REGISTERED NUMBER: 06145360 (England and Wales) |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 |
FOR |
SMITH & WESTERN RESTAURANTS LTD |
REGISTERED NUMBER: 06145360 (England and Wales) |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 |
FOR |
SMITH & WESTERN RESTAURANTS LTD |
SMITH & WESTERN RESTAURANTS LTD (REGISTERED NUMBER: 06145360) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
for the Year Ended 30 June 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Consolidated Income Statement | 10 |
Consolidated Other Comprehensive Income | 11 |
Consolidated Balance Sheet | 12 |
Company Balance Sheet | 13 |
Consolidated Statement of Changes in Equity | 15 |
Company Statement of Changes in Equity | 16 |
Consolidated Cash Flow Statement | 17 |
Notes to the Consolidated Cash Flow Statement | 18 |
Notes to the Consolidated Financial Statements | 19 |
SMITH & WESTERN RESTAURANTS LTD |
COMPANY INFORMATION |
for the Year Ended 30 June 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditors |
8 Lonsdale Gardens |
Tunbridge Wells |
Kent |
TN1 1NU |
SMITH & WESTERN RESTAURANTS LTD (REGISTERED NUMBER: 06145360) |
GROUP STRATEGIC REPORT |
for the Year Ended 30 June 2024 |
The directors present their strategic report of the company and the group for the year ended 30 June 2024. |
The Smith and Western Group operates seven locations across the South East of England. The principal activity of these locations is of restaurants providing Wild West inspired barbeque and grilled food. |
REVIEW OF BUSINESS |
The group has grown organically using retained profits since its inception in 1995 allowing it to open restaurants in the following locations: |
Horsham - 1995 |
Boxhill - 2001 |
Chichester - 1998 |
Lingfield - 2007 |
Tunbridge Wells - 2009 |
Tilgate Park - 2012 |
Addlestone - 2019 |
Each of the seven sites trades as a limited company and are wholly owned subsidiaries of the parent company, Smith and Western Restaurants Limited. |
The Ukraine War caused considerable increases to utility prices, not just in the business sector but to the general public as well. This 'Cost of Living Crisis' greatly impacted the hospitality industry over the course of 2023 with the public having less discretionary income. |
Improved confidence in public spending over the course of 2024 has seen the Group's turnover increase. Unlike 2023, this increase has allowed the Group to alleviate the pressure of increased costs and return to making a profit. |
Key Performance Indicators: |
2024 | 2023 |
£ | £ |
Turnover | 14,631,812 | 12,999,269 |
Gross Profit | 4,595,913 | 3,583,246 |
Gross Profit Rate (% of turnover) | 31.4% | 27.6% |
Direct Wages | 5,073,866 | 4,612,961 |
Direct Wages Rate (% of turnover) | 34.7% | 35.5% |
The Group saw an increase in revenue attributed to improved public spending post 'Cost of Living Crisis' from £14.6m (2023 - £13.0.m), an increase of 12.56%. Tighter monitoring of purchases and wages have led to improvements in margins. Costs such as rent, rates and water along with light and heat have levelled out in 2024 following increases in 2023 which impacted net profits. |
The results of 2024 reflect a favourable reaction to the poor outcome of 2023. Cost cutting exercises, along with renewed pricing and marketing can be seen to have benefitted the 2024 figures. |
SMITH & WESTERN RESTAURANTS LTD (REGISTERED NUMBER: 06145360) |
GROUP STRATEGIC REPORT |
for the Year Ended 30 June 2024 |
PRINCIPAL RISKS AND UNCERTAINTIES |
There is always a risk with restaurants in respect of food hygiene, leading to potential closures or reduced trade due to poor reputation. Smith and Western endeavours to maintain high standards and will deal with any matters highlighted by the Food Standards Agency immediately. |
With the restaurants providing opportunities of employment non-skilled labour, there is an increased risk of employing individuals who do not have right to work in the UK. Smith and Western take the responsibility to prevent illegal working in the UK very seriously. A dedicated legal department is in place to carry out right to work checks on all new employees to mitigate this risk. |
ON BEHALF OF THE BOARD: |
SMITH & WESTERN RESTAURANTS LTD (REGISTERED NUMBER: 06145360) |
REPORT OF THE DIRECTORS |
for the Year Ended 30 June 2024 |
The directors present their report with the financial statements of the company and the group for the year ended 30 June 2024. |
DIVIDENDS |
No interim dividends were paid during the year ended 30 June 2024. |
The directors recommend final dividends per share as follows: |
Ordinary £1 shares | 33333 |
Redeemable Preference £1 shares | NIL |
The total distribution of dividends for the year ended 30 June 2024 will be £ 300,000 . |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 July 2023 to the date of this report. |
ENGAGEMENT WITH EMPLOYEES |
We endeavour to encourage a work environment that is fair, open and communicative to allow our employees to air their opinions, express any ides and voice any issues they may have. Our employees have performance reviews at least once a year, which includes consideration of skills development and career prospects. we aim to retain, develop and promote our best staff, offering training and development opportunities |
An equal opportunities policy is in place to cover or diverse workforce. We aim to employ people who reflect the |
varying nature of our society and value people and their contribution irrespective of age, sex, disability, sexual orientation, race, colour, religion, marital status or ethnic origin. |
We do not tolerate harassment or bullying in any shape or form. Procedures are in place to respond to accusations of workplace discrimination, harassment and victimisation. An employee grievance procedure is in operation and the policy is communicated to all personnel. |
Applications from disabled persons are given full consideration providing the disability does not serious affect the performance of their duties. Such persons, once employed, are given appropriate training, support and equal opportunities, as is the case where an employee becomes disabled when employed by the Group. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
SMITH & WESTERN RESTAURANTS LTD (REGISTERED NUMBER: 06145360) |
REPORT OF THE DIRECTORS |
for the Year Ended 30 June 2024 |
STATEMENT OF DIRECTORS' RESPONSIBILITIES - continued |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
AUDITORS |
The auditors, Waight & Company Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
SMITH & WESTERN RESTAURANTS LTD |
Opinion |
We have audited the financial statements of Smith & Western Restaurants Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2024 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 30 June 2024 and of the group's profit for the year 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. |
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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
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 group's and the parent 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. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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. |
In connection with our audit of the financial statements, 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 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
SMITH & WESTERN RESTAURANTS LTD |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company 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 Statement of Directors' Responsibilities set out on pages four and five, 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 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 group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
SMITH & WESTERN RESTAURANTS LTD |
Auditors' 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 a Report of the Auditors 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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
- We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our sector experience and through discussion with the Officers and other management (as required by auditing standards). It was determined that the most significant are Companies Act 2006, Health & Safety, food hygiene laws and Minimum Wage and Right to Work regulations. |
- We had regard to laws and regulations in areas that directly affect the financial statements including financial reporting and taxation legislation. |
- We considered that extent of compliance with those laws and regulations as part of our procedures on the related financial statement items. |
- With the exception of any known or possible non-compliance, and as required by auditing standards, our work in respect of these was limited to enquiry of the Officers. |
- We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. |
- We addressed the risk of fraud through management override of controls, by testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. |
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 Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
SMITH & WESTERN RESTAURANTS LTD |
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 2006. Our 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 a Report of the Auditors 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. |
for and on behalf of |
Statutory Auditors |
8 Lonsdale Gardens |
Tunbridge Wells |
Kent |
TN1 1NU |
SMITH & WESTERN RESTAURANTS LTD (REGISTERED NUMBER: 06145360) |
CONSOLIDATED INCOME STATEMENT |
for the Year Ended 30 June 2024 |
30.6.24 | 30.6.23 |
Notes | £ | £ |
TURNOVER | 14,631,812 | 12,999,269 |
Cost of sales | 10,035,899 | 9,416,023 |
GROSS PROFIT | 4,595,913 | 3,583,246 |
Administrative expenses | 3,704,632 | 3,917,132 |
891,281 | (333,886 | ) |
Other operating income | 32,218 | - |
OPERATING PROFIT/(LOSS) | 5 | 923,499 | (333,886 | ) |
Interest receivable and similar income | 8,360 | 5,878 |
931,859 | (328,008 | ) |
Interest payable and similar expenses | 6 | 4,092 | 6,102 |
PROFIT/(LOSS) BEFORE TAXATION | 927,767 | (334,110 | ) |
Tax on profit/(loss) | 7 | 283,861 | (1,992 | ) |
PROFIT/(LOSS) FOR THE FINANCIAL YEAR |
( |
) |
Profit/(loss) attributable to: |
Owners of the parent | 643,906 | (332,118 | ) |
SMITH & WESTERN RESTAURANTS LTD (REGISTERED NUMBER: 06145360) |
CONSOLIDATED OTHER COMPREHENSIVE INCOME |
for the Year Ended 30 June 2024 |
30.6.24 | 30.6.23 |
Notes | £ | £ |
PROFIT/(LOSS) FOR THE YEAR | 643,906 | (332,118 | ) |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
643,906 |
Prior year adjustment | (16,702 | ) |
TOTAL COMPREHENSIVE INCOME SINCE LAST ANNUAL REPORT |
(348,820 |
) |
Total comprehensive income attributable to: |
Owners of the parent | 643,906 | (348,820 | ) |
SMITH & WESTERN RESTAURANTS LTD (REGISTERED NUMBER: 06145360) |
CONSOLIDATED BALANCE SHEET |
30 June 2024 |
30.6.24 | 30.6.23 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 | 675,003 | 720,003 |
Tangible assets | 11 | 1,033,781 | 1,038,087 |
Investments | 12 | - | - |
1,708,784 | 1,758,090 |
CURRENT ASSETS |
Stocks | 13 | 168,396 | 171,806 |
Debtors | 14 | 2,435,685 | 1,895,745 |
Cash at bank and in hand | 930,973 | 696,950 |
3,535,054 | 2,764,501 |
CREDITORS |
Amounts falling due within one year | 15 | 2,622,108 | 2,363,801 |
NET CURRENT ASSETS | 912,946 | 400,700 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
2,621,730 |
2,158,790 |
CREDITORS |
Amounts falling due after more than one year | 16 | (554,073 | ) | (465,430 | ) |
PROVISIONS FOR LIABILITIES | 20 | (160,281 | ) | (129,890 | ) |
NET ASSETS | 1,907,376 | 1,563,470 |
CAPITAL AND RESERVES |
Called up share capital | 21 | 9 | 9 |
Retained earnings | 22 | 1,907,367 | 1,563,461 |
SHAREHOLDERS' FUNDS | 1,907,376 | 1,563,470 |
The financial statements were approved by the Board of Directors and authorised for issue on 20 February 2025 and were signed on its behalf by: |
T T Cox - Director |
Ms S Cox - Director |
SMITH & WESTERN RESTAURANTS LTD (REGISTERED NUMBER: 06145360) |
COMPANY BALANCE SHEET |
30 June 2024 |
30.6.24 | 30.6.23 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 |
Tangible assets | 11 |
Investments | 12 |
CURRENT ASSETS |
Debtors | 14 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 15 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 16 | ( |
) | ( |
) |
PROVISIONS FOR LIABILITIES | 20 | ( |
) | ( |
) |
NET ASSETS |
SMITH & WESTERN RESTAURANTS LTD (REGISTERED NUMBER: 06145360) |
COMPANY BALANCE SHEET - continued |
30 June 2024 |
30.6.24 | 30.6.23 |
Notes | £ | £ | £ | £ |
CAPITAL AND RESERVES |
Called up share capital | 21 |
Retained earnings | 22 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 207,925 | 671,672 |
The financial statements were approved by the Board of Directors and authorised for issue on |
SMITH & WESTERN RESTAURANTS LTD (REGISTERED NUMBER: 06145360) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
for the Year Ended 30 June 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 July 2022 | 3 | 2,362,281 | 2,362,284 |
Prior year adjustment | - | (16,702 | ) | (16,702 | ) |
As restated | 3 | 2,345,579 | 2,345,582 |
Changes in equity |
Issue of share capital | 6 | - | 6 |
Dividends | - | (450,000 | ) | (450,000 | ) |
Total comprehensive income | - | (332,118 | ) | (332,118 | ) |
Balance at 30 June 2023 | 9 | 1,563,461 | 1,563,470 |
Changes in equity |
Dividends | - | (300,000 | ) | (300,000 | ) |
Total comprehensive income | - | 643,906 | 643,906 |
Balance at 30 June 2024 | 9 | 1,907,367 | 1,907,376 |
SMITH & WESTERN RESTAURANTS LTD (REGISTERED NUMBER: 06145360) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
for the Year Ended 30 June 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 July 2022 |
Changes in equity |
Issue of share capital | - |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 30 June 2023 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 30 June 2024 |
SMITH & WESTERN RESTAURANTS LTD (REGISTERED NUMBER: 06145360) |
CONSOLIDATED CASH FLOW STATEMENT |
for the Year Ended 30 June 2024 |
30.6.24 | 30.6.23 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 742,888 | (1,130,665 | ) |
Interest element of hire purchase payments paid |
(1,840 |
) |
(3,850 |
) |
Tax paid | (268,099 | ) | 37,541 |
Net cash from operating activities | 472,949 | (1,096,974 | ) |
Cash flows from investing activities |
Purchase of tangible fixed assets | (38,260 | ) | (75,528 | ) |
Interest received | 8,360 | 5,878 |
Net cash from investing activities | (29,900 | ) | (69,650 | ) |
Cash flows from financing activities |
Capital repayments in year | (3,560 | ) | (1,007 | ) |
Amount introduced by directors | 517,664 | 250,990 |
Amount withdrawn by directors | (423,130 | ) | (137,689 | ) |
Share issue | - | 6 |
Equity dividends paid | (300,000 | ) | (450,000 | ) |
Net cash from financing activities | (209,026 | ) | (337,700 | ) |
Increase/(decrease) in cash and cash equivalents | 234,023 | (1,504,324 | ) |
Cash and cash equivalents at beginning of year |
2 |
696,950 |
2,201,274 |
Cash and cash equivalents at end of year | 2 | 930,973 | 696,950 |
SMITH & WESTERN RESTAURANTS LTD (REGISTERED NUMBER: 06145360) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
for the Year Ended 30 June 2024 |
1. | RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
30.6.24 | 30.6.23 |
£ | £ |
Profit/(loss) before taxation | 927,767 | (334,110 | ) |
Depreciation charges | 198,018 | 191,741 |
Finance costs | 4,092 | 6,102 |
Finance income | (8,360 | ) | (5,878 | ) |
1,121,517 | (142,145 | ) |
Decrease/(increase) in stocks | 3,410 | (31,603 | ) |
Increase in trade and other debtors | (476,198 | ) | (1,017,566 | ) |
Increase in trade and other creditors | 94,159 | 60,649 |
Cash generated from operations | 742,888 | (1,130,665 | ) |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 30 June 2024 |
30.6.24 | 1.7.23 |
£ | £ |
Cash and cash equivalents | 930,973 | 696,950 |
Year ended 30 June 2023 |
30.6.23 | 1.7.22 |
£ | £ |
Cash and cash equivalents | 696,950 | 2,201,274 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.7.23 | Cash flow | At 30.6.24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 696,950 | 234,023 | 930,973 |
696,950 | 234,023 | 930,973 |
Debt |
Finance leases | (9,162 | ) | (106,890 | ) | (116,052 | ) |
Debts falling due after 1 year | (459,502 | ) | (2,252 | ) | (461,754 | ) |
(468,664 | ) | (109,142 | ) | (577,806 | ) |
Total | 228,286 | 124,881 | 353,167 |
SMITH & WESTERN RESTAURANTS LTD (REGISTERED NUMBER: 06145360) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
for the Year Ended 30 June 2024 |
1. | STATUTORY INFORMATION |
Smith & Western Restaurants Ltd is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Turnover |
Revenue represents sales from the restaurants, including food, drinks, merchandise sales and hotel room accommodation (excluding value added tax and and other sales taxes). Sales are recognised at the point of completion of a transaction with the customer. |
Goodwill and intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Goodwill, being the amount paid in connection with the incorporation of the partnership for the restaurant at Boxhill in 2019, is being amortised over the course of the twenty year leasehold in place at the date of acquisition. |
Tangible fixed assets |
Long leasehold | - |
Improvements to property | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. Cost is the amount of cash or cash equivalents paid or the fair value of the other consideration given to acquire an asset at the time of its acquisition. |
Stock |
Stock is valued at the lower of cost and net realiseable value. Cost is based on the purchase cost on a first-in, first-out basis. Stock comprises of food, drink and items that are utilised in the rendering of services to customers. |
SMITH & WESTERN RESTAURANTS LTD (REGISTERED NUMBER: 06145360) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 30 June 2024 |
2. | ACCOUNTING POLICIES - continued |
Cash and cash equivalents |
Cash and cash equivalents comprise cash at bank and in hand, including credit and debit card receipts awaiting clearance into a Company bank account. |
Financial instruments |
Financial assets and liabilities are recognised when the Company has become a party to the contractual provisions of the instrument. Financial instruments are de-recognised when they are discharged or when the contractual terms expire. |
Financial Assets |
Financial assets comprise cash and cash equivalents and other receivables. The Company classifies all of its financial assets as assets at amortised cost. Financial assets at amortised cost are initially recognised at fair value net of any transaction cost directly attributable to their acquisition, less any provision for impairment. |
Financial Liabilities |
Financial liabilities comprise borrowings, lease liabilities and trade and other parables. The Company classified all of its financial liabilities as liabilities at amortised cost. Financial liabilities at amortised cost are initially recognised at fair value net of any transaction cost directly attributable to the issue of the instrument. |
Provisions |
Provisions are recognised when the Company has a present legal obligation as a result of a past event which it is probable will result in an outflow of economic benefits that can be reliably estimated. Where the effect of the time value of money is material, the provision is based on the present value of future outflows, discounted at a risk-free rate. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
SMITH & WESTERN RESTAURANTS LTD (REGISTERED NUMBER: 06145360) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 30 June 2024 |
2. | ACCOUNTING POLICIES - continued |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
3. | CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
Preparation of the financial statements requires management to make significant judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the statement of financial position date and the amounts reported for revenues and expenses during the period. However, the nature of estimation means that actual outcomes could differ from those estimates. |
The following judgements had a significant effect in the amounts recognised in the financial statements: |
Useful lives of property, plant and equipment |
The Company estimates the useful lives of property, plant and equipment based on the period over which the assets are expected to be available for use. The estimate useful lives of property, plant and equipment are reviewed periodically and re-updated if expectations differ from previous estimates due to physical wear and tear, technical obsolescence and legal or other limits on use of the relevant assets. In addition, the estimation of the useful lives of property, plant and equipment are based on internal technical evaluation and experience with similar assets. It is possible, however, that future results of operations could be materially affected by the changes in the estimates brought about by changes in factors mentioned above. The amounts and timing of recorded expenses for any period would be affected by changes in these factors and circumstances. A reduction in the useful lives of property, plant and equipment would increase the recorded expenses and decrease the non-current assets. |
Impairment of goodwill |
The Company determines whether goodwill is impaired at least on an annual basis. This requires an estimate of the value-in-use to which the goodwill is allocated. Estimating a value-in-use requires management to make an estimation of future cash flows and also choose a suitable discount rate in order to calculate the present value of those cash flows |
Deferred tax |
Deferred tax assets and liabilities require management judgement in determining the amounts, if any, to be recognised. Judgement is required in assessing the extent to which the assets and liabilities should be recognised, taking into account the expected timing and levels of future taxable income. Deferred tax assets are only recognised when management believes it is probable that future taxable profits will be available against which the deductible temporary differences can be utilised. |
SMITH & WESTERN RESTAURANTS LTD (REGISTERED NUMBER: 06145360) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 30 June 2024 |
4. | EMPLOYEES AND DIRECTORS |
30.6.24 | 30.6.23 |
£ | £ |
Wages and salaries | 5,328,752 | 4,947,462 |
Social security costs | 332,515 | 326,146 |
Other pension costs | 75,336 | 72,076 |
5,736,603 | 5,345,684 |
The average number of employees during the year was as follows: |
30.6.24 | 30.6.23 |
Office and admin | 18 | 19 |
Bar and restaurant | 495 | 446 |
Amounts paid to Key Management Personnel, aside from those members of Key Management Personnel that were also Directors during the period, totalled £88,310 (2023 - £82,557). |
30.6.24 | 30.6.23 |
£ | £ |
Directors' remuneration | 30,504 | 37,776 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 2 | - |
5. | OPERATING PROFIT/(LOSS) |
The operating profit (2023 - operating loss) is stated after charging: |
30.6.24 | 30.6.23 |
£ | £ |
Depreciation - owned assets | 141,840 | 144,492 |
Depreciation - assets on hire purchase contracts | 11,176 | 2,249 |
Goodwill amortisation | 45,000 | 45,000 |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
30.6.24 | 30.6.23 |
£ | £ |
Hire purchase | 1,840 | 3,850 |
Preference share dividends | 2,252 | 2,252 |
4,092 | 6,102 |
SMITH & WESTERN RESTAURANTS LTD (REGISTERED NUMBER: 06145360) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 30 June 2024 |
7. | TAXATION |
Analysis of the tax charge/(credit) |
The tax charge/(credit) on the profit for the year was as follows: |
30.6.24 | 30.6.23 |
£ | £ |
Current tax: |
UK corporation tax | 253,470 | 14,597 |
Deferred tax | 30,391 | (16,589 | ) |
Tax on profit/(loss) | 283,861 | (1,992 | ) |
Reconciliation of total tax charge/(credit) included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
30.6.24 | 30.6.23 |
£ | £ |
Profit/(loss) before tax | 927,767 | (334,110 | ) |
Profit/(loss) multiplied by the standard rate of corporation tax in the UK of 25 % (2023 - 19 %) |
231,942 |
(63,481 |
) |
Effects of: |
Expenses not deductible for tax purposes | 8,529 | 8,563 |
Capital allowances in excess of depreciation (including not qualifying assets) | 41,326 |
30,104 |
Interest and charges | 12,886 | 14,597 |
Unused tax losses carried forward | - | 8,225 |
Utilised tax losses bought forward | (10,822 | ) | - |
Total tax charge/(credit) | 283,861 | (1,992 | ) |
8. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
9. | DIVIDENDS |
30.6.24 | 30.6.23 |
£ | £ |
Ordinary shares of £1 each |
Final | 300,000 | 450,000 |
SMITH & WESTERN RESTAURANTS LTD (REGISTERED NUMBER: 06145360) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 30 June 2024 |
10. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1 July 2023 |
and 30 June 2024 | 1,230,817 |
AMORTISATION |
At 1 July 2023 | 510,814 |
Amortisation for year | 45,000 |
At 30 June 2024 | 555,814 |
NET BOOK VALUE |
At 30 June 2024 | 675,003 |
At 30 June 2023 | 720,003 |
Company |
Goodwill |
£ |
COST |
At 1 July 2023 |
and 30 June 2024 |
AMORTISATION |
At 1 July 2023 |
Amortisation for year |
At 30 June 2024 |
NET BOOK VALUE |
At 30 June 2024 |
At 30 June 2023 |
SMITH & WESTERN RESTAURANTS LTD (REGISTERED NUMBER: 06145360) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 30 June 2024 |
11. | TANGIBLE FIXED ASSETS |
Group |
Improvements |
Long | to | Plant and |
leasehold | property | machinery |
£ | £ | £ |
COST |
At 1 July 2023 | 254,915 | 819,148 | 995,724 |
Additions | - | - | - |
At 30 June 2024 | 254,915 | 819,148 | 995,724 |
DEPRECIATION |
At 1 July 2023 | 254,915 | 411,306 | 741,081 |
Charge for year | - | 45,345 | 37,913 |
At 30 June 2024 | 254,915 | 456,651 | 778,994 |
NET BOOK VALUE |
At 30 June 2024 | - | 362,497 | 216,730 |
At 30 June 2023 | - | 407,842 | 254,643 |
Fixtures |
and | Motor |
fittings | vehicles | Totals |
£ | £ | £ |
COST |
At 1 July 2023 | 744,391 | 15,997 | 2,830,175 |
Additions | 28,260 | 120,450 | 148,710 |
At 30 June 2024 | 772,651 | 136,447 | 2,978,885 |
DEPRECIATION |
At 1 July 2023 | 375,538 | 9,248 | 1,792,088 |
Charge for year | 58,582 | 11,176 | 153,016 |
At 30 June 2024 | 434,120 | 20,424 | 1,945,104 |
NET BOOK VALUE |
At 30 June 2024 | 338,531 | 116,023 | 1,033,781 |
At 30 June 2023 | 368,853 | 6,749 | 1,038,087 |
SMITH & WESTERN RESTAURANTS LTD (REGISTERED NUMBER: 06145360) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 30 June 2024 |
11. | TANGIBLE FIXED ASSETS - continued |
Group |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Motor |
vehicles |
£ |
COST |
At 1 July 2023 | 15,997 |
Additions | 120,450 |
At 30 June 2024 | 136,447 |
DEPRECIATION |
At 1 July 2023 | 9,248 |
Charge for year | 11,176 |
At 30 June 2024 | 20,424 |
NET BOOK VALUE |
At 30 June 2024 | 116,023 |
At 30 June 2023 | 6,749 |
Company |
Motor |
vehicles |
£ |
COST |
At 1 July 2023 |
Additions |
At 30 June 2024 |
DEPRECIATION |
At 1 July 2023 |
Charge for year |
At 30 June 2024 |
NET BOOK VALUE |
At 30 June 2024 |
At 30 June 2023 |
SMITH & WESTERN RESTAURANTS LTD (REGISTERED NUMBER: 06145360) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 30 June 2024 |
11. | TANGIBLE FIXED ASSETS - continued |
Company |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Motor |
vehicles |
£ |
COST |
At 1 July 2023 |
Additions |
At 30 June 2024 |
DEPRECIATION |
At 1 July 2023 |
Charge for year |
At 30 June 2024 |
NET BOOK VALUE |
At 30 June 2024 |
At 30 June 2023 |
12. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 July 2023 |
and 30 June 2024 |
NET BOOK VALUE |
At 30 June 2024 |
At 30 June 2023 |
SMITH & WESTERN RESTAURANTS LTD (REGISTERED NUMBER: 06145360) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 30 June 2024 |
12. | FIXED ASSET INVESTMENTS - continued |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: 1st Floor 8b Lonsdale Gardens, Tunbridge Wells, Kent, England, TN1 1NU |
Nature of business: |
% |
Class of shares: | holding |
Registered office: 1st Floor 8b Lonsdale Gardens, Tunbridge Wells, Kent, England, TN1 1NU |
Nature of business: |
% |
Class of shares: | holding |
Registered office: 1st Floor 8b Lonsdale Gardens, Tunbridge Wells, Kent, England, TN1 1NU |
Nature of business: |
% |
Class of shares: | holding |
Registered office: 1st Floor 8b Lonsdale Gardens, Tunbridge Wells, Kent, England, TN1 1NU |
Nature of business: |
% |
Class of shares: | holding |
Registered office: 8 Lonsdale Gardens, Tunbridge Wells, Kent, England, TN1 1NU |
Nature of business: |
% |
Class of shares: | holding |
Registered office: 1st Floor 8b Lonsdale Gardens, Tunbridge Wells, Kent, England, TN1 1NU |
Nature of business: |
% |
Class of shares: | holding |
SMITH & WESTERN RESTAURANTS LTD (REGISTERED NUMBER: 06145360) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 30 June 2024 |
12. | FIXED ASSET INVESTMENTS - continued |
Registered office: 1st Floor 8b Lonsdale Gardens, Tunbridge Wells, Kent, England, TN1 1NU |
Nature of business: |
% |
Class of shares: | holding |
13. | STOCKS |
Group |
30.6.24 | 30.6.23 |
£ | £ |
Stocks | 168,396 | 171,806 |
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
30.6.24 | 30.6.23 | 30.6.24 | 30.6.23 |
£ | £ | £ | £ |
Amounts owed by group undertakings | - | - |
Other debtors | 1,961,241 | 1,515,946 |
Directors' current accounts | 43,055 | 137,589 | 43,055 | 137,589 |
Tax | 329,447 | 171,169 |
VAT | - | - |
Prepayments and accrued income | 90,416 | 71,041 |
Prepayments | 11,526 | - |
2,435,685 | 1,895,745 |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
30.6.24 | 30.6.23 | 30.6.24 | 30.6.23 |
£ | £ | £ | £ |
Hire purchase contracts (see note 18) | 23,733 | 3,234 |
Trade creditors | 798,879 | 823,069 |
Amounts owed to group undertakings | - | - |
Tax | 602,978 | 459,329 |
Social security and other taxes | 76,531 | 67,503 |
VAT | 580,392 | 509,717 | - | - |
Other creditors | 64,989 | 123,365 |
Accrued expenses | 474,606 | 377,584 |
2,622,108 | 2,363,801 |
SMITH & WESTERN RESTAURANTS LTD (REGISTERED NUMBER: 06145360) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 30 June 2024 |
16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
30.6.24 | 30.6.23 | 30.6.24 | 30.6.23 |
£ | £ | £ | £ |
Preference shares (see note 17) | 461,754 | 459,502 |
Hire purchase contracts (see note 18) | 92,319 | 5,928 |
554,073 | 465,430 |
17. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
30.6.24 | 30.6.23 | 30.6.24 | 30.6.23 |
£ | £ | £ | £ |
Amounts falling due between two and five | years: |
Preference shares | 461,754 | 459,502 | 461,754 | 459,502 |
Details of shares shown as liabilities are as follows: |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 30.6.24 | 30.6.23 |
value: | £ | £ |
Redeemable Preference | £1 | 461,754 | 459,502 |
SMITH & WESTERN RESTAURANTS LTD (REGISTERED NUMBER: 06145360) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 30 June 2024 |
18. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
30.6.24 | 30.6.23 |
£ | £ |
Gross obligations repayable: |
Within one year | 25,981 | 4,632 |
Between one and five years | 95,591 | 8,492 |
121,572 | 13,124 |
Finance charges repayable: |
Within one year | 2,248 | 1,398 |
Between one and five years | 3,272 | 2,564 |
5,520 | 3,962 |
Net obligations repayable: |
Within one year | 23,733 | 3,234 |
Between one and five years | 92,319 | 5,928 |
116,052 | 9,162 |
Company |
Hire purchase contracts |
30.6.24 | 30.6.23 |
£ | £ |
Gross obligations repayable: |
Within one year |
Between one and five years |
Finance charges repayable: |
Within one year |
Between one and five years |
Net obligations repayable: |
Within one year |
Between one and five years |
SMITH & WESTERN RESTAURANTS LTD (REGISTERED NUMBER: 06145360) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 30 June 2024 |
18. | LEASING AGREEMENTS - continued |
Group |
Non-cancellable operating | leases |
30.6.24 | 30.6.23 |
£ | £ |
Within one year | 405,859 | 278,759 |
Between one and five years | 568,877 | 432,666 |
974,736 | 711,425 |
19. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group | Company |
30.6.24 | 30.6.23 | 30.6.24 | 30.6.23 |
£ | £ | £ | £ |
Hire purchase contracts | 116,052 | 9,162 | 116,052 | 9,162 |
A mortgage debenture is held in the name of the company, incorporation a fixed and floating charge over the assets, dated 29/06/2021 |
20. | PROVISIONS FOR LIABILITIES |
Group | Company |
30.6.24 | 30.6.23 | 30.6.24 | 30.6.23 |
£ | £ | £ | £ |
Deferred tax | 160,281 | 129,890 | 29,006 | 1,282 |
Group |
Deferred |
tax |
£ |
Balance at 1 July 2023 | 129,890 |
Charge to Income Statement during year | 30,391 |
Balance at 30 June 2024 | 160,281 |
Company |
Deferred |
tax |
£ |
Balance at 1 July 2023 |
Charge to Income Statement during year |
Balance at 30 June 2024 |
SMITH & WESTERN RESTAURANTS LTD (REGISTERED NUMBER: 06145360) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 30 June 2024 |
21. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 30.6.24 | 30.6.23 |
value: | £ | £ |
Ordinary | £1 | 9 | 9 |
22. | RESERVES |
Group |
Retained |
earnings |
£ |
At 1 July 2023 | 1,563,461 |
Profit for the year | 643,906 |
Dividends | (300,000 | ) |
At 30 June 2024 | 1,907,367 |
Company |
Retained |
earnings |
£ |
At 1 July 2023 |
Profit for the year |
Dividends | ( |
) |
At 30 June 2024 |
23. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
Included in debtors is a joint directors loan account of £43,055 (2023 - £137,589). |
During the year, amounts totalling £205,466 were added to the loan and £300,000 was repaid. No amounts have been waived or written off. |
No interest is accrued on the loan which is repayable on demand. |
24. | RELATED PARTY DISCLOSURES |
Other related parties |
30.6.24 | 30.6.23 |
£ | £ |
Amount due from related parties | 1,928,701 | 1,488,422 |
SMITH & WESTERN RESTAURANTS LTD (REGISTERED NUMBER: 06145360) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 30 June 2024 |
24. | RELATED PARTY DISCLOSURES - continued |
Other debtors includes the following related party balances: |
- £1,166,470 (2023 - £744,840) from Smith and Western Horsham Partnership, a partnership in which the directors are partners |
- £266,678 (2023 - £457,760) from Smith and Western Tunbridge Wells Partnership, a partnership in which the directors are partners |
- £495,553 (2023 - £285,822) from TJS Ryka Ltd, a company owned by the directors. |