Company Registration No. 12363019 (England and Wales)
LONDON ARTFARM LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
LONDON ARTFARM LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 8
LONDON ARTFARM LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
4
8,906
9,903
Tangible assets
5
11,387,272
11,762,327
11,396,178
11,772,230
Current assets
Stocks
228,474
159,271
Debtors
6
832,227
1,568,290
Cash at bank and in hand
183,756
151,696
1,244,457
1,879,257
Creditors: amounts falling due within one year
7
(13,808,787)
(13,086,297)
Net current liabilities
(12,564,330)
(11,207,040)
Total assets less current liabilities
(1,168,152)
565,190
Capital and reserves
Called up share capital
101
101
Share premium account
2,969,558
2,969,558
Profit and loss reserves
(4,137,811)
(2,404,469)
Total equity
(1,168,152)
565,190
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 13 September 2024 and are signed on its behalf by:
J J Cornaby
Director
Company Registration No. 12363019
LONDON ARTFARM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
1
Accounting policies
Company information
London Artfarm Limited is a private company limited by shares incorporated in England and Wales. The registered office is Stockwell House, 13 High Street, Bruton, Somerset, BA10 0AB.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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. The principal accounting policies adopted are set out below.
1.2
Going concern
The company has the financial support of the ultimate parent company for a period of at least twelve months from the date of the approval of these financial statements. Accordingly, the directors have a reasonable expectation that the company has adequate resources to continue in operation for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements. true
1.3
Turnover
Turnover represents the sale of food and drinks in the restaurant, room hire and event fees, net of VAT.
The sale of food and drinks is recognised as revenue at the point of sale. Room hire and event fees are recognised on the date of the services are provided.
1.4
Intangible fixed assets other than goodwill
Intangible assets are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Intellectual Property
Over ten years
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.
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
Over the term of the lease
Fixtures and fittings
Five years 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 credited or charged to profit or loss.
LONDON ARTFARM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 3 -
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
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. Cost comprises direct materials and, where applicable, 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
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.
Impairment of financial assets
Financial assets 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.
LONDON ARTFARM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -
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 and amounts owed to group undertakings, 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 company’s contractual obligations expire or are discharged or cancelled.
1.9
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.
1.10
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.11
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.
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.
LONDON ARTFARM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
- 5 -
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.
Recoverability of amounts due from group undertakings
At the year end the company was owed £217,565 (2022: £230,850) from fellow group companies. The directors assess the recoverability of these debts based on the actual and forecast financial results of the group companies and guarantees provided by other group companies. At the year end the directors consider the amounts owed by group undertakings to be recoverable.
Useful life of Tangible Fixed Assets
The company, due to the nature of operations, invests heavily in leasehold improvements and other fixtures and fittings at operational locations. As a result of this, is is necessary to make estimations of the useful lives of the capitalised assets. The estimation of the useful life of the asset is made based on historic trends and judgements relating to the timing of purchase of replacements and refurbishments. This is reviewed internally on a regular basis.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year and previous period was nil.
4
Intangible fixed assets
Intellectual Property
£
Cost
At 1 January 2023 and 31 December 2023
10,000
Amortisation and impairment
At 1 January 2023
97
Amortisation charged for the year
997
At 31 December 2023
1,094
Carrying amount
At 31 December 2023
8,906
At 31 December 2022
9,903
LONDON ARTFARM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
5
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 January 2023
10,991,639
992,124
11,983,763
Additions
402,573
173,024
575,597
At 31 December 2023
11,394,212
1,165,148
12,559,360
Depreciation and impairment
At 1 January 2023
169,158
52,278
221,436
Depreciation charged in the year
719,361
231,291
950,652
At 31 December 2023
888,519
283,569
1,172,088
Carrying amount
At 31 December 2023
10,505,693
881,579
11,387,272
At 31 December 2022
10,822,481
939,846
11,762,327
6
Debtors
2023
2022
Amounts falling due within one year:
£
£
as restated
Trade debtors
115,576
206,674
Amounts owed by group undertakings
217,565
230,850
Other debtors
169,665
649,173
Prepayments and accrued income
329,421
481,593
832,227
1,568,290
In the financial statements for the year ended 31 December 2022, the following balances were recognised under differing headings in the accounts. These have been adjusted as follows:
Prepayments and accrued income of £481,593 were recognised as part of other debtors. This balance has been recognised in prepayments and accrued income in the financial statements for the year ended 31 December 2023.
Merchants receipts of £88,134 were recognised as part of other debtors. This balance has been recognised in trade debtors in the financial statements for the year ended 31 December 2023.
Amounts due from group undertakings were recognised as part of other debtors. This balance has been recognised in amounts owed by group undertakings in the financial statements for the year ended 31 December 2023.
LONDON ARTFARM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
7
Creditors: amounts falling due within one year
2023
2022
£
£
as restated
Trade creditors
199,737
196,415
Amounts owed to group undertakings
9,258,276
8,058,406
Taxation and social security
257,163
Other creditors
2,999,456
3,277,338
Accruals and deferred income
1,094,155
1,554,138
13,808,787
13,086,297
In the financial statements for the year ended 31 December 2022, deposits from customers were recognised as part of other creditors. This balance has been recognsied in accruals and deferred income in for the year ended 31 December 2023.
8
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
The senior statutory auditor was Russell Nathan.
The auditor was HW Fisher LLP.
9
Financial commitments, guarantees and contingent liabilities
On 29 September 2023 the company entered into two charges over a cash deposit held with the bank. These contain a fixed charge over cash held in a deposit account, in addition to a negative pledge.
10
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
Within one year
1,000,000
1,000,000
Between two and five years
4,000,000
4,000,000
In over five years
12,666,667
13,666,667
17,666,667
18,666,667
LONDON ARTFARM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
11
Parent company
The immediate parent company is Artfarm Limited, a company incorporated in England and Wales. The ultimate controlling parties are I Wirth and M Wirth Hauser.
The smallest group into which this entity is consolidated is Artfarm Group Limited, with the registered address of Stockwell House, 13 High Street, Bruton, Somerset, United Kingdom, BA10 0AB. Copies of the group financial statements can be obtained from the UK Registrar of Companies.