SAVOUR CAFE LIMITED
Company registration number 05936301 (England and Wales)
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
PAGES FOR FILING WITH REGISTRAR
SAVOUR CAFE LIMITED
CONTENTS
Page
Directors' report
1
Balance sheet
2
Notes to the financial statements
3 - 10
SAVOUR CAFE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -
The directors present their annual report and financial statements for the year ended 31 March 2024.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr J R A Lister
Mrs G A Wilson-Bett
Mr I S Tencor
Mrs A Penman
The Directors are pleased with the performance of the bakery and coffee shops in Edinburgh. The reduction in profit is due to the investment in a new site in London and additional costs associated with this expansion.
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 company’s auditor 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 company’s auditor is aware of that information.
Review of business
The year ended 31 March 2024 represented the first year of the new site in East Dulwich, London. The site had just opened at the end of the previous financial year. It was designed with an adjacent bakery to serve the local community and further sites as the business continues to expand in the region, once suitable sites have been secured.
During the year the new site was faced with numerous difficulties which impacted on the launch and momentum from there. Most notably, access to the shop front was severely impacted which affected sales and also delayed the ability to open the bakery. The bakery was opened for retail in June 2024 and is proving to be a successful addition to the location. The delay on the bakery opening and reduced trading at East Dulwich has contributed significantly to the losses for the year.
Since the bakery opened sales have grown exponentially and the outlook for the financial year ended 31 March 2025 is looking positive as the Company continues to seek suitable sites for expansion. The Company has the backing of funding to support future growth.
The Community of Edinburgh where the Company operate from 7 retail sites has continued trading very strongly despite significant competition having moved into the city during the past few years. In the last year the Company have seen a number of their competitors close down which helps underline the strength of the established Community.
Small companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
On behalf of the board
Mrs A Penman
Director
9 October 2024
SAVOUR CAFE LIMITED
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 2 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
3
117,648
42,528
Tangible assets
4
1,071,142
1,221,339
1,188,790
1,263,867
Current assets
Stocks
52,892
37,995
Debtors
5
372,610
360,944
Cash at bank and in hand
270,769
308,466
696,271
707,405
Creditors: amounts falling due within one year
6
(491,504)
(250,312)
Net current assets
204,767
457,093
Total assets less current liabilities
1,393,557
1,720,960
Creditors: amounts falling due after more than one year
7
(157,333)
(108,333)
Net assets
1,236,224
1,612,627
Capital and reserves
Called up share capital
8
122
122
Share premium account
43,188
43,188
Profit and loss reserves
1,192,914
1,569,317
Total equity
1,236,224
1,612,627
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
The financial statements were approved by the board of directors and authorised for issue on 9 October 2024 and are signed on its behalf by:
Mrs A Penman
Director
Company registration number 05936301 (England and Wales)
SAVOUR CAFE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
1
Accounting policies
Company information
Savour Cafe Limited is a private company limited by shares incorporated in England and Wales. The registered office is Dyke Yaxley Limited, 1 Brassey Road, Old Potts Way, Shrewsbury, Shropshire, SY3 7FA.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.
1.2
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods provided in the normal course of business, and is shown net of VAT and other sales related taxes.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (at point of sale to the customer), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
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:
Development costs
Over 5 years straight line
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
SAVOUR CAFE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 4 -
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 property
Over the term of the lease straight line
Fixtures, fittings and equipment
Various
Motor vehicles
25% pa reducing balance
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.
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.7
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.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.8
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.
1.9
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
SAVOUR CAFE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 5 -
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account 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.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
1.12
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.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.15
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.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
92
76
SAVOUR CAFE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 6 -
3
Intangible fixed assets
Other
£
Cost
At 1 April 2023
94,390
Additions
84,164
At 31 March 2024
178,554
Amortisation and impairment
At 1 April 2023
51,862
Amortisation charged for the year
9,044
At 31 March 2024
60,906
Carrying amount
At 31 March 2024
117,648
At 31 March 2023
42,528
4
Tangible fixed assets
Leasehold property
Fixtures, fittings and equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 April 2023
723,292
1,385,160
11,495
2,119,947
Additions
31,028
15,483
46,511
Disposals
(98,347)
(11,495)
(109,842)
At 31 March 2024
754,320
1,302,296
2,056,616
Depreciation and impairment
At 1 April 2023
275,070
613,739
9,799
898,608
Depreciation charged in the year
43,068
136,130
423
179,621
Eliminated in respect of disposals
(82,533)
(10,222)
(92,755)
At 31 March 2024
318,138
667,336
985,474
Carrying amount
At 31 March 2024
436,182
634,960
1,071,142
At 31 March 2023
448,222
771,421
1,696
1,221,339
SAVOUR CAFE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 7 -
5
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
119
Corporation tax recoverable
94,748
91,118
Other debtors
277,743
183,329
372,610
274,447
2024
2023
Amounts falling due after more than one year:
£
£
Other debtors
86,497
Total debtors
372,610
360,944
6
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans
50,000
50,000
Trade creditors
175,716
124,787
Taxation and social security
114,241
28,438
Other creditors
151,547
47,087
491,504
250,312
7
Creditors: amounts falling due after more than one year
2024
2023
£
£
Bank loans and overdrafts
57,333
108,333
Other creditors
100,000
157,333
108,333
A loan of £107,333 (2023: £158,333) is outstanding and is subject to a UK Government guarantee. This facility is provided through the Coronavirus Business Interruption Loan Scheme (CBILS), managed by the British Business Bank on behalf of and with the financial backing of the Secretary of State for Business, Energy and Industrial Strategy. The CBILS guarantee is provided to the lender.
SAVOUR CAFE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
8
Called up share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A Shares of £1 each
110
110
110
110
Ordinary B Shares of £1 each
12
12
12
12
122
122
122
122
All classes of Ordinary Share rank pari passu except for dividend entitlement purposes.
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.
Senior Statutory Auditor:
Stacey Lea FCA
Statutory Auditor:
Dyke Yaxley Limited
Date of audit report:
11 October 2024
10
Post balance sheet events
After year end, the company opened up a new bakery in East Dulwich, London.
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:
2024
2023
£
£
3,630,958
3,642,750
12
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Purchases
Purchases
2024
2023
£
£
The Celtic Bakers Limited
5,809
6,743
SAVOUR CAFE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
12
Related party transactions
(Continued)
- 9 -
The following amounts were outstanding at the reporting end date:
2024
2023
Amounts due to related parties
£
£
The Celtic Bakers Limited
556
704
Other information
During the year a loan of £150,000 was received from Shiptinvest Limited, a company under common control.
SAVOUR CAFE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
13
Directors' transactions
Description
% Rate
Opening balance
Amounts repaid
Closing balance
£
£
£
Qualifying loan
-
15,774
(1,673)
14,101
15,774
(1,673)
14,101
14
Parent company
The parent company of Savour Cafe Limited is Coinstone Limited and its registered office is Shipton Mill, Long Newnton, Tetbury, GL8 8RP.
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