Registration number:
Three Cheers Pub Company Limited
for the Year Ended 31 March 2024
Three Cheers Pub Company Limited
Contents
Company Information |
|
Strategic Report |
|
Directors' Report |
|
Statement of Directors' Responsibilities |
|
Independent Auditor's Report |
|
Consolidated Profit and Loss Account |
|
Consolidated Statement of Comprehensive Income |
|
Consolidated Balance Sheet |
|
Balance Sheet |
|
Consolidated Statement of Changes in Equity |
|
Statement of Changes in Equity |
|
Consolidated Statement of Cash Flows |
|
Statement of Cash Flows |
|
Notes to the Financial Statements |
Three Cheers Pub Company Limited
Company Information
Directors |
NM Fox THW Peake MEL Reynolds |
Registered office |
|
Auditors |
|
Three Cheers Pub Company Limited
Strategic Report for the Year Ended 31 March 2024
The directors present their strategic report for the year ended 31 March 2024.
Principal activity
The principal activity of Three Cheers Pub Company is that of a holding company for its subsidiaries which operate public houses.
Fair review of the business
The Group reported revenue of £12.5 million in the year ended 31 March 2024 (2023: £12.2 million), an increase of 2%. Operating profit before depreciation for the year ended 31 March 2024 is £2.06 million (2023: £1.67 million), an increase of 26%. The profit before tax for the year amounted to £1.46 million (2023: £1.11 million).
The group's key financial and other performance indicators during the year were as follows:
Financial KPIs |
Unit |
2024 |
2023 |
Revenue |
£ |
12,516,669 |
12,246,253 |
Operating profit before depreciation |
£ |
2,057,172 |
1,676,866 |
Principal risks and uncertainties
The principal risks affecting the Group are discussed below.
General economic conditions
The cost of living crisis, exacerbated by the war in Ukraine driving up energy and food prices in particular, has put continued pressure on consumers and the trading environment. Additional costs are being offset as much as possible by price rises. However, the industry as a whole will undoubtedly feel the impact of increased costs in the short to medium term.
Industry specific
The Group operates in the leisure industry which is sensitive to economic conditions and pressures on disposable income. The market is also enduring inflationary cost pressures relating to food prices, business rates, utility costs, and the national living wage which has a direct impact on the Group.
The fundamental need for the UK consumer to socialise will always remain, however changes in consumer behaviour are often rapid. Therefore, there is a risk to market share if the Group is not positioned to quickly react to these changes. The Group’s Segment Strategy teams, involving marketers, operators, and finance, meet regularly to ensure segments respond quickly.
The Board regularly reviews results and forecasts to assess the impact of economic conditions on its budget and strategic plans. The Group is well placed to react to additional competition for leisure spending by being able to respond quickly in our pubs to adapt offers.
Although the cost inflationary pressures have a direct impact on the Group, this is a growing business and therefore, we can design operations to best mitigate increasing costs. We also continue to foster mutually beneficial relationships with key suppliers to ensure the impact of any price increases is minimised wherever possible.
Three Cheers Pub Company Limited
Strategic Report for the Year Ended 31 March 2024
Principal risks and uncertainties continued
The Group is subject to various areas of regulation, particularly with regards to the sale of alcohol. This can include licenses, permits, late night levies and various restriction orders. The Group works closely with the Police, Local Authorities, and trade bodies to ensure we remain compliant with legislation.
The Group's employees are subject to the Working Time Regulations, which controls the hours they are legally allowed to work. In addition, a large portion of the Group's staff are employed at the minimum wage and so the Group is impacted by increases in the minimum wage. The Directors expect that increases will result in an increase in the Group's labour costs, however they expect increases to be mitigated to a certain extent by revenue growth as well as certain measures introduced by the Group to optimise staff scheduling.
Group specific
A significant amount of the Group's managed pub revenues are collected in cash across its pubs and bars, which exposes the Group to potential cash loss. Strict cash control procedures are followed to ensure that cash collected is promptly reconciled and banked and due to the nature of the operations the directors have a strong presence in the pubs and promote a good control environment.
The Group places reliance on key suppliers and distributors to ensure there is a continuous supply of both food, drink, and other products to its managed pubs. The Group is exposed to the risk of failure by these suppliers to deliver in the required time frames or to the standards expected. The Group works closely with its key suppliers and distribution partners to ensure good working relationships.
Approved and authorised by the
......................................... |
Three Cheers Pub Company Limited
Directors' Report for the Year Ended 31 March 2024
The directors present their report and the for the year ended 31 March 2024.
Directors of the group
The directors who held office during the year were as follows:
Dividends
The Directors declared dividends of £735,522 (2023: £708,671).
Information included in the Strategic Report
The Group has chosen in accordance with Section 414C(11) of the Companies Act 2006 to include certain disclosures required under Section 416 of the Companies Act 2006 within the Strategic Report.
Financial instruments
At the period end the Group’s financial instruments include bank & intercompany loans and cash. The main purpose of these financial instruments is to raise finance for the Group’s operations. The main risks arising from the Group’s financial instruments are liquidity risks and interest risks. There is no currency exposure as all transactions are in Sterling Pound. The Board reviews and agrees policies for managing each of these risks on a Group basis and they are summarised below, including the impact of cashflow risk for the Group.
Liquidity risk
The Group has exposure to liquidity risk, being the risk that payments cannot be made when they fall due. The Group’s current objective is to maintain a balance between continuity of funding and flexibility using intercompany debt.
Interest risk
Interest risk is driven by continued pressure from increase in lending rates. The Group’s objective is to plan non-operating capital expenditure in a phased manner to ensure debts are serviced when they fall due.
Price risk
Price risk is primarily driven by fluctuation in the price of goods for both sale and purchase. For further details, please refer to “General economic conditions” section of the Strategic report.
Cash flow risk
Cash flow risk is driven by the fact that cash flow could fluctuate throughout the period due to a range of different factors such as working capital, investment and financing, payment management, employee management and the industry environment. The Group carry out regular cash flow forecasting with regular review of cash position in conjunction with cash requirements at component level.
Disclosure of information to the auditor
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
Three Cheers Pub Company Limited
Directors' Report for the Year Ended 31 March 2024
Approved and authorised by the
......................................... |
Three Cheers Pub Company Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities 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 the company 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 apply them consistently; |
• |
make judgements and accounting estimates that are reasonable and prudent; |
• |
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
• |
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 transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006 and in accordance with FRS 102 The Financial Reporting Standard. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Three Cheers Pub Company Limited
Independent Auditor's Report to the Members of Three Cheers Pub Company Limited
Opinion
We have audited the financial statements of Three Cheers Pub Company Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2024, which comprise the Consolidated Profit and Loss Account, Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated Statement of Cash Flows, Statement of Cash Flows, and 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 the parent company's 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 auditor 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 director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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 included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
Three Cheers Pub Company Limited
Independent Auditor's Report to the Members of Three Cheers Pub Company Limited
We have nothing to report in this regard.
Opinion on other matter 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 Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
• |
the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.
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 6], 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 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 company or to cease operations, or have no realistic alternative but to do so.
Auditor 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.
Three Cheers Pub Company Limited
Independent Auditor's Report to the Members of Three Cheers Pub Company Limited
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud was as follows:
• The engagement partner ensured that the engagement team collectively had the appropriate competence,capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
• We identified the laws and regulations applicable to the company through discussions with directors and other anagement, and from our commercial knowledge and experience of the sector in which the company operates;
• We focused on specific laws and regulations which we considered may have a direct impact material effect on the financial statements, or the operations of the company which included the Companies Act 2006, taxation legislation, data protection, anti-bribery, fire and safety, landlord and tenant act, and health and safety legislation;
• We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
• Identified laws and regulations were communicated within the audit team and the team remained alert to instances of non-compliance throughout the audit.
We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to involve the completeness and timing of income recognition and the override of controls by management.
To address the risk of fraud in relation to revenue recognition, we:
• Performed detailed substantive testing to address completeness and accuracy of sales;
• Assessed the appropriateness and application of the accounting policy concerning income recognition; and
• Performed detailed cut-off testing either side of the balance sheet date.
To address the risk of fraud through management bias and override of controls, we:
• Performed analytical procedures to identify any unusual or unexpected relationships;
• Tested journal entries to identify unusual transactions;
• Assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias;
• Investigated the rationale behind significant or unusual transactions.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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 auditor's report.
Three Cheers Pub Company Limited
Independent Auditor's Report to the Members of Three Cheers Pub Company 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 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.
......................................
For and on behalf of
Chartered Accountants and Statutory Auditors
80-83 Long Lane
London
EC1A 9ET
Three Cheers Pub Company Limited
Consolidated Profit and Loss Account for the Year Ended 31 March 2024
Note |
2024 |
2023 |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Administrative expenses |
( |
( |
|
Other operating income |
|
|
|
Operating profit |
|
|
|
Income from participating interests |
|
|
|
Other interest receivable and similar income |
|
|
|
Interest payable and similar expenses |
( |
( |
|
(43,423) |
(76,408) |
||
Profit before tax |
|
|
|
Tax on profit |
( |
( |
|
Profit for the financial year |
|
|
|
Profit/(loss) attributable to: |
|||
Owners of the company |
|
|
Three Cheers Pub Company Limited
Consolidated Statement of Comprehensive Income for the Year Ended 31 March 2024
2024 |
2023 |
|
Profit for the year |
|
|
Surplus on property, plant and equipment revaluation |
|
- |
Total comprehensive income for the year |
|
|
Total comprehensive income attributable to: |
||
Owners of the company |
|
|
Three Cheers Pub Company Limited
(Registration number: 05415795)
Consolidated Balance Sheet as at 31 March 2024
Note |
2024 |
2023 |
|
Fixed assets |
|||
Tangible assets |
|
|
|
Investments |
|
|
|
|
|
||
Current assets |
|||
Stocks |
|
|
|
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current liabilities |
( |
( |
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Provisions for liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
|
|
|
Other reserves |
|
|
|
Profit and loss account |
|
|
|
Equity attributable to owners of the company |
|
|
|
Total equity |
|
|
Approved and authorised by the
......................................... |
Three Cheers Pub Company Limited
(Registration number: 05415795)
Balance Sheet as at 31 March 2024
Note |
2024 |
2023 |
|
Fixed assets |
|||
Investments |
|
|
|
Current assets |
|||
Debtors |
|
|
|
Creditors: Amounts falling due within one year |
( |
( |
|
Net current liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
3,003 |
3,003 |
|
Shareholders' funds |
3,003 |
3,003 |
The company made a profit after tax for the financial year of £735,522 (2023 - profit of £708,671).
Approved and authorised by the
......................................... |
Three Cheers Pub Company Limited
Consolidated Statement of Changes in Equity for the Year Ended 31 March 2024
Equity attributable to the parent company
Share capital |
Non-distributable reserve |
Other reserves |
Retained earnings |
Total |
Total equity |
|
At 1 April 2023 |
|
|
|
|
|
|
Profit for the year |
- |
- |
- |
|
|
|
Other comprehensive income |
- |
|
- |
|
|
|
Total comprehensive income |
- |
|
- |
|
|
|
Dividends |
- |
- |
- |
( |
( |
( |
At 31 March 2024 |
|
|
|
|
|
|
Share capital |
Non-distributable reserve |
Other reserves |
Retained earnings |
Total |
Total equity |
|
At 1 April 2022 |
|
|
|
|
|
|
Profit for the year |
- |
- |
- |
|
|
|
Dividends |
- |
- |
- |
( |
( |
( |
At 31 March 2023 |
3,003 |
2,341,513 |
9,905 |
2,403,740 |
4,758,161 |
4,758,161 |
Three Cheers Pub Company Limited
Statement of Changes in Equity for the Year Ended 31 March 2024
Share capital |
Retained earnings |
Total |
|
At 1 April 2023 |
|
- |
|
Profit for the year |
- |
|
|
Dividends |
- |
( |
( |
At 31 March 2024 |
|
- |
|
Share capital |
Retained earnings |
Total |
|
At 1 April 2022 |
|
- |
|
Profit for the year |
- |
|
|
Dividends |
- |
( |
( |
At 31 March 2023 |
3,003 |
- |
3,003 |
Three Cheers Pub Company Limited
Consolidated Statement of Cash Flows for the Year Ended 31 March 2024
Note |
2024 |
2023 |
|
Cash flows from operating activities |
|||
Profit for the year |
|
|
|
Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
|
|
|
Loss on disposal of tangible assets |
|
|
|
Finance income |
( |
( |
|
Finance costs |
|
|
|
Income tax expense |
|
|
|
|
|
||
Working capital adjustments |
|||
(Increase)/decrease in stocks |
( |
|
|
Decrease in trade debtors |
|
|
|
(Decrease)/increase in trade creditors |
( |
|
|
Cash generated from operations |
|
|
|
Income taxes paid |
( |
( |
|
Net cash flow from operating activities |
|
|
|
Cash flows from investing activities |
|||
Interest received |
|
|
|
Acquisitions of tangible assets |
( |
( |
|
Proceeds from sale of tangible assets |
|
- |
|
Net cash flows from investing activities |
( |
( |
|
Cash flows from financing activities |
|||
Interest paid |
( |
( |
|
Proceeds from other borrowing draw downs |
|
- |
|
Repayment of other borrowing |
( |
( |
|
Dividends paid |
( |
( |
|
Net cash flows from financing activities |
( |
( |
|
Net increase/(decrease) in cash and cash equivalents |
|
( |
|
Cash and cash equivalents at 1 April |
|
|
|
Cash and cash equivalents at 31 March |
535,456 |
451,310 |
Three Cheers Pub Company Limited
Statement of Cash Flows for the Year Ended 31 March 2024
Note |
2024 |
2023 |
|
Cash flows from operating activities |
|||
Profit for the year |
|
|
|
Adjustments to cash flows from non-cash items |
|||
Finance income |
( |
( |
|
Net cash flow from operating activities |
- |
- |
|
Cash flows from investing activities |
|||
Interest received |
|
|
|
Cash flows from financing activities |
|||
Dividends paid |
( |
( |
|
Net increase/(decrease) in cash and cash equivalents |
- |
- |
|
Cash and cash equivalents at 1 April |
- |
- |
|
Cash and cash equivalents at 31 March |
- |
- |
Three Cheers Pub Company Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
These financial statements were authorised for issue by the
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except as disclosed in the accounting policies certain items are shown at fair value.
Three Cheers Pub Company Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Basis of consolidation
The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 March 2024.
No Profit and Loss Account is presented for the company as permitted by section 408 of the Companies Act 2006.
A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.
The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.
Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.
Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.
Going concern
In preparing these financial statements, the directors have considered the appropriateness of the going concern basis. In forming their view, management have prepared and reviewed cash flow forecasts for the Group, covering a period of 12 months from the date of approval of these financial statements. The financial impact of increase in minimum wages has been considered together with no business rates relief, the management plans to pass on the impact to the customers by increasing the sale prices.
At the balance sheet date, the Group has net assets of £7.5 million and on the basis of the current financial position and the forecast trading performance of the business, the directors consider it appropriate to prepare the financial statements on a going concern basis.
Three Cheers Pub Company Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Judgements
Going concern - The directors have used judgement in determining that the entity is a going concern (see note 2 for details) |
Key sources of estimation uncertainty
Depreciation and amortisation - The Company estimates the useful economic life and residual value of property, plant and equipment and these estimates influence the depreciation and amortisation charged each year. For details of these estimates, see the detailed accounting policies. The carrying amount is £13,230,586 (2023 -£10,556,032).
Revenue recognition
Turnover is the fair value of consideration received or receivable for goods and services provided in the normal course of business, net of discounts and taxes. Turnover principally consists of drink and food sales, which are recognised at the point at which goods are provided, and accommodation income which is recognised at the point the accommodation is provided.
Government grants
Money received in the form of a government grant is treated as a revenue grant. Therefore, grant income is recorded within other income in the income statement on a systematic basis in the same periods as the related expenses occurred.
Tax
The tax expense for the period comprises current tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the group operates and generates taxable income.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Freehold properties are carried at fair value, derived from the current market prices for comparable real estate determined annually by external valuers or the directors. The valuers use observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Fixtures, fittings and equipments |
10% straight line |
Leaseholds and leasehold improvements |
over the term of the lease |
Freehold buildings |
2% straight line |
Three Cheers Pub Company Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Investments
Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the group will not be able to collect all amounts due according to the original terms of the receivables.
Stocks
Stock, which comprise products held for resale, are stated at the lower of cost and net realisable value. Net realisable value is the estimated selling price in the ordinary course of business. Cost is determined using the first-in, first-out (FIFO) method.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the group does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Three Cheers Pub Company Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Dividends
Dividend distribution to the group’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Turnover |
The analysis of the group's Turnover for the year from continuing operations is as follows:
2024 |
2023 |
|
Food, drink and accommodation income |
|
|
Other gains and losses |
The analysis of the group's other gains and losses for the year is as follows:
2024 |
2023 |
|
Loss on disposal of Tangible assets |
( |
( |
Operating profit |
Arrived at after charging/(crediting)
2024 |
2023 |
|
Depreciation expense |
|
|
Loss on disposal of property, plant and equipment |
|
|
Other interest receivable and similar income |
2024 |
2023 |
|
Other finance income |
|
|
Interest payable and similar expenses |
2024 |
2023 |
|
Interest expense on other finance liabilities |
|
|
Three Cheers Pub Company Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
2024 |
2023 |
|
Wages and salaries |
|
|
Pension costs, defined contribution scheme |
|
|
|
|
The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:
2024 |
2023 |
|
Administration and support |
|
|
|
|
Auditors' remuneration |
2024 |
2023 |
|
Audit of these financial statements |
11,500 |
25,950 |
Other fees to auditors |
||
All other non-audit services |
|
|
Three Cheers Pub Company Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Taxation |
Tax charged/(credited) in the consolidated profit and loss account
2024 |
2023 |
|
Current taxation |
||
UK corporation tax |
|
|
The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2023 - higher than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
2024 |
2023 |
|
Profit before tax |
|
|
Corporation tax at standard rate |
|
|
Tax increase from effect of capital allowances and depreciation |
|
|
Effect of revenues exempt from taxation |
|
- |
Effect of tax losses |
|
- |
Decrease from effect of joint-ventures and associates results reported net of tax |
( |
( |
Total tax charge |
|
|
Three Cheers Pub Company Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Tangible assets |
Group
Land and buildings |
Furniture, fittings and equipment |
Motor vehicles |
Total |
|
Cost or valuation |
||||
At 1 April 2023 |
|
|
|
|
Revaluations |
|
- |
- |
|
Additions |
|
|
|
|
Disposals |
( |
- |
( |
( |
At 31 March 2024 |
|
|
|
|
Depreciation |
||||
At 1 April 2023 |
|
|
|
|
Charge for the year |
|
|
|
|
Eliminated on disposal |
( |
- |
( |
( |
At 31 March 2024 |
|
|
|
|
Carrying amount |
||||
At 31 March 2024 |
|
|
|
|
At 31 March 2023 |
|
|
|
|
Included within the net book value of land and buildings above is £11,969,333 (2023 - £9,038,000) in respect of freehold land and buildings, £579,722 (2023 - £778,148) in respect of long leasehold land and buildings and £245,090 (2023 - £277,910) in respect of short leasehold land and buildings.
The valuation for the group's land and buildings was done in 26 May 2022 by Fleurets Limited, a firm of Estate Agents and Chartered Surveyors for a total £7.9m.
In August 2024, HSBC commissioned a revaluation of the freehold properties, valuing the land and buildings at £12.9m which included £3m for additions during 2024.
Revaluation
The fair value of the group's Land and buildings was revalued on
Had this class of asset been measured on a historical cost basis, the carrying amount would have been £
Three Cheers Pub Company Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Investments |
Group
Details of undertakings
Details of the investments (including principal place of business of unincorporated entities) in which the group holds 20% or more of the nominal value of any class of share capital are as follows:
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
2024 |
2023 |
|||
Associates |
||||
|
3 Monkspath Hall Road
|
Ordinary |
|
|
England and Wales |
Its financial period end is 30 September 2023.
Aggregate financial information of associates
2024 |
2023 |
|
Group's share of in associates |
|
|
Associate undertakings
Six Cheers Limited
The principal activity of Six Cheers Limited is |
Company
2024 |
2023 |
|
Investments in subsidiaries |
|
|
Subsidiaries |
£ |
Cost or valuation |
|
At 1 April 2023 |
|
Provision |
|
Carrying amount |
|
At 31 March 2024 |
|
At 31 March 2023 |
|
Three Cheers Pub Company Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Details of undertakings
Details of the investments in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
2024 |
2023 |
|||
Subsidiary undertakings |
||||
|
England and Wales |
|
|
|
|
England and Wales |
|
|
|
|
England and Wales |
|
|
|
|
England and Wales |
|
|
|
|
England and Wales |
|
|
|
|
England and Wales |
|
|
|
|
England and Wales |
|
|
|
|
England and Wales |
|
|
|
|
England and Wales |
|
|
|
|
England and Wales |
|
|
|
Subsidiary undertakings |
The Abbeville Pub Limited The principal activity of The Abbeville Pub Limited is |
The Avalon Clapham Limited The principal activity of The Avalon Clapham Limited is |
The Bolingbroke Pub Limited The principal activity of The Bolingbroke Pub Limited is |
The Latchmere Pub Limited The principal activity of The Latchmere Pub Limited is |
Three Cheers Pub Company Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
The Rosendale Pub Limited The principal activity of The Rosendale Pub Limited is |
The Stonhouse Pub Limited The principal activity of The Stonhouse Pub Limited is |
The Tommyfield Pub Limited The principal activity of The Tommyfield Pub Limited is |
The Rosendale Freehold Limited The principal activity of The Rosendale Freehold Limited is |
The Stonhouse Freehold Limited The principal activity of The Stonhouse Freehold Limited is |
Three Cheers Management Company Limited The principal activity of Three Cheers Management Company Limited is |
The subsidiary companies within the group are exempt from the requirements relating to the audit of individual accounts by virtue of Section 479A of the Companies Act 2006. Three Cheers Pub Company Limited (Parent) will guarantee the debts and liabilities of the subsidiary companies in accordance with Section 479C of the Companies Act 2006.
Stocks |
Group |
Company |
|||
2024 |
2023 |
2024 |
2023 |
|
Other inventories |
|
|
- |
- |
Debtors |
Group |
Company |
|||
Current |
2024 |
2023 |
2024 |
2023 |
Trade debtors |
|
|
- |
- |
Amounts owed by related parties |
- |
- |
|
|
Other debtors |
|
|
|
|
Prepayments |
|
|
- |
- |
|
|
|
|
Three Cheers Pub Company Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Cash and cash equivalents |
Group |
Company |
|||
2024 |
2023 |
2024 |
2023 |
|
Cash on hand |
|
|
- |
- |
Cash at bank |
|
|
- |
- |
|
|
- |
- |
Creditors |
Group |
Company |
||||
Note |
2024 |
2023 |
2024 |
2023 |
|
Due within one year |
|||||
Loans and borrowings |
|
|
- |
- |
|
Trade creditors |
|
|
- |
- |
|
Amounts due to related parties |
- |
- |
|
|
|
Social security and other taxes |
|
|
- |
- |
|
Other payables |
|
|
|
|
|
Accruals |
|
|
- |
- |
|
Income tax liability |
321,877 |
157,954 |
- |
- |
|
|
|
|
|
||
Due after one year |
|||||
Loans and borrowings |
|
|
- |
- |
Provisions for liabilities |
Group
Deferred tax |
Total |
|
At 1 April 2023 |
|
|
Increase (decrease) in existing provisions |
|
|
At 31 March 2024 |
|
|
|
Pension and other schemes |
Defined contribution pension scheme
The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £
Three Cheers Pub Company Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Share capital |
Allotted, called up and fully paid shares
2024 |
2023 |
|||
No. |
£ |
No. |
£ |
|
|
|
1,000 |
|
1,000 |
|
|
1,000 |
|
1,000 |
|
|
1,000 |
|
1,000 |
|
|
1 |
|
1 |
|
|
1 |
|
1 |
'F' Ordinary Shares of £1 each |
1 |
1 |
1 |
1 |
|
|
|
|
Loans and borrowings |
Non-current loans and borrowings
Group |
Company |
|||
2024 |
2023 |
2024 |
2023 |
|
Bank borrowings |
|
|
- |
- |
Current loans and borrowings
Group |
Company |
|||
2024 |
2023 |
2024 |
2023 |
|
Bank borrowings |
|
|
- |
- |
Other borrowings |
|
|
- |
- |
|
|
- |
- |
Bank borrowings represents loans from HSBC Bank Plc, which has fixed charge over the freehold and leasehold properties and floating charge over all other assets.
Three Cheers Pub Company Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Obligations under leases and hire purchase contracts |
Group
Operating leases
The total of future minimum lease payments is as follows:
2024 |
2023 |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
Later than five years |
|
|
|
|
Dividends |
Interim dividends paid
2024 |
2023 |
|||
Interim dividend of £ |
|
|
||
Interim dividend of £ |
|
|
||
Interim dividend of £ |
|
|
||
Interim dividend of £ |
|
|
||
Interim dividend of £ |
|
|
||
Interim dividend of £ |
|
|
||
|
|
Financial commitments, guarantees and contingencies |
HSBC Bank plc has the right to set-off bank balances of the group companies against other group companies bank debts. The group companies have provided intercompany guarantees to HSBC Bank plc in respect of all debts due.
The subsidiary companies within the group (note 12) are exempt from the requirements relating to the audit of individual accounts by virtue of Section 479A of the Companies Act 2006. Three Cheers Pub Company Limited (Parent) will guarantee the debts and liabilities of the subsidiary companies in accordance with Section 479C of the Companies Act 2006.
Three Cheers Pub Company Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Related party transactions |
Group
Summary of transactions with associates
Company
Dividends paid to directors
2024 |
2023 |
|||
NM Fox |
||||
Ordinary dividends |
156,249 |
133,690 |
||
MEL Reynolds |
||||
Ordinary dividends |
154,274 |
156,566 |
||
THW Peake |
||||
Ordinary dividends |
192,674 |
154,864 |
||
Other related party transactions
During the year the company made the following related party transactions:
Nicholas Fox
(Director of the company)
Interest rate - 2% above Bank of England base rate or 5%, whichever is higher.
At the balance sheet date the amount due to Nicholas Fox was £300,000 (2023 - £300,000).
Gail Fox
(Gail Fox is related to Nicholas Fox, who is a director of the Company)
Interest rate - 2% above Bank of England base rate or 5%, whichever is higher.
At the balance sheet date the amount due to Gail Fox was £150,000 (2023 - £150,000).
C & J Eadie
(C & J Eadie are related to Mark Reynolds, who is a director of the Company)
Interest rate - 2% above Bank of England base rate or 5%, whichever is higher.
At the balance sheet date the amount due to C & J Eadie was £150,000 (2023 - £Nil).
Carol Gregg
(Carol Gregg is related to Mark Reynolds, who is a director of the Company)
Interest rate - 2% above Bank of England base rate or 5%, whichever is higher.
At the balance sheet date the amount due to Carol Gregg was £1,225,000 (2023 - £1,075,000).