Caseware UK (AP4) 2024.0.164 2024.0.164 2024-05-262024-05-261582023-05-29truefalse206falsefalse 03989713 2023-05-29 2024-05-26 03989713 2022-05-30 2023-05-28 03989713 2024-05-26 03989713 2023-05-28 03989713 2022-05-30 03989713 c:Exceptional 2023-05-29 2024-05-26 03989713 c:Exceptional 2022-05-30 2023-05-28 03989713 d:CompanySecretary1 2023-05-29 2024-05-26 03989713 d:Director1 2023-05-29 2024-05-26 03989713 d:Director4 2023-05-29 2024-05-26 03989713 d:Director5 2023-05-29 2024-05-26 03989713 d:RegisteredOffice 2023-05-29 2024-05-26 03989713 d:Agent1 2023-05-29 2024-05-26 03989713 c:FurnitureFittings 2023-05-29 2024-05-26 03989713 c:FurnitureFittings 2024-05-26 03989713 c:FurnitureFittings 2023-05-28 03989713 c:FurnitureFittings c:OwnedOrFreeholdAssets 2023-05-29 2024-05-26 03989713 c:CurrentFinancialInstruments 2024-05-26 03989713 c:CurrentFinancialInstruments 2023-05-28 03989713 c:Non-currentFinancialInstruments 2024-05-26 03989713 c:Non-currentFinancialInstruments 2023-05-28 03989713 c:CurrentFinancialInstruments c:WithinOneYear 2024-05-26 03989713 c:CurrentFinancialInstruments c:WithinOneYear 2023-05-28 03989713 c:ReportableOperatingSegment1 2023-05-29 2024-05-26 03989713 c:ReportableOperatingSegment1 2022-05-30 2023-05-28 03989713 c:ReportableOperatingSegment2 2023-05-29 2024-05-26 03989713 c:ReportableOperatingSegment2 2022-05-30 2023-05-28 03989713 c:CapitalRedemptionReserve 2024-05-26 03989713 c:CapitalRedemptionReserve 2022-05-30 2023-05-28 03989713 c:CapitalRedemptionReserve 2023-05-28 03989713 c:CapitalRedemptionReserve 2022-05-30 03989713 c:RetainedEarningsAccumulatedLosses 2023-05-29 2024-05-26 03989713 c:RetainedEarningsAccumulatedLosses 2024-05-26 03989713 c:RetainedEarningsAccumulatedLosses 2022-05-30 2023-05-28 03989713 c:RetainedEarningsAccumulatedLosses 2023-05-28 03989713 c:RetainedEarningsAccumulatedLosses 2022-05-30 03989713 c:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2024-05-26 03989713 c:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2023-05-28 03989713 c:FinancialAssetsAmortisedCost 2024-05-26 03989713 c:FinancialAssetsAmortisedCost 2023-05-28 03989713 c:FinancialLiabilitiesAmortisedCost 2024-05-26 03989713 c:FinancialLiabilitiesAmortisedCost 2023-05-28 03989713 c:FurtherSpecificTypeProvisionContingentLiability2ComponentTotalProvisionsContingentLiabilities 2024-05-26 03989713 c:FurtherSpecificTypeProvisionContingentLiability2ComponentTotalProvisionsContingentLiabilities 2023-05-28 03989713 d:FRS102 2023-05-29 2024-05-26 03989713 d:Audited 2023-05-29 2024-05-26 03989713 d:FullAccounts 2023-05-29 2024-05-26 03989713 d:PrivateLimitedCompanyLtd 2023-05-29 2024-05-26 03989713 c:WithinOneYear 2024-05-26 03989713 c:WithinOneYear 2023-05-28 03989713 c:BetweenOneFiveYears 2024-05-26 03989713 c:BetweenOneFiveYears 2023-05-28 03989713 c:MoreThanFiveYears 2024-05-26 03989713 c:MoreThanFiveYears 2023-05-28 03989713 c:PlantEquipmentOtherAssetsUnderOperatingLeases 2024-05-26 03989713 c:PlantEquipmentOtherAssetsUnderOperatingLeases 2023-05-28 03989713 c:PlantEquipmentOtherAssetsUnderOperatingLeases c:WithinOneYear 2024-05-26 03989713 c:PlantEquipmentOtherAssetsUnderOperatingLeases c:WithinOneYear 2023-05-28 03989713 c:PlantEquipmentOtherAssetsUnderOperatingLeases c:BetweenOneFiveYears 2024-05-26 03989713 c:PlantEquipmentOtherAssetsUnderOperatingLeases c:BetweenOneFiveYears 2023-05-28 03989713 2 2023-05-29 2024-05-26 03989713 4 2023-05-29 2024-05-26 03989713 7 2023-05-29 2024-05-26 03989713 c:AcceleratedTaxDepreciationDeferredTax 2024-05-26 03989713 c:AcceleratedTaxDepreciationDeferredTax 2023-05-28 03989713 c:TaxLossesCarry-forwardsDeferredTax 2024-05-26 03989713 c:TaxLossesCarry-forwardsDeferredTax 2023-05-28 iso4217:GBP xbrli:pure

Registered number: 03989713










Admiral Taverns (Chester) Limited










Annual Report and Financial Statements

For the Period Ended 26 May 2024

 
Admiral Taverns (Chester) Limited
 

Company Information


Directors
A Clifford 
C Jowsey 
N Gray 




Company secretary
A G Secretarial Limited



Registered number
03989713



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 (Chester) Limited
 

Contents



Page
Strategic Report
1
Directors' Report
2 - 4
Independent Auditor's Report
5 - 8
Profit and Loss Account
9
Balance Sheet
10
Statement of Changes in Equity
11
Notes to the Financial Statements
12 - 26


 
Admiral Taverns (Chester) Limited
 

Strategic Report
For the Period Ended 26 May 2024

Business review
 
A comprehensive trading review for the Admiral Group is included in the consolidated accounts of AT Brady Holdings Limited (a parent / holding company created for the purpose of acquiring the Admiral Group). 
Admiral Taverns (Chester) Limited is a subsidiary and the main management company of the Admiral Group.  The profit after tax reported in the period is £0.3m (2023 - loss £2.2m) after recording exceptional and non-underlying credits of £2.4m (2023 - £16.7m costs). The exceptional costs reported over the last two years principally relate to movements in the provisions held against intercompany loans. Excluding exceptional items, operating loss in the period is £2.3m (2023 - £17k profit). Net interest income in the period is £0.4m (2023 - £14.3m) being interest generated on intercompany loans. 
In the provision of management services to fellow subsidiaries in the Admiral Taverns group of companies, the company is the sole employer of the group. The company employed an average of 206 employees (including directors) in the current and 158 in the prior period. 
The rate that the company recharges other group companies for management services is £250 per pub per week (2023 - £235 per pub per week). Turnover, principally generated through the management service recharge, was £61.7m (2023 - £15.8m). The cost of providing the group’s management services was £61.7m (2023 - £15.8m).

Financial key performance indicators, principal risks and uncertainties
 
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.


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





N Gray
Director

Page 1

 
Admiral Taverns (Chester) 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 Strategic Report, 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 principal activities of the Company are to act as the management company for the Admiral Taverns group of companies for the procurement of alcoholic and non-alcoholic drinks for onward sale to licensees in occupation of the pubs in the operating companies of the group and the provision of management services to fellow subsidiaries within the Group. The Company’s income comprises scale/volume related discounts from the Group’s alcoholic and non-alcoholic beverage suppliers and from amounts received from suppliers to support promotional activity within the Group’s pubs, together with the recharge of centralised management services. The centralised management services comprise accounting, administrative and operational management and procurement costs (with the exception of costs incurred in the procurement of alcoholic and non-alcoholic beverages as the company believes that the income received from suppliers is sufficient consideration for this service) as incurred by the Company.

Results and dividends

The profit for the period, after taxation, amounted to £256,000 (2023 - loss £2,159,000).

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

Page 2

 
Admiral Taverns (Chester) Limited
 

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


Directors

The directors who served during the period were:

A Clifford 
C Jowsey 
N Gray 

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 23. The Company has a cross guarantee arrangement in relation to the Group’s financing and therefore the Group position is relevant.
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  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 3

 
Admiral Taverns (Chester) Limited
 

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

Auditor

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

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





N Gray
Director

Page 4

 
Admiral Taverns (Chester) Limited
 

 
Independent Auditor's Report to the Members of Admiral Taverns (Chester) 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 profit 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 (Chester) 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 5

 
Admiral Taverns (Chester) Limited
 

 
Independent Auditor's Report to the Members of Admiral Taverns (Chester) 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 Strategic report and Directors' report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
the Strategic report and the Directors' report have 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 Strategic Report or 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.


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 6

 
Admiral Taverns (Chester) Limited
 

 
Independent Auditor's Report to the Members of Admiral Taverns (Chester) 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 the 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 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 7

 
Admiral Taverns (Chester) Limited
 

 
Independent Auditor's Report to the Members of Admiral Taverns (Chester) 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, 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 8

 
Admiral Taverns (Chester) 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 
61,721
15,803

Gross profit
  
61,721
15,803

Administrative expenses
  
(64,017)
(15,786)

Exceptional and non-underlying expenses
 12 
2,398
(16,687)

Operating profit/(loss)
 5 
102
(16,670)

Interest receivable and similar income
 9 
386
14,342

Interest payable and similar expenses
 10 
-
(11)

Profit/(loss) before tax
  
488
(2,339)

Tax on profit/(loss)
 11 
(232)
180

Profit/(loss) for the financial period
  
256
(2,159)

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 9

 
Admiral Taverns (Chester) Limited
Registered number: 03989713

Balance Sheet
As at 26 May 2024

26 May
28 May
2024
2023
Note
£000
£000

Fixed assets
  

Tangible assets
 13 
545
647

  
545
647

Current assets
  

Debtors: amounts falling due after more than one year
 14 
183
415

Debtors: amounts falling due within one year
 14 
313,376
158,941

Cash at bank and in hand
 15 
24,929
47,244

  
338,488
206,600

Creditors: amounts falling due within one year
 16 
(305,844)
(174,314)

Net current assets
  
 
 
32,644
 
 
32,286

Total assets less current liabilities
  
33,189
32,933

Provisions for liabilities
  

Provisions
 19 
(43)
(43)

  
 
 
(43)
 
 
(43)

Net assets
  
33,146
32,890


Capital and reserves
  

Capital redemption reserve
  
10,253
10,253

Profit and loss account
  
22,893
22,637

  
33,146
32,890


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 (Chester) Limited
 

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


Capital contribution reserve
Profit and loss account
Total equity

£000
£000
£000

At 29 May 2022
10,253
24,796
35,049


Comprehensive loss for the period

Loss for the period
-
(2,159)
(2,159)
Total comprehensive loss for the period
-
(2,159)
(2,159)


At 28 May 2023
10,253
22,637
32,890


Comprehensive loss for the period

Profit for the period
-
256
256


At 26 May 2024
10,253
22,893
33,146


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

Page 11

 
Admiral Taverns (Chester) Limited
 

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

1.


General information

Admiral Taverns (Chester) 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 consolidated accounts of PSSF Brady Holdco (UK) Limited as referred to in note 23. The Company has a cross guarantee arrangement in relation to the Group’s financing and therefore the Group position is relevant.
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. 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 12

 
Admiral Taverns (Chester) 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 lessee

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

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.6

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Profit and Loss Account in the same period as the related expenditure.

 
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.

Page 13

 
Admiral Taverns (Chester) Limited
 

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

2.Accounting policies (continued)

 
2.9

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

 
2.10

Current and deferred taxation

The tax expense for the period comprises current and deferred tax. 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.

 
2.11

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.

 
2.12

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 14

 
Admiral Taverns (Chester) Limited
 

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

2.Accounting policies (continued)


2.12
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Office improvements
-
5 years straight line basis

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.13

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.

 
2.14

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.

 
2.15

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.

 
2.16

Holiday pay accrual

A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the balance sheet date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the balance sheet date.

  
2.17

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.

 
2.18

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 15

 
Admiral Taverns (Chester) 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.


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

Management fees
61,721
15,792

Other income
-
11

61,721
15,803


All turnover arose within the United Kingdom.


5.


Operating profit/(loss)

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

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

Depreciation of tangible fixed assets
 13 
375
345

Auditors' remuneration
 6 
482
476

Operating lease rentals - land and buildings
  
350
239

Operating lease rentals - other
  
165
165

Defined contribution pension
 20 
667
461

Exceptional and non-underlying items
 12 
(2,398)
16,687

Page 16

 
Admiral Taverns (Chester) Limited
 

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

6.


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
72
31


The total audit fee for the Admiral Taverns group of companies of £482,000 (2023 - £476,000).





7.


Employees

Staff costs, including directors' remuneration, were as follows:


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

Wages and salaries
13,738
9,359

Social security costs
1,673
1,143

Cost of defined contribution scheme
667
461

16,078
10,963


The average monthly number of employees, including the directors, during the period was as follows:


     Period ended
        26 May
     Period ended
        28 May
        2024
        2023
            No.
            No.







Operations
77
56



Administration
129
102

206
158

Page 17

 
Admiral Taverns (Chester) 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 Admiral Taverns (Chester) Limited as follows:


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

Directors' emoluments
(1,307)
1,462

Company contributions to defined contribution pension schemes
(49)
46

(1,356)
1,508


In respect of the highest paid director:


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



Aggregate remuneration in respect of qualifying services
477
633

Aggregate pension contributions under defined contribution pension
30
30


9.


Interest receivable and similar income

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


Interest receivable from group companies
-
14,095

Other interest receivable
386
247

386
14,342


10.


Interest payable and similar expenses

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


Interest payable to group undertakings
-
11

-
11

Page 18

 
Admiral Taverns (Chester) 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



Total current tax
-
-

Deferred tax


Origination and reversal of timing differences
232
(180)

Total deferred tax
232
(180)


Taxation on profit/(loss) on ordinary activities
232
(180)

Factors affecting tax (credit)/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


Profit/(loss) on ordinary activities before tax
488
(2,339)


Profit/(loss) on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 20%)
122
(372)

Effects of:


Expenses not deductible for tax purposes
6
6

Deferred tax not recognised
-
(308)

Adjustments to tax charge in respect of prior periods
(13)
-

Non-taxable income
(657)
-

Deferred tax rate change
-
26

Group relief received for no consideration
774
468

Total tax (credit)/charge for the period
232
(180)


Factors that may affect future tax charges

Page 19

 
Admiral Taverns (Chester) Limited
 

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

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 items and non-underlying items

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


Provision for recovery of amounts owed by group undertakings
(2,626)
16,558

Restructuring and integration costs
104
134

Covid-19 related costs
-
(5)

Other
124
-

(2,398)
16,687

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.
Restructuring and integrations costs at £104,000 (2023 - £134,000) have increased as a result of the
Hawthorn acquisitions.
The Company incurred Nil charge (2023 - incurred £5,000 credit) in relation to beer destruction costs as a result of Covid-19.

Page 20

 
Admiral Taverns (Chester) Limited
 

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

13.


Tangible fixed assets







Fixtures and fittings

£000



Cost or valuation


At 28 May 2023
4,409


Additions
273


Disposals
(3,417)



At 26 May 2024

1,265



Depreciation


At 28 May 2023
3,762


Charge for the period
375


Disposals
(3,417)



At 26 May 2024

720



Net book value



At 26 May 2024
545



At 28 May 2023
647

Page 21

 
Admiral Taverns (Chester) 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

Deferred tax asset
183
415

183
415


26 May
28 May
2024
2023
£000
£000

Due within one year

Trade debtors
2,618
555

Amounts owed by group undertakings
309,317
156,996

Other debtors
133
142

Prepayments and accrued income
1,308
1,248

313,376
158,941



15.


Cash and cash equivalents

26 May
28 May
2024
2023
£000
£000

Cash at bank and in hand
24,929
47,244

24,929
47,244



16.


Creditors: Amounts falling due within one year

26 May
28 May
2024
2023
£000
£000

Trade creditors
23,313
16,890

Amounts owed to group undertakings
270,121
143,685

Other taxation and social security
4,164
3,434

Other creditors
166
143

Accruals and deferred income
8,080
10,162

305,844
174,314


Page 22

 
Admiral Taverns (Chester) 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 measured at fair value through profit or loss
24,929
47,244

Financial assets that are debt instruments measured at amortised cost
312,068
157,693

336,997
204,937


Financial liabilities


Financial liabilities measured at amortised cost
(301,723)
(173,880)


Financial assets measured at fair value through profit or loss comprise Cash at bank and in hand.


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


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

Page 23

 
Admiral Taverns (Chester) Limited
 

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

18.


Deferred taxation






2024


£000






At 28 May 2023
415


Credited to profit or loss
(232)



As at 26 May 2024
183

The deferred tax asset is made up as follows:

26 May
28 May
2024
2023
£000
£000


Decelerated capital allowances
159
235

Other timing differences
24
180

183
415





19.


Provisions






Dilapidations provision

£000





At 28 May 2023
43



At 26 May 2024
43


20.


Pension commitments

The group operates a defined contribution pension scheme in respect of the employees of the group. The scheme and its assets are held by independent managers. The pension charge for the period to 26 May 2024 represents contributions due from the group and amounted to £667,000 (2023 – £461,000).
There were contributions outstanding of £49,000 (2023 - £46,000) at the period end.

Page 24

 
Admiral Taverns (Chester) Limited
 

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

21.


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
179
179

Later than 1 year and not later than 5 years
679
689

Later than 5 years
28
198

886
1,066

26 May
28 May
2024
2023

£000
£000

Other


Not later than 1 year
195
195

Later than 1 year and not later than 5 years
269
177

464
372


22.


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.
The directors are considered to be related parties through their roles as executives in the Company and their interests in the shares of PSSF Brady Holdco (UK) Limited, an indirect parent undertaking. 
Details of directors' emoluments are shown in note 8.
T&R Theakstons Ltd (“Theakstons”) is considered to be a related party due C Jowsey, a director of AT Brady Holdings Limited, being non-executive director of Theakstons. During the period the Group made purchases of £161,000 (2023 - £74,000) from Theakstons. At the period end £4,000 (2023 - £13,000) was owed to Theakstons.

Page 25

 
Admiral Taverns (Chester) Limited
 

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

23.


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 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