Company registration number 09361456 (England and Wales)
ESRA Restaurants Holdings Limited
Audited Financial Statements
For the year ended
31 December 2023
Pages for filing with registrar
ESRA Restaurants Holdings Limited
Contents
Page
Statement of financial position
1
Notes to the financial statements
2 - 8
ESRA Restaurants Holdings Limited
Statement Of Financial Position
As at 31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
5
1,567
Investments
6
12,583
5
14,150
5
Current assets
Debtors
7
328,754
458,875
Cash at bank and in hand
84,674
231,504
413,428
690,379
Creditors: amounts falling due within one year
8
(4,583,796)
(4,479,791)
Net current liabilities
(4,170,368)
(3,789,412)
Net liabilities
(4,156,218)
(3,789,407)
Capital and reserves
Called up share capital
10
10
Profit and loss reserves
(4,156,228)
(3,789,417)
Total equity
(4,156,218)
(3,789,407)
The notes on pages 2 to 8 form part of these financial statements.
The directors of the company have elected not to include a copy of the income statement 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 2 October 2024 and are signed on its behalf by:
S. Pasricha
Director
Company registration number 09361456 (England and Wales)
ESRA Restaurants Holdings Limited
Notes To The Financial Statements
For the year ended 31 December 2023
- 2 -
1
General information
ESRA Restaurants Holdings Limited is a private company limited by shares incorporated in England and Wales. The registered office is Third Floor, 20 Old Bailey, London, EC4M 7AN.
2
Accounting policies
2.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 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.
The company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the company as an individual entity and not about its group.
2.2
Going concern
Atruet the time of approving the financial statements, the company had net current liabilities of £4,170,368 (2022 - £3,789,412). ESRA Hotels Limited, a member of the ESRA Holdings Group, has committed to provide funding to the company to ensure that it can meet its financial liabilities as they fall due and has confirmed that it will not recall the loan within 12 months of the signing date. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
2.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for management services provided in the normal course of business, and is shown net of VAT and other sales related taxes.
2.4
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:
Computer equipment
20%
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
2.5
Fixed asset investments
Interests in subsidiaries and associates are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
Investments in artwork are measured at cost less any accumulated impairment losses.
ESRA Restaurants Holdings Limited
Notes To The Financial Statements (Continued)
For the year ended 31 December 2023
2
Accounting policies
(Continued)
- 3 -
2.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
2.7
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.
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. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities
Basic financial liabilities, including creditors and loans from fellow group companies are initially recognised at transaction price and subsequently carried at amortised cost, using the effective interest rate method. Financial liabilities classified as payable within one year are not amortised.
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.
2.8
Taxation
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
2.9
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.
2.10
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
2.11
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.
ESRA Restaurants Holdings Limited
Notes To The Financial Statements (Continued)
For the year ended 31 December 2023
- 4 -
3
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.
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.
Impairment of investment in subsidiaries
Determining whether the company's investments in its subsidiaries have been impaired requires estimations of the value in use of these investments. The value in use calculation requires the entity to estimate the future cash flows expected to arise from the investments and a suitable discount rate in order to calculate the present value. The carrying amount of investments in subsidiaries at the reporting date was £6 (2022 - £5). No impairment loss has been recognised or reversed during 2023 (2022 - £Nil).
4
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
8
6
ESRA Restaurants Holdings Limited
Notes To The Financial Statements (Continued)
For the year ended 31 December 2023
- 5 -
5
Tangible fixed assets
Computer equipment
£
Cost
At 1 January 2023
13,203
Additions
1,880
At 31 December 2023
15,083
Depreciation and impairment
At 1 January 2023
13,203
Depreciation charged in the year
313
At 31 December 2023
13,516
Carrying amount
At 31 December 2023
1,567
At 31 December 2022
6
Fixed asset investments
2023
2022
£
£
Shares in group undertakings
6
5
Other investments other than loans
12,577
12,583
5
Movements in fixed asset investments
Shares in subsidiaries
Artwork
Total
£
£
£
Cost or valuation
At 1 January 2023
925,005
-
925,005
Additions
1
12,577
12,578
At 31 December 2023
925,006
12,577
937,583
Impairment
At 1 January 2023 & 31 December 2023
925,000
-
925,000
Carrying amount
At 31 December 2023
6
12,577
12,583
At 31 December 2022
5
5
ESRA Restaurants Holdings Limited
Notes To The Financial Statements (Continued)
For the year ended 31 December 2023
- 6 -
7
Debtors
2023
2022
Amounts falling due within one year:
£
£
Amounts owed by group undertakings
272,629
437,473
Other debtors
56,125
21,402
328,754
458,875
8
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
9,000
14,026
Amounts owed to group undertakings
4,527,715
4,413,268
Taxation and social security
34,798
21,752
Other creditors
12,283
30,745
4,583,796
4,479,791
ESRA Restaurants Holdings Limited
Notes To The Financial Statements (Continued)
For the year ended 31 December 2023
- 7 -
9
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.
In forming our opinion on the financial statements, which is not qualified, we have considered the adequacy of the disclosures made in note 2.2 to the financial statements, concerning the company’s ability to continue as a going concern. The company is reliant on the support of ESRA Hotels Limited, a member of the ESRA Holdings Group.
In consequence of this support the company remains a going concern and therefore the accounts have been prepared on this basis.
Senior Statutory Auditor:
Frank Harling FCCA
Statutory Auditor:
Ward Williams
10
Financial commitments, guarantees and contingent liabilities
On 28 September 2023 the company entered into a financial guarantee contract on behalf of its subsidiary undertaking in respect of the obligations due under an operating lease. At the balance sheet date the total amounts committed by the company's subsidiary undertaking was £839,836.
11
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
£
£
5,244
12
Events after the reporting date
In January 2024 B Restaurants Limited, the company's subsidiary undertaking, was voluntarily dissolved.
On 20 March 2024 the company subscribed for 100% of the share capital of a newly incorporated entity, BB NH Limited, registered in England and Wales for cash consideration of £1. The principal activity of the subsidiary is that of the operation of a restaurant and private members club.
13
Related party transactions
The company has taken advantage of the exemption conferred by Financial Reporting Standard 102 Section 33 'Related Party Disclosures' paragraph 33.1A not to disclose transactions with certain group companies on the grounds that 100% of the voting rights in the company are controlled by the group.
ESRA Restaurants Holdings Limited
Notes To The Financial Statements (Continued)
For the year ended 31 December 2023
- 8 -
14
Controlling party
The parent company is ESRA Holdings Limited, incorporated in England and Wales with registered office at Third Floor, 20 Old Bailey, London, United Kingdom, EC4M 7AN. It is also the parent of the smallest group for which consolidated accounts including ESRA Restaurants Holdings Limited are drawn up, and copies of these accounts can be obtained from its registered office.