Company registration number 04105070 (England and Wales)
CARA RESTAURANTS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
CARA RESTAURANTS LIMITED
COMPANY INFORMATION
Directors
Mr W J Wright
Mrs S J Wright
Secretary
Mrs S J Wright
Company number
04105070
Registered office
McDonalds Markham Moor
A1/A57 Interchange
Retford
DN22 0QU
Auditor
Higson & Co (Nottingham) Limited
White House
Wollaton Street
Nottingham
NG1 5GF
Bankers
HSBC Bank Plc
1 St Peters Street
Derby
DE1 2AE
CARA RESTAURANTS LIMITED
CONTENTS
Page
Strategic report
1 - 4
Directors' report
5 - 8
Independent auditor's report
9 - 12
Statement of comprehensive income
13
Statement of financial position
14
Statement of changes in equity
15
Statement of cash flows
16
Notes to the financial statements
17 - 29
CARA RESTAURANTS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

Section 172(1) Statement

The directors believe they have acted in a way they consider, in good faith, to promote the success of the company for the benefit of its members as a whole (having regard to stakeholders and matters set out in s172(1) (a-f) of the Companies Act).

The success of the company is the driving factor behind the decisions made by the directors. Decision making processes are structured to enable the directors to evaluate the merit of proposed business activities and the likely consequences of its decisions over the short, medium and long term.

Our employees

Our people are key to our success. That is why we work hard to create jobs and opportunities for all our people, regardless of gender, age or life stage. Understanding how our people feel about McDonald's is vital. It helps us ensure that we are giving them the right support to achieve their potential and to serve our customers well. We undertake quarterly surveys with restaurant crew and managers to drive the conversation about how they feel at work. We also conduct regular “Love to Listen” surveys to check how satisfied our employees are with their jobs.

Our customers

Our customers are the reason for our existence, and we therefore strive to provide high quality food and superior service, in a clean, welcoming environment, at a great value.

Our suppliers

Long-term commitments with our suppliers has enabled them to grow with us and drive positive change within their own businesses. The company recognises that relationships with suppliers are important to its long-term success and is briefed on supply feedback and issues on a regular basis.

Communities and environment

The directors carefully consider the impact of the business on communities and the environments in which the company operates. We support charitable organisations such as Ronald McDonald House Charities. We collect litter dropped in the local area around our restaurants. Recycling units are installed around our restaurants and our paper cups are sent to specialist recycling centres in the UK. Our paper straws are 100% recyclable. Our cooking oil is recycled to convert it to biodiesel. We are aware of our responsibility in this area, and 2024 will see the introduction of more initiatives to help make local communities and the environment a better place.

Business conduct

In all our activities the directors require that our employees and suppliers conduct business with the highest ethical and professional standards by adhering to our Standards of Business Conduct set by McDonald's Corporation.

CARA RESTAURANTS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

Business Review

The directors aim to present a review of the development and performance of the company during the year and its position at the year-end. This review is consistent with the size and nature of the company and is written in the context of risks and uncertainties it faces.

 

The principal activity of the company during the year was as a McDonald's franchise, the company operated fourteen restaurants during this financial year, no new stores were acquired in this year, no changes have taken place in the use of the premises.

 

We consider that our key financial performance indicators are those that communicate the financial performance and strength of the company as a whole, these including turnover, gross profit and operating profit.

 

Sales through digital channels, including McDelivery, mobile and self-order kiosks have increased during the year.

The pace of change in the restaurant industry has accelerated post pandemic, with customers increasingly looking for greater speed and choice when ordering food. McDonald's are constantly elevating the digital experience with varying promotions offered via the mobile app in 2023 and the company continues to push digital and delivery offerings.

 

The financial performance of the company improved in 2023. This was aided by Government support packages such as the 75% business rates relief in the retail and hospitality industry and rent assistance from the franchisor.

 

The profit for the year before taxation amounted to £1,858,274 (2022 £1,422,454), an increase of £435,820.

 

Turnover comprises sales from company franchised restaurants. During the year total company turnover increased by £3,468,501 to £71,034,478.

 

Gross profit as a percentage of sales is 66.17%. This has been maintained by continually reviewing prices to reduce the impact of food cost inflation, whilst still offering great value and quality.

 

Given the straightforward nature of the business, the directors are of the opinion that further analysis using key performance indicators is not necessary for an understanding of the development, performance or position of the company.

 

It is the strategy of the company to refurbish restaurants periodically to keep them fresh and inviting to our customers. The company continued to benefit from its investment in the national McDonald's store refurbishment projects and continues to update and improve its restaurants. The re-imaging strategy continued to have a positive impact on sales growth which is in line with the directors' expectations and objectives. The "Convenience of the Future" upgrade programme was carried out at two stores during the year.

 

We continued to enjoy the benefits of an industry leading supply chain and the significant scale of McDonald's. This has enabled the company to navigate 2023 successfully reporting growth in terms of revenue.

CARA RESTAURANTS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
Principal risks and uncertainties

 

The management of the company and the nature of its trading strategy are subject to a number of risks. The company operates a thorough risk assessment and management process which involves a formal review of all the risks identified and introducing processes to monitor and mitigate each risk, where possible.

 

The company operates in a highly competitive market with high levels of price sensitivity. Consumer behaviour can impact the company's turnover and profitability. The company mitigates this risk by adopting a policy of constantly assessing its pricing strategy with ongoing market research. Demand has increased during the year.

 

The company remains exposed to periods of general inflation and food cost inflation together with the variability of commodity prices, which impact on the company's profitability. The company continually assesses any risks identified with the aim of mitigating the threats these may have on the company's operations and profitability. The company's supply chain is closely maintained by McDonald's, who are therefore able to negotiate effectively on behalf of franchisees to ensure better purchasing terms. This helps as much as possible to protect the company from risks associated with fluctuating food costs. The company has been impacted by factors beyond its control, with inflation rising sharply.

 

The company is also inherently exposed to pressures within the labour market and to wage cost inflation. Recent changes to the national minimum wage and national living wage have contributed towards the increase in wage costs. However, given the success of the company, we will continue to invest in our people. The company mitigates this risk by a policy of adopting remuneration and benefits packages designed to be competitive within the market as well as ensuring full compliance with labour market regulations, with employment policies to allow fulfilling career opportunities for all employees.

 

Increased volatility, uncertainty and cost pressures in the UK energy market have resulted in an increase in utility costs. To manage and mitigate the risk, McDonalds has entered into several Power Purchase Agreements (PPAs) to increase the company's renewable energy capacity.

 

The company's operations demand a high level of compliance within a wide range of regulatory requirements including hygiene, licensing and employment law. These areas are closely monitored by McDonalds to ensure the company is compliant.

 

The fast-food market is extremely competitive, with a high number of competitors competing in the sector. To remain a market leader, McDonald's have dedicated teams who focus on ensuring the brand remains a leading brand in the market.

 

 

CARA RESTAURANTS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
Financial risk management and policies

The company's principal financial instruments comprise bank balances, loans to the company and trade creditors. The main purpose of these instruments is to provide funds for the company's operations. Their existence exposes the company to several financial risks which have been considered and are managed as follows:

 

Liquidity risk: Liquidity risk is the risk that the company will have insufficient resources to meet its financial liabilities as they fall due. The company's strategy to managing liquidity risk is to ensure that the company has sufficient funds to meet all its potential liabilities as they fall due. In respect of bank balances the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility using overdraft facilities at floating rates of interest if necessary. In respect of bank loans, although the interest rates are variable monthly repayments are fixed. The liquidity risk is therefore managed by ensuring there are sufficient funds available to meet the monthly repayments. In respect of trade creditors the liquidity risk is managed by ensuring sufficient funds are available to meet amounts due for payment.

 

Operational risk: Operational risk is the risk of a direct or indirect loss resulting from the inadequacies or failures of processes or controls due to technology, staff, organisation or external factors. To monitor and control operational risk the company maintains a system of comprehensive policies and a control framework which is designed to provide a sound and well-controlled operational environment.

 

Interest rate risk: Interest rate risk is the risk that financial performance of the company will be adversely affected by adverse fluctuations on interest rates being charged to the company on its financial instruments, most noticeably bank loans and its bank overdraft facility. The interest rate risk is managed by the on-going monitoring and assessment of its borrowings and the interest rate charged.

 

Price risk: Price risk is the risk that the financial performance of the company will be adversely affected by pricing charges. Due to the nature of the financial instruments used by the company, there is no exposure to price risk. The company sets its own prices within allowable variations. Cash flow and liquidity exposure is therefore directly related to prices and turnover.

 

Other areas of risk include include health and safety and food hygiene. The company's operations are constantly reviewed by McDonald's to ensure a high level of compliance.

 

On behalf of the board

Mr W J Wright
Director
25 September 2024
CARA RESTAURANTS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -

The directors present their annual report and financial statements for the year ended 31 December 2023.

Results and dividends

The results for the year are set out on page 13.

Ordinary dividends were paid amounting to £581,000. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr W J Wright
Mrs S J Wright
Financial instruments

The company's principal financial instruments comprise bank balances, trade creditors and loans to the company. The main purpose of these instruments is to raise funds for the company's operations. Their existence exposes the company to several financial risks which are detailed in the Strategic Report under financial risk management and policies.

Research and development

The company does not carry out any independent or specific research and development. However, McDonald's Restaurants Limited and its associated companies carry out research and development on behalf of all franchisees. The company makes a contribution towards this through its existing payments to McDonald's Restaurants Limited.

Disabled persons

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

Employee involvement

An open management policy is operated whereby all members of staff (including part-time and casual staff) are briefed regularly on matters affecting the company by means of regular store meetings and communications, together with staff appraisals and feedback sessions. In addition, there is a bulletin board in each restaurant where memoranda relating to company policy are displayed. Much of the engagement with employees moved online as a result of the Covid-19 pandemic.

Business relationships

Details of business relationships have been covered in the 172(1) statement in the strategic report.

Future developments

The directors are committed to increasing both the turnover and profitability of the company. The company will continue its policy of refurbishing its stores in line with the McDonald's national re-imaging strategy. The company will continue to push delivery and digital offerings.

 

The directors are confident the company will continue to grow due to the strength of the brand and success of delivery and digital services. The company will continue with the management policies which have resulted in profitability in this trading period.

CARA RESTAURANTS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
Auditor

The auditor is deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006.

Greenhouse gas emissions and energy consumption
2023
2022
kWh
kWh
Total energy consumed
9,371,353
9,199,989
9,371,353
9,199,989
2023
2022
tCO2e
tCO2e
Emissions resulting from activities for which the company is responsible
173.00
168.00
Emissions resulting from the purchase of electricity by the company for its own use
1,898.00
1,750.00
Total emissions
2,071.00
1,918.00
Financial
tCO2e/£m Sales revenue
29.14
28.63
CARA RESTAURANTS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -

Methodologies for energy and emissions calculations

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 against our 2022 baseline.

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.

For major emissions, primary data is sourced from AMR readings, utility bills and expensed claims. Emissions data is collated centrally by Mitie Energy's Sustainability team who have overall responsibility for ensuring the calculations and methodology are correct.

The McDonald's recommended intensity measurement ratio is total gross emissions in metric tonnes C02e per unit of turnover.

Principal measures taken to increase energy efficiency

Our largest source of emissions is a direct result of electricity consumption, followed by natural gas and purchased fuels used for our restaurant kitchens and heating. McDonald's goal is to achieve net zero emissions in all UK restaurants by 2030. This significant decarbonisation of the emissions from our restaurants will be in line with the SBTi net zero criteria and a 1.50C climate scenario pathway. This is an interim target towards becoming net zero across our entire business by 2040. We will achieve this by reducing our emissions through how we power our restaurants, as well as how we reduce and recycle our waste.

Our overall strategy is to pursue a program of energy efficiency combined with carbon mitigation measures such as the utilisation of renewable electricity and transitioning to LED lighting throughout all our restaurants. This will be bolstered with programs to reduce and decarbonise heat across our estate. We are committed to being more energy efficient through deploying better internal operating practices and by investing in technology which saves energy.

Information not included

McDonald's do not currently report fugitive emissions (refrigerant leakage) from refrigeration and air conditioning systems in leased properties or fleet. This is due to the difficulty in obtaining centralised data on refrigerant top-ups and the fact most of our buildings are out of scope as franchisees manage the HVAC systems. Given the size and types of emission sources listed by McDonald's, fugitive emissions are expected to be a very small proportion of total emissions and are therefore considered immaterial.

CARA RESTAURANTS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
Statement of directors' responsibilities

The directors are responsible for preparing the strategic report, directors' report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.

 

In preparing these financial statements, the directors are required to:

 

 

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.

Strategic report

The company has chosen in accordance with section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 set out in the company's strategic report information required by schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008,

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
Mr W J Wright
Director
25 September 2024
CARA RESTAURANTS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CARA RESTAURANTS LIMITED
- 9 -
Opinion

We have audited the financial statements of Cara Restaurants Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 our audit:

CARA RESTAURANTS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CARA RESTAURANTS LIMITED (CONTINUED)
- 10 -
Matters on which we are required to report by exception

In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and the directors' report.

 

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

 

Responsibilities of directors

As explained more fully in the directors' responsibilities statement set out on page 8, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

 

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

CARA RESTAURANTS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CARA RESTAURANTS LIMITED (CONTINUED)
- 11 -

Auditor's 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We obtained an understanding of the legal and regulatory frameworks applicable to the company and the industry in which it operates. We determined that the following laws and regulations were most significant:

Companies Act 2006/FRS 102, Employment Law, Waste and Health and Safety. We enquired of management to obtain an understanding of how the company is complying with those legal and regulatory frameworks and whether they had any knowledge of actual or suspected fraud. We corroborated the results of our enquiries through our discussions with the directors and management. We did not identify any matters relating to non-compliance with laws and regulations or matters in relation to fraud;

- We obtained an understanding of how the company is complying with those legal and regulatory frameworks by making inquiries of management and those responsible for legal and compliance procedures.

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

- In assessing the appropriateness of the collective competence and capabilities of the engagement team, the engagement partner considered the engagement team's:

> understanding of, and practical experience with, audit engagements of a similar nature and complexity through appropriate training and participation.

> the specialist skills required and

> knowledge of the industry in which the client operates.

- We assessed the susceptibility of the Company's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement included:

> assessing the design effectiveness of controls management has in place to prevent and detect fraud;

> challenging assumptions and judgements made by management in its significant accounting estimates;

> identifying and testing journal entries, in particular manual journal entries made at year end for financial statement preparation; and

> assessing the extent of compliance with the relevant laws and regulations as part of our procedures on the related financial statement item.

As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiiencies in internal control that we identify during our audit.

.

CARA RESTAURANTS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CARA RESTAURANTS LIMITED (CONTINUED)
- 12 -

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.

Use of our report

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

Simon Skill FCA
Senior Statutory Auditor
For and on behalf of Higson & Co (Nottingham) Limited
25 September 2024
Chartered Accountants
Statutory Auditor
White House
Wollaton Street
Nottingham
NG1 5GF
CARA RESTAURANTS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
2023
2022
Notes
£
£
Turnover
3
71,034,478
67,565,977
Cost of sales
(24,030,478)
(22,941,506)
Gross profit
47,004,000
44,624,471
Distribution costs
(3,437,478)
(3,067,000)
Administrative expenses
(41,671,812)
(40,084,476)
Operating profit
4
1,894,710
1,472,995
Interest receivable and similar income
7
8,428
-
0
Interest payable and similar expenses
9
(44,864)
(50,541)
Profit before taxation
1,858,274
1,422,454
Tax on profit
10
(513,718)
(447,896)
Profit for the financial year
1,344,556
974,558

The income statement has been prepared on the basis that all operations are continuing operations.

CARA RESTAURANTS LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2023
31 December 2023
- 14 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
12
2,329,915
2,514,991
Other intangible assets
12
391,409
410,909
Total intangible assets
2,721,324
2,925,900
Tangible assets
13
5,594,188
5,140,931
Investments
14
17,500
17,500
8,333,012
8,084,331
Current assets
Stocks
15
282,624
332,734
Debtors
16
496,466
395,957
Cash at bank and in hand
5,943,741
5,688,455
6,722,831
6,417,146
Creditors: amounts falling due within one year
17
(6,521,667)
(6,844,117)
Net current assets/(liabilities)
201,164
(426,971)
Total assets less current liabilities
8,534,176
7,657,360
Provisions for liabilities
Deferred tax liability
19
681,270
568,010
(681,270)
(568,010)
Net assets
7,852,906
7,089,350
Capital and reserves
Called up share capital
21
100
100
Profit and loss reserves
7,852,806
7,089,250
Total equity
7,852,906
7,089,350
The financial statements were approved by the board of directors and authorised for issue on 25 September 2024 and are signed on its behalf by:
Mr W J Wright
Director
Company registration number 04105070 (England and Wales)
CARA RESTAURANTS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2022
100
6,712,692
6,712,792
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
974,558
974,558
Dividends
11
-
(598,000)
(598,000)
Balance at 31 December 2022
100
7,089,250
7,089,350
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
1,344,556
1,344,556
Dividends
11
-
(581,000)
(581,000)
Balance at 31 December 2023
100
7,852,806
7,852,906
CARA RESTAURANTS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
25
3,796,378
4,598,308
Interest paid
(44,864)
(50,541)
Income taxes paid
(361,157)
(774,501)
Net cash inflow from operating activities
3,390,357
3,773,266
Investing activities
Purchase of tangible fixed assets
(1,718,624)
(302,269)
Interest received
8,428
-
0
Net cash used in investing activities
(1,710,196)
(302,269)
Financing activities
Repayment of bank loans
(843,875)
(3,314,713)
Dividends paid
(581,000)
(598,000)
Net cash used in financing activities
(1,424,875)
(3,912,713)
Net increase/(decrease) in cash and cash equivalents
255,286
(441,716)
Cash and cash equivalents at beginning of year
5,688,455
6,130,171
Cash and cash equivalents at end of year
5,943,741
5,688,455
CARA RESTAURANTS LIMITED
STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
1
Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows:

 

Franchise rights and intangible assets - Franchise rights acquired on each business combination are capitalised, classified as an asset on the statement of financial position and amortised on a straight line basis over its useful life.

The company establishes an estimate of the useful life of franchise rights and intangible assets arising on business combinations. This estimate is based on the term of the franchise of each operating restaurant.

 

Fixtures and fittings - The company's accounting policy for fixtures and fittings is set out in the note 2.6. Estimated useful lives of fixtures and fittings are based on management's judgement and historical experience with similar assets.

2
Accounting policies
Company information

Cara Restaurants Limited is a private company limited by shares incorporated in England and Wales. The registered office is McDonalds Markham Moor, A1/A57 Interchange, Retford, DN22 0QU.

2.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

 

The financial statements represent information about the company as an individual undertaking. It is not a member of a group.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

2.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

2.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes.

Revenue from the sale of goods is recognised at the point of sale to the customer.

CARA RESTAURANTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Accounting policies
(Continued)
- 18 -
2.4
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 20 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

2.5
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Franchise fees & SDLT
Straight line - 20 years
2.6
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Building improvements
Straight line - 7 years
Fixtures and fittings
Straight line - 3 to 10 years

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

2.7
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

2.8
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

CARA RESTAURANTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Accounting policies
(Continued)
- 19 -

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

2.9
Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.

 

2.10
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

2.11
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

CARA RESTAURANTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Accounting policies
(Continued)
- 20 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

CARA RESTAURANTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Accounting policies
(Continued)
- 21 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

2.12
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

2.13
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

2.14
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.

2.15
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

2.16
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

CARA RESTAURANTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Accounting policies
(Continued)
- 22 -
2.17

Holiday pay accrual

A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the balance sheet date and carried forward to future periods. This is measured at the undiscounted cost of the future holiday entitlement at the balance sheet date.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Sales of goods
71,034,478
67,565,977
2023
2022
£
£
Other revenue
Interest income
8,428
-
4
Operating profit
2023
2022
Operating profit for the year is stated after charging:
£
£
Depreciation of owned tangible fixed assets
1,265,367
1,287,464
Amortisation of intangible assets
204,576
204,576
Operating lease charges
8,750,064
8,748,140
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
9,072
8,840
6
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Restaurant staff
1,560
1,567
Office and management staff
59
64
Total
1,619
1,631
CARA RESTAURANTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
6
Employees
(Continued)
- 23 -

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
18,656,616
18,103,553
Social security costs
874,883
857,397
Pension costs
251,594
196,704
19,783,093
19,157,654
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
8,428
-
0
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
8,428
-
0
8
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
34,624
34,609
Company pension contributions to defined contribution schemes
43,139
4,000
77,763
38,609

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2022 - 2).

9
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
29,153
50,541
Other finance costs:
Other interest
15,711
-
0
44,864
50,541
CARA RESTAURANTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
400,458
376,868
Deferred tax
Origination and reversal of timing differences
113,260
71,028
Total tax charge
513,718
447,896

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
1,858,274
1,422,454
Expected tax charge based on the standard rate of corporation tax in the UK of 23.64% (2022: 19.00%)
439,296
270,266
Effect of capital allowances and depreciation
(38,838)
106,602
Movement in deferred tax provision
113,260
71,028
Taxation charge for the year
513,718
447,896
11
Dividends
2023
2022
£
£
Final paid
581,000
598,000
CARA RESTAURANTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
12
Intangible fixed assets
Goodwill
Franchise fees & SDLT
Total
£
£
£
Cost
At 1 January 2023 and 31 December 2023
5,225,199
553,909
5,779,108
Amortisation and impairment
At 1 January 2023
2,710,208
143,000
2,853,208
Amortisation charged for the year
185,076
19,500
204,576
At 31 December 2023
2,895,284
162,500
3,057,784
Carrying amount
At 31 December 2023
2,329,915
391,409
2,721,324
At 31 December 2022
2,514,991
410,909
2,925,900
13
Tangible fixed assets
Building improvements
Fixtures and fittings
Total
£
£
£
Cost
At 1 January 2023
1,282,295
14,138,173
15,420,468
Additions
420,907
1,297,717
1,718,624
At 31 December 2023
1,703,202
15,435,890
17,139,092
Depreciation and impairment
At 1 January 2023
885,256
9,394,281
10,279,537
Depreciation charged in the year
145,809
1,119,558
1,265,367
At 31 December 2023
1,031,065
10,513,839
11,544,904
Carrying amount
At 31 December 2023
672,137
4,922,051
5,594,188
At 31 December 2022
397,039
4,743,892
5,140,931
14
Fixed asset investments
2023
2022
£
£
Unlisted investments
17,500
17,500
CARA RESTAURANTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
15
Stocks
2023
2022
£
£
Stocks of food, paper and non-products
282,624
332,734
16
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
236,091
153,387
Other debtors
19,257
9,399
Prepayments and accrued income
241,118
233,171
496,466
395,957
17
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans
18
97,687
941,562
Trade creditors
3,207,924
2,062,326
Corporation tax
416,169
376,868
Other taxation and social security
1,716,870
2,307,258
Directors' loan account
1,821
1,673
Accruals and deferred income
1,081,196
1,154,430
6,521,667
6,844,117

The bank loans are unsecured and carry interest rates at between 1.2% and 1.4% over bank base rate.

18
Loans
2023
2022
£
£
Bank loans
97,687
941,562
Payable within one year
97,687
941,562
CARA RESTAURANTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
19
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
681,270
568,010
2023
Movements in the year:
£
Liability at 1 January 2023
568,010
Charge to profit or loss
113,260
Liability at 31 December 2023
681,270
20
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
251,594
196,704

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

21
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
100
100
100
100
CARA RESTAURANTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 28 -
22
Operating lease commitments
Lessee

 

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023
2022
£
£
Between two and five years
220,296
208,944
In over five years
22,821,304
27,547,408
23,041,600
27,756,352

The company's restaurant premises are leased from McDonalds Restaurants Limited on operating leases expiring after more than 5 years. it is not possible to quantify the commitments due under the leases because of the variable bases of the rental payments. Rent is calculated as a percentage of sales above base and therefore the operating lease commitment relates to base rent only. The directors estimate that the total rental payments over the whole lease term will be in the region of £23,041,600.

23
Ultimate controlling party

The company is controlled by Mr and Mrs W J Wright who own all the issued shares.

24
Directors' transactions
2023
Description
Opening balance
Amounts advanced
Closing balance
£
£
£
Mr & Mrs W J Wright
(1,673)
(148)
(1,821)
(1,673)
(148)
(1,821)
2022
Description
Opening balance
Amounts advanced
Closing balance
£
£
£
Mr & Mrs W J Wright
(1,500)
(173)
(1,673)
(1,500)
(173)
(1,673)
CARA RESTAURANTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
25
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
1,344,556
974,558
Adjustments for:
Taxation charged
513,718
447,896
Finance costs
44,864
50,541
Investment income
(8,428)
-
0
Amortisation and impairment of intangible assets
204,576
204,576
Depreciation and impairment of tangible fixed assets
1,265,367
1,287,464
Movements in working capital:
Decrease/(increase) in stocks
50,110
(74,275)
Increase in debtors
(100,509)
(90,674)
Increase in creditors
482,124
1,798,222
Cash generated from operations
3,796,378
4,598,308
26
Analysis of changes in net funds
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
5,688,455
255,286
5,943,741
Borrowings excluding overdrafts
(941,562)
843,875
(97,687)
4,746,893
1,099,161
5,846,054
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