Company registration number 08231786 (England and Wales)
THE STABLE BAR & RESTAURANTS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
THE STABLE BAR & RESTAURANTS LIMITED
COMPANY INFORMATION
Directors
T C Hall
E Blackmore
P J Bruton
S N Champ
Secretary
T C Hall
Company number
08231786
Registered office
34 Anyards Road
Cobham
Surrey
KT11 2LA
Auditor
Riches & Company
34 Anyards Road
Cobham
Surrey
KT11 2LA
THE STABLE BAR & RESTAURANTS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Directors' responsibilities statement
4
Independent auditor's report
5 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Notes to the financial statements
10 - 21
THE STABLE BAR & RESTAURANTS LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 1 -

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

Review of the business

During the period, revenue was £11,200,964 (period ended 01 January 2023: £11,567,37) while the profit before tax for the period was £500,573 (period ended 01 January 2023: £266,263).

 

The Company is a wholly owned subsidiary of The Stable Pizza & Cider Limited. The ultimate parent company is Sourdough South Limited ("Three Joes"), who retains the same board of directors as this Company.

 

The performance of the Group for the period ended 29 December 2023 was considered satisfactory considering the wider economic situation.

Principal risks and uncertainties

The following are the principal risks and uncertainties faced by the Company:

 

The Company's leasehold property is subject to potential impairment in valuation. Leasehold property is reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount might not be recoverable. During the period, the Company recognised no impairment was necessary (39 weeks to 29 December 2021: £nil).

 

The Company's working capital requirements are met principally out of cash generated from sales made in the bars and restaurants in which the Company operates, and from financing provided by Three Joes. The most significant risk remains to be that of the Coronavirus pandemic, the effect of which cannot yet be quantified.

 

Any extended period of economic uncertainty or stagnant growth in the United Kingdom could affect the Company if this results in lower disposable incomes for customers of the restaurants. In addition, the Directors see changing customer trends and an increased level of competition in the casual dining sector as risks to the Company. The Company addresses these risks by conducting thorough research of its chosen locations prior to opening, as well as providing a unique offer and experience in the marketplace in order to attract customers and encourage repeat custom.

On behalf of the board

P J Bruton
Director
25 September 2024
THE STABLE BAR & RESTAURANTS LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 2 -

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

Principal activities

The principal activity of the company continued to be that of the provision of bar and restaurant facilities.

Results and dividends

The profit before tax for the period was £566,024 (Period ended 01 January 2023: £266,263).

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

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

T C Hall
E Blackmore
P J Bruton
S N Champ
Qualifying third party indemnity provisions

The Company's Articles of Association provide the Directors with indemnities in relation to their duties as Directors, including qualifying third-party provisions (within the meaning of the Companies Acts). All of the Executive Directors' contracts contain a clause which states: "the Executive shall be indemnified out of the assets of the company against any liability incurred by him as a director or other officer of the company in defending any proceedings (whether civil or criminal) in which judgement is given in his favour or in which he is acquitted or in connection with any application under the Companies Acts in which relief from liability is granted to him by the court from liability for negligence, default, breach of duty or breach of trust he may be guilty of in relation to the affairs of the Company."

Disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Employee involvement

The company's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.

 

Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.

 

There is no employee share scheme at present, but the directors are considering the introduction of such a scheme as a means of further encouraging the involvement of employees in the company's performance.

Auditor

Riches & Company were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

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.

THE STABLE BAR & RESTAURANTS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 3 -
Going Concern Statement

The Company meets its day-to-day working capital requirements through its cash reserves and facilities available to Sourdough South Limited. As at 29 December 2023, the Company was in a net asset position.

 

The current economic conditions continue to create uncertainty, particularly over the levels of disposable incomes for customers of the restaurants. The Company's forecasts and projections, taking account of reasonably possible changes in trading performance, show that the company should be able to operate within the level of its current cash reserves and the level of facilities available to it and Sourdough South Limited, the new parent company.

 

After making enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis of accounting in preparing the financial statements.

On behalf of the board
P J Bruton
Director
25 September 2024
THE STABLE BAR & RESTAURANTS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 4 -

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

 

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

 

 

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.

THE STABLE BAR & RESTAURANTS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF THE STABLE BAR & RESTAURANTS LIMITED
- 5 -
Opinion

We have audited the financial statements of The Stable Bar & Restaurants Limited (the 'company') for the Period ended 31 December 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity 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:

THE STABLE BAR & RESTAURANTS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF THE STABLE BAR & RESTAURANTS LIMITED
- 6 -
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 directors' report.

 

We have nothing to report in respect of the following matters in relation to which 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, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor'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.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.

For and on behalf of Riches & Company
25 September 2024
Chartered Accountants
Statutory Auditor
34 Anyards Road
Cobham
Surrey
KT11 2LA
THE STABLE BAR & RESTAURANTS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 7 -
Period
Period
ended
ended
31 December
01 January
2023
2023
Notes
£
£
Turnover
3
11,200,964
11,567,357
Cost of sales
(4,584,371)
(4,971,792)
Gross profit
6,616,593
6,595,565
Administrative expenses
(6,084,674)
(6,305,159)
Operating profit
4
531,919
290,406
Interest payable and similar expenses
6
(47,707)
(24,143)
Profit before taxation
484,212
266,263
Tax on profit
7
(91,511)
(469,794)
Profit/(loss) for the financial Period
392,701
(203,531)

The profit and loss account has been prepared on the basis that all operations are continuing operations.

THE STABLE BAR & RESTAURANTS LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 8 -
31 December 2023
01 January 2023
Notes
£
£
£
£
Fixed assets
Tangible assets
8
3,449,590
3,663,199
Current assets
Stocks
9
138,316
135,248
Debtors
10
3,248,541
2,918,012
Cash at bank and in hand
1,220,379
804,947
4,607,236
3,858,207
Creditors: amounts falling due within one year
11
(2,323,352)
(2,187,680)
Net current assets
2,283,884
1,670,527
Total assets less current liabilities
5,733,474
5,333,726
Creditors: amounts falling due after more than one year
12
(172,942)
(257,407)
Provisions for liabilities
Deferred tax liability
14
449,630
358,118
(449,630)
(358,118)
Net assets
5,110,902
4,718,201
Capital and reserves
Called up share capital
16
100
100
Share premium account
299,954
299,954
Profit and loss reserves
4,810,848
4,418,147
Total equity
5,110,902
4,718,201
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:
P J Bruton
Director
Company Registration No. 08231786
THE STABLE BAR & RESTAURANTS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 9 -
Share capital
Share premium account
Profit and loss reserves
Total
£
£
£
£
Balance at 27 December 2021
100
299,954
4,621,678
4,921,732
Period ended 1 January 2023:
Loss and total comprehensive income for the period
-
-
(203,531)
(203,531)
Balance at 1 January 2023
100
299,954
4,418,147
4,718,201
Period ended 31 December 2023:
Profit and total comprehensive income for the period
-
-
392,701
392,701
Balance at 31 December 2023
100
299,954
4,810,848
5,110,902
THE STABLE BAR & RESTAURANTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 10 -
1
Accounting policies
Company information

The Stable Bar & Restaurants Limited is a private company limited by shares incorporated in England and Wales. The registered office is 34 Anyards Road, Cobham, Surrey, KT11 2LA.

1.1
Reporting period

The comparative reporting period was shortened to bring the reporting date in line with the new parent company. Therefore amounts in the financial statements are not directly comparable to the previous period.

1.2
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 have been prepared prepared under the historical cost convention. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of Sourdough South Limited. These consolidated financial statements are available from its registered office, 34 Anyards Road, Cobham, Surrey, KT11 2LA.

1.3
Going concern

The Company meets its day-to-day working capital requirements through its cash reserves and facilities available to the Three Joes Group. As at 26 December 2021, the Company was in a net asset position of £4,921,732.

 

The current economic conditions continue to create uncertainty, particularly over the levels of disposable incomes for customers of the restaurants. The Company's forecasts and projections, taking account of reasonably possible changes in trading performance, show that the Company should be able to operate within the level of its current cash reserves and the level of facilities available to it and Sourdough South Limited, the new parent company.

 

After making enquiries, the directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. The Company therefore continues to adopt the going concern basis of accounting in preparing the financial statements.

THE STABLE BAR & RESTAURANTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 11 -
1.4
Turnover

Revenue is recognised upon application of the following steps:

 

 

The Company's revenue consists of food and drink sales. Revenue is recognised when control of the goods/services had transferred, being the point at which the customer purchases the food or drink. Payment of the transaction is due immediately at the point the customer purchases the goods.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), 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.

1.5
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. Historical cost includes expenditure that is directly attributable to the acquisition of the items. Subsequent costs are included on the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the items will flow to the Company and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognised. All other repairs and maintenance are charged to the income statement during the financial period in which they are incurred.

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:

Leasehold land and buildings
Shorter of useful economic life or lease term
Plant and equipment
3-10 years
1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible 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.

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.

THE STABLE BAR & RESTAURANTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -

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.

1.7
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.8
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.

1.9
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 balance sheet 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.

THE STABLE BAR & RESTAURANTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
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.

THE STABLE BAR & RESTAURANTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
Derecognition of financial liabilities

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

1.10
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.

1.11
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 profit and loss account 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 profit and loss account, 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.

1.12
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.

1.13
Retirement benefits

The Company operates a defined contribution pension plan. Under the defined contribution pension plan, the Company pays contributions to publicly or privately administered pension insurance plans on a mandatory, contractual or voluntary basis. The Company has no further payment obligations once the contributions have been paid. Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in the future payments is available.

1.14
Leases
THE STABLE BAR & RESTAURANTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -

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.

1.15
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

1.16

Exceptional items

Exceptional items are transactions that due to their nature or unexpected frequency of events giving rise to them, merit separate presentation to allow shareholders to understand better the elements of financial performance in the period, so as to facilitate comparison with prior periods and better assess trends in financial performance.

THE STABLE BAR & RESTAURANTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 16 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Useful economic lives of tangible fixed assets

The annual depreciation charge for tangible fixed assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 9 for the carrying amount of the tangible fixed assets, and note 1.4 for the useful economic lives for each class of assets.

Impairment of tangible fixed assets

The Company reviews for impairment all tangible fixed assets at cash-generating unit level where there is an indication of impairment. This requires an estimation of the value in use and involves estimation of future cash flows and choosing a suitable discount rate.

Exceptional items

Judgement is used to determine those items that are deemed to be exceptional in nature and that should be separately disclosed to allow a better understanding of the under lying trading performance of the Company. The judgement includes assessment of whether an item is of a nature that is not consistent with normal trading activities or of sufficient size or infrequency.

Provision for income taxes

Judgement is required when determining the provision for taxes as the tax treatment for some transactions cannot be fully determined until a formal resolution has been reached with the tax authorities. Tax benefits are not recognised unless it is probable that the benefit will be obtained. Tax provisions are made if it is possible that a liability will arise.

3
Turnover

All of the Company's revenue if derived from the provision of bar and restaurant facilities in the United Kingdom.

31 Dec 2023
2023
£
£
Turnover analysed by class of business
Food and drink sales
11,200,964
11,567,357
THE STABLE BAR & RESTAURANTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 17 -
4
Operating profit
31 Dec 2023
2023
Operating profit for the period is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
-
0
-
0
Depreciation of owned tangible fixed assets
557,810
576,581
(Profit)/loss on disposal of tangible fixed assets
-
429,795
Operating lease charges
939,129
898,490
5
Employees

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

31 Dec 2023
2023
Number
Number
Administration and management
5
27
Restaurant staff and chefs
247
266
Total
252
293

Their aggregate remuneration comprised:

31 Dec 2023
2023
£
£
Wages and salaries
3,604,680
3,904,870
Social security costs
246,609
276,555
Pension costs
51,893
54,077
3,903,182
4,235,502
6
Interest payable and similar expenses
31 Dec 2023
2023
£
£
Interest on bank overdrafts and loans
47,707
22,928
Other interest
-
0
1,215
47,707
24,143
7
Taxation
31 Dec 2023
2023
£
£
Deferred tax
Origination and reversal of timing differences
91,511
469,794
THE STABLE BAR & RESTAURANTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
7
Taxation
(Continued)
- 18 -

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

31 Dec 2023
2023
£
£
Profit before taxation
484,212
266,263
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
121,053
50,590
Tax effect of expenses that are not deductible in determining taxable profit
143,757
192,685
Group relief
(150,635)
(10,832)
Permanent capital allowances in excess of depreciation
(114,175)
(232,443)
Deferred tax movement
91,511
469,794
Taxation charge for the period
91,511
469,794
8
Tangible fixed assets
Leasehold land and buildings
Plant and equipment
Total
£
£
£
Cost
At 2 January 2023
5,174,896
5,210,578
10,385,474
Additions
161,003
183,198
344,201
At 31 December 2023
5,335,899
5,393,776
10,729,675
Depreciation and impairment
At 2 January 2023
2,029,376
4,692,899
6,722,275
Depreciation charged in the Period
353,459
204,351
557,810
At 31 December 2023
2,382,835
4,897,250
7,280,085
Carrying amount
At 31 December 2023
2,953,064
496,526
3,449,590
At 1 January 2023
3,145,520
517,679
3,663,199
9
Stocks
31 Dec 2023
2023
£
£
Finished goods and goods for resale
138,316
135,248
THE STABLE BAR & RESTAURANTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 19 -
10
Debtors
31 Dec 2023
2023
Amounts falling due within one year:
£
£
Trade debtors
36,697
31,650
Amounts owed by group undertakings
2,677,169
2,451,704
Other debtors
125,544
74,156
Prepayments and accrued income
409,131
360,502
3,248,541
2,918,012
11
Creditors: amounts falling due within one year
31 Dec 2023
2023
Notes
£
£
Bank loans
13
244,634
166,667
Trade creditors
861,082
537,072
Taxation and social security
528,186
1,123,321
Other creditors
107,514
91,348
Accruals and deferred income
581,936
269,272
2,323,352
2,187,680
12
Creditors: amounts falling due after more than one year
31 Dec 2023
2023
Notes
£
£
Bank loans and overdrafts
13
154,908
257,407
Other creditors
18,034
-
0
172,942
257,407
13
Loans and overdrafts
31 Dec 2023
2023
£
£
Bank loans
399,542
424,074
Payable within one year
244,634
166,667
Payable after one year
154,908
257,407

The long-term loans are secured by fixed charges over the assets of the Company.

The repayments have been but on hold for a year after a quarterly payment had been made in March 2023 for this loan. The quarterly repayments will restart from June 2024 with quarterly repayments increasing to £56,260 from £41,667. Interest is charged separately with a margin of 7.92%. The final repayment repayment date is 4 years after the date of the first drawdown.

THE STABLE BAR & RESTAURANTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 20 -
14
Deferred taxation

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

Liabilities
Liabilities
31 Dec 2023
2023
Balances:
£
£
ACAs
618,809
499,063
Tax losses
(169,179)
(140,945)
449,630
358,118
31 Dec 2023
Movements in the Period:
£
Liability at 2 January 2023
358,118
Charge to profit or loss
17,388
Effect of change in tax rate - profit or loss
74,124
Liability at 31 December 2023
449,630

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

15
Retirement benefit schemes
31 Dec 2023
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
38,600
54,077

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.

16
Share capital
31 Dec 2023
2023
31 Dec 2023
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100

Each ordinary share carries one vote in any circumstances, is entitled pari passu to dividend payments or any other distribution, and is entitled pari passu to participate in a distribution arising from a winding up of the Company.

THE STABLE BAR & RESTAURANTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 21 -
17
Operating lease commitments
Lessee

Operating lease payments represent rentals payable by the company for a number of its restaurant premises.

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:

31 Dec 2023
2023
£
£
Within one year
1,023,695
848,191
Between two and five years
3,071,085
2,544,572
In over five years
7,705,473
6,605,169
11,800,253
9,997,932
THE STABLE BAR & RESTAURANTS LIMITED
DETAILED TRADING AND PROFIT AND LOSS ACCOUNT
FOR THE PERIOD ENDED 31 DECEMBER 2023
Period
Period
ended
ended
31 December
01 January
2023
2023
£
£
£
£
Turnover
Sales of goods
11,192,242
11,560,159
Sales of services
8,722
7,198
11,200,964
11,567,357
Cost of sales
Purchases and other direct costs
Direct costs
2,880,639
3,070,540
Wages and salaries
1,504,712
1,643,210
Social security costs
95,751
112,810
Staff pension costs defined contribution
21,950
25,167
Commissions payable
81,319
120,065
Total purchases and other direct costs
4,584,371
4,971,792
Total cost of sales
(4,584,371)
(4,971,792)
Gross profit
6,616,593
6,595,565
THE STABLE BAR & RESTAURANTS LIMITED
DETAILED TRADING AND PROFIT AND LOSS ACCOUNT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
Period
Period
ended
ended
31 December
01 January
2023
2023
£
£
£
£
Administrative expenses
Wages and salaries
2,099,968
2,261,660
Social security costs
150,858
163,745
Subcontract labour
83,003
53,945
Staff recruitment costs
13,778
42,686
Staff welfare
13,110
21,867
Staff training
1,005
2,007
Staff pension costs defined contribution
29,943
28,910
Management charge
15,091
11,770
Rent re operating leases
939,129
898,490
Service charge payable
57,658
63,788
Rates
302,559
163,943
Cleaning
91,306
121,395
Waste disposal
60,239
53,426
Power, light and heat
493,527
316,194
Property repairs and maintenance
41,662
19,695
Equipment repairs
93,948
100,207
Hire of equipment (not operating lease)
5,175
7,502
Travelling expenses
79,894
122,384
Postage, courier and delivery charges
257
270
Legal and professional fees
21,269
37,516
Consultancy fees
36,842
54,165
Accountancy
164,394
146,578
Charitable donations
1,836
1,000
Bank charges
14,848
10,946
Credit card charges
127,883
83,761
Insurance
56,295
54,140
Music and TV
56,005
64,459
Advertising
167,123
71,819
Telecommunications
130,271
117,813
Entertaining
856
-
Sundry expenses
17,100
12,039
Kitchen consumables
160,032
190,663
Depreciation
557,810
576,581
Profit or loss on sale of tangible assets (non exceptional)
-
429,795
(6,084,674)
(6,305,159)
Operating profit
531,919
290,406
Interest payable and similar expenses
Bank interest on loans and overdrafts
47,707
22,928
Interest on overdue taxation - not financial liabilities
-
1,215
(47,707)
(24,143)
THE STABLE BAR & RESTAURANTS LIMITED
DETAILED TRADING AND PROFIT AND LOSS ACCOUNT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
Period
Period
ended
ended
31 December
01 January
2023
2023
£
£
£
£
Profit before taxation
484,212
266,263
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