HIPSHAWS CAFE BARS LIMITED
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
Company Registration No. 03816306 (England and Wales)
HIPSHAWS CAFE BARS LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 6
HIPSHAWS CAFE BARS LIMITED
BALANCE SHEET
AS AT
30 APRIL 2024
30 April 2024
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
3
Tangible assets
4
Investment properties
5
375,000
375,000
375,000
375,000
Current assets
Debtors
6
7,000
7,000
Cash at bank and in hand
33,783
38,369
40,783
45,369
Creditors: amounts falling due within one year
7
(1,184,647)
(1,215,855)
Net current liabilities
(1,143,864)
(1,170,486)
Net liabilities
(768,864)
(795,486)
Capital and reserves
Called up share capital
9,600
9,600
Share premium account
11,100
11,100
Profit and loss reserves
(789,564)
(816,186)
Total equity
(768,864)
(795,486)
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 30 April 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 28 January 2025 and are signed on its behalf by:
Mr J M Hoban
Director
Company Registration No. 03816306
HIPSHAWS CAFE BARS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
- 2 -
1
Accounting policies
Company information
Hipshaws Cafe Bars Limited is a private company limited by shares incorporated in England and Wales. The registered office is Mersey House, Church Street, Bootle, Merseyside, L20 1AF.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include investment properties at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
As at 3true0 April 2024 the company has net current liabilities of £1,143,864 (2023:£1,170,486) and net liabilities of £768,864 (2023:£795,486). Included within liabilities due less than one year is an amount of £870,001 (2023:£782,001) owed to other group companies. The directors of these group companies have undertaken not to demand payment of these amounts until such time that all third party creditors have been satisfactorily settled. Also included in liabilities due in less than one year is a balance of £197,750 (2023:£317,978) due to the director of Hipshaws Cafe Bars Limited. The director has confirmed that they will not demand payment of these amounts until such time that all third party creditors have been satisfactorily settled.
The directors consider that it is appropriate to prepare the accounts on a going concern basis as the company will be able to meet its liabilities as they fall due. In making this assessment the directors have considered the current market conditions and are confident that they have adequate resources to continue to operate having taken account of current and future income streams and expenditure commitments.
Taking the above into account the directors consider it appropriate to prepare these financial statements on a going concern basis.
1.3
Turnover
Turnover represents amounts receivable as rental income and is net of VAT. Revenue is recognised at the point rent becomes due each quarter.
1.4
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses 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 10 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.
HIPSHAWS CAFE BARS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 3 -
1.5
Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.
1.6
Cash at bank and in hand
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.
1.7
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
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.
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 company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors loans from fellow group companies, 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.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
1.8
Taxation
The tax expense represents the sum of the tax currently payable.
HIPSHAWS CAFE BARS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 4 -
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
3
Intangible fixed assets
Goodwill
£
Cost
At 1 May 2023
10,000
Disposals
(10,000)
At 30 April 2024
Amortisation and impairment
At 1 May 2023
10,000
Disposals
(10,000)
At 30 April 2024
Carrying amount
At 30 April 2024
At 30 April 2023
HIPSHAWS CAFE BARS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 5 -
4
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 May 2023
208,646
Disposals
(208,646)
At 30 April 2024
Depreciation and impairment
At 1 May 2023
208,646
Eliminated in respect of disposals
(208,646)
At 30 April 2024
Carrying amount
At 30 April 2024
At 30 April 2023
5
Investment property
2024
£
Fair value
At 1 May 2023 and 30 April 2024
375,000
Investment property comprises the property known as 3, 5 and 5A Church Road, Wavertree, Liverpool, L15 9EA. The fair value of the investment property was arrived at on the basis of a valuation carried out at March 2020 by Hitchcock Wright & Partners Chartered Surveyors, who are not connected with the company. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.
The directors have considered the value of the property as at the 30th April 2024 and consider that there has been no material change in the fair value of the property.
6
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
7,000
7,000
HIPSHAWS CAFE BARS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 6 -
7
Creditors: amounts falling due within one year
2024
2023
£
£
Amounts owed to group undertakings
870,001
782,001
Taxation and social security
9,215
8,280
Other creditors
305,431
425,574
1,184,647
1,215,855
8
Related party transactions
Included in other creditors is an amount of £197,750 (2023: £317,978) owed to John Hoban, Director. The loan is interest free and repayable on demand but repayment is not expected to be called for.