provisions. |
C & T Restaurants Limited (Registered number: 03999351) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
3. | ACCOUNTING POLICIES - continued |
Debtors |
Short term debtors are measured initially at transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for any impairment. A provision for the impairment of debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables. |
Creditors |
Short term trade creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method. |
4. | EMPLOYEES AND DIRECTORS |
31.12.23 | 31.12.22 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
31.12.23 | 31.12.22 |
Directors | 2 | 2 |
Admin staff | 2 | 2 |
Management staff | 186 | 154 |
Production staff | 1,902 | 1,385 |
31.12.23 | 31.12.22 |
£ | £ |
Directors' remuneration |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
5. | OPERATING PROFIT/(LOSS) |
The operating profit (2022 - operating loss) is stated after charging: |
31.12.23 | 31.12.22 |
£ | £ |
Depreciation - owned assets |
Goodwill and franchise fee amortisation |
Auditors remuneration - |
audit of the financial |
statements |
C & T Restaurants Limited (Registered number: 03999351) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.12.23 | 31.12.22 |
£ | £ |
Bank loan interest |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
31.12.23 | 31.12.22 |
£ | £ |
Current tax: |
UK corporation tax | ( |
) |
Under/(over) provision in previous years | - | 51,272 |
Total current tax | ( |
) |
Deferred tax: |
Origination and reversal of timing differences - capital allowances |
( |
) |
Tax on profit/(loss) |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
31.12.23 | 31.12.22 |
£ | £ |
Profit/(loss) before tax | ( |
) |
Profit/(loss) multiplied by the standard rate of corporation tax in the UK of |
( |
) |
Effects of: |
Capital allowances in excess of depreciation | - | ( |
) |
Depreciation in excess of capital allowances | - |
Adjustments to tax charge in respect of previous periods |
Deferred expenditure written off | (24,619 | ) | (15,670 | ) |
Deferred tax on origination and reversal of timing differences | (119,180 | ) | 480,428 |
Total tax charge | 113,184 | 169,621 |
8. | DIVIDENDS |
31.12.23 | 31.12.22 |
£ | £ |
Ordinary A shares of £1 each |
Interim |
Ordinary B shares of £1 each |
Interim |
C & T Restaurants Limited (Registered number: 03999351) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
9. | GOVERNMENT GRANTS |
During the year the company received £nil (2022: £3,315) under the Kickstart Job Creation Scheme. |
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received. |
10. | INTANGIBLE FIXED ASSETS |
Goodwill |
and |
franchise |
fee |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 |
AMORTISATION |
At 1 January 2023 |
Amortisation for year |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
11. | TANGIBLE FIXED ASSETS |
Improvements | Fixtures |
to | Plant and | and | Motor |
property | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 January 2023 |
Additions |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
C & T Restaurants Limited (Registered number: 03999351) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
12. | FIXED ASSET INVESTMENTS |
Unlisted |
investments |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
Fixed asset investments consists of 22,500 (2022: 22,500) ordinary shares of £1 each in Fries Holding Company Limited, a company registered in Guernsey. The investments are included in the accounts at cost. |
13. | STOCKS |
31.12.23 | 31.12.22 |
£ | £ |
Raw materials and consumables |
Stock recognised in cost of sales during the year as an expense was £27,331,064 (2022 - £22,930,094). |
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.23 | 31.12.22 |
£ | £ |
Trade debtors |
Other debtors |
Tax |
Prepayments and accrued income |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.23 | 31.12.22 |
£ | £ |
Bank loans and overdrafts (see note 17) |
Trade creditors |
Corporation tax |
Social security and other taxes |
VAT | 1,529,886 | 1,754,113 |
Other creditors |
Directors' current accounts | 8,184 | 1,960 |
Accrued expenses |
16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
31.12.23 | 31.12.22 |
£ | £ |
Bank loans (see note 17) |
C & T Restaurants Limited (Registered number: 03999351) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
17. | LOANS |
An analysis of the maturity of loans is given below: |
31.12.23 | 31.12.22 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
Amounts falling due between one and two years: |
Bank loans |
Amounts falling due between two and five years: |
Bank loans |
Amounts falling due in more than five years: |
Repayable by instalments |
Bank loans | 356,470 | 459,925 |
Bank loans are repayable over periods from one to six years. The interest rates applied to the loans are based on Base Rate plus a margin varying between 1.2% to 1.6%. |
18. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
31.12.23 | 31.12.22 |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
The leases shown relate to the base amounts payable to McDonalds for operating leases for the franchise restaurants used by the company. |
The amount of non-cancellable operating lease payments recognised as an expense during the year was £7,704,873 (2022 - £7,115,120). |
19. | FINANCIAL INSTRUMENTS |
Classification: |
The company believes all financial instruments are classified as Basic Financial Instruments. The company recognises basic financial instruments in accordance with Section 11 of the Financial Reporting Standard. |
Recognition and measurement: |
The company's debt instruments are measured at amortised cost using the effective interest rate method. |
Impairment: |
Financial instruments are reviewed annually for impairment. |
C & T Restaurants Limited (Registered number: 03999351) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
20. | PROVISIONS FOR LIABILITIES |
31.12.23 | 31.12.22 |
£ | £ |
Deferred tax |
Accelerated capital allowances |
Deferred |
tax |
£ |
Balance at 1 January 2023 |
Credit to Income Statement during year | ( |
) |
Balance at 31 December 2023 |
Deferred tax has been provided at 25.0% (2022 - 25.0%) in the financial statements as set out above. Deferred tax has been calculated using these rates based on the timing of when each individual deferred tax balance is expected to reverse in the future. |
21. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.12.23 | 31.12.22 |
value: | £ | £ |
Ordinary A | £1 | 6,825 | 6,825 |
Ordinary B | £1 | 2,275 | 2,275 |
9,100 | 9,100 |
22. | RESERVES |
Retained |
earnings |
£ |
At 1 January 2023 |
Profit for the year |
Dividends | ( |
) |
At 31 December 2023 |
23. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
Interest was charged to the directors at market rates on the average outstanding debit balances during the year, this amounted to £338 (2022 - £7,778). No interest was paid on credit balances. |
24. | ULTIMATE CONTROLLING PARTY |
The controlling party is Mr G G Thompson. |