Company registration number 03745273 (England and Wales)
VAULKHARD GROUP LIMITED
ANNUAL REPORT AND GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
VAULKHARD GROUP LIMITED
COMPANY INFORMATION
Directors
H Vaulkhard
O Vaulkhard
S B Cook
C A Bell
(Appointed 31 January 2024)
Company number
03745273
Registered office
Bealim House
17 - 25 Gallowgate
Newcastle upon Tyne
NE1 4SG
Auditor
Sumer Auditco Limited
Unit 2
Gosforth Park Avenue
Newcastle upon Tyne
NE12 8EG
Bankers
HSBC Bank Plc
110 Grey Street
Newcastle upon Tyne
NE1 6JG
VAULKHARD GROUP LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 6
Independent auditor's report
7 - 9
Income statement
10
Group statement of comprehensive income
11
Group statement of financial position
12
Company statement of financial position
13
Group statement of changes in equity
14
Company statement of changes in equity
15
Group statement of cash flows
16
Notes to the financial statements
17 - 38
VAULKHARD GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

Principal activity and review of the business

The principal activities of the Group during the period continued to be that of:

The reporting period represents trading for the 12 months to 31 December 2023. The prior reporting period was for the 15 month period to 31 December 2022.

The challenges within the sector have been widely documented and despite this challenging trading environment the Group recorded turnover of £15.9m (2022 - £18.8m) and positive EBITDA of £1.1m (2022 - £1.4m). When taking into account the seasonality of the prior 15m period, the directors believe that this performance is an improvement on the EBITDA generated for the 15m period to December 2022.

In recent years, Group performance has been dominated by challenges ranging from COVID-19 to more recently cost of living problems and energy cost crisis. It is therefore pleasing to note that as we look to the future, there is genuine hope that these are a thing of the past and that we can continue to focus on customer experience.

During the year, the Group has continued with its strategy to acquire freehold trading sites and has purchased the freeholds of two of its trading sites in Newcastle City Centre.

At the balance sheet date, net assets had increased to £18.1m compared to £15.3m at the end of the previous period representing an increase of 18%

The Group's leasehold values are revalued annually by the directors, taking into account each site’s fair maintainable trade. This revaluation exercise has resulted in a revaluation gain of £1.5m, as seen in the Group Income Statement and a significant £1.6m revaluation gain as seen in the Group Statement of Comprehensive Income. This is an overall gain of approximately £3.1m which is a testament to the hard work of the Board who continued to add value to the portfolio during this challenging trading period.

During the year, the Group continued to reposition its trading portfolio with the disposal of two late night, leasehold venues. Since the year end the Group has also disposed of a predominately late night freehold venue. Also post year end the Group has acquired the freehold of a trading venue within Newcastle City Centre and also acquired a significant events space venue within Newcastle City Centre.

These acquisitions and disposals are in line with the Board's long-term strategic objectives to reposition the Group away from late-night young people venues.

As we approach the final quarter of FY24, the Board believes that the Group is well placed to overcome the challenging market conditions and the well documented inflationary pressures, including high utility costs, wage inflation and an overall increase in costs, The positive changes made by the directors during the period of the Pandemic and beyond can now be seen to be taking effect and gives the board confidence as we look toward 2025 and beyond.

Financial key performance indicators

The Group is controlled on a day to day basis by an operational management team, based predominantly at the Group’s head office.

 

Forecasts and rotas are prepared and reviewed with sufficient regularity to monitor site by site performance of the leisure estate.

 

Regular price review meetings with suppliers, together with the preparation and analysis of monthly management accounts, enables the Group to proactively manage its gross margin.

 

The Group’s assets, liabilities and liquidity position are reviewed in regular finance meetings.

VAULKHARD GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Principal risks and uncertainties

Like all businesses, the Group faces a number of operating risks and uncertainties which could impact performance and long term goals.

The most fundamental risks and uncertainties faced by the Group are summarised below.

Loss of licences

If the Group fails to comply with current licensing regulations, regulatory action could include the revocation of the licence to operate. However the Group ensures managers and supervisors are fully conversant with licensing legislation to mitigate risk.

Health and safety

Health and safety regulations are taken very seriously by the Group and the risk of non-compliance is minimised through regular training and monitoring of policies and procedures to maintain standards. Sufficient public and employer’s liability insurance cover is taken in order to minimise any financial impact.

Economic climate

As the economy bounces back following the Pandemic, the directors regularly assess the likely effects on Group revenue and profitability in an attempt to mitigate any risk as far as practicable.

 

Continual increases in minimum wage and pension contributions as well as inflationary cost pressures across the board will inevitably increase our cost base. Regular review of prices, costs and staffing levels helps to ensure these do not negatively impact on profitability.

 

Interest rate risk

 

At the balance sheet date, the Group had bank borrowings of £10.7m (2022 - £6.7m) which bear interest at a margin above Bank of England base rate.

 

The Group is therefore exposed to increases in the base rate. In the opinion of the directors, these increases are not expected to have a material impact on the equity of the business.

VAULKHARD GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
s172(1) statement

A director of a Company must act in the way he or she considers, in good faith, would most likely promote the success of the Company for the benefit of its members as a whole, and in doing so have regard (amongst other matters), to:

 

 

In discharging their Section 172 duties, the directors of the Group consider that they have had regard in material respects to the factors set out above.

 

The key stakeholders of the Group are our customer base, suppliers, landlords, its employees, our bankers, as well as the Group’s shareholders.

 

The Group delegates authority for day-to-day management to the operational management team, who along with the directors approve and oversee the execution of the Group’s activities. Board meetings are held periodically where the directors consider Group business, such as financing requirements, capital expenditure and operational challenges. The Group follows policies and procedures, including those relating to standards of business conduct, employees, the environment, the community, and other stakeholders.

 

In considering items of business, the Group makes autonomous decisions on each transaction’s own merits, after due consideration of the long-term success of the Group, Section 172 factors, where relevant, and the stakeholders impacted.

 

On behalf of the board

O Vaulkhard
Director
25 September 2024
VAULKHARD GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

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 10.

Ordinary dividends were paid amounting to £361,100. 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:

H Vaulkhard
O Vaulkhard
S B Cook
C A Bell
(Appointed 31 January 2024)
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 Group continues and that the appropriate training is arranged. It is the policy of the Group 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 Group's policy is to consult and discuss with employees 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 Group'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 Group's performance.

Auditor

In accordance with the company's articles, a resolution proposing that Sumer Auditco Limited be reappointed as auditor of the group will be put at a General Meeting.

Energy and carbon report

The SECR disclosure presents our carbon footprint within the United Kingdom, an appropriate intensity metric, the total energy used of electricity and gas, along with an efficiency actions summary taken during the relevant financial year.

 

During the period, the Group made use of 4 vehicles which are included within fixed assets, to oversee the maintenance requirements of the Group. These operated within the North East of England, and as such, are deemed to not have a material impact on the ratio calculated below.

VAULKHARD GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
Year to  31 December 2023
Period to 25 December 2022
Energy consumption used to calculate emissions (kWh)
3,751,285
4,665,274
Emissions from combustion of gas (tCO2e)
284.1
352.8
Emissions from purchased electricity, location-based (tCO2e)
455.2
528.4
Total gross tCO2e based on above
739.3
881.2
Turnover excluding rental income (see note 3)
£15.5m
£18.0m
Intensity ratio (tCO2e/turnover £m)
47.7
49.0
*where tCO2e is the metric tonne of Carbon Dioxide equivalent
Quantification and reporting methodology

The SECR report has been prepared in line with the Greenhouse Gas (GHG) Protocol Corporate Accounting and Reporting Standard.

Measures taken to improve energy efficiency

Vaulkhard Group continues to achieve direct savings in energy and associated carbon emissions, through operational and technological improvements, including:

 

Statement of directors' responsibilities

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 group and company, and of the profit or loss of the group 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 group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

VAULKHARD GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
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 auditor of the company 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 auditor of the company is aware of that information.

On behalf of the board
O Vaulkhard
Director
25 September 2024
VAULKHARD GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF VAULKHARD GROUP LIMITED
- 7 -
Opinion

We have audited the financial statements of Vaulkhard Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group income statement, the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, the group statement of changes in equity, the company statement of changes in equity, the group 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 group and parent 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 group's and parent 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:

VAULKHARD GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF VAULKHARD GROUP LIMITED
- 8 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their 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 parent 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 parent 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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

VAULKHARD GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF VAULKHARD GROUP LIMITED
- 9 -
Capability of the audit in detecting irregularities, including fraud

Discussions with and enquiries of management and those charged with governance were held with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity.

 

The following laws and regulations were identified as being of significance to the entity:

 

 

 

Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: inquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal costs incurred; testing the appropriateness of journal entries; and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud.

 

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

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 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.

Paul Gainford (Senior Statutory Auditor)
For and on behalf of Sumer Auditco Limited
Statutory Auditor
Unit 2
Gosforth Park Avenue
Newcastle upon Tyne
NE12 8EG
26 September 2024
VAULKHARD GROUP LIMITED
GROUP INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
Year
Period
ended
ended
31 December 2023
25 December 2022
Notes
£
£
Turnover
3
15,886,891
18,824,880
Cost of sales
(9,603,342)
(11,174,765)
Gross profit
6,283,549
7,650,115
____________________________________________________________________________________________
Depreciation and gain/loss on disposal of tangible fixed assets
(223,485)
(201,126)
Administrative expenses excluding depreciation
(5,181,724)
(6,261,621)
Other operating income
26,990
-
EBITDA
1,128,815
1,388,494
____________________________________________________________________________________________
Administrative expenses
(5,405,209)
(6,462,747)
Other operating income
26,990
-
Operating profit
5
905,330
1,187,368
Interest receivable and similar income
1,913
6,156
Interest payable and similar expenses
8
(730,517)
(389,250)
Other gains and losses
9
1,549,033
(544,813)
Profit before taxation
1,725,759
259,461
Tax on profit
11
(115,460)
(154,932)
Profit for the financial year
1,610,299
104,529
Profit for the financial year is all attributable to the owners of the parent company.
VAULKHARD GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
Year
Period
ended
ended
31 December
25 December
2023
2022
£
£
Profit for the year
1,610,299
104,529
Other comprehensive income
Revaluation of tangible fixed assets
1,577,869
1,654,375
Total comprehensive income for the year
3,188,168
1,758,904
Total comprehensive income for the year is all attributable to the owners of the parent company.
VAULKHARD GROUP LIMITED
GROUP STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2023
31 December 2023
- 12 -
31 December 2023
25 December 2022
Notes
£
£
£
£
Fixed assets
Tangible assets
13
32,523,134
25,164,524
Investment property
12
2,871,406
3,070,406
Investments
14
9,000
9,000
35,403,540
28,243,930
Current assets
Stocks
16
302,281
304,090
Debtors falling due after more than one year
17
162,821
219,406
Debtors falling due within one year
17
1,538,209
1,480,584
Cash at bank and in hand
1,065,367
781,545
3,068,678
2,785,625
Creditors: amounts falling due within one year
18
(5,101,263)
(4,855,917)
Net current liabilities
(2,032,585)
(2,070,292)
Total assets less current liabilities
33,370,955
26,173,638
Creditors: amounts falling due after more than one year
19
(11,815,895)
(8,087,063)
Provisions for liabilities
Deferred tax liability
23
3,479,013
2,837,596
(3,479,013)
(2,837,596)
Net assets
18,076,047
15,248,979
Capital and reserves
Called up share capital
24
184
184
Share premium account
3,599,800
3,599,800
Revaluation reserve
7,860,745
6,282,876
Other reserves
25
750,018
750,018
Profit and loss reserves
5,865,300
4,616,101
Total equity
18,076,047
15,248,979
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:
O Vaulkhard
Director
Company registration number 03745273 (England and Wales)
VAULKHARD GROUP LIMITED
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2023
31 December 2023
- 13 -
31 December 2023
25 December 2022
Notes
£
£
£
£
Fixed assets
Tangible assets
13
216,589
223,537
Investment property
12
16,630,000
9,455,000
Investments
14
3,854,955
3,854,955
20,701,544
13,533,492
Current assets
Debtors falling due after more than one year
17
5,915,769
5,985,505
Debtors falling due within one year
17
402,543
392,699
Cash at bank and in hand
8,520
-
0
6,326,832
6,378,204
Creditors: amounts falling due within one year
18
(3,996,989)
(2,400,368)
Net current assets
2,329,843
3,977,836
Total assets less current liabilities
23,031,387
17,511,328
Creditors: amounts falling due after more than one year
19
(10,851,413)
(7,840,433)
Provisions for liabilities
Deferred tax liability
23
41,796
39,274
(41,796)
(39,274)
Net assets
12,138,178
9,631,621
Capital and reserves
Called up share capital
24
184
184
Share premium account
3,599,800
3,599,800
Other reserves
20
20
Profit and loss reserves
8,538,174
6,031,617
Total equity
12,138,178
9,631,621

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £2,867,657 (25 December 2022 - £572,980 profit).

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:
O Vaulkhard
Director
Company registration number 03745273 (England and Wales)
VAULKHARD GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
Share capital
Share premium account
Revaluation reserve
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
£
£
Balance at 1 October 2021
184
3,599,800
4,628,501
750,018
4,908,072
13,886,575
Period ended 25 December 2022:
Profit/(Loss) for the period
-
-
-
-
104,529
104,529
Other comprehensive income:
Revaluation of tangible fixed assets
-
-
1,654,375
-
-
1,654,375
Total comprehensive income
-
-
1,654,375
-
104,529
1,758,904
Dividends
10
-
-
-
-
(396,500)
(396,500)
Balance at 25 December 2022
184
3,599,800
6,282,876
750,018
4,616,101
15,248,979
Year ended 31 December 2023:
Profit/(Loss) for the year
-
-
-
-
1,610,299
1,610,299
Other comprehensive income:
Revaluation of tangible fixed assets
-
-
1,577,869
-
-
1,577,869
Total comprehensive income for the period
-
-
1,577,869
-
1,610,299
3,188,168
Dividends
10
-
-
-
-
(361,100)
(361,100)
Balance at 31 December 2023
184
3,599,800
7,860,745
750,018
5,865,300
18,076,047
VAULKHARD GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
Share capital
Share premium account
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 October 2021
184
3,599,800
20
5,855,137
9,455,141
Period ended 25 December 2022:
Profit and total comprehensive income for the period
-
-
-
572,980
572,980
Dividends
10
-
-
-
(396,500)
(396,500)
Balance at 25 December 2022
184
3,599,800
20
6,031,617
9,631,621
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
-
-
2,867,657
2,867,657
Dividends
10
-
-
-
(361,100)
(361,100)
Balance at 31 December 2023
184
3,599,800
20
8,538,174
12,138,178
VAULKHARD GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
31 December 2023
25 December 2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
30
1,136,386
1,956,482
Interest paid
(730,517)
(389,250)
Income taxes paid
(95,709)
(104,889)
Net cash inflow from operating activities
310,160
1,462,343
Investing activities
Purchase of tangible fixed assets
(4,035,853)
(581,791)
Proceeds on disposal of tangible fixed assets
85,592
155,108
Proceeds on disposal of investment property
295,000
-
Movement on other investments and loans
78,365
(75,607)
Interest received
1,913
6,156
Net cash used in investing activities
(3,574,983)
(496,134)
Financing activities
Repayment of borrowings
(1,450,000)
(53,000)
Movement on deferred lease incentives
960,398
22,327
Proceeds of new bank loans
4,150,000
-
Repayment of bank loans
(151,663)
(362,820)
Payment of finance leases obligations
(122,597)
(113,136)
Dividends paid to equity shareholders
(361,100)
(396,500)
Net cash generated from/(used in) financing activities
3,025,038
(903,129)
Net (decrease)/increase in cash and cash equivalents
(239,785)
63,080
Cash and cash equivalents at beginning of year
781,545
718,465
Cash and cash equivalents at end of year
541,760
781,545
Relating to:
Cash at bank and in hand
1,065,367
781,545
Bank overdrafts included in creditors payable within one year
(523,607)
-
VAULKHARD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
1
Accounting policies
Company information

Vaulkhard Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Bealim House, 17 - 25 Gallowgate, Newcastle upon Tyne, NE1 4SG.

 

The group consists of Vaulkhard Group Limited and all of its subsidiaries.

1.1
Reporting period

The prior reporting period was extended to 25 December 2022 for commercial reasons. The prior period presents the financial statements of the group for 15 months ended 25 December 2022 and as such the prior period financial statements (including the related notes) are not entirely comparable to the current year ended 31 December 2023.

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 under the historical cost convention, modified to include the revaluation of freehold and short-term leasehold properties and to include investment properties at fair value. The principal accounting policies adopted are set out below.

Vaulkhard Group Limited, as an individual entity, meets the definition of a qualifying entity per FRS 102 and has taken advantage of the exemption available in paragraph 1.12 of FRS 102 from presenting a company-only statement of cash flows. These consolidated financial statements include a consolidated statement of cash flows which include the cash flows of Vaulkhard Group Limited.

 

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £2,489,462 (2022 - £572,980).

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Vaulkhard Group Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.

VAULKHARD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

Rental income receivable under operating leases is accrued on a straight line basis over the lease term.

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

1.6
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

1.7
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:

Freehold property
No depreciation charged
Short-term leasehold property
No depreciation charged
Plant and equipment
5 - 25% straight line
Fixtures and fittings
10 - 25% straight line
Office equipment
25% straight line
Motor vehicles
25% straight line

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 recognised in the income statement.

Properties whose fair value can be measured reliably are held under the revaluation model and are carried at a revalued amount, being their fair value at the date of valuation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The fair value of the land and buildings is usually considered to be their market value.

 

Revaluation gains and losses are recognised in other comprehensive income and accumulated in equity, except to the extent that a revaluation gain reverses a revaluation loss previously recognised in profit or loss or a revaluation loss exceeds the accumulated revaluation gains recognised in equity; such gains and loss are recognised in profit or loss.

No depreciation is charged on freehold and leasehold properties because the expected residual value is not materially less than the carrying value.

1.8
Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

 

Property rented to a group entity is accounted for as tangible fixed assets in the consolidated balance sheet.

VAULKHARD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
1.9
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.10
Impairment of fixed assets

At each reporting period end date, the group 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).

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 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 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.

1.11
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis.

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.

1.12
Financial instruments

The group 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 group's statement of financial position when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

VAULKHARD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
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 group 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 group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, and loans from fellow group companies, 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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.13
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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

VAULKHARD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 21 -
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 if, and only if, there is 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.

1.14
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, if considered material to the financial statements.

 

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.

1.15
Retirement benefits

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

1.16
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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 leased asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

VAULKHARD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

Assessing indicators of impairment

In assessing whether there have been any indicators of impairment in assets, the directors have considered both external and internal sources of information such as market conditions and experience of recoverability. There have been no indicators of impairments identified during the current financial year.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Determining residual values and useful economic lives of fixed assets

The company depreciates tangible fixed assets over their estimated useful lives. The estimation of the useful lives of assets is based on historic performance as well as expectations about future use and therefore requires estimates and assumptions to be applied by management.

 

Judgement is applied by management when determining the residual values of tangible fixed assets. When determining the residual value management aim to assess the amount that the company would currently obtain for the disposal of the asset, if it were already of the condition expected at the end of its useful economic life.

 

The carrying amount of tangible fixed assets, excluding freehold and leasehold property at the reporting date was £818,115 (2022 - £913,575).

Vaulation of property

Individual freehold and short-term leasehold properties are carried at revaluation less any subsequent accumulated depreciation (reflecting clear consumption of economic benefits) and subsequent accumulated impairment losses. Fair values are determined from market based evidence such as lease terms and future market conditions.

 

The fair value of group freehold and short-term leasehold properties as at the reporting date was £31,705,019 (2022 - £24,250,949).

 

Investment property is carried at fair value determined annually and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Valuations are undertaken by a professionally qualified valuer with sufficient regularity to ensure the carrying amount does not differ materially from fair value at the balance sheet date.

 

The fair value of group investment property as at the reporting date was £2,871,406 (2022 - £3,070,406).

VAULKHARD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
3
Turnover
2023
2022
£
£
Turnover analysed by class of business
Wet sales
11,415,655
13,719,204
Food sales
3,200,714
3,502,359
Other income
645,317
326,773
Coffee shop outlets
23,855
189,259
Sales from gin distillery
223,713
292,905
Rental income
377,637
794,380
15,886,891
18,824,880

Turnover has arisen wholly within the United Kingdom.

4
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company's subsidiaries
22,625
22,625
For other services
Taxation compliance services
2,375
2,375
5
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Depreciation of owned tangible fixed assets
211,290
188,754
Depreciation of tangible fixed assets held under finance leases
-
58,931
Loss/(profit) on disposal of tangible fixed assets
12,195
(46,559)
Operating lease charges
919,147
1,615,654
VAULKHARD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
6
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Hospitality staff
311
334
-
-
Coffee shop staff
-
11
-
-
Administration
16
15
3
3
Total
327
360
3
3

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
4,717,083
5,555,845
114,854
139,716
Social security costs
316,131
354,059
11,507
15,266
Pension costs
118,728
145,984
678
-
0
5,151,942
6,055,888
127,039
154,982
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
107,096
135,201
Company pension contributions to defined contribution schemes
39,191
58,140
146,287
193,341
8
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
672,136
287,422
Other interest on financial liabilities
17,764
87,171
Interest on finance leases and hire purchase contracts
19,042
14,657
Interest on overdue taxation
21,575
-
Total finance costs
730,517
389,250
VAULKHARD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
9
Other gains and losses
2023
2022
£
£
Fair value gains/(losses) on financial instruments
Revaluation of tangbile fixed assets
1,374,736
(745,885)
Other gains/(losses)
Changes in the fair value of investment properties
96,000
225,000
Amounts written back to/(written off) non-current loans
78,297
(23,928)
1,549,033
(544,813)
10
Dividends
2023
2022
£
£
Dividends paid on equity share capital
361,100
396,500
11
Taxation
2023
2022
£
£
Current tax
Adjustments in respect of prior periods
-
0
274
Deferred tax
Origination and reversal of timing differences
115,460
154,658
Total tax charge
115,460
154,932

The Group has an estimated non-trade loan relationship deficit of £409,441 (2022 - £182,032) carried forward. The Group also has estimated capital losses of £1,458,279 (2022 - £1,401,983) carried forward.

 

The main rate of corporation tax increased to 25% from 1 April 2023 under the Finance Bill 2021. Deferred tax has been provided at the rates expected to be in place when the timing differences reverse. A marginal rate of 23.45% has been used for the year to 31 December 2023 when assessing the corporation tax charge as below.

VAULKHARD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
11
Taxation
(Continued)
- 26 -

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
1,725,759
259,461
Expected tax charge based on the standard rate of corporation tax in the UK of 23.45% (25 December 2022: 19.00%)
404,690
49,298
Tax effect of expenses that are not deductible in determining taxable profit
288,793
146,796
Tax effect of income not taxable in determining taxable profit
(629,732)
(200,344)
Adjustments in respect of prior years
24,402
(5,930)
Effect of change in corporation tax rate
4,962
24,320
Group relief
-
0
16,570
Other
22,345
124,222
Taxation charge
115,460
154,932
12
Investment property
Group
Company
2023
2023
£
£
Fair value
At 26 December 2022
3,070,406
9,455,000
Additions through external acquisition
-
2,589,283
Disposals
(295,000)
-
Transfers from subsidiary
-
1,900,000
Net gains or losses through fair value adjustments
96,000
2,685,717
At 31 December 2023
2,871,406
16,630,000

The Group owns a number of investment properties. The properties were professionally valued as at May 2022 by Knight Frank LLP, independent Chartered Surveyors, on a market value basis. Where applicable properties have been revalued to reflect post balance sheet sales values.

 

In the opinion of the directors the carrying amount of investment property does not differ materially from that which would be determined using fair value at the balance sheet date.

If investment properties were stated on an historical cost basis rather than a fair value basis, the amounts would have been included as follows:
Group
Company
2023
2022
2023
2022
£
£
£
£
Carrying amount
4,360,343
4,710,343
19,352,907
14,863,624
VAULKHARD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
12
Investment property
(Continued)
- 27 -

The carrying value of land and buildings comprises:

Group
Company
2023
2022
2023
2022
£
£
£
£
Freehold
2,711,000
2,615,000
12,675,000
8,300,000
Long leasehold
160,406
455,406
3,955,000
1,155,000
2,871,406
3,070,406
16,630,000
9,455,000
VAULKHARD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 28 -
13
Tangible fixed assets
Group
Freehold property
Short-term leasehold property
Plant and equipment
Fixtures and fittings
Office equipment
Motor vehicles
Total
£
£
£
£
£
£
£
Cost or valuation
At 26 December 2022
10,310,876
13,940,073
38,768
1,053,104
33,847
280,715
25,657,383
Additions
2,589,283
1,357,333
-
0
86,918
2,318
153,273
4,189,125
Disposals
-
0
(1,304)
-
0
(64,928)
-
0
(147,098)
(213,330)
Revaluation
2,589,717
888,845
-
0
-
0
-
0
-
0
3,478,562
Transfers
40,176
(9,980)
-
0
(30,196)
-
0
-
0
-
0
At 31 December 2023
15,530,052
16,174,967
38,768
1,044,898
36,165
286,890
33,111,740
Depreciation and impairment
At 26 December 2022
-
0
-
0
13,207
390,643
29,845
59,164
492,859
Depreciation charged in the year
-
0
-
0
2,790
130,515
1,642
76,343
211,290
Eliminated in respect of disposals
-
0
-
0
-
0
(51,188)
-
0
(64,355)
(115,543)
At 31 December 2023
-
0
-
0
15,997
469,970
31,487
71,152
588,606
Carrying amount
At 31 December 2023
15,530,052
16,174,967
22,771
574,928
4,678
215,738
32,523,134
At 25 December 2022
10,310,876
13,940,073
25,561
662,461
4,002
221,551
25,164,524
VAULKHARD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
Company
Plant and equipment
Motor vehicles
Total
£
£
£
Cost or valuation
At 26 December 2022
5,676
280,715
286,391
Additions
-
0
153,273
153,273
Disposals
-
0
(147,098)
(147,098)
At 31 December 2023
5,676
286,890
292,566
Depreciation and impairment
At 26 December 2022
3,690
59,164
62,854
Depreciation charged in the year
1,135
76,343
77,478
Eliminated in respect of disposals
-
0
(64,355)
(64,355)
At 31 December 2023
4,825
71,152
75,977
Carrying amount
At 31 December 2023
851
215,738
216,589
At 25 December 2022
1,986
221,551
223,537

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2023
2022
2023
2022
£
£
£
£
Fixtures and fittings
-
0
32,936
-
0
-
0
Motor vehicles
215,738
220,675
215,738
220,675
215,738
253,611
215,738
220,675

The Group owns a number of freehold and short-term leasehold properties. The freehold properties brought forward were professionally valued as at May 2022 by Knight Frank LLP, independent Chartered Surveyors, on a market value basis. Where applicable properties have been revalued to reflect post balance sheet sales values.

 

At 31 December 2023, the short-term leasehold properties are stated at directors' valuation. The directors took into consideration the net present value of each site's future cashflows, over the remaining lease terms of the properties, using a discount rate of 8.5%.


In the opinion of the directors the carrying amount of freehold and short-term leasehold properties does not differ materially from the fair value of the properties at the balance sheet date.

Freehold and short-term leasehold property are carried at valuation. If they were measured using the cost model, the carrying amounts of freehold property would have been approximately £16,276,559 (2022 - £11,787,276) and short-term leasehold would have been approximately £9,052,286 (2022 - £7,696,257).

VAULKHARD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 30 -
14
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
3,845,955
3,845,955
Unlisted investments
9,000
9,000
9,000
9,000
9,000
9,000
3,854,955
3,854,955
Movements in fixed asset investments
Group
Other investments
Loans
Total
£
£
£
Cost or valuation
At 26 December 2022
9,000
2,592,942
2,601,942
Additions
-
20,762
20,762
At 31 December 2023
9,000
2,613,704
2,622,704
Impairment
At 26 December 2022
-
2,592,942
2,592,942
Impairment losses
-
20,762
20,762
At 31 December 2023
-
2,613,704
2,613,704
Carrying amount
At 31 December 2023
9,000
-
9,000
At 25 December 2022
9,000
-
9,000
15
Subsidiaries

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking
Address
Class of
% Held
shares held
Direct
Indirect
Central Bean Ltd
1
Ordinary
100.00
-
Wylam Brewery Ltd (formerly Newcastle Gin Co. Ltd)
1
Ordinary
-
100.00
Vaulkhard Investment Properties Ltd
1
Ordinary
100.00
-
Vaulkhard Leisure Ltd
1
Ordinary
100.00
-
Greenan Blueaye Ltd
1
Ordinary
100.00
-
Newcastle Distillery Limited
1
Ordinary
100.00
-

Registered office addresses (all UK unless otherwise indicated):

1
Bealim House, 17 - 25 Gallowgate, Newcastle upon Tyne, NE1 4SG
VAULKHARD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 31 -
16
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Finished goods and goods for resale
302,281
304,090
-
0
-
0
17
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
258,449
123,691
50,669
65,967
Other debtors
517,827
539,109
325,499
290,856
Prepayments and accrued income
761,933
817,784
26,375
35,876
1,538,209
1,480,584
402,543
392,699
Amounts falling due after more than one year:
Amounts owed by group undertakings
-
-
5,915,769
5,913,330
Amount owed by related parties
162,821
147,231
-
0
-
0
Other debtors
-
0
72,175
-
0
72,175
162,821
219,406
5,915,769
5,985,505
Total debtors
1,701,030
1,699,990
6,318,312
6,378,204
18
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
21
671,159
114,141
137,841
104,434
Deferred lease incentives
21
85,830
15,794
-
0
-
0
Obligations under finance leases
20
50,773
43,642
50,773
43,642
Other loans
21
-
0
300,000
-
0
300,000
Trade creditors
2,026,465
2,173,546
109,716
85,699
Amounts due to group undertakings
-
0
-
0
3,394,195
1,612,729
Corporation tax payable
123,291
219,000
-
0
-
0
Other taxation and social security
971,845
738,799
60,349
51,366
Other creditors
344,130
649,550
499
831
Accruals and deferred income
827,770
601,445
243,616
201,667
5,101,263
4,855,917
3,996,989
2,400,368

Obligations under finance leases are secured on the assets to which they relate.

VAULKHARD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 32 -
19
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
21
10,504,444
6,539,518
10,481,772
6,507,135
Deferred lease incentives
21
1,104,609
214,247
-
0
-
0
Obligations under finance leases
20
206,842
183,298
206,842
183,298
Other loans
21
-
0
1,150,000
-
0
1,150,000
Amounts due to group undertakings
-
0
-
0
162,799
-
0
11,815,895
8,087,063
10,851,413
7,840,433

Obligations under finance leases are secured on the assets to which they relate.

20
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
50,773
43,642
50,773
43,642
In two to five years
64,167
43,026
64,167
43,026
In over five years
142,675
140,272
142,675
140,272
257,615
226,940
257,615
226,940

Finance lease payments represent rentals payable by the company or group for certain motor vehicles. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3-5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

VAULKHARD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 33 -
21
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
10,651,996
6,653,659
10,619,613
6,611,569
Bank overdrafts
523,607
-
0
-
0
-
0
Deferred lease incentives
1,190,439
230,041
-
0
-
0
Other loans
-
0
1,450,000
-
0
1,450,000
12,366,042
8,333,700
10,619,613
8,061,569
Payable within one year
756,989
429,935
137,841
404,434
Payable after one year
11,609,053
7,903,765
10,481,772
7,657,135
Amounts included above which fall due after five years:
Payable by instalments
9,807,852
-
9,807,852
-
Deferred lease incentives
800,302
76,917
-
-
10,608,154
76,917
9,807,852
-

The bank loans and overdrafts are secured by way of a legal mortgage and debenture comprising fixed and floating charges over all assets of the Group, and an unlimited guarantee provided by Central Bean Limited, Vaulkhard Group Limited, Newcastle Distillery Limited, Wylam Brewery Limited, Vaulkhard Investment Properties Limited and Vaulkhard Leisure Limited. The loans are repayable in monthly instalments and interest is charged at HSBC commercial rates.

 

22
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
118,728
145,984

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

Contributions totalling £82,560 (2022 - £62,698) were payable to the fund at the balance sheet date and are included within other creditors.

VAULKHARD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 34 -
23
Deferred taxation

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

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
1,387,478
1,275,268
Tax losses
(384,770)
(367,926)
Deferred tax on property revaluations
2,501,608
1,975,651
Other timing differences
(25,303)
(45,397)
3,479,013
2,837,596
Liabilities
Liabilities
2023
2022
Company
£
£
Accelerated capital allowances
95,539
77,135
Tax losses
(35,456)
-
Other timing differences
(18,287)
(37,861)
41,796
39,274
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 26 December 2022
2,837,596
39,274
Charge to profit or loss
115,460
2,522
Charge to equity
525,957
-
Liability at 31 December 2023
3,479,013
41,796
VAULKHARD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 35 -
24
Share capital
Group and company
2023
2022
Ordinary share capital
£
£
Issued and fully paid
9,008 A Ordinary shares of 1p each
90
90
9,008 B Ordinary shares of 1p each
90
90
1 C Ordinary shares of £1 each
1
1
1 D Ordinary shares of £1 each
1
1
2 E Ordinary shares of £1 each
2
2
184
184

The A Ordinary and B Ordinary shares rank pari passu, having full voting rights, full dividend rights and right to any surplus capital.

 

The C, D and E Ordinary shares have full dividend rights, but carry no voting rights or right to any surplus capital.

25
Other reserves

Other reserves record the nominal value of own shares purchased. The difference between the nominal value of shares issued plus the fair value of any other consideration given, and the nominal value of the shares received in exchange has also been shown in other reserves in the Group's financial statements. Any existing balances on the capital redemption reserve of the subsidiaries has also been shown in other reserves.

26
Operating lease commitments
Lessee

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

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
805,257
975,036
-
-
Between two and five years
3,176,920
3,795,555
-
-
In over five years
8,023,097
10,228,338
-
-
12,005,274
14,998,929
-
-
VAULKHARD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
26
Operating lease commitments
(Continued)
- 36 -
Lessor

At the reporting end date the group had contracted with tenants for the following minimum lease payments:

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
307,513
422,693
765,466
644,215
Between two and five years
996,120
1,207,742
3,052,000
2,390,356
In over five years
2,155,314
2,426,806
6,670,636
4,322,501
3,458,947
4,057,241
10,488,102
7,357,072
27
Directors' transactions

Dividends totalling £300,000 (2022 - £325,000) were paid in the year in respect of shares held by the company's directors.

Interest free loans have been granted by the group to its directors as follows:

Description
% Rate
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
Directors' loans
224,683
224,614
(224,683)
224,614
28
Related party transactions
Transactions with related parties

The following amounts were outstanding at the reporting end date:

Amounts due from related parties
2023
Balance
Provision
Net
£
£
£
Group
Entities over which the group has control, joint control or significant influence
2,761,763
2,592,942
168,821
2022
Balance
Provision
Net
£
£
£
Entities over which the group has control, joint control or significant influence
2,746,173
2,592,942
153,231
VAULKHARD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
28
Related party transactions
(Continued)
- 37 -
2023
Balance
Provision
Net
Company
£
£
£
Entities over which the company has control, joint control or significant influence
2,598,942
2,592,942
6,000
2022
Balance
Provision
Net
£
£
£
Entities over which the company has control, joint control or significant influence
2,598,942
2,592,942
6,000
29
Controlling party

The Company, and therefore Group, is considered to be controlled jointly by O Vaulkhard and H Vaulkhard due to their majority interest in the issued share capital of the company.

30
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
1,610,299
104,529
Adjustments for:
Taxation charged
115,460
154,932
Finance costs
730,517
389,250
Investment income
(1,913)
(6,156)
Loss/(gain) on disposal of tangible fixed assets
12,195
(46,559)
Depreciation and impairment of tangible fixed assets
211,290
247,685
Other gains and losses
(1,549,033)
544,813
Movements in working capital:
Decrease in stocks
1,809
11,312
Increase in debtors
(1,108)
(471,681)
Increase in creditors
6,870
1,028,357
Cash generated from operations
1,136,386
1,956,482
VAULKHARD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 38 -
31
Analysis of changes in net debt - group
26 December 2022
Cash flows
New finance leases
31 December 2023
£
£
£
£
Cash at bank and in hand
781,545
283,822
-
1,065,367
Bank overdrafts
-
0
(523,607)
-
(523,607)
781,545
(239,785)
-
541,760
Borrowings excluding overdrafts
(8,333,700)
(3,508,735)
-
(11,842,435)
Obligations under finance leases
(226,940)
122,597
(153,272)
(257,615)
(7,779,095)
(3,625,923)
(153,272)
(11,558,290)
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