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Registered number: 04992572










Admiral Taverns (Relax) Limited










Directors' Report and Financial Statements

For the Period Ended 26 May 2024

 
Admiral Taverns (Relax) Limited
 

Company Information


Directors
A Clifford 
C Jowsey 
N Gray 




Company secretary
A G Secretarial Limited



Registered number
04992572



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 (Relax) Limited
 

Contents



Page
Directors' Report
1 - 3
Independent Auditor's Report
4 - 7
Profit and Loss Account
8
Balance Sheet
9
Statement of Changes in Equity
10
Notes to the Financial Statements
11 - 22


 
Admiral Taverns (Relax) 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 1 pubs (2023 - 1).
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 £91,000 (2023 - profit £49,000).

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 (Relax) 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 21. The Company relies on the Group for financing and therefore the position of the Group 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. The Group's forecasts show the Leverage Test is met.
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.

Auditor

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

Page 2

 
Admiral Taverns (Relax) 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 (Relax) 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 (Relax) Limited (“the Company”) for the period ended 26 May 2024 which comprise Profit and Loss Account, 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 (Relax) 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 and from the requirement to prepare a Strategic report.


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 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 (Relax) 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;
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 and Companies Act 2006.
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 Group’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;
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 in relation to management override of controls.
Page 6

 
 
Independent Auditor's Report to the Members of Admiral Taverns (Relax) 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;
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, valuation of the pub estate, 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 (Relax) 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 
124
152

Cost of sales
  
(40)
(50)

Gross profit
  
84
102

Administrative expenses
  
(68)
(105)

Exceptional and non-underlying (expenses)/income
 12 
(7)
33

Operating profit
 5 
9
30

Interest receivable and similar income
 9 
-
108

Interest payable and similar expenses
 10 
(100)
(89)

(Loss)/profit before tax
  
(91)
49

Tax on (loss)/profit
 11 
-
-

(Loss)/profit for the financial period
  
(91)
49

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 11 to 22 form part of these financial statements.

Page 8

 
Admiral Taverns (Relax) Limited
Registered number: 04992572

Balance Sheet
As at 26 May 2024

26 May
28 May
2024
2023
Note
£000
£000

Fixed assets
  

Tangible assets
 13 
2
1

  
2
1

Current assets
  

Debtors: amounts falling due within one year
 14 
4
1,561

  
4
1,561

Creditors: amounts falling due within one year
 15 
(633)
(2,036)

Net current liabilities
  
 
 
(629)
 
 
(475)

Total assets less current liabilities
  
(627)
(474)

Creditors: amounts falling due after more than one year
 16 
(4,012)
(4,012)

Provisions for liabilities
  

Other provisions
 19 
(138)
(200)

  
 
 
(138)
 
 
(200)

Net liabilities
  
(4,777)
(4,686)


Capital and reserves
  

Profit and loss account
  
(4,777)
(4,686)

  
(4,777)
(4,686)


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 11 to 22 form part of these financial statements.

Page 9

 
Admiral Taverns (Relax) Limited
 

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


Called up share capital
Profit and loss account
Total equity

£000
£000
£000

At 29 May 2022
-
(4,735)
(4,735)


Comprehensive income for the period

Profit for the period

-
49
49


At 28 May 2023
-
(4,686)
(4,686)


Comprehensive income for the period

Loss for the period
-
(91)
(91)


At 26 May 2024
-
(4,777)
(4,777)


The notes on pages 11 to 22 form part of these financial statements.

Page 10

 
Admiral Taverns (Relax) Limited
 

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

1.


General information

Admiral Taverns (Relax) 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:

 
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 accounts of PSSF Brady Holdco (UK) Limited as referred to in note 21. The Company relies on the Group for financing and therefore the position of the Group 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.

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.

Page 11

 
Admiral Taverns (Relax) Limited
 

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

2.Accounting policies (continued)

  
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.

 
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

Interest income

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

 
2.7

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.

Page 12

 
Admiral Taverns (Relax) Limited
 

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

2.Accounting policies (continued)

 
2.8

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.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
the recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.9

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.

Page 13

 
Admiral Taverns (Relax) Limited
 

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

2.Accounting policies (continued)

  
2.10

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.
Short leasehold properties, being properties with 50 years or less of the lease remaining unexpired, are depreciated on a straight line basis over the unexpired term of the lease.
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.

 
2.11

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.

 
2.12

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.

  
2.13

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.

Page 14

 
Admiral Taverns (Relax) Limited
 

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

2.Accounting policies (continued)

  
2.14

Dilapidations provision

The Company 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.

 
2.15

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.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Profit and Loss Account.


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.
 

Page 15

 
Admiral Taverns (Relax) Limited
 

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

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
80
97

Rental income
41
50

Gaming and other income
3
5

124
152


All turnover arose within the United Kingdom.


5.


Operating profit

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

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

Exceptional and non-underlying items
 12 
(7)
33

Depreciation of tangible fixed assets
 13 
-
1

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.




Page 16

 
Admiral Taverns (Relax) Limited
 

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

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 and similar income

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


Interest receivable from group companies
-
108

-
108


10.


Interest payable and similar expenses

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


Interest payable to group undertakings
100
89

100
89


11.


Taxation


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




Taxation on profit/(loss) on ordinary activities
-
-
Page 17

 
Admiral Taverns (Relax) Limited
 

 
Notes to the Financial Statements
For the Period Ended 26 May 2024
 
11.Taxation (continued)


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
(91)
49


Profit/(loss) on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 20%)
(23)
10

Effects of:


Change in recognition of deferred tax
(1)
(22)

Group relief
22
19

Expenses not deductible for tax purposes
2
(7)

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.


12.


Exceptional and non-underlying items

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

Non-underlying items
  


Loss/(Profit) on disposal of fixed assets
  
7
(33)

  
7
(33)

Page 18

 
Admiral Taverns (Relax) Limited
 

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

13.


Tangible fixed assets







Short-term leasehold property
Fixtures, fittings and equipment
Total

£000
£000
£000





At 28 May 2023
8
9
17


Additions
1
-
1


Disposals
-
(9)
(9)


Revaluation deficit to reserves
(9)
-
(9)



At 26 May 2024

-
-
-



Depreciation


At 28 May 2023
7
9
16


Disposals
-
(9)
(9)


Revaluation surplus to reserves
(9)
-
(9)



At 26 May 2024

(2)
-
(2)



Net book value



At 26 May 2024
2
-
2



At 28 May 2023
1
-
1

Page 19

 
Admiral Taverns (Relax) Limited
 

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

14.


Debtors

26 May
28 May
2024
2023
£000
£000


Trade debtors
(1)
-

Amounts owed by group undertakings
-
1,550

Other debtors
-
7

Prepayments and accrued income
5
4

4
1,561



15.


Creditors: Amounts falling due within one year

26 May
28 May
2024
2023
£000
£000

Trade creditors
-
2

Amounts owed to group undertakings
627
2,027

Accruals and deferred income
6
7

633
2,036



16.


Creditors: Amounts falling due after more than one year

26 May
28 May
2024
2023
£000
£000

Amounts owed to group undertakings
4,012
4,012

4,012
4,012


The amount due to group undertakings comprises an intercompany loan 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.

Page 20

 
Admiral Taverns (Relax) Limited
 

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

17.


Financial instruments

26 May
28 May
2024
2023
£000
£000

Financial assets


Financial assets that are debt instruments measured at amortised cost
(1)
1,557


Financial liabilities


Financial liabilities measured at amortised cost
(4,783)
(6,248)


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.


 
18.
 

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
8
8

Tax losses
222
223

230
231

The deferred tax assets in relation to decelerated capital allowances and tax losses are not recognised in the financial statements due to the uncertainty of when the assets will be utilised by the Company.

19.


Provisions








Dilapidations provision

£000





At 28 May 2023
200


Utilised in period
(62)



At 26 May 2024
138

Page 21

 
Admiral Taverns (Relax) Limited
 

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

20.


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.


21.


Ultimate parent undertaking and controlling party

The immediate parent undertaking is Admiral Taverns Bidco 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 22