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REGISTERED NUMBER: 05939081 (England and Wales)


























Strategic Report,

Report of the Director and

Financial Statements

for the Year Ended 31 March 2024

for

Cuppacoff Limited

Cuppacoff Limited (Registered number: 05939081)






Contents of the Financial Statements
for the Year Ended 31 March 2024




Page

Company Information 1

Strategic Report 2

Report of the Director 3

Report of the Independent Auditors 5

Statement of Income and Retained Earnings 7

Balance Sheet 8

Cash Flow Statement 9

Notes to the Cash Flow Statement 10

Notes to the Financial Statements 11


Cuppacoff Limited

Company Information
for the Year Ended 31 March 2024







DIRECTOR: R J Adil





SECRETARY: M Adil





REGISTERED OFFICE: 34-36 London Road
Wembley
Middlesex
HA9 7EX





REGISTERED NUMBER: 05939081 (England and Wales)





AUDITORS: Wright Vigar Limited
Statutory Auditors
Chartered Accountants & Business Advisers
15 Newland
Lincoln
Lincolnshire
LN1 1XG

Cuppacoff Limited (Registered number: 05939081)

Strategic Report
for the Year Ended 31 March 2024

The Director aims to present a balanced and comprehensive review of the development and performance of the business during the year and its position at the year end by reflection of the size and non-complex nature of the business.

REVIEW OF BUSINESS
During the year, the company continued to operate as a Costa franchisee.

The Director reports a slight decrease in turnover of 0.6%.

The gross profit, however, has increased to £8,372,763 from £8,279,884 achieved last year. The gross profit percentages have increased from 62.1% to 63.2%.

The company achieved an increase in its profit before tax to £703,074 (2023: £484,759).

The group recorded a net cash outflow from operating activities of £500,126 (2023 inflow: £1,049,447) due to the impact of the tighter margins in the period and investment into store refreshers following the strong profits generated in the prior year. Net assets at the balance sheet date amounted to £5,249,590 (2023: £4,728,998).

PRINCIPAL RISKS AND UNCERTAINTIES
The principal risks of the company are changes in consumer spending habits , the entry of new competitors within geographical areas in which the company operates. The company continues to monitor this, and Costa has continued to evolve its menu and set appropriate recommended prices.

Other Risks

The Director continues top assess risks arising from food and wage inflation by budgeting and reducing wastage and targeting sales growth to counter act reducing margins.

FINANCIAL KEY PERFORMANCE INDICATORS
Financial Key Performance Indicators for the company are the level of turnover, gross profit and EBITDA

Turnover: £13,251,908 (2023: £13,332,568)

Gross Profit: £8,372,763 (2023: £8,279,884)

EBITDA: £971,413 (2023: £814,066)

Other Key performance Indicators

The Principal non-financial key performance indicator is the performance against inspections by Costa, and the company continues to achieve strong performance scores throughout the year.

ON BEHALF OF THE BOARD:





R J Adil - Director


24 March 2025

Cuppacoff Limited (Registered number: 05939081)

Report of the Director
for the Year Ended 31 March 2024

The director presents his report with the financial statements of the company for the year ended 31 March 2024.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of Costa franchisee.

DIVIDENDS
The profit for the year, after taxation, amounted to £520,592 (2023: £397,873).

No dividends have been recommended to be paid for the current year.

FUTURE DEVELOPMENTS
As a result of the impact of COVID-19 the company has identified the importance and strength of both the offering of delivery and operating drive thru stores. The Director continues to look for future store openings which will maximise these opportunities.

Stores will continue to be refurbished in order to meet Costa's guidelines and remain at a high standard.

DIRECTOR
R J Adil held office during the whole of the period from 1 April 2023 to the date of this report.

FINANCIAL INSTRUMENTS
The company uses a variety of financial instruments, including cash, inter-company debt and trade creditors that arise from its operations. The main purpose of these financial instruments are to provide working capita for the company's operations.

The company is financed with appropriate short-term finance to match the need of the business and enable the company to utilise its working capital in the most efficient way.

ENGAGEMENT WITH EMPLOYEES
The company's policy is to consult and discuss with employees, at meetings, matters likely to affect employees' interests.

Information on matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.

Disabled Employees

The company's policy is to recruit disable workers for those vacancies that they are able to fill. All necessary assistance with initial training courses is given. Once employed, a career plan is developed so as to ensure suitable opportunities are available for each disabled person. Arrangements are made, wherever possible, for retraining employees who became disabled, to enable them to perform work identified as appropriate to their aptitudes and abilities.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES
The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is 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.

The director is 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 enable him to ensure that the financial statements comply with the Companies Act 2006. He is 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.

Cuppacoff Limited (Registered number: 05939081)

Report of the Director
for the Year Ended 31 March 2024


STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
The auditors, Wright Vigar Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





R J Adil - Director


24 March 2025

Report of the Independent Auditors to the Members of
Cuppacoff Limited

Opinion
We have audited the financial statements of Cuppacoff Limited (the 'company') for the year ended 31 March 2024 which comprise the Statement of Income and Retained Earnings, Balance Sheet, Cash Flow Statement and Notes to the 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 company's affairs as at 31 March 2024 and of its 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 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. 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 director's 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 director with respect to going concern are described in the relevant sections of this report.

Other information
The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, 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.

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 Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Director 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Director.

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, 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 director's remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Report of the Independent Auditors to the Members of
Cuppacoff Limited


Responsibilities of director
As explained more fully in the Statement of Director's Responsibilities set out on page three, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

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:

Our work is performed to include an assessment of the susceptibility of the entity's financial statements to material misstatement, including the risk of fraud. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK).

In identifying and assessing risk of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:
- We plan our work to gain an understanding of the significant laws and regulations that are of significance to the
entity and the sector in which they operate. We perform our work to ensure that the entity is complying with its
legal and regulatory framework.
- We obtained an understanding of how the company is complying with those legal and regulatory frameworks by
making inquiries to the management and people charged with governance.

We assessed the susceptibility of the Company's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:
- Substantive procedures performed in accordance with the ISAs (UK).
- Challenging assumptions and judgments made by management in its significant accounting estimates.
- Identifying and testing journal entries, in particular material journal entries and an assessment of year end
journals.
- Assessing the extent of compliance with the relevant laws and regulations.

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.

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.




Paul Colcomb (Senior Statutory Auditor)
for and on behalf of Wright Vigar Limited
Statutory Auditors
Chartered Accountants & Business Advisers
15 Newland
Lincoln
Lincolnshire
LN1 1XG

24 March 2025

Cuppacoff Limited (Registered number: 05939081)

Statement of Income and
Retained Earnings
for the Year Ended 31 March 2024

2024 2023
Notes £    £   

TURNOVER 13,251,908 13,332,568

Cost of sales 4,879,145 5,052,684
GROSS PROFIT 8,372,763 8,279,884

Administrative expenses 7,767,566 7,866,631
605,197 413,253

Other operating income 3 98,147 75,528
OPERATING PROFIT 5 703,344 488,781


Interest payable and similar expenses 6 270 4,022
PROFIT BEFORE TAXATION 703,074 484,759

Tax on profit 7 182,482 86,886
PROFIT FOR THE FINANCIAL YEAR 520,592 397,873

Retained earnings at beginning of year 4,728,997 4,331,124

RETAINED EARNINGS AT END OF YEAR 5,249,589 4,728,997

Cuppacoff Limited (Registered number: 05939081)

Balance Sheet
31 March 2024

2024 2023
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 8 40,958 97,475
Tangible assets 9 1,460,223 1,602,050
Investment property 10 340,000 340,000
1,841,181 2,039,525

CURRENT ASSETS
Stocks 11 114,392 121,492
Debtors 12 5,728,835 5,446,726
Cash at bank 1,587,485 2,162,055
7,430,712 7,730,273
CREDITORS
Amounts falling due within one year 13 3,690,506 4,820,121
NET CURRENT ASSETS 3,740,206 2,910,152
TOTAL ASSETS LESS CURRENT
LIABILITIES

5,581,387

4,949,677

PROVISIONS FOR LIABILITIES 15 331,797 220,679
NET ASSETS 5,249,590 4,728,998

CAPITAL AND RESERVES
Called up share capital 16 1 1
Retained earnings 17 5,249,589 4,728,997
SHAREHOLDERS' FUNDS 5,249,590 4,728,998

The financial statements were approved by the director and authorised for issue on 24 March 2025 and were signed by:





R J Adil - Director


Cuppacoff Limited (Registered number: 05939081)

Cash Flow Statement
for the Year Ended 31 March 2024

2024 2023
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 (272,876 ) 1,301,080
Interest paid (270 ) (4,022 )
Tax paid (226,980 ) (247,611 )
Net cash from operating activities (500,126 ) 1,049,447

Cash flows from investing activities
Purchase of intangible fixed assets - (35,000 )
Purchase of tangible fixed assets (136,561 ) (156,408 )
Sale of intangible fixed assets 35,000 -
Sale of tangible fixed assets 31,836 600
Net cash from investing activities (69,725 ) (190,808 )

Cash flows from financing activities
Amount withdrawn by directors (4,719 ) -
Net cash from financing activities (4,719 ) -

(Decrease)/increase in cash and cash equivalents (574,570 ) 858,639
Cash and cash equivalents at beginning
of year

2

2,162,055

1,303,416

Cash and cash equivalents at end of year 2 1,587,485 2,162,055

Cuppacoff Limited (Registered number: 05939081)

Notes to the Cash Flow Statement
for the Year Ended 31 March 2024

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2024 2023
£    £   
Profit before taxation 703,074 484,759
Depreciation charges 270,828 323,461
(Profit)/loss on disposal of fixed assets (2,759 ) 1,824
Increase/(Decrease) in provisions 111,118 -
Finance costs 270 4,022
1,082,531 814,066
Decrease/(increase) in stocks 7,100 (33,017 )
Increase in trade and other debtors (282,109 ) (75,451 )
(Decrease)/increase in trade and other creditors (1,080,398 ) 595,482
Cash generated from operations (272,876 ) 1,301,080

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 31 March 2024
31.3.24 1.4.23
£    £   
Cash and cash equivalents 1,587,485 2,162,055
Year ended 31 March 2023
31.3.23 1.4.22
£    £   
Cash and cash equivalents 2,162,055 1,303,416


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.23 Cash flow At 31.3.24
£    £    £   
Net cash
Cash at bank 2,162,055 (574,570 ) 1,587,485
2,162,055 (574,570 ) 1,587,485
Total 2,162,055 (574,570 ) 1,587,485

Cuppacoff Limited (Registered number: 05939081)

Notes to the Financial Statements
for the Year Ended 31 March 2024

1. STATUTORY INFORMATION

Cuppacoff Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
The financial statements have been prepared under the the historical cost convention unless otherwise specified with 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 o certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies.

The following principal accounting policies have been applied:

Turnover
Turnover is recognised to the extent that is probable that the economic benefits will flow to the Company and the turnover can be reliably measured. Turnover 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 turnover is recognised:

Sale of goods

Revenue from the sale of food, beverages and merchandise is recognised at the point of sale.

Intangible assets
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

Amortisation is provided on the following bases:

Franchise fees - 10% Straight Line

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.

Land is not depreciated. Depreciation on other assets is charged so as to allocate the cost of assets less their residual value over the estimated useful lives, on a reducing balance and straight line basis.

Depreciation is provided on the following basis:

Freehold property - 2% Straight line basis
Short-term leasehold property - Over the term of the leases; 10-20 years
Fixtures and Fittings - 20% Reducing balance 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.

Investment property
Investment property is carried at fair value determined annually by external valuers and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in profit or loss.

Stocks
Stocks are stated at the lower of cost and the estimated selling price less selling costs.

Cuppacoff Limited (Registered number: 05939081)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

2. ACCOUNTING POLICIES - continued

Current and deferred taxation
The tax expense for the year 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 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.

Pensions
Defined Contribution Pension Plans

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension 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.

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.

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

Finance Costs
Finance costs are charged to profit or loss over the therm 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 instruments.

Borrowing Costs
All borrowing costs are recognised in profit or loss in the year in which they are incurred.

Cuppacoff Limited (Registered number: 05939081)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

2. ACCOUNTING POLICIES - continued

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

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

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the balance sheet date.

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or income as appropriate. The company does not currently apply hedge accounting for interest rates and foreign exchange derivatives.

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

Cash and Cash Equivalents
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty or 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 know amounts of cash with insignificant risk of change in value.

In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

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.

Cuppacoff Limited (Registered number: 05939081)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

2. ACCOUNTING POLICIES - continued

Provisions for liabilities
Provisions are made where an event has taken place that gives the company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.

Provisions are charged as an expense to the Profit or Loss Account in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Balance Sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.

Dilapidation provisions are added to the book value of the assets at the point of fitting out a store and is depreciated through the Statement of Comprehensive Income over the term of the lease. When payments are eventually made, they are charged to the provision carried in the Balance Sheet.

Judgements in applying accounting policies and key sources of estimation uncertainty
In the process of applying its accounting policies, the company is required to make certain estimates, judgements and assumptions that it believes are reasonable based on the information available. These judgements, estimates and assumptions affect the amounts of assets and liabilities at the date of the financial statements and the amounts revenues and expenses recognised during the reporting periods presented.

On an ongoing basis, the company evaluates its estimates using historical experience, consultation with experts and other methods considered reasonable based on the information available. These judgements, estimates and assumptions affect the amounts of assets and liabilities at the date of the financial statements and the amounts of revenues and expenses recognised during the reporting periods presented.

On an ongoing basis, the company evaluates its estimates using historical experience, consultation with experts and other methods considered reasonable in the particular circumstances. Actual results may differ significantly from the estimates, the effect of which is recognised in the period in which the facts that give rise to the revision become known.

Management has made judgement over the following accounting policies:
- The estimated useful economic lives of fixtures, fittings and equipment
- The fair value of investment properties owned by the company; and
- Dilapidation provisions which are calculated by management based on their expectations of costs in reference to store type and size.

Turnover
The whole of the turnover is attributable to the company's principal activity.

All turnover arose within the United Kingdom.

3. OTHER OPERATING INCOME
2024 2023
£    £   
Rents received 95,525 75,528
Sundry receipts 2,622 -
98,147 75,528

4. EMPLOYEES AND DIRECTORS
2024 2023
£    £   
Wages and salaries 4,278,983 4,251,195
Social security costs 246,344 230,342
Other pension costs 49,287 65,216
4,574,614 4,546,753

Cuppacoff Limited (Registered number: 05939081)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

4. EMPLOYEES AND DIRECTORS - continued

The average number of employees during the year was as follows:
2024 2023

Managerial staff 2 1
Store staff 286 317
288 318

Key management personnel remuneration paid in the year was £18,585 (2023: £19,500).

2024 2023
£    £   
Director's remuneration 188,995 -

5. OPERATING PROFIT

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

2024 2023
£    £   
Other operating leases 910,345 815,026
Depreciation - owned assets 248,144 292,216
(Profit)/loss on disposal of fixed assets (2,759 ) 1,824
Franchise agreements amortisation 22,684 31,247
Auditors' remuneration 14,500 14,500

6. INTEREST PAYABLE AND SIMILAR EXPENSES
2024 2023
£    £   
Bank loan interest 270 1,633
Interest on overdue tax - 2,389
270 4,022

7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2024 2023
£    £   
Current tax:
UK corporation tax 182,482 86,886
Tax on profit 182,482 86,886

UK corporation tax has been charged at 25% (2023 - 19%).

Cuppacoff Limited (Registered number: 05939081)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

7. TAXATION - continued

Reconciliation of total tax charge 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:

2024 2023
£    £   
Profit before tax 703,074 484,759
Profit multiplied by the standard rate of corporation tax in the UK of 25%
(2023 - 19%)

175,769

92,104

Effects of:
Expenses not deductible for tax purposes 5,067 1,712
Capital allowances in excess of depreciation - (6,930 )
Depreciation in excess of capital allowances 1,646 -

Total tax charge 182,482 86,886

From 1 April 2023, the Corporation Tax main rate for profits will be increased to 25% applying to profits over
£250,000. This will effect the company's corporation tax charges accordingly.

8. INTANGIBLE FIXED ASSETS
Franchise
agreements
£   
COST
At 1 April 2023 367,300
Disposals (35,000 )
At 31 March 2024 332,300
AMORTISATION
At 1 April 2023 269,825
Amortisation for year 22,684
Eliminated on disposal (1,167 )
At 31 March 2024 291,342
NET BOOK VALUE
At 31 March 2024 40,958
At 31 March 2023 97,475

Cuppacoff Limited (Registered number: 05939081)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

9. TANGIBLE FIXED ASSETS
Fixtures
Land and Short and
Buildings leasehold fittings Totals
£    £    £    £   
COST
At 1 April 2023 408,148 70,294 5,305,108 5,783,550
Additions - - 136,561 136,561
Disposals - - (31,836 ) (31,836 )
At 31 March 2024 408,148 70,294 5,409,833 5,888,275
DEPRECIATION
At 1 April 2023 23,107 55,553 4,102,840 4,181,500
Charge for year 1,444 3,721 242,979 248,144
Eliminated on disposal - - (1,592 ) (1,592 )
At 31 March 2024 24,551 59,274 4,344,227 4,428,052
NET BOOK VALUE
At 31 March 2024 383,597 11,020 1,065,606 1,460,223
At 31 March 2023 385,041 14,741 1,202,268 1,602,050

10. INVESTMENT PROPERTY
Total
£   
FAIR VALUE
At 1 April 2023
and 31 March 2024 340,000
NET BOOK VALUE
At 31 March 2024 340,000
At 31 March 2023 340,000

11. STOCKS
2024 2023
£    £   
Stocks 114,392 121,492

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 231,501 30,034
Other debtors 4,809,862 4,819,439
Prepayments 687,472 597,253
5,728,835 5,446,726

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade creditors 1,471,992 2,309,637
Tax 182,482 226,980
Social security and other taxes 67,673 71,173
VAT 444,447 355,355
Other creditors 1,190,293 1,631,028
Directors' current accounts - 4,719
Accruals and deferred income 333,619 221,229
3,690,506 4,820,121

Cuppacoff Limited (Registered number: 05939081)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

14. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2024 2023
£    £   
Within one year 323,667 403,000
Between one and five years 696,667 773,833
In more than five years 901,708 1,060,708
1,922,042 2,237,541

15. PROVISIONS FOR LIABILITIES
2024 2023
£    £   
Deferred tax 76,679 76,679
Other provisions 255,118 144,000
331,797 220,679

Deferred
tax
£   
Balance at 1 April 2023 76,679
Balance at 31 March 2024 76,679

Provisions for dilapidation costs are recorded on the date in which a leasehold properties are altered and the liability of repair is crystallised. Provisions are capitalised and depreciated over the period of the lease being between one and fifteen years remaining.

16. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
1 Ordinary 1.00 1 1

17. RESERVES

Profit and Loss Account

Profit and loss account - includes all current and prior period retained profits and losses less distributions. At the year end the profit and loss account includes non-distributable profits of £144,301 (2023: £144,301).

18. PENSION COMMITMENTS

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £49,287 (2023: £65,216). Contributions totalling £11,846 (2023: £5,617) were payable to the fund at the balance sheet date and are included in creditors.

19. CONTINGENT LIABILITIES

The company is part of the cross-guarantee for the bank debts of Erindale Ltd, a company under common control. The maximum amount payable under this guarantee at 31 March 2024 is £217,000 (2023: £217,000).

Cuppacoff Limited (Registered number: 05939081)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

20. RELATED PARTY DISCLOSURES

Included within Other Debtors due in less than one year are loan amounts of £4,809,862 (2023: £4,819,110) due from companies under common control. The loans have arisen from inter company funding, are unsecured, repayable on demand and free of interest.

Included within Other Creditors due in less than one year are loan amounts of £964,195 (2023: £1,614,301) due to companies in which the controlling party of Cuppacoff Limited has significant influence over. The loans have arisen from inter company funding are unsecured, repayable on demand and free of interest.

Included within administrative expenses are store rental charges for the year of £721,250 (2023: £637,325) charged from companies and individuals which are under common control with Cuppacoff Limited or where the controlling party exerts significant influence. The trade creditor balance at the year end in respect of these rental charges is £46,100 (2023: £308,107).

The total amount paid to close family members during the year was £30,970 (2023: £29,500).

21. CONTROLLING PARTY

The controlling party is R J Adil.