REGISTERED NUMBER: 05714223 (England and Wales) |
Kervan Sofrasi Limited |
Group Strategic Report, |
Report of the Directors and |
Audited |
Consolidated Financial Statements |
for the Year Ended 31 March 2024 |
REGISTERED NUMBER: 05714223 (England and Wales) |
Kervan Sofrasi Limited |
Group Strategic Report, |
Report of the Directors and |
Audited |
Consolidated Financial Statements |
for the Year Ended 31 March 2024 |
Kervan Sofrasi Limited (Registered number: 05714223) |
Contents of the Consolidated Financial Statements |
for the year ended 31 March 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Consolidated Income Statement | 10 |
Consolidated Other Comprehensive Income | 11 |
Consolidated Statement of Financial Position | 12 |
Company Statement of Financial Position | 14 |
Consolidated Statement of Changes in Equity | 16 |
Company Statement of Changes in Equity | 17 |
Consolidated Statement of Cash Flows | 18 |
Notes to the Consolidated Statement of Cash Flows | 19 |
Notes to the Consolidated Financial Statements | 21 |
Kervan Sofrasi Limited |
Company Information |
for the year ended 31 March 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
& Statutory Auditors |
239-241 Kennington Lane |
London |
SE11 5QU |
Kervan Sofrasi Limited (Registered number: 05714223) |
Group Strategic Report |
for the year ended 31 March 2024 |
The directors present their strategic report of the company and the group for the year ended 31 March 2024. |
Kervan Sofrasi Ltd is the parent company of a group that has been operating as a restaurant from various sites in London since 2009. The company has been growing steadily since formation and the directors expect this trend to continue for the foreseeable future. |
REVIEW OF BUSINESS |
Turnover for the current year increased slightly compared to that of last year. The gross profit margin was also slightly higher than that of last year; however, net profit for the year was slightly lower than that of last year mainly due to steps being taken to improve customer experience and the expected impact on turnover and profitability in the future. The company had been growing steadily in the past decade and the directors are of the opinion that this trend in growth will continue for the foreseeable future. Measures have been put in place to enable the company to continue growing in the future and increase gross margins and the resultant effect on profit. The company's main strategy is to ensure customers are satisfied with the service they receive in addition to receiving a high standard of food. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The main risks and uncertainty of Kervan Sofrasi Ltd is their ability to maintain their reputation and customers. They work very hard to prevent any damages to their reputation and a loss of their customers. Food quality and a great customer experience is key to maintaining their existing customer base and attracting new customers too. |
To manage these risks the company ensures that quality produce is sourced from reliable suppliers and that their staff are trained regularly to ensure each customer's experience is excellent. |
KEY PERFORMANCE INDICATORS |
The main performance indicators are the sales and the profit margins. All other costs apart from cost of sales are fairly fixed. The directors monitor these on a monthly basis to ensure that all cost are kept within expectation. Exceptions are picked up in time and addressed to ensure that overheads are within limits as their effect on the ability to remain in operational existence and profitability is very critical. |
The Key Performance Indicators over the last two years are as follows: |
2024 | 2023 |
£ | £ |
Turnover | 13,014 | 12,277 |
Gross Profit | 7,001 | 6,711 |
Net Profit before tax | 1,695 | 1,997 |
The directors believe that other variables of performance indicators are marginal and are not the best indicators of the overall performance, development and position of the company. |
COMPANY POLICY ON PAYMENT OF CREDITORS |
The policy of the company is to agree terms of payment prior to commencing trade with a supplier and to abide by those terms on a timely submission of invoices. |
Kervan Sofrasi Limited (Registered number: 05714223) |
Group Strategic Report |
for the year ended 31 March 2024 |
POLICY ON EMPLOYEES |
The company is committed to achieving a working environment which provides equality of opportunity and freedom from unlawful discrimination on the basis of gender, sexual orientation, marital or civil partner status, gender reassignment, race, religion or belief, colour, nationality, ethnic or national origin, disability or age, pregnancy or maternity, trade union membership or the fact that they are part-time workers. The company's Equality and Diversity policy aims to remove unfair and discriminatory practices within the company and to encourage full contribution from its diverse community. The company is committed to actively opposing all forms of discrimination. The company also aims to provide a service that does not discriminate against its clients in the means by which they can access the services supplied by the company. The company believes that the directors, employees and customers are entitled to be treated with respect and dignity.The company's employment policy is to provide equal opportunity to all current and prospective employees without any discrimination. They endeavour to provide a work environment in which all individuals are treated with respect and dignity. |
SOCIAL, ENVIRONMENT AND ETHICAL MATTERS |
The company believes that by operating in an ethical and social aware manner they will help preserve the environment; that being an integral part of efficient and profitable business management. The directors recognise that success in these areas depends on the involvement and commitment of everyone in the organisation. |
FUTURE DEVELOPMENT |
The directors expect a growth in sales in the future as the company continues to maintain its brand reputation and increasing its customer base. |
ON BEHALF OF THE BOARD: |
Kervan Sofrasi Limited (Registered number: 05714223) |
Report of the Directors |
for the year ended 31 March 2024 |
The directors present their report with the financial statements of the company and the group for the year ended 31 March 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of a restaurant. |
DIVIDENDS |
An interim dividend of £2,000 per share was paid on 6 April 2023. The directors recommend that no final dividend be paid. |
The total distribution of dividends for the year ended 31 March 2024 will be £ 200,000 . |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 April 2023 to the date of this report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
Kervan Sofrasi Limited (Registered number: 05714223) |
Report of the Directors |
for the year ended 31 March 2024 |
AUDITORS |
The auditors, Alton & Co, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Kervan Sofrasi Limited |
Opinion |
We have audited the financial statements of Kervan Sofrasi Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2024 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, Notes to the Financial Statements, including a summary of 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: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 31 March 2024 and of the group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 the 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 directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
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. |
In connection with our audit of the financial statements, 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 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. |
Report of the Independent Auditors to the Members of |
Kervan Sofrasi Limited |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
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 its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 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 group's and 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
Kervan Sofrasi Limited |
Auditors' 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 a Report of the Auditors 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 obtained an understanding of the legal and regulatory framework that are applicable to the company and determined that the most significant are the food standards regulation, money laundering and anti bribery regulations. We understand how the company is complying with those regulations by making enquiries of management and key personel; we also reviewed correspondence files. We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements using our general commercial and sector experience, through discussion with the directors and other management (as required by auditing standards) and from inspection of the company's regulatory and legal correspondence. We discussed with the directors and other management the policies and procedures regarding compliance with laws and regulations. We communicated those identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. |
Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and other management and inspection of regulatory and legal correspondence, if any. Through these procedures, we did not become aware of actual or suspected non-compliance. |
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Report of the Independent Auditors to the Members of |
Kervan Sofrasi Limited |
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 a Report of the Auditors 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. |
for and on behalf of |
Chartered Accountants |
& Statutory Auditors |
239-241 Kennington Lane |
London |
SE11 5QU |
Kervan Sofrasi Limited (Registered number: 05714223) |
Consolidated |
Income Statement |
for the year ended 31 March 2024 |
2024 | 2023 |
Notes | £ | £ |
REVENUE | 13,014,559 | 12,277,298 |
Cost of sales | 6,012,773 | 5,565,946 |
GROSS PROFIT | 7,001,786 | 6,711,352 |
Administrative expenses | 5,240,709 | 4,617,272 |
1,761,077 | 2,094,080 |
Other operating income | 114,626 | 48,711 |
OPERATING PROFIT | 4 | 1,875,703 | 2,142,791 |
Interest receivable and similar income | 4,257 | - |
1,879,960 | 2,142,791 |
Interest payable and similar expenses | 5 | 184,420 | 145,314 |
PROFIT BEFORE TAXATION | 1,695,540 | 1,997,477 |
Tax on profit | 6 | 428,903 | 416,733 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 1,266,637 | 1,580,744 |
Kervan Sofrasi Limited (Registered number: 05714223) |
Consolidated |
Other Comprehensive Income |
for the year ended 31 March 2024 |
2024 | 2023 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 1,266,637 | 1,580,744 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
1,266,637 |
1,580,744 |
Total comprehensive income attributable to: |
Owners of the parent | 1,266,637 | 1,580,744 |
Kervan Sofrasi Limited (Registered number: 05714223) |
Consolidated Statement of Financial Position |
31 March 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 | 284 | 10,474 |
Property, plant and equipment | 10 | 6,784,324 | 6,796,177 |
Investments | 11 | - | - |
Investment property | 12 | 50,000 | - |
6,834,608 | 6,806,651 |
CURRENT ASSETS |
Inventories | 13 | 297,567 | 219,266 |
Debtors | 14 | 1,660,455 | 1,661,870 |
Cash at bank and in hand | 2,109,781 | 1,294,494 |
4,067,803 | 3,175,630 |
CREDITORS |
Amounts falling due within one year | 15 | 1,167,957 | 1,047,245 |
NET CURRENT ASSETS | 2,899,846 | 2,128,385 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
9,734,454 |
8,935,036 |
CREDITORS |
Amounts falling due after more than one year |
16 |
(2,670,322 |
) |
(2,937,745 |
) |
PROVISIONS FOR LIABILITIES | 20 | (274,116 | ) | (273,912 | ) |
NET ASSETS | 6,790,016 | 5,723,379 |
Kervan Sofrasi Limited (Registered number: 05714223) |
Consolidated Statement of Financial Position - continued |
31 March 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
CAPITAL AND RESERVES |
Called up share capital | 21 | 100 | 100 |
Retained earnings | 22 | 6,789,916 | 5,723,279 |
SHAREHOLDERS' FUNDS | 6,790,016 | 5,723,379 |
The financial statements were approved by the Board of Directors and authorised for issue on 17 October 2024 and were signed on its behalf by: |
Mr E Aksu - Director |
Mr O Aksu - Director |
Kervan Sofrasi Limited (Registered number: 05714223) |
Company Statement of Financial Position |
31 March 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
Property, plant and equipment | 10 |
Investments | 11 |
Investment property | 12 |
CURRENT ASSETS |
Inventories | 13 |
Debtors | 14 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 15 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
16 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 20 | ( |
) | ( |
) |
NET ASSETS |
Kervan Sofrasi Limited (Registered number: 05714223) |
Company Statement of Financial Position - continued |
31 March 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
CAPITAL AND RESERVES |
Called up share capital | 21 |
Retained earnings | 22 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 668,409 | 905,305 |
The financial statements were approved by the Board of Directors and authorised for issue on |
Kervan Sofrasi Limited (Registered number: 05714223) |
Consolidated Statement of Changes in Equity |
for the year ended 31 March 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 April 2022 | 100 | 4,342,535 | 4,342,635 |
Changes in equity |
Dividends | - | (200,000 | ) | (200,000 | ) |
Total comprehensive income | - | 1,580,744 | 1,580,744 |
Balance at 31 March 2023 | 100 | 5,723,279 | 5,723,379 |
Changes in equity |
Dividends | - | (200,000 | ) | (200,000 | ) |
Total comprehensive income | - | 1,266,637 | 1,266,637 |
Balance at 31 March 2024 | 100 | 6,789,916 | 6,790,016 |
Kervan Sofrasi Limited (Registered number: 05714223) |
Company Statement of Changes in Equity |
for the year ended 31 March 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 April 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 March 2023 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 March 2024 |
Kervan Sofrasi Limited (Registered number: 05714223) |
Consolidated Statement of Cash Flows |
for the year ended 31 March 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 2,286,512 | 1,689,864 |
Interest paid | (184,420 | ) | (138,855 | ) |
Interest element of hire purchase or finance lease rental payments paid |
- |
(6,459 |
) |
Tax paid | (189,098 | ) | (897,116 | ) |
Net cash from operating activities | 1,912,994 | 647,434 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (518,505 | ) | (2,732,828 | ) |
Purchase of investment property | (50,000 | ) | - |
Interest received | 4,257 | - |
Net cash from investing activities | (564,248 | ) | (2,732,828 | ) |
Cash flows from financing activities |
New loans in year | - | 1,235,000 |
Loan repayments in year | (332,781 | ) | (326,523 | ) |
Capital repayments in year | - | (38,301 | ) |
Amount withdrawn by directors | (678 | ) | 738 |
Equity dividends paid | (200,000 | ) | (200,000 | ) |
Net cash from financing activities | (533,459 | ) | 670,914 |
Increase/(decrease) in cash and cash equivalents | 815,287 | (1,414,480 | ) |
Cash and cash equivalents at beginning of year |
2 |
1,294,494 |
2,708,974 |
Cash and cash equivalents at end of year | 2 | 2,109,781 | 1,294,494 |
Kervan Sofrasi Limited (Registered number: 05714223) |
Notes to the Consolidated Statement of Cash Flows |
for the year ended 31 March 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Profit before taxation | 1,695,540 | 1,997,477 |
Depreciation charges | 540,548 | 557,878 |
Finance costs | 184,420 | 145,314 |
Finance income | (4,257 | ) | - |
2,416,251 | 2,700,669 |
Increase in inventories | (78,301 | ) | (49,779 | ) |
Increase in trade and other debtors | (27,288 | ) | (1,160,199 | ) |
(Decrease)/increase in trade and other creditors | (24,150 | ) | 199,173 |
Cash generated from operations | 2,286,512 | 1,689,864 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 31 March 2024 |
31/3/24 | 1/4/23 |
£ | £ |
Cash and cash equivalents | 2,109,781 | 1,294,494 |
Year ended 31 March 2023 |
31/3/23 | 1/4/22 |
£ | £ |
Cash and cash equivalents | 1,294,494 | 2,708,974 |
Kervan Sofrasi Limited (Registered number: 05714223) |
Notes to the Consolidated Statement of Cash Flows |
for the year ended 31 March 2024 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1/4/23 | Cash flow | At 31/3/24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 1,294,494 | 815,287 | 2,109,781 |
1,294,494 | 815,287 | 2,109,781 |
Debt |
Debts falling due within 1 year | (344,446 | ) | 65,357 | (279,089 | ) |
Debts falling due after 1 year | (2,937,745 | ) | 267,423 | (2,670,322 | ) |
(3,282,191 | ) | 332,780 | (2,949,411 | ) |
Total | (1,987,697 | ) | 1,148,067 | (839,630 | ) |
Kervan Sofrasi Limited (Registered number: 05714223) |
Notes to the Consolidated Financial Statements |
for the year ended 31 March 2024 |
1. | STATUTORY INFORMATION |
Kervan Sofrasi Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
Turnover |
Revenue is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Turnover is generated from the ordinary activities of the business and is recognised when customers take delivery of the goods. |
Goodwill |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Freehold property | - |
Short leasehold | - |
Improvements to property | - |
Plant and machinery | - |
Fixtures and fittings | - |
Kervan Sofrasi Limited (Registered number: 05714223) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 March 2024 |
2. | ACCOUNTING POLICIES - continued |
Investment property |
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss. |
Stocks |
Inventories are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Cost of stocks are valued using the first in first out stock valuation method. Net realisable value is the estimated selling price less cost to sell. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Kervan Sofrasi Limited (Registered number: 05714223) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 March 2024 |
3. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries | 1,933,536 | 1,860,760 |
Social security costs | 65,020 | 61,298 |
Other pension costs | 21,242 | 18,320 |
2,019,798 | 1,940,378 |
The average number of employees during the year was as follows: |
2024 | 2023 |
Director | 2 | 2 |
Accounts, management and operations | 170 | 171 |
2024 | 2023 |
£ | £ |
Directors' remuneration | 28,800 | 28,800 |
4. | OPERATING PROFIT |
The operating profit is stated after charging: |
2024 | 2023 |
£ | £ |
Hire of plant and machinery | 371 | - |
Other operating leases | 183,717 | 211,342 |
Depreciation - owned assets | 488,778 | 547,687 |
Depreciation - assets on hire purchase contracts or finance leases | 41,580 | - |
Goodwill amortisation | 10,000 | 10,000 |
Patents and licences amortisation | 190 | 190 |
Auditors' remuneration | 14,182 | 14,000 |
Taxation compliance services | 14,680 | 15,715 |
Other non- audit services | 23,376 | 22,736 |
Foreign exchange differences | 39 | 286 |
Kervan Sofrasi Limited (Registered number: 05714223) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 March 2024 |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Bank loan interest | 183,279 | 126,230 |
Interest and penalties | 1,141 | - |
Loan | - | 12,625 |
Hire purchase | - | 6,459 |
184,420 | 145,314 |
6. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax | 428,698 | 316,182 |
Deferred tax | 205 | 100,551 |
Tax on profit | 428,903 | 416,733 |
7. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
8. | DIVIDENDS |
2024 | 2023 |
£ | £ |
Ordinary shares of £1 each |
Interim | 200,000 | 200,000 |
Kervan Sofrasi Limited (Registered number: 05714223) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 March 2024 |
9. | INTANGIBLE FIXED ASSETS |
Group |
Patents |
and |
Goodwill | licences | Totals |
£ | £ | £ |
COST |
At 1 April 2023 |
and 31 March 2024 | 54,850 | 948 | 55,798 |
AMORTISATION |
At 1 April 2023 | 44,850 | 474 | 45,324 |
Amortisation for year | 10,000 | 190 | 10,190 |
At 31 March 2024 | 54,850 | 664 | 55,514 |
NET BOOK VALUE |
At 31 March 2024 | - | 284 | 284 |
At 31 March 2023 | 10,000 | 474 | 10,474 |
Company |
Patents |
and |
Goodwill | licences | Totals |
£ | £ | £ |
COST |
At 1 April 2023 |
and 31 March 2024 |
AMORTISATION |
At 1 April 2023 |
Amortisation for year |
At 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
At 31 March 2023 |
Kervan Sofrasi Limited (Registered number: 05714223) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 March 2024 |
10. | PROPERTY, PLANT AND EQUIPMENT |
Group |
Improvements |
Freehold | Short | to |
property | leasehold | property |
£ | £ | £ |
COST |
At 1 April 2023 | 4,609,821 | 50,636 | 1,799,240 |
Additions | - | - | - |
At 31 March 2024 | 4,609,821 | 50,636 | 1,799,240 |
DEPRECIATION |
At 1 April 2023 | 85,331 | 31,688 | 659,296 |
Charge for year | 27,659 | 1,700 | 93,175 |
At 31 March 2024 | 112,990 | 33,388 | 752,471 |
NET BOOK VALUE |
At 31 March 2024 | 4,496,831 | 17,248 | 1,046,769 |
At 31 March 2023 | 4,524,490 | 18,948 | 1,139,944 |
Fixtures |
Plant and | and |
machinery | fittings | Totals |
£ | £ | £ |
COST |
At 1 April 2023 | 569,481 | 2,485,567 | 9,514,745 |
Additions | 46,658 | 471,847 | 518,505 |
At 31 March 2024 | 616,139 | 2,957,414 | 10,033,250 |
DEPRECIATION |
At 1 April 2023 | 454,574 | 1,487,679 | 2,718,568 |
Charge for year | 40,391 | 367,433 | 530,358 |
At 31 March 2024 | 494,965 | 1,855,112 | 3,248,926 |
NET BOOK VALUE |
At 31 March 2024 | 121,174 | 1,102,302 | 6,784,324 |
At 31 March 2023 | 114,907 | 997,888 | 6,796,177 |
Kervan Sofrasi Limited (Registered number: 05714223) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 March 2024 |
10. | PROPERTY, PLANT AND EQUIPMENT - continued |
Group |
Fixed assets, included in the above, which are held under hire purchase contracts or finance leases are as follows: |
Fixtures |
and |
fittings |
£ |
COST |
At 1 April 2023 |
and 31 March 2024 | 127,864 |
DEPRECIATION |
At 1 April 2023 | 55,941 |
Charge for year | 41,580 |
At 31 March 2024 | 97,521 |
NET BOOK VALUE |
At 31 March 2024 | 30,343 |
At 31 March 2023 | 71,923 |
Company |
Improvements |
Freehold | Short | to |
property | leasehold | property |
£ | £ | £ |
COST |
At 1 April 2023 |
Additions |
At 31 March 2024 |
DEPRECIATION |
At 1 April 2023 |
Charge for year |
At 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
At 31 March 2023 |
Kervan Sofrasi Limited (Registered number: 05714223) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 March 2024 |
10. | PROPERTY, PLANT AND EQUIPMENT - continued |
Company |
Fixtures |
Plant and | and |
machinery | fittings | Totals |
£ | £ | £ |
COST |
At 1 April 2023 |
Additions |
At 31 March 2024 |
DEPRECIATION |
At 1 April 2023 |
Charge for year |
At 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
At 31 March 2023 |
Included in cost of land and buildings is freehold land of £ 3,226,875 (2023 - £ 3,226,875 ) which is not depreciated. |
11. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 April 2023 |
and 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
At 31 March 2023 |
Kervan Sofrasi Limited (Registered number: 05714223) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 March 2024 |
11. | FIXED ASSET INVESTMENTS - continued |
The group or the company's investments at the Statement of Financial Position date in the share capital of companies include the following: |
Subsidiary |
Registered office: 239-241 Kennington Lane, London SE11 5QU |
Nature of business: |
% |
Class of shares: | holding |
12. | INVESTMENT PROPERTY |
Group |
Total |
£ |
FAIR VALUE |
Additions | 50,000 |
At 31 March 2024 | 50,000 |
NET BOOK VALUE |
At 31 March 2024 | 50,000 |
The directors have assessed the value of the property at 31 March 2024 and considers this to be the appropriate value of the investment property. |
13. | STOCKS |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Finished goods | 297,567 | 219,266 |
Kervan Sofrasi Limited (Registered number: 05714223) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 March 2024 |
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Trade debtors | 47,776 | 53,127 |
Rent deposit | 16,738 | 16,738 | 2,050 | 2,050 |
Island Fitness Ltd | 1,466,441 | 1,465,021 | 411,420 | 410,000 |
Ezra's Kitchen Ltd | 17,593 | - | - | - |
Payment on account | 14,300 | - | 14,300 | - |
Kervan Assets Ltd | 394 | - | 394 | - |
Kervan Ltd | 144 | - | 144 | - |
Tax | - | 28,703 |
Prepayments | 97,069 | 98,281 |
1,660,455 | 1,661,870 |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 17) | 279,089 | 344,446 |
Trade creditors | 278,572 | 199,473 |
Ezra's Kitchen Ltd | - | 9,179 | - | - |
Amounts owed to group undertakings | - | - |
Tax | 254,928 | 44,031 |
Social security and other taxes | 14,158 | 13,831 |
Pension control account | 4,149 | 3,217 | 2,919 | 2,377 |
VAT | 264,893 | 359,097 | 161,845 | 202,486 |
Directors' current accounts | 1,038 | 1,716 | 248 | 630 |
Accrued expenses | 71,130 | 72,255 |
1,167,957 | 1,047,245 |
16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Bank loans (see note 17) | 2,670,322 | 2,937,745 |
Kervan Sofrasi Limited (Registered number: 05714223) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 March 2024 |
17. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Amounts falling due within one year or on | demand: |
Bank loans | 279,089 | 344,446 |
Amounts falling due between one and two | years: |
Bank loans - 1-2 years | 267,235 | 284,460 |
Amounts falling due between two and five | years: |
Bank loans - 2-5 years | 560,455 | 663,355 |
Amounts falling due in more than five years: |
Repayable by instalments |
Bank loans more 5 yr by instal | 1,842,632 | 1,989,930 | 1,842,632 | 1,989,930 |
18. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Non-cancellable operating | leases |
2024 | 2023 |
£ | £ |
Within one year | 160,000 | 160,000 |
Between one and five years | 640,000 | 640,000 |
In more than five years | 520,000 | 680,000 |
1,320,000 | 1,480,000 |
Kervan Sofrasi Limited (Registered number: 05714223) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 March 2024 |
19. | SECURED DEBTS |
The following secured debts are included within creditors: |
Company |
2024 | 2023 |
£ | £ |
Bank loans |
Bank loans are secured by the way of fixed first legal charge on the following properties. |
1. 171 Hertford Road, London and its associated assets. |
2. 107 Chase Side, London and its associated assets. |
3. 80 Church Street, London and its associated assets. |
The directors have given personal guarantee for the loans in the amount of £355,000 and a first legal charge on 10 Hyde Way, London and its associated assets, a property they own personally. |
20. | PROVISIONS FOR LIABILITIES |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Deferred tax | 274,116 | 273,912 | 173,812 | 170,360 |
Group |
Deferred |
tax |
£ |
Balance at 1 April 2023 | 273,912 |
Charge to Income Statement during year | 204 |
Balance at 31 March 2024 | 274,116 |
Company |
Deferred |
tax |
£ |
Balance at 1 April 2023 |
Charge to Income Statement during year |
Balance at 31 March 2024 |
Kervan Sofrasi Limited (Registered number: 05714223) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 March 2024 |
21. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary | £1 | 100 | 100 |
22. | RESERVES |
Group |
Retained |
earnings |
£ |
At 1 April 2023 | 5,723,279 |
Profit for the year | 1,266,637 |
Dividends | (200,000 | ) |
At 31 March 2024 | 6,789,916 |
Company |
Retained |
earnings |
£ |
At 1 April 2023 |
Profit for the year |
Dividends | ( |
) |
At 31 March 2024 |
23. | RELATED PARTY DISCLOSURES |
Entities with control, joint control or significant influence over the entity |
2024 | 2023 |
£ | £ |
Transfers to related parties | 28,730 | 1,278,092 |
Transfers from related parties | - | 137,250 |
Amount due to related parties | 378,535 | 387,714 |
Amount due from related parties | 1,863,107 | 1,843,556 |
Kervan Sofrasi Limited (Registered number: 05714223) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 March 2024 |
Key management personnel of the entity or its parent (in the | aggregate) |
The directors have given personal guarantee for the bank loan in the amount of £355,000 and a first legal charge on 10 Hyde Way, London and its associated assets, a property they own personally. |