Company registration number 00450836 (England and Wales)
BRAUNSTONE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
BRAUNSTONE LIMITED
COMPANY INFORMATION
Directors
Shamil Thakrar
Shilen Thakrar
Raam Thakrar
(Appointed 1 June 2024)
Keshvi Lal
(Appointed 1 June 2024)
Talisha Shah
(Appointed 1 June 2024)
Karina Shilen Thakrar
(Appointed 1 June 2024)
Kavi Vipul Thakrar
(Appointed 1 June 2024)
Kush Vipul Thakrar
(Appointed 1 June 2024)
Rekha Thakrar
(Appointed 1 June 2024)
Riana Thakrar
(Appointed 1 June 2024)
Company number
00450836
Registered office
141-143 Shoreditch High Street
London
E1 6JE
Auditor
KLSA LLP
Kalamu House
11 Coldbath Square
London
EC1R 5HL
Bankers
Barclays Bank UK PLC.
1 Churchill Place
London
E14 5HP
BRAUNSTONE LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 5
Independent auditor's report
6 - 8
Profit and loss account
9
Group statement of comprehensive income
10
Group balance sheet
11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Company statement of cash flows
16
Notes to the financial statements
17 - 35
BRAUNSTONE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present the strategic report for the year ended 31 December 2023.

Review of the business

Turnover for the year was £123.9m (2022103.5m), representing a rise of 19.7% in the performances by the group's subsidiaries, with the gross profit increasing to £47.50m, compared to £40.1m in the comparative period. The majority of the growth came through the group’s restaurants, 2023 represented the first period where the comparative period was also unaffected directly by COVID-19.

 

Our core businesses remained resilient.

 

Objectives of the Group

The group's main objective is for growth in sales and profitability. This will be achieved by building on the success of the existing portfolio companies. In addition, continuous improvements in operational efficiency will be sought.

 

Internal cost monitoring

The group has a clear focus on efficient cost management and has a long term efficiency program in place to effectively manage all costs. Where appropriate, internal cost savings have been taken to reduce cost and preserve margins.

 

Future Development

The directors are focused on profitable growth. The Group’s subsidiary company opened two new restaurants during 2023 and continues to evaluate new potential restaurant openings in the UK.

 

Operational efficiencies are continually under review across the supply chain and are a principal focus for the group. The group continues to invest in product innovation, brand awareness and look for new opportunities.

Risks and uncertainties

The overall business environment continues to remain challenging and this has a resultant effect on overall business. The Group's strategic focus is to enhance investment growth whilst maintaining profit margins, the success of which remains dependant on overall market conditions and other factors.

As a holding company, the majority of the company's assets consists of investments in and loans to, subsidiary undertakings. Accordingly, the principal risk of the company relates to its ability to recover the carrying value of its investment and loans.

In addition to the business risk discussed above, the group company's activities expose it to a number of financial risks including credit risk, cash flow and liquidity risk as set out below:

Foreign currency risk

The group's activities expose it to the financial risk of changes in foreign currency, principally the US dollar and Euro. The group manages the risk appropriately.

 

Liquidity risk

The group monitors cash as part of its day-to-day control procedures.

 

The group does not use derivative financial instruments for speculative purposes.

 

In order to maintain liquidity to ensure that sufficient funds are available for ongoing operation and future developments. The company monitors its need for cash on a regular basis and takes appropriate action .

 

BRAUNSTONE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Key performance indicators

The directors use both financial and non-financial performance indicators to monitor the group's position.

 

The key financial performance indicators within the business are sales £123.9m (2022: £103.5m) and gross profit £47.5m (2022: £40.1m).

 

The key non-financial performance indicators are customer service and satisfaction, and stakeholder relationships.

 

The directors are of the belief that the monitoring of the above mentioned indicators is an effective aspect of business performance review.

 

Going concern

There was substantial growth in revenue and EBITDA in FY23 as the business operated in full throughout the period. Volumes in 2024 have continued to grow and the Directors are of the view that the Group will be able to meet liabilities as they fall due in the next 12 months. The financial statements are therefore prepared on a going concern basis.

 

Section 172 of the Companies Act

As per the Companies Act, it is a requirement that the director of a company must act in the way he/she considers, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole.

 

The Board of Directors is actively involved in the formulation of the company’s strategy, including consideration of how decisions made will impact the long-term.

 

The group recognises the important role that employees play in the success of the business and ensure that the health, safety and well-being of employees is a top priority.

 

The Board ensures that dealings with customers, suppliers and other stakeholders are fair and transparent as we recognise that they are a key part of the success of the business. The Board is aware of the company's responsibilities towards the communities in which the company operates and to the environment; it supports various causes after evaluating the their positive impact.

 

We behave responsibly and ensure that management operate the business in a responsible manner, operating within the high standards of business conduct and good governance. The group is committed to the environment and its subsidiary companies are developing strategies for Carbon reduction.

On behalf of the board

Shamil Thakrar
Director
11 October 2024
BRAUNSTONE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

The directors present their annual report and financial statements for the year ended 31 December 2023.

Principal activities

The principal activities of the group for the year under review are a portfolio of companies with interests in restaurants, photo merchandise products and investments.

Results and dividends

The results for the year are set out on page 9.

Dividends

Final dividends of £Nil were paid during the year (2022: £Nil).

Directors

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

Shamil Thakrar
Shilen Thakrar
Raam Thakrar
(Appointed 1 June 2024)
Keshvi Lal
(Appointed 1 June 2024)
Talisha Shah
(Appointed 1 June 2024)
Karina Shilen Thakrar
(Appointed 1 June 2024)
Kavi Vipul Thakrar
(Appointed 1 June 2024)
Kush Vipul Thakrar
(Appointed 1 June 2024)
Rekha Thakrar
(Appointed 1 June 2024)
Riana Thakrar
(Appointed 1 June 2024)

Charitable donations

 

During the period the group made charitable donations of £350k (2022 - £319k) to various charitable causes.

Disabled persons

It is the group's policy that all persons should be considered for employment training, career development and promotion on the basis of their abilities and aptitudes, regardless of physical ability, age, gender, sexual orientation, religion or ethnic origin.

 

The group applies employment policies that are fair and equitable for all employees and these ensure that entry into, and progression within the group, are determined solely by application of job criteria and personal ability and competency.

 

Full and fair consideration, having regard to the person's particular aptitudes and abilities, is given to applications for employment and the career development of disabled persons. The group's training and development policies also make it clear that it will take all steps practicable to ensure that employees who become disabled during the time they are employed by the group are able to remain employed by the group.

Employee involvement

The group places considerable value on the involvement of its employees, and has continued to keep them informed on matters affecting them as employees and on the various factors affecting the performance of the group. Employee representatives are consulted regularly on a wide range of matters affecting their current and future interests.

Future developments

The Strategic Report on page 1 provides information regarding the future developments of the group.

BRAUNSTONE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
Auditor

The auditor, KLSA LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Energy and carbon report

Under the Streamlined Energy and Carbon Reporting regulations the company is required to report its greenhouse gas emissions from scope 1 and 2, Electricity, Gas and Transport, annually.

Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
- Gas combustion
4,589,418
- Electricity consumption
8,779,738
13,369,156
Emissions of CO2 equivalent
Metric tonnes
Metric tonnes
Scope 1 - direct emissions
- Natural gas
841.00
841.00
Scope 2 - indirect emissions
- Purchased electricity
1,818.00
Scope 3 - other indirect emissions
- ElectricityT &D)
-
Total gross emissions
2,659.00
Intensity ratio
Tonnes CO2e per turnover (tC02e/£m)
22.76
Quantification and reporting methodology

The group has followed the 2019 HM Government Environmental Reporting Guidelines to ensure compliance with the SECR requirements. The UK Government issued "Green gas reporting: conversion factor 2023" conversion figures for Co2 were used.

Intensity measurement

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per £m turnover, the recommended ratio for the sector.

Measures taken to improve energy efficiency

The group continues to strive for energy and carbon reduction arising from our activities, the following actions form part of our ongoing efforts to reduce environmental impact.

BRAUNSTONE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
Statement of directors' responsibilities

The directors are responsible for preparing the Annual Report 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). 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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are 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. They are 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.

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.

On behalf of the board
Shamil Thakrar
Director
11 October 2024
BRAUNSTONE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BRAUNSTONE LIMITED
- 6 -
Opinion

We have audited the financial statements of Braunstone Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group profit and loss account, 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 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 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are 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:

BRAUNSTONE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BRAUNSTONE LIMITED
- 7 -
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 directors' 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 directors

As explained more fully in the directors' responsibilities statement, 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 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 directors are 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 directors either intend to liquidate the parent company or to cease operations, or have 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.

Extent to which the audit was considered capable of detecting irregularities , including fraud and non-compliance with laws and regulations

To identify risks of material misstatement due to any irregularities, including fraud and non-compliance with laws and regulations, we assessed events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud. Our risk assessment procedures included:

 

We assessed the susceptibility of the group and the parent company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

BRAUNSTONE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BRAUNSTONE LIMITED
- 8 -

To address the risk of fraud through management bias and override of controls, we:

To address the risk of non-compliance with laws and regulations, we communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. The group and the parent company are subject to laws and regulations that directly affect the financial statements including financial reporting legislation (including related companies legislation) and taxation legislation (including payroll taxes) and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statements items.

 

There are inherent limitations in the audit procedures described above; any instance of non-compliance with laws and regulations and fraud which is far removed from transactions reflected in the financial statements would diminish the likelihood of detection. Furthermore, the risk of not detecting a material misstatement due to fraud is greater than the risk of not detecting one resulting from error.

 

Fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentation, or through an act of collusion that would mitigate internal controls.

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.

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.

Ketan Shah (Senior Statutory Auditor)
For and on behalf of KLSA LLP
11 October 2024
Chartered Accountants
Statutory Auditor
Kalamu House
11 Coldbath Square
London
EC1R 5HL
BRAUNSTONE LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
Notes
£000
£000
Turnover
3
123,963
103,503
Cost of sales
(76,458)
(63,413)
Gross profit
47,505
40,090
Administrative expenses
(40,270)
(36,386)
Other operating income
107
191
Operating profit
4
7,342
3,895
Interest receivable and similar income
8
136
-
0
Interest payable and similar expenses
9
(1,698)
(967)
Profit before taxation
5,780
2,928
Tax on profit
10
(1,849)
(1,097)
Profit for the financial year
3,931
1,831
Profit for the financial year is all attributable to the owners of the parent company.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

BRAUNSTONE LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
2023
2022
£000
£000
Profit for the year
3,931
1,831
Other comprehensive income
-
-
Total comprehensive income for the year
3,931
1,831
Total comprehensive income for the year is all attributable to the owners of the parent company.
BRAUNSTONE LIMITED
GROUP BALANCE SHEET
AS AT 31 DECEMBER 2023
- 11 -
2023
2022
Notes
£000
£000
£000
£000
Fixed assets
Intangible assets
11
2,471
2,511
Tangible assets
12
32,741
26,478
Investments
13
69
69
35,281
29,058
Current assets
Stocks
15
923
833
Debtors
16
5,130
4,259
Cash at bank and in hand
12,039
11,503
18,092
16,595
Creditors: amounts falling due within one year
17
(25,627)
(27,929)
Net current liabilities
(7,535)
(11,334)
Total assets less current liabilities
27,746
17,724
Creditors: amounts falling due after more than one year
18
(26,406)
(22,163)
Provisions for liabilities
Deferred tax liability
20
3,810
1,962
(3,810)
(1,962)
Net liabilities
(2,470)
(6,401)
Capital and reserves
Called up share capital
22
20,000
20,000
Equity reserve
23
(14,747)
(14,747)
Profit and loss reserves
(7,723)
(11,654)
Total equity
(2,470)
(6,401)
The financial statements were approved by the board of directors and authorised for issue on 11 October 2024 and are signed on its behalf by:
Shamil Thakrar
Director
Company registration number 00450836 (England and Wales)
BRAUNSTONE LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
- 12 -
2023
2022
Notes
£000
£000
£000
£000
Fixed assets
Tangible assets
12
9
12
Investments
13
46,630
46,630
46,639
46,642
Current assets
Debtors
16
10,770
9,330
Cash at bank and in hand
3,292
1,275
14,062
10,605
Creditors: amounts falling due within one year
17
(289)
(2,707)
Net current assets
13,773
7,898
Total assets less current liabilities
60,412
54,540
Creditors: amounts falling due after more than one year
18
(10,050)
(12,300)
Net assets
50,362
42,240
Capital and reserves
Called up share capital
22
20,000
20,000
Profit and loss reserves
30,362
22,240
Total equity
50,362
42,240

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £8.1m (2022 - £2.5m).

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 by the board of directors and authorised for issue on 11 October 2024 and are signed on its behalf by:
Shamil Thakrar
Director
Company registration number 00450836 (England and Wales)
BRAUNSTONE LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
Share capital
Equity reserve
Profit and loss reserves
Total
£000
£000
£000
£000
Balance at 1 January 2022
20,000
(14,652)
(13,485)
(8,137)
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
1,831
1,831
Movements in non-controlling interests
-
(95)
-
(95)
Balance at 31 December 2022
20,000
(14,747)
(11,654)
(6,401)
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
3,931
3,931
Balance at 31 December 2023
20,000
(14,747)
(7,723)
(2,470)
BRAUNSTONE LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
Share capital
Profit and loss reserves
Total
£000
£000
£000
Balance at 1 January 2022
20,000
19,671
39,671
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
2,569
2,569
Balance at 31 December 2022
20,000
22,240
42,240
Year ended 31 December 2023:
Profit and total comprehensive income
-
8,122
8,122
Balance at 31 December 2023
20,000
30,362
50,362
BRAUNSTONE LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
2023
2022
Notes
£000
£000
£000
£000
Cash flows from operating activities
Cash generated from operations
25
12,501
10,236
Interest paid
(1,698)
(967)
Income taxes (paid)/refunded
(36)
116
Net cash inflow from operating activities
10,767
9,385
Investing activities
Purchase of intangible assets
(1,277)
(1,049)
Purchase of tangible fixed assets
(8,780)
(5,846)
Purchase of investments
-
(95)
Interest received
136
-
0
Net cash used in investing activities
(9,921)
(6,990)
Financing activities
Repayment of borrowings
(4,750)
(1,800)
Proceeds from new bank loans
9,000
10,400
Repayment of bank loans
(4,560)
(5,193)
Net cash (used in)/generated from financing activities
(310)
3,407
Net increase in cash and cash equivalents
536
5,802
Cash and cash equivalents at beginning of year
11,503
5,701
Cash and cash equivalents at end of year
12,039
11,503
BRAUNSTONE LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
2023
2022
Notes
£000
£000
£000
£000
Cash flows from operating activities
Cash absorbed by operations
27
(2,128)
(220)
Interest paid
(905)
(558)
Net cash outflow from operating activities
(3,033)
(778)
Investing activities
Purchase of investment
-
0
(95)
Dividends received
9,800
3,700
Net cash generated from investing activities
9,800
3,605
Financing activities
Repayment of borrowings
(4,750)
(1,800)
Net cash used in financing activities
(4,750)
(1,800)
Net increase in cash and cash equivalents
2,017
1,027
Cash and cash equivalents at beginning of year
1,275
248
Cash and cash equivalents at end of year
3,292
1,275
BRAUNSTONE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
1
Accounting policies
Company information

Braunstone Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 141-143 Shoreditch High Street, London, E1 6JE.

 

The group consists of Braunstone 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 £000.

The financial statements have been prepared on the historical cost convention. The principal accounting policies adopted are set out below.

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company's profit was £8.1m for the year (2022: £2.5m).

1.2
Basis of consolidation

The consolidated financial statements incorporate those of Braunstone Limited and all of its subsidiaries (i.e. entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes.

 

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.

1.3
Going concern

As at 31 December 2023 the group had net liabilities of £2.4m (2022: £6.4m) and net current liabilities of £7.5m (2022: £11.3m).

 

The group is financed by equity, directors, related parties loans and banking facilities. The directors confirm that the group would be able to obtain additional funding if required to support its operations from its related parties.

 

The directors have reviewed and assessed forecast cash flows for the potential impact of uncertainties including the inflationary pressures on the subsidiaries operations. The cash flows were stress tested for the potential impact of known labour and energy cost inflation and expected inflation in Food and Beverage costs during 2024. The directors also considered the group’s financing facilities and future funding plans. Based on this, the directors have confirmed that the application of the going concern basis for the preparation of the financial statements continued to be appropriate.

 

In accordance with their responsibilities, the directors have considered the appropriateness of the going concern basis for the preparation of the financial statements. The directors are not aware of any likely events, conditions or business risks beyond this period that may cast significant doubt on the group's ability to continue as a going concern. Accordingly, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future and so continue to prepare to prepare these financial statements on the going concern basis.

BRAUNSTONE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
1.4
Turnover

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

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.

 

Restaurant turnover is recognised when payment is tendered at the time of sale, Turnover related to restaurant meal kits is recognised when the meal kit has been delivered.

1.5
Research and development expenditure

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight line basis over their useful economic life of 3 years.

If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.

1.6
Intangible fixed assets - goodwill

The goodwill on consolidation represents the amount by which the costs at the date of acquisition exceed net tangible assets of subsidiary undertakings. Goodwill on consolidation arising in the year of acquisition is capitalised and is amortised to nil by equal annual instalments over its estimated useful life of seven years.

 

On the subsequent disposal or termination of a business acquired since 1 January 1999, the profit or loss on disposal or termination is calculated after charging the unamortised amount of any related goodwill.

1.7
Intangible fixed assets other than goodwill

Internally generated or acquired intangible assets with finite lives are initially measured at cost and subsequently measured at cost, net of amortisation and any impairment losses.

 

Property lease premiums are initially recognised at fair value at acquisition and subsequently measured at amortised cost.

 

Intangible assets other than goodwill, trademarks are initially recognised at fair value at acquisition and subsequently measured at amortised cost and are amortised over 10 years.

Development Costs
Straight line basis - over 3 years
Property lease premiums
over the life of the lease
Trademarks
Straight line basis - over 10 years
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.

BRAUNSTONE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -

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 improvements
over the life of the lease
Plant and machinery
10 years straight line
Fixtures, fittings & equipment
15% - 33% straight line
Computer equipment
33% straight line

Assets in the course of construction are not depreciated.

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.

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.

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.

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

1.11
Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis.

 

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

BRAUNSTONE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
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 and other short-term liquid investments with original maturities of three months or less.

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.

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.

BRAUNSTONE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 21 -
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.

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
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

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 group’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.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.16
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.

BRAUNSTONE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 22 -
1.17
Retirement benefits

Subsidiary companies within the group operate a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into separate entity. Once the contributions have been paid the companies have no further payment obligations.

 

The contributions are recognised as an expense in the income statement when they fall due. Amounts not paid are shown in the accruals as a liability in the statement of financial position. The assets of the plan are held separately from the companies in independently administered funds.

1.18
Leases

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

 

Lease incentives are released to the profit and loss account over the period of the lease.

1.19
Foreign exchange

Foreign currency transactions are translated into functional currency using the spot exchange rates at the dates of the transactions.

 

At each period end foreign currency monetary items translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

 

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the income statement.

 

Foreign exchange gains and losses are presented in the income statement within 'administrative expenses'.

1.20

Pre-opening costs

Property rentals and other pre-opening costs incurred up to the date of opening a new restaurant are all written off to the income statement in the period in which they arise by a subsidiary company within the group.

1.21

Deferred income

Customers may purchase credits in advance. Credits are redeemable within a set period, after which they are deemed to have expired. When these credits have expired, they are recognised as income and included in turnover.

1.22

Comparatives

There were no changes in comparative figures during the year.

BRAUNSTONE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

 

In preparing these financial statements, the directors have had to make the following judgments:

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Revenue recognition of unexpired credits

The company recognised a portion of unexpired credits bought by certain customers as revenue in the profit and loss account. The recognisable portion is determined by analysis of historical customer behaviour and ongoing analysis of current customer cohorts. This determines which customer accounts have been inactive for a certain period of time beyond which it is deemed a remote possibility that they will ever reactive their account, either through placing an order or purchasing additional credits.

Leases

Determine whether leases entered into by the group are operating or finance leases. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor on a lease by lease basis.

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.

Tangible and intangible fixed assets

Tangible and intangible fixed assets are depreciated and amortised respectively over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on the number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.

3
Turnover and other revenue

An analysis of the group's turnover is as follows:

2023
2022
£000
£000
Turnover analysed by class of business
Restaurant operations
116,830
94,978
Design & sale of photo merchandise products
7,133
8,525
123,963
103,503
BRAUNSTONE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
3
Turnover and other revenue
(Continued)
- 24 -
2023
2022
£000
£000
Turnover analysed by geographical market
United Kingdom
121,974
100,801
Other countries
1,989
2,702
123,963
103,503
2023
2022
£000
£000
Other revenue
Interest income
136
-
4
Operating profit
2023
2022
£000
£000
Operating profit for the year is stated after charging/(crediting):
Exchange (gains)/losses
(29)
11
Research and development costs
191
45
Depreciation of owned tangible fixed assets
2,517
2,182
(Profit)/loss on disposal of tangible fixed assets
-
40
Amortisation of intangible assets
1,317
1,204
Operating lease charges
6,660
5,339
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£000
£000
For audit services
Audit of the financial statements of the group and company
25
25
Audit of the financial statements of the company's subsidiaries
127
103
152
128

Above audit fees includes £97,000 (2022: £73,000) for a subsidiary company auditor who is not the parent company's auditor.

BRAUNSTONE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
6
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
1,891
1,613
4
3

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£000
£000
£000
£000
Wages and salaries
44,979
34,136
798
544
Social security costs
3,622
3,297
106
74
Pension costs
602
493
-
0
-
0
49,203
37,926
904
618
7
Directors' remuneration
2023
2022
£000
£000
Remuneration for qualifying services
2,048
1,313
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£000
£000
Remuneration for qualifying services
504
498
8
Interest receivable and similar income
2023
2022
£000
£000
Interest income
Interest on bank deposits
136
-
0
2023
2022
Investment income includes the following:
£000
£000
Interest on financial assets not measured at fair value through profit or loss
136
-
BRAUNSTONE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
9
Interest payable and similar expenses
2023
2022
£000
£000
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
793
407
Other interest on financial liabilities
-
2
793
409
Other finance costs:
Other interest
905
558
Total finance costs
1,698
967
10
Taxation
2023
2022
£000
£000
Current tax
UK corporation tax on profits for the current period
-
0
1
Deferred tax
Origination and reversal of timing differences
1,831
1,054
Adjustment in respect of prior periods
18
42
Total deferred tax
1,849
1,096
Total tax charge
1,849
1,097

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

2023
2022
£000
£000
Profit before taxation
5,780
2,928
Expected tax charge based on the standard rate of corporation tax in the UK of 23.53% (2022: 19.00%)
1,360
556
Tax effect of expenses that are not deductible in determining taxable profit
164
-
0
Unutilised tax losses carried forward
393
362
Effect of change in corporation tax rate
107
253
Permanent capital allowances in excess of depreciation
-
0
8
Research and development tax credit
-
0
(16)
Fixed assets differences
87
(108)
Adjustments to tax charge in respect of prior periods
18
42
Group relief claimed
(280)
-
Taxation charge
1,849
1,097
BRAUNSTONE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
11
Intangible fixed assets
Group
Goodwill
Development Costs
Property lease premiums
Trademarks
Total
£000
£000
£000
£000
£000
Cost
At 1 January 2023
763
4,119
550
-
0
5,432
Additions - internally developed
-
0
1,084
-
0
-
0
1,084
Additions - separately acquired
-
0
-
0
-
0
193
193
At 31 December 2023
763
5,203
550
193
6,709
Amortisation and impairment
At 1 January 2023
763
2,119
39
-
0
2,921
Amortisation charged for the year
-
0
1,289
28
-
0
1,317
At 31 December 2023
763
3,408
67
-
0
4,238
Carrying amount
At 31 December 2023
-
0
1,795
483
193
2,471
At 31 December 2022
-
0
2,000
511
-
0
2,511
The company had no intangible fixed assets at 31 December 2023 or 31 December 2022.
12
Tangible fixed assets
Group
Leasehold improvements
Plant and machinery
Fixtures, fittings & equipment
Computer equipment
Total
£000
£000
£000
£000
£000
Cost
At 1 January 2023
25,188
13,141
124
139
38,592
Additions
5,538
3,242
-
0
-
0
8,780
At 31 December 2023
30,726
16,383
124
139
47,372
Depreciation and impairment
At 1 January 2023
4,748
7,156
93
117
12,114
Depreciation charged in the year
1,213
1,273
9
22
2,517
At 31 December 2023
5,961
8,429
102
139
14,631
Carrying amount
At 31 December 2023
24,765
7,954
22
-
0
32,741
At 31 December 2022
20,440
5,985
31
22
26,478
BRAUNSTONE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
12
Tangible fixed assets
(Continued)
- 28 -
Company
Fixtures, fittings & equipment
£000
Cost
At 1 January 2023 and 31 December 2023
29
Depreciation and impairment
At 1 January 2023
17
Depreciation charged in the year
2
At 31 December 2023
20
Carrying amount
At 31 December 2023
9
At 31 December 2022
12

The carrying value of land and buildings comprises:

Group
Company
2023
2022
2023
2022
£000
£000
£000
£000
Long leasehold
24,764
20,439
-
0
-
0
13
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£000
£000
£000
£000
Investments in subsidiaries
14
-
0
-
0
46,561
46,561
Listed investments
69
69
69
69
69
69
46,630
46,630
Movements in fixed asset investments
Group
Investments
£000
Cost or valuation
At 1 January 2023 and 31 December 2023
69
Carrying amount
At 31 December 2023
69
At 31 December 2022
69
BRAUNSTONE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
13
Fixed asset investments
(Continued)
- 29 -
Movements in fixed asset investments
Company
Shares in subsidiaries
Other investments
Total
£000
£000
£000
Cost or valuation
At 1 January 2023 and 31 December 2023
46,561
69
46,630
Carrying amount
At 31 December 2023
46,561
69
46,630
At 31 December 2022
46,561
69
46,630
14
Subsidiaries

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

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Indirect
Birchridge Limited
United Kingdom
Dormant
Ordinary
100.00
-
Dishoom Limited
United Kingdom
Restaurants
''B'' Ordinary
100.00
-
Touchnote Limited
United Kingdom
Sale of photo merchandise products
Ordinary
100.00
-
Touchnote Limited
United Kingdom
Sale of photo merchandise products
Preference
100.00
-
*Touchnote Inc
United State of America
Sale of photo merchandise products
Ordinary
-
100.00

The investments in subsidiaries are all stated at cost.

* Subsidiary of Touchnote Limited

15
Stocks
Group
Company
2023
2022
2023
2022
£000
£000
£000
£000
Finished goods and goods for resale
923
833
-
0
-
0
BRAUNSTONE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 30 -
16
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£000
£000
£000
£000
Corporation tax recoverable
107
-
0
-
0
-
0
Amounts owed by group undertakings
-
-
10,770
9,329
Other debtors
586
607
-
0
1
Prepayments and accrued income
4,437
3,652
-
0
-
0
5,130
4,259
10,770
9,330
17
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£000
£000
£000
£000
Bank loans
19
3,464
5,080
-
0
-
0
Other borrowings
19
-
0
2,500
-
0
2,500
Trade creditors
5,738
5,465
-
0
-
0
Corporation tax payable
75
3
-
0
-
0
Other taxation and social security
3,905
3,986
47
40
Other creditors
4,953
5,474
202
127
Accruals and deferred income
7,492
5,421
40
40
25,627
27,929
289
2,707
18
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£000
£000
£000
£000
Bank loans and overdrafts
19
13,856
7,800
-
0
-
0
Other borrowings
19
10,050
12,300
10,050
12,300
Other creditors
2,500
2,063
-
0
-
0
26,406
22,163
10,050
12,300
BRAUNSTONE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 31 -
19
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£000
£000
£000
£000
Bank loans
17,320
12,880
-
0
-
0
Other loans
10,050
14,800
10,050
14,800
27,370
27,680
10,050
14,800
Payable within one year
3,464
7,580
-
0
2,500
Payable after one year
23,906
20,100
10,050
12,300

In 2020, one of the subsidiary borrowed £5m from its bankers through the Coronavirus Large Business Interruption Loan Scheme. The loan term was 3 years, accrued interest at 6.3%. The loan was fully repaid in July 2023. At the year ended 31 December 2022 the balance outstanding was £3m

 

During the period to 31 December 2023 the same subsidiary company replaced its term loan agreement of £8.19m, accruing interest at 5.41% per annum and repayable over 3 years, with a new term loan agreement of £17.32m accruing interest at base rate plus 3.10% and repayable over 3 years. At the year ended 31 December 2023 the balance outstanding was £17.32m.

 

During FY23 the subsidiary has been compliant with all covenant obligations of their lender.

20
Deferred taxation

Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2023
2022
Group
£000
£000
Accelerated Capital Allowances
3,823
2,605
Short term timing differences
(13)
(643)
3,810
1,962
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the year:
£000
£000
Liability at 1 January 2023
1,962
-
Charge to other comprehensive income
1,848
-
Liability at 31 December 2023
3,810
-
BRAUNSTONE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
20
Deferred taxation
(Continued)
- 32 -
21
Retirement benefit schemes
2023
2022
Defined contribution schemes
£000
£000
Charge to profit or loss in respect of defined contribution schemes
602
493

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.

22
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£000
£000
Issued and fully paid
Ordinary shares of £1 each
20,000,000
20,000,000
20,000
20,000

 

23
Equity reserve
Group
Company
2023
2022
2023
2022
£000
£000
£000
£000
At the beginning of the year
(14,747)
(14,652)
-
-
0
Other movements
-
(95)
-
-
At the end of the year
(14,747)
(14,747)
-
0
-
0

In prior years, the non-controlling interest of a subsidiary was acquired by the parent company. The Equity Reserve is the difference between cash paid and the carrying value of the non-controlling interest. Prior to FRS 102, this amount would have been shown under Tangible assets and accordingly amortised over seven years in accordance with the group's policy on goodwill. The net assets accordingly would have been £12m (2022 - £8.3m) compared to (£2.4m) (2022 - (£6.4m).

BRAUNSTONE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 33 -
24
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
£000
£000
£000
£000
Within one year
4,594
4,238
-
-
Between two and five years
20,154
17,261
-
-
In over five years
55,571
46,982
-
-
80,319
68,481
-
-

In addition, a subsidiary has certain commitments to pay additional amounts based on performance.

25
Cash generated from group operations
2023
2022
£000
£000
Profit for the year after tax
3,931
1,831
Adjustments for:
Taxation charged
1,849
1,097
Finance costs
1,698
967
Investment income
(136)
-
0
(Gain)/loss on disposal of tangible fixed assets
-
40
Amortisation and impairment of intangible assets
1,317
1,204
Depreciation and impairment of tangible fixed assets
2,517
2,182
Movements in working capital:
Increase in stocks
(90)
(104)
Increase in debtors
(764)
(684)
Increase in creditors
2,179
3,703
Cash generated from operations
12,501
10,236
BRAUNSTONE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 34 -
26
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2023
2022
£000
£000
Aggregate compensation
2,048
1,313

Key management compensation is the same as the directors remuneration.

Other information

The company has taken advantage of the exemption available in FRS 102 (s33 "Related Party Disclosure"), whereby it has not disclosed transactions with any wholly owned subsidiary undertaking of the group.

 

At the balance sheet date, included in creditors, a balance amount of £10.05m (2022: £14.8m), owed to directors of the group companies which bears interest at market rates.

27
Cash generated from operations - company
2023
2022
£000
£000
Profit for the year after tax
8,122
2,569
Adjustments for:
Finance costs
905
558
Investment income
(9,800)
(3,700)
Depreciation and impairment of tangible fixed assets
2
2
Movements in working capital:
(Increase)/decrease in debtors
(1,440)
332
Increase in creditors
83
19
Cash absorbed by operations
(2,128)
(220)
28
Analysis of changes in net debt - group
1 January 2023
Cash flows
31 December 2023
£000
£000
£000
Cash at bank and in hand
11,503
536
12,039
Borrowings excluding overdrafts
(27,680)
310
(27,370)
(16,177)
846
(15,331)
BRAUNSTONE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 35 -
29
Analysis of changes in net debt - company
1 January 2023
Cash flows
31 December 2023
£000
£000
£000
Cash at bank and in hand
1,275
2,017
3,292
Borrowings excluding overdrafts
(14,800)
4,750
(10,050)
(13,525)
6,767
(6,758)
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