Company Registration Number 10844428 (England and Wales)
FRESTON CHICKEN LIMITED AND ITS SUBSIDIARIES
ACCOUNTS
FOR THE YEAR ENDED 31 DECEMBER 2023
FRESTON CHICKEN LIMITED AND ITS SUBSIDIARIES
COMPANY INFORMATION
Director
Mr R Clarkson
Company number
10844428
Registered office
146 Freston Road
London
W10 6TR
Auditor
Alliott Wingham Limited
Kintyre House
70 High Street
Fareham
Hampshire
United Kingdom
PO16 7BB
FRESTON CHICKEN LIMITED AND ITS SUBSIDIARIES
CONTENTS
Page
Strategic report
1 - 2
Director's report
3
Director's responsibilities statement
4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Company statement of cash flows
14
Notes to the financial statements
15 - 31
FRESTON CHICKEN LIMITED AND ITS SUBSIDIARIES
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The director presents the strategic report for the year ended 31 December 2023.

Principal activities

The principal activity of the company and group continued to be that of providing restaurant services. The main trading entity is the subsidiary, with the parent being a holding company.

Review of the business

The group continued to increase sales from its existing 6 restaurants through the year, with an acceleration in performance over the second half of the year. In 2023 the group did not see a recurrence of the high input cost inflation experienced in 2022, however the impact of a significant increase in the minimum wage in April 2023 necessitated the implementation of modest price increases to offset this. Revenue increased by 57.3% to £7.53m (2022: £4.79m) reflecting the like-for-like growth in all sites. Operating losses decreased to £4.18m (2022: £5.85m) as a result of the improved sales. The group reported a loss after tax of £6.80m (2022: £7.32m).

 

Year             2023         2022

Store numbers         6         6

Turnover (£m)         7.53         4.79

Operating loss (£m)     (4.18)          (5.85)

Employment

The group continues to pay in excess of the national living wage with a pay structure that enables team members to be paid the London Living Wage once successfully learning all of our key skills. The group strives for an inclusive and open culture. We hire diverse and talented individuals, and all can build a successful career at Chicken Shop.

Principal risks and uncertainties

Credit risk

The main credit risk in the group is to it's trade receivables. The amounts presented in the balance sheet are net of allowances for doubtful receivables. An allowance for impairment is made where there is an identified loss event which, based on previous experience, is evidence of a reduction in the recoverability of the cash flows. Customer transactions are largely settled at the point of sale, with minimal trade receivables held apart from this. The limited number means that risk is concentrated in a small number of counterparties, meaning easier monitoring of the credit risk position.

 

Interest rate risk

The Group borrows in Sterling with fixed rates of interest.

 

Liquidity risk

The group have a debt finance agreement in place with is primary shareholder to ensure that sufficient funds are available so that the business and all future development continue to operate. The group had £18.165m of debt provided by its principal shareholder at year end.

 

Impairment risk

The directors understanding of the risks associated with the assets held by the group relates to the potential impairment of those assets. To identify any risk of impairment the group reviews the financial performance of its restaurants on a regular basis.

 

Supply chain and inflationary risk

The group has experienced in recent years high periods of inflation, and we continue to operate with tight supply of chicken in the UK. We have built long standing partnerships with our key suppliers, allowing us to have full visibility of the supply chain and thus mitigate inflationary pressures as much as possible, along with ensuring continuity of supply.

 

Health and Safety

Regular audit are undertaken at our restaurant to ensure the group are complying with heath and safety regulations.

 

FRESTON CHICKEN LIMITED AND ITS SUBSIDIARIES
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

On behalf of the board

Mr R Clarkson
Director
30 September 2024
FRESTON CHICKEN LIMITED AND ITS SUBSIDIARIES
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

The director presents her 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 8.

No ordinary dividends were paid. The director does not recommend payment of a further dividend.

Director

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

Mr R Clarkson
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.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr R Clarkson
Director
30 September 2024
FRESTON CHICKEN LIMITED AND ITS SUBSIDIARIES
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

The director is responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless she is 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 director is required to:

 

 

The director is 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. She is 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.

FRESTON CHICKEN LIMITED AND ITS SUBSIDIARIES
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF FRESTON CHICKEN LIMITED AND ITS SUBSIDIARIES
- 5 -
Opinion

We have audited the financial statements of Freston Chicken Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company 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 director's 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 director 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 director is 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:

FRESTON CHICKEN LIMITED AND ITS SUBSIDIARIES
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FRESTON CHICKEN LIMITED AND ITS SUBSIDIARIES
- 6 -
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 director's 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 director

As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the parent company or to cease operations, or has 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.

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the Company that were contrary to applicable laws and regulations, including fraud. Our audit procedures were designed at Company and significant component levels to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involved deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

 

We focused on laws and regulations that could give rise to a material misstatement in the financial statements, including, but not limited to, financial reporting legislation, the Companies Act 2006 and UK tax legislation. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management, enquiries of external legal advisors and review of correspondence with external legal advisors.

 

There are inherent limitations in the audit procedures described above and, the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.

 

FRESTON CHICKEN LIMITED AND ITS SUBSIDIARIES
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FRESTON CHICKEN LIMITED AND ITS SUBSIDIARIES
- 7 -

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to management bias in accounting estimates. We addressed the risk of management override of internal controls through testing journals, in particular any entries posted with unusual account combinations or posted by senior management. We evaluated whether there was evidence of bias by the Directors in accounting estimates that represented a risk of material misstatement due to fraud. We challenged assumptions and judgements made by management in their significant accounting estimates.

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.

Other matters which we are required to address

We were appointed by the directors in December 2023 to audit the financial statements for the year ended 31 December 2023. The financial statements for the year ended 31 December 2022 are unaudited.

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.

Mark Nolan FCA
For and on behalf of
30 September 2024
Alliott Wingham Limited
Chartered Accountants
Statutory Auditor
Kintyre House
70 High Street
Fareham
Hampshire
United Kingdom
PO16 7BB
FRESTON CHICKEN LIMITED AND ITS SUBSIDIARIES
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
as restated
Notes
£
£
Turnover
3
7,449,296
4,735,953
Cost of sales
(2,338,379)
(1,774,619)
Gross profit
5,110,917
2,961,334
Distribution costs
(873,364)
(610,769)
Administrative expenses
(8,500,007)
(8,267,924)
Other operating income
77,742
62,000
Operating loss
4
(4,184,712)
(5,855,359)
Interest receivable and similar income
6
270
382
Interest payable and similar expenses
7
(2,624,934)
(1,467,784)
Loss before taxation
(6,809,376)
(7,322,761)
Tax on loss
8
-
0
-
0
Loss for the financial year
(6,809,376)
(7,322,761)
Loss for the financial year is all attributable to the owner of the parent company.
Total comprehensive income for the year is all attributable to the owner of the parent company.
FRESTON CHICKEN LIMITED AND ITS SUBSIDIARIES
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Goodwill
9
629,701
720,197
Other intangible assets
9
1,125,136
1,206,618
Total intangible assets
1,754,837
1,926,815
Tangible assets
10
5,414,281
6,086,386
7,169,118
8,013,201
Current assets
Stocks
13
69,036
61,311
Debtors
14
546,162
588,007
Cash at bank and in hand
222,818
41,228
838,016
690,546
Creditors: amounts falling due within one year
15
(1,865,582)
(2,101,800)
Net current liabilities
(1,027,566)
(1,411,254)
Total assets less current liabilities
6,141,552
6,601,947
Creditors: amounts falling due after more than one year
16
(22,715,754)
(16,366,773)
Net liabilities
(16,574,202)
(9,764,826)
Capital and reserves
Called up share capital
19
1
1
Profit and loss reserves
(16,574,203)
(9,764,827)
Total equity
(16,574,202)
(9,764,826)

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved and signed by the director and authorised for issue on 30 September 2024
30 September 2024
Mr R Clarkson
Director
Company registration number 10844428 (England and Wales)
FRESTON CHICKEN LIMITED AND ITS SUBSIDIARIES
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Investments
11
2,887,747
2,887,747
Current assets
Debtors
14
1
1
Creditors: amounts falling due within one year
15
(19,080)
(13,463)
Net current liabilities
(19,079)
(13,462)
Total assets less current liabilities
2,868,668
2,874,285
Creditors: amounts falling due after more than one year
16
(3,847,269)
(3,496,754)
Net liabilities
(978,601)
(622,469)
Capital and reserves
Called up share capital
19
1
1
Profit and loss reserves
(978,602)
(622,470)
Total equity
(978,601)
(622,469)

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £356,132 (2022 - £322,382 loss).

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved and signed by the director and authorised for issue on 30 September 2024
30 September 2024
Mr R Clarkson
Director
Company registration number 10844428 (England and Wales)
FRESTON CHICKEN LIMITED AND ITS SUBSIDIARIES
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
Share capital
Profit and loss reserves
Total
£
£
£
As restated for the period ended 31 December 2022:
Balance at 1 January 2022
1
(2,442,066)
(2,442,065)
Year ended 31 December 2022:
Loss and total comprehensive income
-
(7,322,761)
(7,322,761)
Balance at 31 December 2022
1
(9,764,827)
(9,764,826)
Year ended 31 December 2023:
Loss and total comprehensive income
-
(6,809,376)
(6,809,376)
Balance at 31 December 2023
1
(16,574,203)
(16,574,202)
FRESTON CHICKEN LIMITED AND ITS SUBSIDIARIES
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Profit and loss reserves
Total
£
£
£
As restated for the period ended 31 December 2022:
Balance at 1 January 2022
1
(300,088)
(300,087)
Year ended 31 December 2022:
Loss and total comprehensive income for the year
-
(322,382)
(322,382)
Balance at 31 December 2022
1
(622,470)
(622,469)
Year ended 31 December 2023:
Profit and total comprehensive income
-
(356,132)
(356,132)
Balance at 31 December 2023
1
(978,602)
(978,601)
FRESTON CHICKEN LIMITED AND ITS SUBSIDIARIES
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
2023
2022
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
22
(3,257,671)
(3,549,268)
Investing activities
Purchase of intangible assets
(44,350)
(1,305,147)
Purchase of tangible fixed assets
(241,282)
(4,594,883)
Interest received
270
382
Net cash used in investing activities
(285,362)
(5,899,648)
Financing activities
Receipt of borrowings
3,746,846
8,216,957
(Repayment)/receipt of bank loans
(22,223)
55,556
Net cash generated from financing activities
3,724,623
8,272,513
Net increase/(decrease) in cash and cash equivalents
181,590
(1,176,403)
Cash and cash equivalents at beginning of year
41,228
1,217,631
Cash and cash equivalents at end of year
222,818
41,228
FRESTON CHICKEN LIMITED AND ITS SUBSIDIARIES
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Net increase in cash and cash equivalents
-
-
Cash and cash equivalents at beginning of year
-
0
-
0
Cash and cash equivalents at end of year
-
0
-
0
FRESTON CHICKEN LIMITED AND ITS SUBSIDIARIES
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
1
Accounting policies
Company information

Freston Chicken Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 146 Freston Road, London, W10 6TR.

 

The group consists of Freston Chicken Limited and all of its subsidiaries.

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.

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 properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Freston Chicken 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.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

FRESTON CHICKEN LIMITED AND ITS SUBSIDIARIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.4
Going concern

At the time of approving the financial statements, the director has a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

In determining whether the Group's financial statements can be prepared on a going concern basis, the directors have considered all the factors likely to affect their future development, performance and their financial position. The directors have approved a budget for 2024. Existing loan facilities are provided by a shareholder and the lender has confirmed that they will not request repayment of the loan within at least 12 months. After making enquiries,

the directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for at least twelve months following the signing of these financial statements. Accordingly, they continue to adopt the going concern basis in preparing these financial statements on the basis of continuing support from the ultimate shareholder.

1.5
Turnover

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

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

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.

FRESTON CHICKEN LIMITED AND ITS SUBSIDIARIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

 

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

1.7
Intangible fixed assets other than goodwill

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

 

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

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

Brand
10-33% Straight Line
Website, technology and integration
33% Straight Line
1.8
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
10% Straight Line
Plant and equipment
10% Straight Line
Fixtures and fittings
10% Straight Line
Computers
33% 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 profit and loss account.

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.

FRESTON CHICKEN LIMITED AND ITS SUBSIDIARIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -

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.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.10
Impairment of fixed assets

At each reporting period end date, the group 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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

 

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

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

FRESTON CHICKEN LIMITED AND ITS SUBSIDIARIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
1.11
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.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

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
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.

1.13
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 balance sheet 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.

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.

FRESTON CHICKEN LIMITED AND ITS SUBSIDIARIES
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, 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.

FRESTON CHICKEN LIMITED AND ITS SUBSIDIARIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 21 -
Derecognition of financial liabilities

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

1.14
Equity instruments

Equity instruments issued by the group 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 group.

1.15
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.

1.16
Retirement benefits

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

1.17
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 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.

1.18
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

FRESTON CHICKEN LIMITED AND ITS SUBSIDIARIES
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 director is 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.

Impairment of brand

FRS 102 Section 27 requires an assessment at each reporting date of whether there is any indication that an asset within its scope may be impaired.

In 2022 the subsidiary acquired the brand "Chicken Shop", which has been included in intangible fixed assets. Management has performed an impairment review of the brand by preparing detailed forecasts, which take into account the subsidiaries' cost of debt funding, and provide a basis for valuing the expected future cashflows from the brand.

This is an area of significant judgment, as any change in the assumptions, including the anticipated performance, could materially impact the impairment evaluation. Based on this review management do not believe the asset is impaired.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Food and drink
7,449,296
4,735,953
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
7,449,296
4,735,953
2023
2022
£
£
Other revenue
Interest income
270
382
Grants received
-
12,000
Rental income
77,742
50,000
FRESTON CHICKEN LIMITED AND ITS SUBSIDIARIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
4
Operating loss
2023
2022
£
£
Operating loss for the year is stated after charging/(crediting):
Exchange (gains)/losses
-
372
Government grants
-
(12,000)
Fees payable to the group's auditor for the audit of the group's financial statements
4,200
-
Depreciation of owned tangible fixed assets
853,887
592,069
Loss on disposal of tangible fixed assets
59,500
370,921
Amortisation of intangible assets
216,328
197,987
Operating lease charges
900,668
703,721
5
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
Restaurant staff
134
139
-
-
Support staff
13
13
1
1
Total
147
152
1
1

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
3,656,847
3,027,987
-
0
-
0
Social security costs
317,577
271,599
-
-
Pension costs
74,850
69,760
-
0
-
0
4,049,274
3,369,346
-
0
-
0
6
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
270
382
FRESTON CHICKEN LIMITED AND ITS SUBSIDIARIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
6
Interest receivable and similar income
(Continued)
- 24 -
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
270
382
7
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
3,154
2,652
Interest payable to group undertakings
351,092
319,802
Other interest on financial liabilities
2,270,688
1,145,330
2,624,934
1,467,784
8
Taxation

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

2023
2022
£
£
Loss before taxation
(6,809,376)
(7,322,761)
Expected tax credit based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
(1,601,565)
(1,391,325)
Tax effect of expenses that are not deductible in determining taxable profit
(41,157)
(40,739)
Unutilised tax losses carried forward
1,563,594
1,461,563
Permanent capital allowances in excess of depreciation
79,128
(29,499)
Taxation charge
-
-
FRESTON CHICKEN LIMITED AND ITS SUBSIDIARIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
9
Intangible fixed assets
Group
Goodwill
Brand
Website, technology and integration
Total
£
£
£
£
Cost
At 1 January 2023
904,960
1,270,916
56,636
2,232,512
Additions
-
0
-
0
44,350
44,350
Disposals
-
0
-
0
(10,709)
(10,709)
At 31 December 2023
904,960
1,270,916
90,277
2,266,153
Amortisation and impairment
At 1 January 2023
184,763
97,341
23,593
305,697
Amortisation charged for the year
90,496
100,544
25,288
216,328
Disposals
-
0
-
0
(10,709)
(10,709)
At 31 December 2023
275,259
197,885
38,172
511,316
Carrying amount
At 31 December 2023
629,701
1,073,031
52,105
1,754,837
At 31 December 2022
720,197
1,173,575
33,043
1,926,815
The company had no intangible fixed assets at 31 December 2023 or 31 December 2022.
FRESTON CHICKEN LIMITED AND ITS SUBSIDIARIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
10
Tangible fixed assets
Group
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Total
£
£
£
£
£
Cost
At 1 January 2023
4,516,471
2,153,856
400,713
353,699
7,424,739
Additions
118,890
19,546
36,956
65,890
241,282
Disposals
(42,013)
(32,350)
(4,692)
-
0
(79,055)
At 31 December 2023
4,593,348
2,141,052
432,977
419,589
7,586,966
Depreciation and impairment
At 1 January 2023
1,014,165
256,124
15,724
52,340
1,338,353
Depreciation charged in the year
468,683
213,596
39,568
132,040
853,887
Eliminated in respect of disposals
(10,817)
(7,161)
(1,577)
-
0
(19,555)
At 31 December 2023
1,472,031
462,559
53,715
184,380
2,172,685
Carrying amount
At 31 December 2023
3,121,317
1,678,493
379,262
235,209
5,414,281
At 31 December 2022
3,502,306
1,897,732
384,989
301,359
6,086,386
The company had no tangible fixed assets at 31 December 2023 or 31 December 2022.
11
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
12
-
0
-
0
2,887,747
2,887,747
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023 and 31 December 2023
2,887,747
Carrying amount
At 31 December 2023
2,887,747
At 31 December 2022
2,887,747
FRESTON CHICKEN LIMITED AND ITS SUBSIDIARIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
12
Subsidiaries

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

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Chik'n Limited
United Kingdom
Ordinary A Shares
71.50
13
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
69,036
61,311
-
-
14
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
146,422
32,472
-
0
-
0
Other debtors
200,773
302,820
1
1
Prepayments and accrued income
198,967
252,715
-
0
-
0
546,162
588,007
1
1
15
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
17
22,222
22,223
-
0
-
0
Trade creditors
306,977
969,242
-
0
-
0
Other taxation and social security
396,135
81,948
-
-
Other creditors
106,434
79,191
-
0
-
0
Accruals and deferred income
1,033,814
949,196
19,080
13,463
1,865,582
2,101,800
19,080
13,463
FRESTON CHICKEN LIMITED AND ITS SUBSIDIARIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 28 -
16
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
17
11,111
33,333
-
0
-
0
Other borrowings
17
22,704,643
16,333,440
3,847,269
3,496,754
22,715,754
16,366,773
3,847,269
3,496,754
17
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
33,333
55,556
-
0
-
0
Other loans
22,704,643
16,333,440
3,847,269
3,496,754
22,737,976
16,388,996
3,847,269
3,496,754
Payable within one year
22,222
22,223
-
0
-
0
Payable after one year
22,715,754
16,366,773
3,847,269
3,496,754

Other borrowing include a loan received form the main shareholder of the parent company. The loan is secured over a fixed and floating charge and negative pledge which has been registered by the shareholder of the parent company over all property and undertakings of the group.

18
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
74,850
69,760

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.

19
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of 1p each
100
100
1
1
FRESTON CHICKEN LIMITED AND ITS SUBSIDIARIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
20
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
867,041
917,021
-
-
Between two and five years
3,294,164
2,847,041
-
-
In over five years
2,346,370
3,051,370
-
-
6,507,575
6,815,432
-
-
21
Related party transactions

During the year the group drew down a further £3,750,000 (2022: £8,275,000) of an existing facility from the main shareholder. The amount owed to the shareholder at year end by the group is £22,704,643 (2022: £16,333,440), which is the loan outstanding and accrued interest calculated at 15% per annum. Interest charged to the group profit and loss is £2,270,688 (2022: £1,145,330).

22
Cash absorbed by group operations
2023
2022
£
£
Loss for the year after tax
(6,809,376)
(7,322,761)
Adjustments for:
Finance costs
2,624,934
1,467,784
Investment income
(270)
(382)
Loss on disposal of tangible fixed assets
59,500
370,921
Amortisation and impairment of intangible assets
216,328
197,987
Depreciation and impairment of tangible fixed assets
853,887
592,069
Movements in working capital:
Increase in stocks
(7,725)
(4,647)
Decrease/(increase) in debtors
41,845
(179,060)
(Decrease)/increase in creditors
(236,794)
1,328,821
Cash absorbed by operations
(3,257,671)
(3,549,268)
FRESTON CHICKEN LIMITED AND ITS SUBSIDIARIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 30 -
23
Cash absorbed by operations - company
2023
2022
£
£
Loss for the year after tax
(356,132)
(322,382)
Adjustments for:
Finance costs
351,092
319,802
Movements in working capital:
Increase in creditors
5,040
2,580
Cash absorbed by operations
-
-
24
Analysis of changes in net debt - group
1 January 2023
Cash flows
Market value movements
31 December 2023
£
£
£
£
Cash at bank and in hand
41,228
181,590
-
222,818
Borrowings excluding overdrafts
(16,388,996)
(8,973,914)
2,624,934
(22,737,976)
(16,347,768)
(8,792,324)
2,624,934
(22,515,158)
25
Analysis of changes in net debt - company
1 January 2023
Cash flows
Market value movements
31 December 2023
£
£
£
£
Borrowings excluding overdrafts
(3,496,754)
(701,607)
351,092
(3,847,269)
26
Prior period adjustment
Reconciliation of changes in equity - group
1 April
31 December
2021
2022
£
£
Adjustments to prior year
Disposal of fixed assets
-
(370,921)
Equity as previously reported
(2,442,065)
(9,393,905)
Equity as adjusted
(2,442,065)
(9,764,826)
Analysis of the effect upon equity
Profit and loss reserves
-
(370,921)
FRESTON CHICKEN LIMITED AND ITS SUBSIDIARIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
26
Prior period adjustment
(Continued)
- 31 -
Reconciliation of changes in loss for the previous financial period
2022
£
Adjustments to prior year
Disposal of fixed assets
(370,921)
Loss as previously reported
(6,951,840)
Loss as adjusted
(7,322,761)
Reconciliation of changes in equity - company
The prior period adjustments do not give rise to any effect upon equity.
Reconciliation of changes in loss for the previous financial period
2022
£
Adjustments to prior year
Total adjustments
-
Loss as previously reported
(322,382)
Loss as adjusted
(322,382)
2023-12-312023-01-01falseCCH SoftwareCCH Accounts Production 2024.200Mr R 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