Company Registration No. 01558476 (England and Wales)
Merchant Taylors' Catering Limited
Financial statements
for the year ended 31 July 2024
Pages for filing with the registrar
Merchant Taylors' Catering Limited
Contents
Page
Statement of financial position
1
Notes to the financial statements
2 - 7
Merchant Taylors' Catering Limited
Statement of financial position
As at 31 July 2024
1
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
4
1,746,325
1,556,922
Current assets
Stocks
26,295
40,343
Debtors
5
372,392
482,600
Cash at bank and in hand
538,028
668,916
936,715
1,191,859
Creditors: amounts falling due within one year
6
(2,703,908)
(5,124,373)
Net current liabilities
(1,767,193)
(3,932,514)
Total assets less current liabilities
(20,868)
(2,375,592)
Creditors: amounts falling due after more than one year
7
(2,996,859)
Provisions for liabilities
(179,210)
(202,867)
Net liabilities
(3,196,937)
(2,578,459)
Capital and reserves
Called up share capital
2,300,000
2,300,000
Profit and loss reserves
(5,496,937)
(4,878,459)
Total equity
(3,196,937)
(2,578,459)
The directors of the company have elected not to include a copy of the income statement within the financial statements.true
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 20 February 2025 and are signed on its behalf by:
John Clink CBE
Director
Company Registration No. 01558476
Merchant Taylors' Catering Limited
Notes to the financial statements
For the year ended 31 July 2024
2
1
Accounting policies
Company information
Merchant Taylors' Catering Limited is a private company limited by shares incorporated in England and Wales. The registered office is 30 Threadneedle Street, London, EC2R 8JB.
1.1
Basis of preparation
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. The principal accounting policies adopted are set out below.
1.2
Going concern
The company has incurred losses over the period since March 2020. Losses of £618,478 have been incurred in the year (2023: £193,125) leading to net liabilities of £3,196,937 at the balance sheet date (2023: £2,578,459).
Directors have considered several factors in concluding that the adoption of a going concern basis is appropriate in the preparation of these financial statements. Crucially, the parent entity has confirmed its support of the company and, in providing this confirmation, has considered its ability to drawdown against funds held within its investment portfolio, if required. Further, following the year end the parent entity has agreed to capitalise the outstanding loan (disclosed in Note 7).
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes. Revenue from the provision of services is recognised as the service is provided.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Tenants improvements
over 5 to 15 years
Hall equipment
over 10 years
Catering fixtures & fittings
over 5 years
Office equipment
over 3 years
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
Merchant Taylors' Catering Limited
Notes to the financial statements (continued)
For the year ended 31 July 2024
1
Accounting policies (continued)
3
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to sell, which is equivalent to net realisable value.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.7
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
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 statement of financial position 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, 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.
Basic financial liabilities
Basic financial liabilities, including creditors, 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.
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.
Merchant Taylors' Catering Limited
Notes to the financial statements (continued)
For the year ended 31 July 2024
1
Accounting policies (continued)
4
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement 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.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those
costs are required to be recognised as part of the cost of stock or fixed assets .
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services
are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably
committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Merchant Taylors' Catering Limited
Notes to the financial statements (continued)
For the year ended 31 July 2024
5
2
Critical accounting judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
22
19
4
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 August 2023
1,794,073
535,126
2,329,199
Additions
364,247
28,367
392,614
At 31 July 2024
2,158,320
563,493
2,721,813
Depreciation and impairment
At 1 August 2023
385,341
386,936
772,277
Depreciation charged in the year
141,947
61,264
203,211
At 31 July 2024
527,288
448,200
975,488
Carrying amount
At 31 July 2024
1,631,032
115,293
1,746,325
At 31 July 2023
1,408,732
148,190
1,556,922
Merchant Taylors' Catering Limited
Notes to the financial statements (continued)
For the year ended 31 July 2024
6
5
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
232,448
368,615
Other debtors
139,944
113,985
372,392
482,600
6
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
256,015
112,835
Amounts owed to group undertakings
1,979,124
4,441,296
Taxation and social security
52,664
137,936
Other creditors
416,105
432,306
2,703,908
5,124,373
Amounts owed to group undertakings are unsecured, interest free and repayable on demand, except for those amounts noted below.
7
Creditors: amounts falling due after more than one year
2024
2023
£
£
Amounts owed to group undertakings
2,996,859
During the year, the company was granted a loan of £3,600,000 from its parent company. The loan accrues interest at 4.27% per annum, is unsecured and is repayable on a quarterly basis, with the final repayment date being 31 July 2033. The total loan outstanding at the year end was £3,304,833, with £307,974 included within short term creditors.
Following the year end, the Board have approved this loan to be capitalised in full.
8
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Cara Turtington
Statutory Auditors:
Saffery LLP
Date of audit report:
24 February 2025
Merchant Taylors' Catering Limited
Notes to the financial statements (continued)
For the year ended 31 July 2024
7
9
Related party transactions
The company has taken advantage of the exemption from disclosing transaction with members within a wholly owned group. Amounts outstanding at the year end are included in the Creditors note.