Company Registration No. NI647110 (Northern Ireland)
BOB & BERTS GROUP LIMITED
ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
BOB & BERTS GROUP LIMITED
COMPANY INFORMATION
Directors
Mr D Ferguson
Mr C McClean
Ms G Hamilton
Mr M Mansigani
Mr J McLaughlin
(Appointed 11 April 2023)
Company number
NI647110
Registered office
15 Duke Street
Ballymena
Co Antrim
BT43 6BL
Auditor
GMcG BELFAST
Chartered Accountants & Statutory Auditor
Alfred House
19 Alfred Street
Belfast
BT2 8EQ
Business address
29-41 Ballymoney Street
Ballymena
Co Antrim
BT42 3LR
Bankers
Danske Bank
North Business Centre
1-2 Broadway Avenue
Ballymena
BT43 7PE
Ulster Bank Limited
11-16 Donegall Square East
Belfast
BT1 5HD
Solicitors
TLT LLP
3 Hardman Square
Manchester
M3 3EB
Cleaver Fulton Rankin
50 Bedford Street
Belfast
BT2 7FW
BOB & BERTS GROUP LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 10
Group statement of comprehensive income
11
Group balance sheet
12
Company balance sheet
13
Group statement of changes in equity
14
Company statement of changes in equity
15
Group statement of cash flows
16
Company statement of cash flows
17
Notes to the financial statements
18 - 39
BOB & BERTS GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2023
- 1 -

The directors present the strategic report for the year ended 30 June 2023.

Business review

The principal activity of the group during the year was the operation of unlicensed cafes and restaurants.

 

The directors aim to present a balanced and comprehensive review of the performance and development of the group during the year and its position at 30 June 2023. The review is consistent with the size and nature of the business and is written in the context of the risks and uncertainties it faces.

 

The directors consider that the key performance indicators are those that communicate the financial performance and strength of the group as a whole, turnover, gross profit and trading EBITDA.

 

The group's key performance indicators during the current and prior year were as follows:

 

 

Year ended

Year ended

 

30-Jun-23

30-Jun-22

 

£

£

Turnover

19,620,150

17,750,690

Gross profit

13,125,428

12,304,827

Trading EBITDA

791,025

2,241,728

Trading EBITDA %

4.0%

12.6%

 

 

 

 

The year ended 30 June 2023 was another record year of sales for the Bob & Berts Group, with sales of £19.6m. The group continued its expansion in both England and Scotland with the opening of an additional two stores (Perth and Carlisle). Further expansion of two stores in England (Blackpool and Wakefield) and one store in Northern Ireland has been completed in the first half of FY24.

 

During the year the group established a strong presence in England and by the year end had five sites opened with a further two sites scheduled to open in the first quarter of FY24.

 

The group’s continued expansion, including into England, has meant that there has been investment in infrastructure, specifically senior operational management, a stock management system, as well as an English based distributor for the English sites. These significant investment costs of £1.8m ahead of stores opening will benefit the group from FY24 onward.

 

Whilst sales and transactions remained strong for the group, this year’s accounts show a loss of £346,327. This was largely driven by an increase in cost of sales. Management have reacted well to this by decoupling the supply chain in England from the rest of the business. This has seen a significant margin improvement for the business in the first six months of FY24.

 

In assessing the performance of the stores, management measure performance against an adjusted trading profit before tax and depreciation (EBITDA). For the year the group posted an EBITDA of £791K.

 

Looking ahead the directors foresee that there is a stabilisation with regards food and drink inflation and energy costs. Store sales have remained strong throughout the current economic downturn, which demonstrates the strength of the brand and gives management confidence that sales for FY24 will continue to grow. The actions taken by management and significant investment for FY24 have had a positive impact and will allow the group to continue to grow profits into FY24 and onwards.

 

In terms of new site openings, the group has developed a strong pipeline of potential new stores. The group will have achieved their goal of opening their 30th store during FY24 with a total of four stores added to the business. Beyond FY24 the business has developed the structure and store pipeline to at least double in size over the next five years.

 

BOB & BERTS GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 2 -
Principal risks and uncertainties

The key risks and uncertainties facing the group are considered to be:

 

1. Consumer Confidence

The group relies on consumer spend to deliver profits and is therefore sensitive to the wider economy. An economic downturn may lead to lower consumer spend in stores.

 

This risk is mitigated by the fact that the current offer and service is good value for money and the directors believe that this will provide the required resilience should there be an economic downturn.

 

2. Cost Inflation

The hospitality sector has seen significant cost pressures:

Given the group wants to deliver value for money these costs need to be tightly managed.

 

This risk is mitigated by:

 

3. Health & Safety and Food Safety

The health and safety of all guests and employees is a key concern and and the group is required to comply with all health and safety legislation including food safety.

 

This risk is mitigated by:

On behalf of the board

Mr D Ferguson
Director
28 June 2024
BOB & BERTS GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2023
- 3 -

The directors present their annual report and financial statements for the year ended 30 June 2023.

Results and dividends

The results for the year are set out on page 11.

Ordinary dividends were payable amounting to £100,000. The directors do not recommend payment of a further dividend.

Directors

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

Mr D Ferguson
Mr C McClean
Ms G Hamilton
Mr M Mansigani
Ms C Palmer
(Resigned 20 January 2023)
Mr J McLaughlin
(Appointed 11 April 2023)
Disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the group continues and that the appropriate training is arranged. It is the policy of the group that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Employee involvement

The group's policy is to consult and discuss with employees, staff councils and at meetings, matters likely to affect employees' interests.

 

Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.

Auditor

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

BOB & BERTS GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 4 -
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.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr D Ferguson
Director
28 June 2024
2024-06-28
BOB & BERTS GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BOB & BERTS GROUP LIMITED
- 5 -
Opinion

We have audited the financial statements of Bob & Berts Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2023 which comprise 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.

BOB & BERTS GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BOB & BERTS GROUP LIMITED
- 6 -

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:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and parent 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 we are required to report to you if, in our opinion:

 

BOB & BERTS GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BOB & BERTS GROUP LIMITED
- 7 -
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.

BOB & BERTS GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BOB & BERTS GROUP LIMITED
- 8 -
Extent to which the audit was considered capable of detecting irregularities, including fraud

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

In identifying and assessing potential risks of material misstatement in respect of irregularities, including fraud and non-compliances with laws and regulations, we considered the following:

As a result of these procedures, we considered the opportunities and incentives that may exist within the company for fraud and identified the greatest potential for fraud in revenue recognition. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the Companies Act 2006, and local tax legislation.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty.

BOB & BERTS GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BOB & BERTS GROUP LIMITED
- 9 -
Audit response to risks identified

Our procedures to respond to the risks identified included the following:

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. In addition, as with any audit, there remains a higher risk of non-detection of irregularities, as they may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities 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.

BOB & BERTS GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BOB & BERTS GROUP LIMITED
- 10 -

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.

Mr Nigel Moore FCA (Senior Statutory Auditor)
For and on behalf of GMcG BELFAST
28 June 2024
Chartered Accountants
Statutory Auditor
Chartered Accountants & Statutory Auditor
Alfred House
19 Alfred Street
Belfast
BT2 8EQ
BOB & BERTS GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2023
- 11 -
2023
2022
Notes
£
£
Turnover
3
19,620,150
17,750,690
Cost of sales
(6,494,722)
(5,445,863)
Gross profit
13,125,428
12,304,827
Administrative expenses
(13,326,192)
(10,970,488)
Other operating income
-
219,257
Exceptional items
4
(227,830)
(313,471)
Operating (loss)/profit
5
(428,594)
1,240,125
Interest payable and similar expenses
9
(151,726)
(136,807)
(Loss)/profit before taxation
(580,320)
1,103,318
Tax on (loss)/profit
10
233,993
(370,652)
(Loss)/profit for the financial year
25
(346,327)
732,666
(Loss)/profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
BOB & BERTS GROUP LIMITED
GROUP BALANCE SHEET
AS AT
30 JUNE 2023
30 June 2023
- 12 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
12
1,167
3,967
Other intangible assets
12
7,449
3,940
Total intangible assets
8,616
7,907
Tangible assets
13
6,289,241
5,352,659
6,297,857
5,360,566
Current assets
Stocks
16
260,150
205,094
Debtors
17
799,578
554,870
Cash at bank and in hand
993,193
2,359,383
2,052,921
3,119,347
Creditors: amounts falling due within one year
18
(3,920,573)
(3,319,356)
Net current liabilities
(1,867,652)
(200,009)
Total assets less current liabilities
4,430,205
5,160,557
Creditors: amounts falling due after more than one year
19
(1,515,133)
(1,718,646)
Provisions for liabilities
Deferred tax liability
22
737,205
817,717
(737,205)
(817,717)
Net assets
2,177,867
2,624,194
Capital and reserves
Called up share capital
24
11,658
11,658
Share premium account
25
372,161
372,161
Other reserves
25
(9,560)
(9,560)
Profit and loss reserves
25
1,803,608
2,249,935
Total equity
2,177,867
2,624,194

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 28 June 2024 and are signed on its behalf by:
28 June 2024
Mr D Ferguson
Director
Company registration number NI647110 (Northern Ireland)
BOB & BERTS GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 30 JUNE 2023
30 June 2023
- 13 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
12
7,449
3,940
Tangible assets
13
103,792
84,722
Investments
14
10,020
10,017
121,261
98,679
Current assets
Debtors
17
3,702,660
2,898,450
Cash at bank and in hand
75,424
346,567
3,778,084
3,245,017
Creditors: amounts falling due within one year
18
(8,549,687)
(6,085,459)
Net current liabilities
(4,771,603)
(2,840,442)
Total assets less current liabilities
(4,650,342)
(2,741,763)
Creditors: amounts falling due after more than one year
19
(1,515,133)
(1,711,175)
Net liabilities
(6,165,475)
(4,452,938)
Capital and reserves
Called up share capital
24
11,658
11,658
Share premium account
25
372,161
372,161
Profit and loss reserves
25
(6,549,294)
(4,836,757)
Total equity
(6,165,475)
(4,452,938)

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £1,612k (2022 - £1,345k). The loss in the company reflects the central, head office and borrowing costs of the group.

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 28 June 2024 and are signed on its behalf by:
28 June 2024
Mr D Ferguson
Director
Company registration number NI647110 (Northern Ireland)
BOB & BERTS GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023
- 14 -
Share capital
Share premium account
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 July 2021
11,658
372,161
(9,560)
1,517,269
1,891,528
Year ended 30 June 2022:
Profit and total comprehensive income
-
-
-
732,666
732,666
Balance at 30 June 2022
11,658
372,161
(9,560)
2,249,935
2,624,194
Year ended 30 June 2023:
Loss and total comprehensive income
-
-
-
(346,327)
(346,327)
Dividends
11
-
-
-
(100,000)
(100,000)
Balance at 30 June 2023
11,658
372,161
(9,560)
1,803,608
2,177,867
BOB & BERTS GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023
- 15 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 July 2021
11,658
372,161
(3,491,712)
(3,107,893)
Year ended 30 June 2022:
Loss and total comprehensive income for the year
-
-
(1,345,045)
(1,345,045)
Balance at 30 June 2022
11,658
372,161
(4,836,757)
(4,452,938)
Year ended 30 June 2023:
Profit and total comprehensive income
-
-
(1,612,537)
(1,612,537)
Dividends
11
-
-
(100,000)
(100,000)
Balance at 30 June 2023
11,658
372,161
(6,549,294)
(6,165,475)
BOB & BERTS GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2023
- 16 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
30
873,845
2,035,794
Interest paid
(151,726)
(136,807)
Net cash inflow from operating activities
722,119
1,898,987
Investing activities
Purchase of intangible assets
(5,892)
-
Purchase of tangible fixed assets
(1,830,825)
(2,082,038)
Proceeds from disposal of tangible fixed assets
6,359
5,299
Purchase of subsidiaries, net of cash acquired
(3)
(3)
Net cash used in investing activities
(1,830,361)
(2,076,742)
Financing activities
Repayment of borrowings
(500,000)
-
Proceeds from new bank loans
500,000
-
Repayment of bank loans
(229,375)
(245,000)
Payment of finance leases obligations
(28,573)
(28,485)
Net cash used in financing activities
(257,948)
(273,485)
Net decrease in cash and cash equivalents
(1,366,190)
(451,240)
Cash and cash equivalents at beginning of year
2,359,383
2,810,623
Cash and cash equivalents at end of year
993,193
2,359,383
BOB & BERTS GROUP LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2023
- 17 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
29
147,395
(99,649)
Interest paid
(147,556)
(132,649)
Net cash outflow from operating activities
(161)
(232,298)
Investing activities
Purchase of intangible assets
(5,892)
-
0
Purchase of tangible fixed assets
(35,712)
(60,173)
Purchase of subsidiaries
(3)
(3)
Net cash used in investing activities
(41,607)
(60,176)
Financing activities
Repayment of borrowings
(500,000)
-
Proceeds from new bank loans
500,000
-
Repayment of bank loans
(229,375)
(245,000)
Net cash used in financing activities
(229,375)
(245,000)
Net decrease in cash and cash equivalents
(271,143)
(537,474)
Cash and cash equivalents at beginning of year
346,567
884,041
Cash and cash equivalents at end of year
75,424
346,567
BOB & BERTS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
- 18 -
1
Accounting policies
Company information

Bob & Berts Group Limited (“the company”) is a private limited company domiciled and incorporated in Northern Ireland. The registered office is 15 Duke Street, Ballymena, Co Antrim, BT43 6BL.

 

The group consists of Bob & Berts Group 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 £.

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

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Bob & Berts Group Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 30 June 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.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

BOB & BERTS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies (Continued)
- 19 -
1.4
Going concern

These financial statements have been prepared on the going concern basis, notwithstanding the fact that the group incurred as loss of £346,327 in the year ended 30 June 2023. The loss was a result of several contributing factors and, in the period since the year end, trading performance has improved and the group has returned to profit. At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.5
Turnover

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

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.

1.6
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

1.7
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 5 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.8
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Other intangible assets
20% per annum
1.9
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.

BOB & BERTS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies (Continued)
- 20 -

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
6.67% straight line
Plant and equipment
10% straight line
Fixtures and fittings
20% - 50% straight line

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.

1.10
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.

1.11
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.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

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.

BOB & BERTS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies (Continued)
- 21 -
1.12
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.13
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.14
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.

BOB & BERTS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies (Continued)
- 22 -
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.

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.

1.15
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.

1.16
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.

BOB & BERTS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies (Continued)
- 23 -
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.

1.17
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.

1.18
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.19
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

1.20
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

BOB & BERTS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies (Continued)
- 24 -
1.21
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

1.22

Capitalisation of staff costs

Directly attributable costs in relation to store fit-outs include employee costs that are capitalised, only when it is probably that future economic benefits that are attributable to the asset will flow to the entity, the cost of the asset can be measured reliably and the costs are directly attributable to the creation of the asset. Capitalisation of costs ceases when the asset is capable of operating in the manner intended by management.

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.

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.

Intangible assets

Intangible assets are measured at cost less any accumulated amortisation over the useful life of the asset and any accumulated impairment losses. Both the useful life and the impairment of such assets involves some estimation uncertainty.

Tangible assets

Tangible assets are measured at cost less any accumulated depreciation over the useful life of the asset and any accumulated impairment losses. Both the useful life and the impairment of such assets involves some estimation uncertainty.

Taxation

Judgements are made in relation to the calculation of certain aspects of the year end tax provisions and the respective tax charge. The management used external professional advice to support the year end provisions.

BOB & BERTS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 25 -
3
Turnover and other revenue

All turnover is derived in the United Kingdom from the group's principal activity.

2023
2022
£
£
Other revenue
Grants received
-
219,258
4
Exceptional item
2023
2022
£
£
Expenditure
Opening costs
227,830
313,471
227,830
313,471

Opening costs in the year relate to the cost of opening stores in Perth, Carlisle, Bury, Blackpool and Wakefield.

Opening costs include £87,394 (£124,746) of employee costs included as staff remuneration in note 8.

5
Operating (loss)/profit
2023
2022
£
£
Operating (loss)/profit for the year is stated after charging/(crediting):
Research and development costs
32,262
10,441
Government grants
-
(219,258)
Depreciation of owned tangible fixed assets
877,248
673,823
Depreciation of tangible fixed assets held under finance leases
9,495
9,495
Loss on disposal of tangible fixed assets
1,141
25,501
Amortisation of intangible assets
5,183
4,814
Operating lease charges
764,058
663,369

Earnings before interest, taxation, depreciation, amortisation, exceptional and non-recurring items was £791,025 (2022 - £2,241,728).

BOB & BERTS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 26 -
6
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
1,390
1,390
Audit of the financial statements of the company's subsidiaries
35,275
32,495
36,665
33,885
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
253,620
228,542
Company pension contributions to defined contribution schemes
18,029
14,240
271,649
242,782

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2022 - 3).

Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
70,000
76,542
Company pension contributions to defined contribution schemes
5,521
4,593

Directors' remuneration includes £74,200 (2022 - £64,921) of costs that have been capitalised and included as additions to leasehold improvements in note 13.

BOB & BERTS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 27 -
8
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
Management
22
20
22
20
Restaurant store staff
562
464
-
-
Total
584
484
22
20

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
7,077,536
6,076,571
797,246
731,164
Social security costs
450,813
390,650
104,491
89,132
Pension costs
116,866
100,102
32,714
28,421
7,645,215
6,567,323
934,451
848,717

Staff remuneration includes £106,722 (2022 - £89,442) of costs that have been capitalised and included as additions to leasehold improvements in note 13.

9
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
80,926
52,605
Other interest on financial liabilities
66,630
80,044
147,556
132,649
Other finance costs:
Interest on finance leases and hire purchase contracts
4,170
4,158
Total finance costs
151,726
136,807
BOB & BERTS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 28 -
10
Taxation
2023
2022
£
£
Deferred tax
Origination and reversal of timing differences
(141,456)
370,652
Adjustment in respect of prior periods
(92,537)
-
0
Total deferred tax
(233,993)
370,652

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

2023
2022
£
£
(Loss)/profit before taxation
(580,320)
1,103,318
Expected tax (credit)/charge based on the standard blended rate of corporation tax in the UK of 20.50% (2022: 19.00%)
(118,966)
209,630
Tax effect of expenses that are not deductible in determining taxable profit
2,879
-
0
Tax effect of income not taxable in determining taxable profit
-
0
(43,085)
Change in unrecognised deferred tax assets
-
0
29,924
Effect of change in corporation tax rate
(25,462)
175,945
Deferred tax adjustments in respect of prior years
(92,537)
-
0
Adjustment on consolidation
93
(1,762)
Taxation (credit)/charge
(233,993)
370,652

An increase in the UK corporation tax rate from 19% to 25% came into effect from 1 April 2023.

 

This will have a consequential effect on the group's future tax charge.

11
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Final payable
100,000
-

Dividends due for payment will be paid after the company has received sufficient distributions from its subsidiary companies. On a consolidated basis the group headed by the company has sufficient distributable reserves to make the payment.

BOB & BERTS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 29 -
12
Intangible fixed assets
Group
Goodwill
Other intangible assets
Total
£
£
£
Cost
At 1 July 2022
14,000
10,370
24,370
Additions
-
0
5,892
5,892
At 30 June 2023
14,000
16,262
30,262
Amortisation and impairment
At 1 July 2022
10,033
6,430
16,463
Amortisation charged for the year
2,800
2,383
5,183
At 30 June 2023
12,833
8,813
21,646
Carrying amount
At 30 June 2023
1,167
7,449
8,616
At 30 June 2022
3,967
3,940
7,907
Company
Other intangible assets
£
Cost
At 1 July 2022
10,370
Additions
5,892
At 30 June 2023
16,262
Amortisation and impairment
At 1 July 2022
6,430
Amortisation charged for the year
2,383
At 30 June 2023
8,813
Carrying amount
At 30 June 2023
7,449
At 30 June 2022
3,940
BOB & BERTS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 30 -
13
Tangible fixed assets
Group
Leasehold improvements
Plant and equipment
Fixtures and fittings
Total
£
£
£
£
Cost
At 1 July 2022
3,111,609
2,519,686
1,797,343
7,428,638
Additions
733,939
666,618
430,268
1,830,825
Disposals
-
0
(7,500)
-
0
(7,500)
At 30 June 2023
3,845,548
3,178,804
2,227,611
9,251,963
Depreciation and impairment
At 1 July 2022
638,629
631,879
805,471
2,075,979
Depreciation charged in the year
230,350
287,397
368,996
886,743
At 30 June 2023
868,979
919,276
1,174,467
2,962,722
Carrying amount
At 30 June 2023
2,976,569
2,259,528
1,053,144
6,289,241
At 30 June 2022
2,472,980
1,887,807
991,872
5,352,659
Company
Leasehold improvements
Plant and equipment
Fixtures and fittings
Total
£
£
£
£
Cost
At 1 July 2022
48,177
35,536
67,345
151,058
Additions
30,000
1,547
4,165
35,712
At 30 June 2023
78,177
37,083
71,510
186,770
Depreciation and impairment
At 1 July 2022
2,673
7,575
56,088
66,336
Depreciation charged in the year
4,275
3,611
8,756
16,642
At 30 June 2023
6,948
11,186
64,844
82,978
Carrying amount
At 30 June 2023
71,229
25,897
6,666
103,792
At 30 June 2022
45,504
27,961
11,257
84,722
BOB & BERTS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
13
Tangible fixed assets (Continued)
- 31 -

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2023
2022
2023
2022
£
£
£
£
Plant and equipment
68,049
77,544
-
0
-
0

Staff remuneration costs of £106,722 (2022 - £89,442) have been capitalised and included in leasehold improvement additions of the group.

14
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
10,020
10,017
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 July 2022
10,017
Additions
3
At 30 June 2023
10,020
Carrying amount
At 30 June 2023
10,020
At 30 June 2022
10,017
BOB & BERTS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 32 -
15
Subsidiaries

Details of the company's subsidiaries at 30 June 2023 are as follows:

Name of undertaking
Address
Class of
% Held
shares held
Direct
Indirect
Bob & Berts Belfast Limited
*
Ordinary shares
100.00
0
Bob & Berts Coleraine Limited
*
Ordinary shares
100.00
0
Bob and Berts Dalriada Limited
*
Ordinary shares
100.00
0
Bob & Berts Dumfries Limited
*
Ordinary shares
100.00
0
Bob & Berts Dunfermline Limited
*
Ordinary shares
100.00
0
Bob & Berts Falkirk Limited
*
Ordinary shares
100.00
0
Bob & Berts Franchising Limited
*
Ordinary shares
100.00
0
Johnny Cornflakes Portstewart Limited
*
Ordinary shares
100.00
0
Bob and Berts Lisburn Limited
*
Ordinary shares
100.00
0
Bob & Berts Magherafelt Limited
*
Ordinary shares
100.00
0
Bob and Berts Management Limited
*
Ordinary shares
100.00
0
Bob & Berts Menarys Limited
*
Ordinary shares
100.00
0
Bob and Berts Omagh Limited
*
Ordinary shares
100.00
0
Bob and Berts Portadown Limited
*
Ordinary shares
100.00
0
Bob & Berts Portrush Limited
*
Ordinary shares
100.00
0
Bob & Berts Flagship Limited
*
Ordinary shares
100.00
0
Bob and Berts Stranmillis Limited
*
Ordinary shares
100.00
0
Bob & Berts Kilmarnock Limited
*
Ordinary shares
100.00
0
Bob and Berts Pop Up Limited
*
Ordinary shares
100.00
0
Johnny Cornflakes Coleraine Limited
*
Ordinary shares
100.00
0
Bob & Berts Kirkcaldy Limited
*
Ordinary shares
100.00
0
Bob & Berts Stirling Limited
*
Ordinary shares
100.00
0
Bob and Berts Cookstown Limited
*
Ordinary shares
100.00
0
Bob and Berts Newry Limited
*
Ordinary shares
100.00
0
Bob & Berts Ballymena Limited
*
Ordinary shares
100.00
0
Bob & Berts Ayr Limited
*
Ordinary shares
100.00
0
Bob & Berts Lancaster Limited
*
Ordinary shares
100.00
0
Bob & Berts Kendal Limited
*
Ordinary shares
100.00
0
Bob & Berts Preston Limited
*
Ordinary shares
100.00
0
Bob & Berts Perth Limited
*
Ordinary shares
100.00
0
Bob & Berts Dundee Limited
*
Ordinary shares
100.00
0
Bob & Berts Strabane Limited
*
Ordinary shares
100.00
0
Bob & Berts Bury Limited
*
Ordinary shares
100.00
0
Bob & Berts Glasgow Limited
*
Ordinary shares
100.00
0
Bob & Berts Carlisle Limited
*
Ordinary shares
100.00
0
Bob & Berts Blackpool Limited
*
Ordinary shares
100.00
0
Bob & Berts Wakefield Limited
*
Ordinary shares
100.00
0

Registered office addresses (all UK unless otherwise indicated):

*
15 Duke Street, Ballymena, Co Antrim, BT43 8BL
BOB & BERTS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 33 -
16
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
260,150
205,094
-
-
17
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
4,950
4,653
-
0
-
0
Amounts owed by group undertakings
-
-
3,473,933
2,788,717
Other debtors
175,743
129,945
64,803
63,999
Prepayments and accrued income
465,404
420,272
103,574
45,734
646,097
554,870
3,642,310
2,898,450
Amounts falling due after more than one year:
Deferred tax asset (note 22)
153,481
-
0
60,350
-
0
Total debtors
799,578
554,870
3,702,660
2,898,450
18
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
20
261,667
295,000
261,667
295,000
Obligations under finance leases
21
7,383
28,485
-
0
-
0
Other borrowings
20
250,000
250,000
250,000
250,000
Trade creditors
1,128,278
1,417,096
94,665
42,431
Amounts owed to group undertakings
-
0
-
0
7,548,905
5,284,705
Other taxation and social security
554,358
328,654
119,727
109,845
Dividends payable
100,000
-
0
100,000
-
0
Other creditors
462,815
199,972
11,337
16,886
Accruals and deferred income
1,156,072
800,149
163,386
86,592
3,920,573
3,319,356
8,549,687
6,085,459
BOB & BERTS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 34 -
19
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
20
1,265,133
961,175
1,265,133
961,175
Obligations under finance leases
21
-
0
7,471
-
0
-
0
Other borrowings
20
250,000
750,000
250,000
750,000
1,515,133
1,718,646
1,515,133
1,711,175

Bank loans are secured by an unlimited cross company guarantee between Bob & Berts Group Limited and its subsidiary companies, supported by a debenture held against each company that is subject to the guarantee.

 

Obligations under finance leases are secured upon the assets acquired.

20
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
1,526,800
1,256,175
1,526,800
1,256,175
Other loans
500,000
1,000,000
500,000
1,000,000
2,026,800
2,256,175
2,026,800
2,256,175
Payable within one year
511,667
545,000
511,667
545,000
Payable after one year
1,515,133
1,711,175
1,515,133
1,711,175

Bank borrowings are secured by an unlimited cross company guarantee between Bob & Berts Group Limited and its subsidiary companies, supported by a debenture held against each company that is subject to the guarantee.

Other borrowings relates to an unsecured fixed rate loan note of £500,000. Interest is charged at 8% per annum and payable on a quarterly basis. The loan note is repayable in two six monthly instalments commencing February 2024.

 

Interest on bank loans is charged at between 2.5% and 2.95% per annum over Base Rate and is payable on a quarterly basis. Capital is repaid by monthly instalments, with all instalments falling due for payment within five years of the balance sheet date.

BOB & BERTS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 35 -
21
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
7,383
30,111
-
0
-
0
In two to five years
-
0
5,845
-
0
-
0
7,383
35,956
-
-

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

22
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Group
£
£
£
£
Accelerated capital allowances
737,205
817,717
-
-
Tax losses
-
-
153,481
-
737,205
817,717
153,481
-
Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Company
£
£
£
£
Tax losses
-
-
60,350
-
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 July 2022
817,717
-
Credit to profit or loss
(233,993)
(60,350)
Liability/(Asset) at 30 June 2023
583,724
(60,350)
BOB & BERTS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 36 -
23
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
116,866
100,102

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.

24
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
9,012
9,012
9,012
9,012
Ordinary A shares of £1 each
2,346
2,346
2,346
2,346
Ordinary B shares of £1 each
123
123
123
123
Ordinary C shares of £1 each
177
177
177
177
11,658
11,658
11,658
11,658

Ordinary shares have full voting rights, and rights to dividends and capital distributions, including on winding up. The shares do not confer any rights of redemption.

 

Ordinary A shares have full voting and dividend rights. The shares have priority over the ordinary shares in respect of a long term dividend and distributions on an exit or winding up in accordance with the company Articles of Association. The shares do not confer any rights of redemption.

 

Ordinary B shares have full voting and dividend rights. The shares have priority over the ordinary shares in respect of a long term dividend and distributions on an exit or winding up in accordance with the company's Articles of Association. The shares do not confer any rights of redemption.

 

Ordinary C shares do not have rights to vote or participate in a distribution of dividends. The shares have restricted rights to participate in a distribution on an exit or winding up in accordance with the company's Articles of Association. The shares do not confer any rights of redemption.

25
Reserves
Share premium

The share premium account represents the difference between the nominal value of shares issued and the value of consideration received (net of professional fees).

Other reserves

Other reserves represents the difference between the nominal value of shares issued as part of a group reconstruction and the nominal value of the shares received in exchange.

Profit and loss reserves

Profit and loss reserves represent the accumulated profits of the group.

BOB & BERTS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 37 -
26
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
£
£
£
£
Within one year
835,986
732,374
8,000
6,000
Between two and five years
2,467,927
2,187,213
3,333
8,500
In over five years
817,050
917,148
-
-
4,120,963
3,836,735
11,333
14,500
Reduction in rent payments recognised in profit or loss arising from the COVID-19 pandemic
12,500
7,292
-
-
27
Related party transactions
Transactions with related parties

The key management personnel of the group is considered to be the directors. Details of directors' remuneration is disclosed in note 7.

 

In a prior year the company issued an unsecured fixed rate loan note of £1,000,000 to an owner holding a participating interest in the company. During the year the company repaid £500,000 of the loan note. Interest charged on the loan note during the year was £66,630. The entire loan note outstanding at 30 June 2023 is £500,000 and is repayable in two six monthly instalments commencing February 2024. In addition, the same entity charged the company £57,682 (2022 - £56,002) in management charges during the year and a dividend was payable to this entity of £95,018. There was an amount due to this entity of £95,018 as at 30 June 2023.

 

Ostara Consultancy Limited is a company registered in United Kingdom that is significantly influenced by a director of the company. During the year the company was charged £18,000 (2022 - £18,000) by Ostara Consultancy Limited for consultancy services.

 

The company has taken advantage of the exemption from disclosing related party transactions with other wholly owned group companies.

28
Directors' transactions

Dividends totalling £4,982 (2022 - £0) were payable in the year in respect of shares held by the company's directors.

BOB & BERTS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 38 -
29
Cash generated from/(absorbed by) operations - company
2023
2022
£
£
Loss for the year after tax
(1,612,537)
(1,345,045)
Adjustments for:
Taxation credited
(60,350)
-
0
Finance costs
147,556
132,649
Amortisation and impairment of intangible assets
2,383
2,014
Depreciation and impairment of tangible fixed assets
16,642
18,287
Movements in working capital:
Increase in debtors
(743,860)
(1,445,361)
Increase in creditors
2,397,561
2,537,807
Cash generated from/(absorbed by) operations
147,395
(99,649)
30
Cash generated from group operations
2023
2022
£
£
(Loss)/profit for the year after tax
(346,324)
732,669
Adjustments for:
Taxation (credited)/charged
(233,993)
370,652
Finance costs
151,726
136,807
Loss on disposal of tangible fixed assets
1,141
25,501
Amortisation and impairment of intangible assets
5,183
4,814
Depreciation and impairment of tangible fixed assets
886,743
683,318
Movements in working capital:
Increase in stocks
(55,056)
(47,458)
Decrease/(increase) in debtors
2,897
(229,378)
Increase in creditors
461,528
358,869
Cash generated from operations
873,845
2,035,794
31
Analysis of changes in net funds/(debt) - group
1 July 2022
Cash flows
30 June 2023
£
£
£
Cash at bank and in hand
2,359,383
(1,366,190)
993,193
Borrowings excluding overdrafts
(2,256,175)
229,375
(2,026,800)
Obligations under finance leases
(35,956)
28,573
(7,383)
67,252
(1,108,242)
(1,040,990)
BOB & BERTS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 39 -
32
Analysis of changes in net debt - company
1 July 2022
Cash flows
30 June 2023
£
£
£
Cash at bank and in hand
346,567
(271,143)
75,424
Borrowings excluding overdrafts
(2,256,175)
229,375
(2,026,800)
(1,909,608)
(41,768)
(1,951,376)
2023-06-302022-07-01falseCCH SoftwareCCH Accounts Production 2024.100No description of principal activityMr D FergusonMr C McCleanMs G HamiltonMr M MansiganiMs C PalmerMr J 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