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Registered number: 05847941










Admiral Taverns (780) Limited










Directors' Report and Financial Statements

For the Period Ended 26 May 2024

 
Admiral Taverns (780) Limited
 

Company Information


Directors
A Clifford 
C Jowsey 
N Gray 




Company secretary
A G Secretarial Limited



Registered number
05847941



Registered office
Milton Gate
60 Chiswell Street

London

EC1Y 4AG




Independent auditor
BDO LLP

55 Baker Street

London

W1U 7EU




Solicitors
Addleshaw Goddard LLP
Milton Gate

60 Chiswell Street

London

EC1Y 4AG





 
Admiral Taverns (780) Limited
 

Contents



Page
Directors' Report
1 - 3
Independent Auditor's Report
4 - 7
Profit and Loss Account
8
Statement of Comprehensive Income
9
Balance Sheet
10
Statement of Changes in Equity
11
Notes to the Financial Statements
12 - 26


 
Admiral Taverns (780) Limited
 

 
Directors' Report
For the Period Ended 26 May 2024

The directors present their report and the financial statements for the period ended 26 May 2024.

Directors' responsibilities statement

The directors are responsible for preparing the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgments 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Principal activity

The Company’s principal activities are the sale of alcoholic beverages and the collection of rents from its estate of licensed premises (“pubs”).

Business review

At the period end the Company held 5 pubs (2023: 6).
A comprehensive review of the state of affairs of the Group into which the Company is consolidated, including key performance indicators and key risks and uncertainties is contained in the report and financial statements of PSSF Brady Holdco (UK) Limited.

Results and dividends

The loss for the period, after taxation, amounted to £2,105,000 (2023 - profit £817,000).

The directors do not recommend a final dividend (2023 - £nil).

Directors

The directors who served during the period were:

A Clifford 
C Jowsey 
N Gray 

Page 1

 
Admiral Taverns (780) Limited
 

 
Directors' Report (continued)
For the Period Ended 26 May 2024

Strategic report

In accordance with section 414B of the Companies Act 2006, the Company has taken advantage of the small companies’ exemption in relation to the Strategic report.

Disclosure of information to auditor

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.


Going concern

The Company is a member of the Admiral Taverns group of companies (the Group). A full list of the Group can be found in the accounts of PSSF Brady Holdco (UK) Limited as referred to in note 24. The Company has a cross guarantee arrangement in relation to the Group’s financing and therefore the Group position is relevant.
Although the Company is in net liabilities the Admiral group will provide support to November 2025 as necessary to allow the Company to be considered a going concern.
In assessing Going Concern the Directors have considered the limiting factors that may prevent them from supporting a going concern assumption for the Group. These are:
insufficient cash resources to pay creditors as and when they become due; and
an inability to meet certain financial covenants (the Leverage Test) in the Group’s amended loan facilities agreement with ICG, which could lead to an event of default which would trigger a demand for repayment of the Facility.

Cash Resources
As of 22nd November 2024, the Group had £20.8m of free cash and undrawn, committed credit facilities of £12.0m. The pub estates continue to trade well meeting management’s expectations and generating cash. Pub disposals remain on track and Management have yet to see any impact on pub values as a result of the UK’s Financial Crisis. The Group has hedged its own utility costs and over half its interest rate exposure under its debt facilities. The robust cash position is also supported by the large freehold asset base.
Leverage Test
The Leverage Test (a quarterly covenant test of the ratio of net debt to EBITDA over the preceding 12-month period) was reset in August 2021 as part of the extension of the existing facilities to fund the Hawthorn Acquisition. This included raised levels of covenant headroom and the addition of certain Pandemic Protection clauses, suspending the leverage test in the event of further large scale, Government mandated closures of pubs and replacing it with a minimum liquidly requirement or maintaining at least £5m of liquid cash resources during the impacted period. The Group's forecasts show the Leverage Test is met.
 
Auditor

The auditor, BDO LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
Page 2

 
Admiral Taverns (780) Limited
 

 
Directors' Report (continued)
For the Period Ended 26 May 2024

This report was approved by the board on 4 December 2024 and signed on its behalf.
 




N Gray
Director

Page 3

 
 
Independent Auditor's Report to the Members of Admiral Taverns (780) Limited

Opinion




In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 26 May 2024 and of its loss for the period 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.


We have audited the financial statements of Admiral Taverns (780) Limited ("the Company") for the period ended 26 May 2024 which comprise Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, 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).


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 believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Independence
We are independent of the 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.


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 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.


Page 4

 
 
Independent Auditor's Report to the Members of Admiral Taverns (780) Limited (continued)

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. 
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.


Other Companies Act 2006 reporting
 

In our opinion, based on the work undertaken in the course of the audit:


the information given in the Directors' Report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
the Directors' Report has been prepared in accordance with applicable legal requirements.


 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors' Report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the 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; or
the Directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the Directors’ report


Responsibilities of directors
 

As explained more fully in the Directors' Report, 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.


Page 5

 
 
Independent Auditor's Report to the Members of Admiral Taverns (780) Limited (continued)

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.


Extent to which the audit was capable of detecting irregularities, including fraud
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. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Non-compliance with laws and regulations

Based on:
 
Our understanding of the Company and the industry in which it operates;
Discussion with management and those charged with governance; and
Obtaining and understanding of the Company’s policies and procedures regarding compliance with laws and regulations.

We considered the significant laws and regulations to be the applicable accounting framework, UK tax legislation.
Our procedures in respect of the above included:
Review of minutes of meeting of those charged with governance for any instances of non-compliance with laws and regulations;
Review of correspondence with tax authorities for any instances of non-compliance with laws and regulations;
Review of financial statement disclosures and agreeing to supporting documentation.

Fraud
We assessed the susceptibility of the financial statements to material misstatement, including fraud. Our risk assessment procedures included:
Enquiry with management and those charged with governance regarding any known or suspected instances of fraud;
Obtaining an understanding of the Company’s policies and procedures relating to:
Detecting and responding to the risks of fraud; and
Internal controls established to mitigate risks related to fraud.
Review of minutes of meeting of those charged with governance for any known or suspected instances of fraud;
Discussion amongst the engagement team as to how and where fraud might occur in the financial statements;
Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; and
Considering remuneration incentive schemes and performance targets and the related financial statement areas impacted by these.

Based on our risk assessment, we considered the areas most susceptible to fraud to be management override of controls and manual journal postings to revenue.

 
Page 6

 
 
Independent Auditor's Report to the Members of Admiral Taverns (780) Limited (continued)

Our procedures in respect of the above included:
Testing journal entries throughout the year, which met a defined risk criteria, by agreeing to supporting documentation;
Testing journal entries posted to revenue for any unusual journals or unusual user postings; and 
Assessing significant estimates made by management for bias by challenging the assumptions and judgements made by management in their significant accounting estimates and judgements including, impairment testing, measurement of provisions and going concern. 
 
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members who were all deemed to have appropriate competence and capabilities and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.  
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

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.


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 2006Our 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.





Mark RA Edwards (Senior Statutory Auditor)
  
for and on behalf of
BDO LLP (Statutory Auditor)
 
55 Baker Street
London
W1U 7EU

6 December 2024

BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).
Page 7

 
Admiral Taverns (780) Limited
 

Profit and Loss Account
For the Period Ended 26 May 2024

Period ended
26 May
Period ended
28 May
2024
2023
Note
£000
£000

  

Turnover
 4 
405
318

Cost of sales
  
(110)
(66)

Gross profit
  
295
252

Administrative expenses
  
(371)
(353)

Exceptional administrative (income)/charge
 12 
(494)
93

Operating loss
 5 
(570)
(8)

Interest receivable and similar income
 9 
250
6,417

Interest payable and similar expenses
 10 
(1,785)
(5,592)

(Loss)/profit before tax
  
(2,105)
817

Tax on (loss)/profit
 11 
-
-

(Loss)/profit for the financial period
  
(2,105)
817

There were no recognised gains and losses for 2024 or 2023 other than those included in the profit and loss account.

The notes on pages 12 to 26 form part of these financial statements.

Page 8

 
Admiral Taverns (780) Limited
 

Statement of Comprehensive Income
For the Period Ended 26 May 2024

Period ended
26 May
Period ended
28 May
2024
2023
Note
£000
£000


(Loss)/profit for the financial period

  

(2,105)
817

Other comprehensive income
  

Total comprehensive (loss)/income for the period
  
(2,105)
817

The notes on pages 12 to 26 form part of these financial statements.

Page 9

 
Admiral Taverns (780) Limited
Registered number: 05847941

Balance Sheet
As at 26 May 2024

26 May
28 May
2024
2023
Note
£000
£000

Fixed assets
  

Tangible assets
 13 
707
884

  
707
884

Current assets
  

Stocks
  
6
7

Debtors
 14 
3,489
117,514

Cash at bank and in hand
  
6
3

  
3,501
117,524

Creditors: amounts falling due within one year
 16 
(4,135)
(87,525)

Net current (liabilities)/assets
  
 
 
(634)
 
 
29,999

Total assets less current liabilities
  
73
30,883

Creditors: amounts falling due after more than one year
 17 
(71,392)
(99,892)

Provisions for liabilities
  

Provisions
 20 
(140)
(345)

  
 
 
(140)
 
 
(345)

Net liabilities
  
(71,459)
(69,354)


Capital and reserves
  

Called up share capital 
 21 
258,000
258,000

Revaluation reserve
  
84
84

Other reserves
  
25,059
25,059

Profit and loss account
  
(354,602)
(352,497)

  
(71,459)
(69,354)


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 4 December 2024.




N Gray
Director

The notes on pages 12 to 26 form part of these financial statements.

Page 10

 
Admiral Taverns (780) Limited
 

Statement of Changes in Equity
For the Period Ended 26 May 2024


Called up share capital
Revaluation reserve
Other reserves
Profit and loss account
Total equity

£000
£000
£000
£000
£000

At 29 May 2022
258,000
84
25,059
(353,314)
(70,171)


Comprehensive income for the period

Profit for the period

-
-
-
817
817
Total comprehensive income for the period
-
-
-
817
817


At 28 May 2023
258,000
84
25,059
(352,497)
(69,354)


Comprehensive income for the period

Loss for the period
-
-
-
(2,105)
(2,105)
Total comprehensive loss for the period
-
-
-
(2,105)
(2,105)


At 26 May 2024
258,000
84
25,059
(354,602)
(71,459)


The notes on pages 12 to 26 form part of these financial statements.


 

Page 11

 
Admiral Taverns (780) Limited
 

 
Notes to the Financial Statements
For the Period Ended 26 May 2024

1.


General information

Admiral Taverns (780) Limited is a limited liability company incorporated in England. The Registered Office is Milton Gate, 60 Chiswell Street, London EC1Y 4AG.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

Page 12

 
Admiral Taverns (780) Limited
 

 
Notes to the Financial Statements
For the Period Ended 26 May 2024

2.Accounting policies (continued)

 
2.2

Going concern

The Company is a member of the Admiral Taverns group of companies (the Group). A full list of the Group can be found in the consolidated accounts of PSSF Brady Holdco (UK) Limited as referred to in note 24. The Company has a cross guarantee arrangement in relation to the Group’s financing and therefore the Group position is relevant.
Although the Company is in net liabilities the Admiral group will provide support to November 2025 as necessary to allow the Company to be considered a going concern.
In assessing Going Concern the Directors have considered the limiting factors that may prevent them from supporting a going concern assumption for the Group. These are:
insufficient cash resources to pay creditors as and when they become due; and
an inability to meet certain financial covenants (the Leverage Test) in the Group’s amended loan facilities agreement with ICG, which could lead to an event of default which could trigger a demand for repayment of the Facility.

Cash Resources
As of 22nd November 2024, the Group had £20.8m of free cash and undrawn, committed credit facilities of £12.0m. The pub estates continue to trade well meeting management’s expectations and generating cash. Pub disposals remain on track and Management have yet to see any impact on pub values as a result of the UK’s Financial Crisis. The Group has hedged its own utility costs and over half its interest rate exposure under its debt facilities. The robust cash position is also supported by the large freehold asset base.
Leverage Test
The Leverage Test (a quarterly covenant test of the ratio of net debt to EBITDA over the preceding 12-month period) was reset in August 2021 as part of the extension of the existing facilities to fund the Hawthorn Acquisition. This included raised levels of covenant headroom and the addition of certain Pandemic Protection clauses, suspending the leverage test in the event of further large scale, Government mandated closures of pubs and replacing it with a minimum liquidly requirement or maintaining at least £5m of liquid cash resources during the impacted period. The Group's forecasts show the Leverage Test is met.
Conclusion
The Directors have concluded that sufficient resources exist for the Group to meet its liabilities as they fall due for the twelve months from the date of approval of the accounts. Accordingly, they continue to adopt the going concern basis in preparing these financial statements.

  
2.3
Cash flow

The Company, being a qualifying entity which has been included in the Group’s consolidated financial statements that are publicly available, is exempt from the requirement to draw up a cash flow statement under FRS102.

Page 13

 
Admiral Taverns (780) Limited
 

 
Notes to the Financial Statements
For the Period Ended 26 May 2024

2.Accounting policies (continued)

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 
2.5

Operating leases: the Company as lessor

Rental income from operating leases is credited to profit or loss on a straight line basis over the lease term.

 
2.6

Operating leases: the Company as lessee

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

 
2.7

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.8

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.9

Current and deferred taxation

Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Page 14

 
Admiral Taverns (780) Limited
 

 
Notes to the Financial Statements
For the Period Ended 26 May 2024

2.Accounting policies (continued)

 
2.10

Exceptional and non-underlying items

Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence.

Operating profit is stated after all expenses except for profit or loss on disposal of property, plant and equipment which is considered to be outside the operating cycle of the business.

  
2.11

Tangible fixed assets

All fixed assets are initially recorded at cost or fair value if acquired through a business combination. Thereafter, property fixed assets are recorded at valuation, all other assets are recorded at depreciated cost. All assets are subject to depreciation and, in the event that indications of impairment exist, impairment review.
Property assets are revalued annually by the directors. Valuation movements arising as a result of the annual revaluation above depreciated historic cost are reflected through the Other Comprehensive Income, whereas valuation movements below depreciated historic cost are reflected through the Profit and Loss Account in arriving at operating profit.
The carrying value of properties held under lease agreements is derived after taking into account the cost of the head lease. In the event that the cost of the head lease exceeds the gross value of the leased asset, the corresponding net credit balance is recorded within provisions.
Expenditure on additions and improvements to the licensed estate is capitalised at cost as the expenditure is incurred. Such expenditure is then subject to depreciation over an expected average useful life of 7 years.
Freehold land is not depreciated. Freehold buildings are only depreciated in the event that residual value at the end of their useful economic life is assessed as being materially below book value.
Fixtures, fittings and equipment which are to be retained by the Group are depreciated on a straight line basis over 3 years. Fixtures, fittings and equipment which the Group aims to sell to licensee are depreciated on a straight line basis over 4 years.
The carrying values of tangible fixed assets are reviewed for impairment if events or changes in circumstances indicate the carrying value may not be recoverable. Where a property is earmarked for disposal at the balance sheet date, and the carrying value exceeds the anticipated net proceeds on disposal, a provision for the anticipated loss on disposal is recorded.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the profit and loss account.

Page 15

 
Admiral Taverns (780) Limited
 

 
Notes to the Financial Statements
For the Period Ended 26 May 2024

2.Accounting policies (continued)

 
2.12

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.13

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.14

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

  
2.15

Onerous leases

Where the unavoidable costs of a lease exceed the economic benefit expected to be received from it, a provision is made for the present value of the obligations under the lease.

  
2.16

Dilapidations provision

The Group has made Dilapidations provision in anticipation of the cost of future repairs and renovations that will need to be made in line with the lease obligations.

 
2.17

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Page 16

 
Admiral Taverns (780) Limited
 

 
Notes to the Financial Statements
For the Period Ended 26 May 2024

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The following judgements and key sources of estimation uncertainty in the financial statements:

Taxation
The Company establishes provisions based on reasonable estimates, for possible consequences of audits by the tax authorities of the respective countries in which it operates. The amount of such provisions is based on various factors, such as experience with previous tax audits and differing interpretations of tax regulations by the taxable entity and the responsible tax authority.
Management estimation is required to determine the amount of deferred tax assets that can be recognised, based upon likely timing and level of future taxable profits together with an assessment of the effect of future tax planning strategies. Further details are contained in note 18.
Fixed assets
The valuation was prepared using the open market value on an existing use basis. Pubs on the market or with a deal progressing are valued at the appropriate sales price. Most other pubs are valued on an income multiple basis. Income multiples take into account the geographical location of the pub and the tenure. Further details are contained in note 13.


4.


Turnover

An analysis of turnover by class of business is as follows:


Period ended
26 May
Period ended
28 May
2024
2023
£000
£000

Alcoholic and non-alcoholic drink revenue
227
144

Rental income
102
101

Gaming and other income
76
73

405
318


All turnover arose within the United Kingdom.


5.


Operating loss

The operating (loss)/profit is stated after charging/(crediting):

Period ended
26 May
Period ended
28 May
2024
2023
£000
£000

Depreciation of tangible fixed assets
 13 
64
61

Operating lease rentals - land and buildings
  
-
100

Exceptional and non-underlying items
 12 
244
(93)

Page 17

 
Admiral Taverns (780) Limited
 

 
Notes to the Financial Statements
For the Period Ended 26 May 2024
6.

Employees

All staff are employed and remunerated by Admiral Taverns (Chester) Limited or Hawthorn Leisure Management Limited, fellow group companies.


7.


Auditor's remuneration

During the period, the Company obtained the following services from the Company's auditor and its associates:


Period ended
26 May
Period ended
28 May
2024
2023
£000
£000


The auditing of accounts of the Company
5
5


The total audit fee for the Admiral Taverns group of companies of £482,000 (2023 - £476,000) has been charged to and paid by Admiral Taverns (Chester) Limited.





8.


Directors' remuneration



The directors were paid in respect of their services to the group as a whole by a fellow group company, Admiral Taverns (Chester) Ltd, £1,405,000 (2023 - £1,508,000).


9.


Interest receivable

Period ended
26 May
Period ended
28 May
2024
2023
£000
£000


Interest receivable from group companies
250
6,417

250
6,417


10.


Interest payable and similar expenses

Period ended
26 May
Period ended
28 May
2024
2023
£000
£000


Interest payable to group undertakings
1,785
5,592

1,785
5,592

Page 18

 
Admiral Taverns (780) Limited
 

 
Notes to the Financial Statements
For the Period Ended 26 May 2024

11.


Taxation


Period ended
26 May
Period ended
28 May
2024
2023
£000
£000




Taxation on (loss)/profit on ordinary activities
-
-

Factors affecting tax charge for the period

The tax assessed for the period is lower than (2023 - lower than) the standard rate of corporation tax in the UK of 25% (2023 - 20%). The differences are explained below:

Period ended
26 May
Period ended
28 May
2024
2023
£000
£000


(Loss)/profit on ordinary activities before tax
(2,105)
817


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 20%)
(526)
128

Effects of:


Non-taxable (income)
117
(9)

Deferred tax not recognised
(10)
(9)

Group relief
419
(110)

Total tax charge for the period
-
-


Factors that may affect future tax charges

The standard rate of Corporation Tax in the UK is currently 25% (2023 - 25%). Accordingly, the company’s profits for this accounting period are taxed at an effective rate of 25% (2023 - 20%). The increase of the main rate of corporation tax from 19% to 25% from 1 April 2023 was announced in the Finance Bill 2021, which was substantively enacted on 24 May 2021.
Any future profits will be taxed at the appropriate rate. Deferred tax as at 26 May 2024 has been calculated at 25%; being the substantively enacted rate at which the deferred tax is expected to reverse.

Page 19

 
Admiral Taverns (780) Limited
 

 
Notes to the Financial Statements
For the Period Ended 26 May 2024

12.


Exceptional and non-underlying items

Period ended
26 May
Period ended
28 May
2024
2023
£000
£000

  


Revaluation charge to profit and loss
 13 
166
-

Release of provision of amounts owed by group undertakings
  
250
(112)

Loss on disposal of fixed assets
  
78
19

  
494
(93)

Leased property assets that are considered onerous are revalued annually by the directors. Valuation movements are reflected through the Profit and Loss Account. In the period this movement was a debit of £166,000 (2023 - credit £Nil).
The recoverability of amounts owed by group undertakings has been assessed against the net assets of the individual companies on a group basis. Provisions for recovery have been made across the group for those debtors where the group undertaking has negative net asset values at 26 May 2024.

Page 20

 
Admiral Taverns (780) Limited
 

 
Notes to the Financial Statements
For the Period Ended 26 May 2024

13.


Tangible fixed assets







Freehold property
Long-term leasehold property
Short-term leasehold property
Fixtures and fittings
Total

£000
£000
£000
£000
£000



Cost or valuation


At 28 May 2023
359
428
90
24
901


Additions
38
-
14
6
58


Disposals
-
-
-
(15)
(15)


Revaluation (deficit)/surplus to profit and loss
-
(195)
(22)
-
(217)


Revaluation (deficit)/surplus to reserves
(10)
-
-
-
(10)



At 26 May 2024

387
233
82
15
717



Depreciation


At 28 May 2023
-
-
-
17
17


Charged for the period
10
29
22
3
64


Disposals
-
-
-
(10)
(10)


Revaluation (surplus)/deficit to profit and loss
-
(29)
(22)
-
(51)


Revaluation (surplus)/deficit to reserves
(10)
-
-
-
(10)



At 26 May 2024

-
-
-
10
10



Net book value



At 26 May 2024
387
233
82
5
707



At 28 May 2023
359
428
90
7
884

Page 21

 
Admiral Taverns (780) Limited
 

 
Notes to the Financial Statements
For the Period Ended 26 May 2024

13.


Tangible fixed assets (continued)

Freehold property
Long-term leasehold property
Short-term leasehold property
Fixtures and fittings
Total
      £000
      £000
      £000
      £000
      £000

Public houses at valuation

387

233

82
 
-
 
702

Other assets at depreciated
cost

-

-

-
 
5
 
5


387

233

82
 
5
 
707


As at the year end the Group is trading the majority of its pub with results exceeding expectations. This has removed any material uncertainty over the near-term trading of the Group which had existed at the prior year end. Accordingly the Directors believe the multiples based approach continues to be the best valuation method.
The Directors considered the impact of sensitivities to the key assumption of Income Multiples as follows.
A 5% reduction in the multiples used, reflecting a long term impairment to pub values due to the Pandemic, results in no decrease in valuation.
A 5% increase in the multiples used, reflecting a long term impairment to pub values due to the Pandemic, results in no increase in valuation.

The historical cost at  26 May 2024 of the estate of public houses included at valuation is as follows:

Freehold property
Long-term leasehold property
Short-term leasehold property
Total
      £000
      £000
      £000
      £000

Public houses

303

233

82
 
618
 

Page 22

 
Admiral Taverns (780) Limited
 

 
Notes to the Financial Statements
For the Period Ended 26 May 2024

14.


Debtors


26 May
28 May
2024
2023
£000
£000

Due after more than one year

Other debtors
1
1

1
1

Due within one year

Trade debtors
-
22

Amounts owed by group undertakings
3,258
117,351

Other debtors
104
110

Prepayments and accrued income
126
30

3,489
117,514



15.


Cash and cash equivalents

26 May
28 May
2024
2023
£000
£000

Cash at bank and in hand
6
3

6
3



16.


Creditors: Amounts falling due within one year

26 May
28 May
2024
2023
£000
£000

Trade creditors
14
-

Amounts owed to group undertakings
3,796
87,225

Other creditors
124
21

Accruals and deferred income
201
279

4,135
87,525


Included within the prior year amounts due to group undertakings was an unsecured loan £50,000,000 due to Admiral Taverns (Max) Limited. The loan bears interest at a rate of 2% above LIBOR and is repayable on demand.

Page 23

 
Admiral Taverns (780) Limited
 

 
Notes to the Financial Statements
For the Period Ended 26 May 2024

17.


Creditors: Amounts falling due after more than one year

26 May
28 May
2024
2023
£000
£000

Amounts owed to group undertakings
71,392
99,892

71,392
99,892


The amount due to group undertakings includes £71,392,000 of intercompany debt due to Admiral Taverns Bidco Limited. The loan bears interest at 2% above base rate on the face value of the debt and cannot be called by Admiral Taverns Bidco Limited other than in an insolvency event of any of the subsidiaries of Admiral Taverns Bidco Limited (other than Admiral Taverns Nevada Properties Limited) including the company. 
Included within amounts due to group undertakings is an unsecured loan of £28,500,000 due to Admiral Taverns (Max) Limited. The loan bears interest at a rate of 1.5% above LIBOR.


18.


Financial instruments

26 May
28 May
2024
2023
£000
£000

Financial assets


Cash
6
3

Financial assets that are debt instruments measured at amortised cost
3,363
117,484

3,369
117,487


Financial liabilities


Financial liabilities measured at amortised cost
(75,432)
(187,796)


Financial assets measured at fair value through profit or loss comprise:


Financial assets measured at amortised cost comprise trade debtors, HP debtors, intercompany debtors and other debtors.


Financial liabilities measured at amortised cost comprise trade creditors, intercompany creditors, other creditors, accruals and provisions.

Page 24

 
Admiral Taverns (780) Limited
 

 
Notes to the Financial Statements
For the Period Ended 26 May 2024

 
19.
 

Deferred taxation
 
Deferred taxation assets recognised in the financial statements are £nil (2023 - £nil).
Deferred taxation assets not recognised in the financial statements are as follows:

26 May
28 May
2024
2023
£000
£000



Decelerated capital allowances
-
98

-
98

The deferred tax asset in relation to decelerated capital allowances is not recognised in the financial statements due to the uncertainty of when this asset will be utilised by the Company.

20.


Provisions


Provision for onerous leases
Dilapidations provision
Total

£000
£000
£000





At 28 May 2023
157
188
345


Charged to profit or loss
-
(83)
(83)


Capital expenditure less depreciation
8
-
8


Disposed
(130)
-
(130)



At 26 May 2024
35
105
140


21.


Share capital

26 May
28 May
2024
2023
£000
£000
Allotted, called up and fully paid



258,000,001 (2023 - 258,000,001) Ordinary shares of £1.00 each
258,000
258,000

The Ordinary shares have attached to them full voting rights.


Page 25

 
Admiral Taverns (780) Limited
 

 
Notes to the Financial Statements
For the Period Ended 26 May 2024

22.


Commitments under operating leases

At 26 May 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

26 May
28 May
2024
2023
£000
£000

Land and buildings


Not later than 1 year
146
155

Later than 1 year and not later than 5 years
582
620

Later than 5 years
1,630
1,552

2,358
2,327


23.


Related party transactions

The Company has taken advantage of the exemption not to disclose transactions with other wholly owned members of the PSSF Brady Holdco (UK) Limited group.
There are no other related party transactions requiring disclosure in the financial statements.


24.


Ultimate parent undertaking and controlling party

The immediate parent undertaking is Admiral Taverns (Max) Limited, a company incorporated in the United Kingdom.
The Company’s ultimate parent undertaking and controlling party is PSSF Brady (Cayman) Limited, an entity incorporated in the Cayman Islands.
The group financial statements of the AT Brady Holdings Limited group incorporated in the United Kingdom, being the smallest consolidated financial statements including the results of the Company, will be available to the public and may be obtained from the registered office of AT Brady Holdings Limited at Milton Gate, 60 Chiswell Street, London, United Kingdom, EC1Y 4AG.
The group financial statements of the PSSF Brady Holdco (UK) Limited group, incorporated in the United Kingdom, being the largest consolidated financial statements including the results of the Company, will be available to the public and may be obtained from the registered office of PSSF Brady Holdco (UK) Limited at One St. Peters Square, Manchester, United Kingdom, M2 3DE.

Page 26