REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Audited Financial Statements For The Year Ended 31 March 2024 |
for |
Lisini Pub Company Limited |
REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Audited Financial Statements For The Year Ended 31 March 2024 |
for |
Lisini Pub Company Limited |
Lisini Pub Company Limited (Registered number: SC262192) |
Contents of the Financial Statements |
For The Year Ended 31 March 2024 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Statement of Comprehensive Income | 10 |
Statement of Financial Position | 11 |
Statement of Changes in Equity | 12 |
Statement of Cash Flows | 13 |
Notes to the Statement of Cash Flows | 14 |
Notes to the Financial Statements | 16 |
Lisini Pub Company Limited |
Company Information |
For The Year Ended 31 March 2024 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
INDEPENDENT AUDITORS: |
Chartered Accountants & Statutory Auditors |
Regent Court |
70 West Regent Street |
Glasgow |
G2 2QZ |
Lisini Pub Company Limited (Registered number: SC262192) |
Strategic Report |
For The Year Ended 31 March 2024 |
The directors present their strategic report for the year ended 31 March 2024. |
The principal activities of Lisini are the operation and management of restaurants, bars, and hotels in Lanarkshire, as well as the operation of a Golf Club in Scotland. |
REVIEW OF BUSINESS |
Considering the current market conditions facing the hospitality sector, the directors are satisfied with the overall trading performance of the business where this year's trading resulted in a 11.77% increase in sales, to £13,555,472 compared to £12,128,420 in 2022/2023. Gross Profit increased by 10.65% to £9,083,952. Despite the challenging market conditions, the directors are pleased to report an increase in operating profits by 15.3% from £513,059 in 22/23 to £591,629 in 23/24. |
The continued pressure on our net profit is due to the return of 100% business rates and the unfairness in the non-domestic rating system; a sharp increase in national minimum wage; VAT rates not reflective of pressures on the sector; higher levels of interest rates; the cost-of-living crisis; supply changes; inflation and crippling increases in energy costs. However, the board have made increased efforts to control the cost base and maximise trading revenue. |
The increased focus on the cost base; increasing margins and overall profitability was a key focus for this year and all efforts by the team to increase profits have been very well received. Further progress is expected with a range of KPI's that measure guest satisfaction, consumer confidence and adopting an EOS model of accountability. |
The company won 2 awards during the year - Best Scottish Hospitality Employer 2024 and Best Casual Dining Venue for Angels Hotel. Sustainability remains a key focus for the group. |
Overall, the board is content with the with company's performance against unprecedented pressures and in particular the management of costs and cashflow during this period. The board remains optimistic on the continuation of higher margins and an increase in net profit. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The company has bank loans and is further exposed to any increases in interest rates. This coupled with inflationary costs, supply chain increases and shrinkflation requires a robust response in overall procurement. The team are working hard to mitigate pressures that they can control. |
Continued lack of government support for the hospitality trade is of great concern and the company is frustrated by the government's inability to inject confidence into a struggling sector. External factors such as the continuing crippling cost of utilities and the increased costs of insurance, corporation tax, national insurance contributions and national minimum wage rates pose a continued risk to the company's profitability. |
Borrowing facilities & Liquidity Risk |
The company strives to keep facilities to ensure it has adequate funds available to finance operations. Cashflow remains healthy due to a reduction in spend, controlling of costs and procurement negotiation. |
Interest Rate Risk |
Interest rates are continuously monitored, and the impact of interest rate rises is regularly reviewed in context to the current business performance. While the company uses external debt, its exposure to interest rate risk is kept to a minimum. The board will revisit the appropriateness of this policy should the company's operations change in size or nature. |
Price Risk |
There is evidence of increased price uncertainty associated with the importation of goods from the EU as a direct result of Brexit negotiations and supply/ import restrictions. |
To address the pressure of operating in a competitive environment, the directors constantly review operations to identify opportunities to improve profitability. As part of that process the company keeps strong links with its exceptional supplier base and places a high value on the longstanding relationships created over time. |
Lisini Pub Company Limited (Registered number: SC262192) |
Strategic Report |
For The Year Ended 31 March 2024 |
PRINCIPAL RISKS AND UNCERTAINTIES |
Disabled employees |
The company considers applications for employment from disabled persons where the candidate's particular aptitudes and abilities are consistent with meeting the requirements of the job. Opportunities are available to disabled employees for training, career development and promotion. |
Where existing employees become disabled, it is the company's policy to provide continuing employment wherever practical in the same or an alternative position and to provide appropriate training to achieve this aim. |
Employee involvement |
The company operates a framework for employee information and consultation which complies with the requirements of the Information and Consultation of Employees Regulations 2004. During the year, the policy of providing employees with information about the company has been continued through employee engagement surveys, regular monthly business update meetings and general surveys where employees are encouraged to share their suggestions and views on the company's performance. |
Major disruption/disaster |
Business continuity planning is reviewed and tested to ensure that risks are minimised in all properties, in particular, security of IT networks and ensuring the safety of employees and guests at all locations. |
The effect of legislation or other regulatory activities |
The company monitors forthcoming and current legislation on a regular basis, including new regulations and developments in areas such as health and safety, food provisioning and waste management. |
ON BEHALF OF THE BOARD: |
Lisini Pub Company Limited (Registered number: SC262192) |
Report of the Directors |
For The Year Ended 31 March 2024 |
The directors present their report with the financial statements of the company for the year ended 31 March 2024. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 March 2024. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 April 2023 to the date of this report. |
DISABLED EMPLOYEES |
The company considers applications for employment from disabled persons where the candidate's particular aptitudes and abilities are consistent with meeting the requirements of the job. Opportunities are available to disabled employees for training, career development and promotion. Where existing employees become disabled, it is the company's policy to provide continuing employment wherever practical in the same or an alternative position and to provide appropriate training to achieve this aim. |
EMPLOYEE INVOLVEMENT |
The company operates a framework for employee information and consultation which complies with the requirements of the Information and Consultation of Employees Regulations 2004. During the year, the policy of providing employees with information about the company has been continued through employee engagement surveys, regular monthly business update meetings and general surveys where employees are encouraged to share their suggestions and views on the company's performance. |
STRATEGIC REPORT |
The company has chosen in accordance with Companies Act 2006, s. 414C (11) to set out in the company's strategic report information required by the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of future developments and risks in relation to financial instruments. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the 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 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 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 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 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
Lisini Pub Company Limited (Registered number: SC262192) |
Report of the Directors |
For The Year Ended 31 March 2024 |
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 company'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 company's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Lisini Pub Company Limited |
Opinion |
We have audited the financial statements of Lisini Pub Company Limited (the 'company') for the year ended 31 March 2024 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, 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 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. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the 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. |
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 Directors 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 Directors have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
Lisini Pub Company Limited |
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 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, 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 Statement of Directors' Responsibilities set out on page four, 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 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. |
Report of the Independent Auditors to the Members of |
Lisini Pub Company Limited |
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 approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: |
- The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; |
- We identified the laws and regulations applicable to the company through discussions with directors and other |
management, and from our wider knowledge and experience; |
- We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006 and FRS 102. |
- We assessed the extent of compliance with the laws and regulations identified above through making enquiries of |
management and inspecting legal correspondence; and |
- Identified laws and regulations were communicated within the audit team regularly and the team remained alert to |
instances of non-compliance throughout the audit. |
The most relevant laws & regulations identified include: |
- Companies Act 2006; |
- UK VAT and Corporation Tax legislation; Health and safety regulations; |
- Licensing laws and regulations; and |
- UK Generally Accepted Accounting Practice. |
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: |
- Making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of |
actual, suspected and alleged fraud; and |
- Considering the internal controls in place to mitigate risks of fraud, specifically, the controls surrounding the recording of cash transactions. |
- Consider the internal controls in place to mitigate the risk of non-compliance with laws and regulations. |
Audit response to risks identified |
To address the risk of fraud through management bias and override of controls, we: |
- Performed analytical procedures to identify any unusual or unexpected relationships; |
- Tested journal entries to identify unusual transactions; |
- Assessed whether judgements and assumptions made in determining the accounting estimates set out were indicative of potential management bias; and |
- Investigated the rationale behind significant or unusual transactions. |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
- Agreeing financial statement disclosures to underlying supporting documentation; |
- Reading the minutes of meetings of those charged with governance for reference to breaches of laws and regulation or any indication of potential litigation or claims or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud; |
- Enquiring of management as to actual and potential litigation and claims; and |
- Requesting correspondence with HMRC, Companies House and the company's legal advisors. |
Report of the Independent Auditors to the Members of |
Lisini Pub Company Limited |
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. |
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. |
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. |
for and on behalf of |
Chartered Accountants & Statutory Auditors |
Regent Court |
70 West Regent Street |
Glasgow |
G2 2QZ |
Lisini Pub Company Limited (Registered number: SC262192) |
Statement of Comprehensive |
Income |
For The Year Ended 31 March 2024 |
2024 | 2023 |
Notes | £ | £ |
TURNOVER | 3 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
591,629 | 507,171 |
Other operating income | 4 |
OPERATING PROFIT | 6 |
Interest receivable and similar income |
612,051 | 521,361 |
Interest payable and similar expenses | 7 |
PROFIT BEFORE TAXATION |
Tax on profit | 8 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
Lisini Pub Company Limited (Registered number: SC262192) |
Statement of Financial Position |
31 March 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 |
Tangible assets | 11 |
CURRENT ASSETS |
Stocks | 12 |
Debtors | 13 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 15 | ( |
) | ( |
) |
PROVISIONS FOR LIABILITIES | 19 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 20 |
Retained earnings | 21 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
Lisini Pub Company Limited (Registered number: SC262192) |
Statement of Changes in Equity |
For The Year Ended 31 March 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 April 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 March 2023 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 March 2024 |
Lisini Pub Company Limited (Registered number: SC262192) |
Statement of Cash Flows |
For The Year Ended 31 March 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( |
) | ( |
) |
Interest element of hire purchase payments paid |
( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
New loans in year |
Loan repayments in year | ( |
) | ( |
) |
Capital repayments in year | ( |
) | ( |
) |
Amount introduced by directors | (73,072 | ) | - |
Amount withdrawn by directors | - | (171,072 | ) |
Government grants |
Equity dividends paid | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
Increase/(decrease) in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
1,095,278 |
Cash and cash equivalents at end of year | 2 | 1,292,799 | 863,691 |
Lisini Pub Company Limited (Registered number: SC262192) |
Notes to the Statement of Cash Flows |
For The Year Ended 31 March 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Profit before taxation |
Depreciation charges |
Government grants | ( |
) |
Finance costs | 415,429 | 124,937 |
Finance income | (20,422 | ) | (8,302 | ) |
812,409 | 775,430 |
Decrease in stocks |
Decrease/(increase) in trade and other debtors | ( |
) |
Increase in trade and other creditors |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 31 March 2024 |
31.3.24 | 1.4.23 |
£ | £ |
Cash and cash equivalents | 1,292,799 | 863,691 |
Year ended 31 March 2023 |
31.3.23 | 1.4.22 |
£ | £ |
Cash and cash equivalents | 863,691 | 1,095,278 |
Lisini Pub Company Limited (Registered number: SC262192) |
Notes to the Statement of Cash Flows |
For The Year Ended 31 March 2024 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.4.23 | Cash flow | At 31.3.24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 863,691 | 429,108 | 1,292,799 |
863,691 | 1,292,799 |
Debt |
Finance leases | (32,347 | ) | 14,182 | (18,165 | ) |
Debts falling due within 1 year | (458,455 | ) | (21,311 | ) | (479,766 | ) |
Debts falling due after 1 year | (3,846,581 | ) | 477,632 | (3,368,949 | ) |
(4,337,383 | ) | 470,503 | (3,866,880 | ) |
Total | (3,473,692 | ) | 899,611 | (2,574,081 | ) |
Lisini Pub Company Limited (Registered number: SC262192) |
Notes to the Financial Statements |
For The Year Ended 31 March 2024 |
1. | STATUTORY INFORMATION |
Lisini Pub Company Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Going concern |
The financial statements have been prepared on a going concern basis which assumes that the company will continue in operational existence for the foreseeable future. The validity of this assumption depends upon the trading performance of the company and the support where necessary of the company's bank. On the basis that this support will continue in the short to medium term, the directors believe the going concern basis to be appropriate. The directors assessed forecasted cashflows for a period of at least 12 months from the date of approval of the financial statements to conclude the going concern basis is appropriate. |
Significant judgements and estimates |
In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that might not be readily apparent from other sources. Where that is the case estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. |
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. |
The principle estimates and judgements that could have a significant effect upon the company's results relate to the estimated residual value of freehold property and improvements to property, which are considered to be such that any accumulated depreciation charge at the period end would be immaterial. Based on the information available to them the directors consider that the carrying amount in respect of freehold property and improvements to property of £6.1m at the period end is not in excess of the recoverable amount. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Revenue is recognised when goods are delivered to customers or services are performed. Deposits received in advance of delivery are included in creditors. |
Goodwill |
Goodwill arises on business acquisitions and represents the excess of the cost of the acquisition over the company's interest in the net amount of the identifiable assets, liabilities and contingent liabilities of the acquired business. |
Goodwill recognised at acquisition is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis over its useful life, which is estimated to be ten years. |
Lisini Pub Company Limited (Registered number: SC262192) |
Notes to the Financial Statements - continued |
For The Year Ended 31 March 2024 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Tangible fixed assets are recognised at cost less accumulated depreciation and accumulated impairment losses. |
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over their estimated useful lives as follows |
Freehold property - not provided |
Improvements to property - not provided |
Plant and machinery - 20% on reducing balance |
Fixtures and fittings - 20% on reducing balance |
Motor vehicles - 25% on reducing balance |
On disposal, the difference between the net disposal proceeds and the carrying amount Of the item sold is recognised in profit or loss. |
Depreciation is not provided on most freehold property and improvements to property on the grounds that it would be immaterial because the estimated residual values of the properties are not materially different from their carrying values. |
Government grants |
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received. |
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability. |
Stocks |
Stocks are stated at the lower of cost and net realisable value. Net realisable value means estimated selling price less costs to complete and sell. |
Lisini Pub Company Limited (Registered number: SC262192) |
Notes to the Financial Statements - continued |
For The Year Ended 31 March 2024 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. |
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in the profit and loss account, except investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment. |
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party. |
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch, or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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 statement of financial position date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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. |
Lisini Pub Company Limited (Registered number: SC262192) |
Notes to the Financial Statements - continued |
For The Year Ended 31 March 2024 |
2. | ACCOUNTING POLICIES - continued |
Hire purchase and leasing commitments |
Leases are classified as finance leases when they transfer substantially all the risks and rewards of ownership of the leased assets to the company. Other leases that do not transfer substantially all the risks and rewards of ownership of the leased assets to the company are classified as operating leases. |
The company has entered into some hire purchase agreements for certain machinery assets that include the option to purchase the items at the end of the lease term for a nominal amount, which is expected to be much lower than their fair value at that date. The hire purchase agreements have been classified as finance leases as it is reasonably certain that the option will be exercised. |
Assets held under finance leases are capitalised and corresponding obligation to lessors under finance leases are recognised in the statement of financial position as assets and liabilities at the lower of fair value of the assets and the present value of the minimum lease payments, determined at the inception of the lease. |
Lease payments are apportioned between finance charges and reduction of outstanding lease liabilities using the effective interest method, so as to produce a constant rate of interest on the remaining balance of the liabilities. Finance charges are recognised in profit or loss. |
Assets held under finance leases are included in property, plant and equipment and are depreciated and reviewed for impairment in the same way as assets owned outright. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
Cash and cash equivalents |
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less and bank overdrafts. Bank overdrafts are shown within borrowings in liabilities. |
Rental income |
Rental income from operating leases is recognised on a straight-line basis over the term of the relevant lease unless the lease payments are structured to increase in line with expected general inflation in which case the income is recognised as revenue in accordance with the expected payments. |
Impairment losses |
At each reporting date fixed assets not carried at fair value, like goodwill and plant, property and equipment, are reviewed to determine whether there is an indication that an asset may be impaired. If there is an indication of possible impairment, the recoverable amount of any asset or group of related assets, which is the higher of value in use and the fair value less cost to sell, is estimated and compared with its carrying amount. If the recoverable amount is lower, the carrying amount of the asset is reduced to its recoverable amount and an impairment loss is recognised immediately in profit or loss. |
Stocks are also assessed for impairment at each reporting date. The carrying amount of each item of stock, or group of similar items, is compared with its selling price less costs to complete and sell. If an item of stock or group of similar items is impaired, its carrying amount is reduced to selling price less costs to complete and sell, and an impairment loss is recognised immediately in profit or loss. |
If an impairment loss is subsequently reversed, the carrying amount of the asset or group of related assets is increased to the revised estimate of its recoverable amount, but not to exceed the amount that would have been determined had no impairment loss been recognised for the asset or group of related assets in prior periods. A reversal of an impairment loss is recognised immediately in profit or loss. |
Lisini Pub Company Limited (Registered number: SC262192) |
Notes to the Financial Statements - continued |
For The Year Ended 31 March 2024 |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by class of business is given below: |
2024 | 2023 |
£ | £ |
4. | OTHER OPERATING INCOME |
2024 | 2023 |
£ | £ |
Sundry receipts | - | 209 |
Government grants |
- | 5,888 |
5. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2024 | 2023 |
Administration | 23 | 28 |
Bar and cleaning | 226 | 223 |
Kitchen | 83 | 72 |
Golf | 3 | 4 |
2024 | 2023 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
Lisini Pub Company Limited (Registered number: SC262192) |
Notes to the Financial Statements - continued |
For The Year Ended 31 March 2024 |
5. | EMPLOYEES AND DIRECTORS - continued |
Information regarding the highest paid director is as follows: |
2024 | 2023 |
£ | £ |
Emoluments etc |
Pension contributions to money purchase schemes |
6. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Hire of plant and machinery |
Depreciation - owned assets |
Auditors' remuneration |
Government grants | ( |
) |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Bank loan interest |
Directors loan interest |
Hire purchase |
8. | 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 |
Deferred tax | ( |
) |
Tax on profit |
UK corporation tax has been charged at 25% . |
Lisini Pub Company Limited (Registered number: SC262192) |
Notes to the Financial Statements - continued |
For The Year Ended 31 March 2024 |
8. | 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 |
Profit multiplied by the standard rate of corporation tax in the UK of (2023 - |
Effects of: |
Expenses not deductible for tax purposes |
Capital allowances in excess of depreciation | - | ( |
) |
Depreciation in excess of capital allowances | - |
Deferred tax | 5,730 | (5,021 | ) |
Total tax charge | 175,799 | 68,718 |
9. | DIVIDENDS |
2024 | 2023 |
£ | £ |
Ordinary A shares of £1 each |
Interim |
Ordinary B shares of £1 each |
Interim |
Ordinary C shares of £1 each |
Interim |
10. | INTANGIBLE FIXED ASSETS |
Goodwill |
£ |
COST |
At 1 April 2023 |
and 31 March 2024 |
AMORTISATION |
At 1 April 2023 |
and 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
At 31 March 2023 |
Lisini Pub Company Limited (Registered number: SC262192) |
Notes to the Financial Statements - continued |
For The Year Ended 31 March 2024 |
11. | TANGIBLE FIXED ASSETS |
Improvements | Fixed |
Freehold | to | plant and |
property | property | equipment |
£ | £ | £ |
COST |
At 1 April 2023 |
Additions |
At 31 March 2024 |
DEPRECIATION |
At 1 April 2023 |
Charge for year |
At 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
At 31 March 2023 |
Fixtures |
and | Motor |
fittings | vehicles | Totals |
£ | £ | £ |
COST |
At 1 April 2023 |
Additions |
At 31 March 2024 |
DEPRECIATION |
At 1 April 2023 |
Charge for year |
At 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
At 31 March 2023 |
Included within net book value of plant and machinery is an amount of £30,383 (2023: £35,058) relating to assets held under hire purchase contracts classified as finance leases. |
Lisini Pub Company Limited (Registered number: SC262192) |
Notes to the Financial Statements - continued |
For The Year Ended 31 March 2024 |
12. | STOCKS |
2024 | 2023 |
£ | £ |
Raw materials |
Finished goods |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Trade debtors |
Other debtors |
Other loans | 111,928 | 171,128 |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Directors' loan accounts (see note 16) |
Bank loans and overdrafts (see note 16) |
Other loans (see note 16) |
Hire purchase contracts (see note 17) |
Trade creditors |
Tax |
Social security and other taxes |
VAT | 453,901 | 374,085 |
Other creditors |
Accrued expenses |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2024 | 2023 |
£ | £ |
Directors' loan accounts (see note 16) |
Bank loans (see note 16) |
Hire purchase contracts (see note 17) |
Lisini Pub Company Limited (Registered number: SC262192) |
Notes to the Financial Statements - continued |
For The Year Ended 31 March 2024 |
16. | LOANS |
An analysis of the maturity of loans is given below: |
2024 | 2023 |
£ | £ |
Amounts falling due within one year or on demand: |
Directors' loan accounts | 60,000 | 75,000 |
Bank loans |
Other loans |
Amounts falling due between one and two years: |
Directors' loan accounts - 1-2 years |
Bank loans - 1-2 years |
Amounts falling due between two and five years: |
Directors' loan accounts - 2-5 years |
Bank loans - 2-5 years |
Amounts falling due in more than five years: |
Repayable by instalments |
Directors' loan accounts > 5 years | 766,382 | 764,454 |
Bank loans more 5 yr by instal | 718,441 | 1,255,247 |
1,484,823 | 2,019,701 |
17. | LEASING AGREEMENTS |
Minimum lease payments under hire purchase fall due as follows: |
2024 | 2023 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
Lisini Pub Company Limited (Registered number: SC262192) |
Notes to the Financial Statements - continued |
For The Year Ended 31 March 2024 |
18. | SECURED DEBTS |
The following secured debts are included within creditors: |
2024 | 2023 |
£ | £ |
Bank loans |
Hire purchase contracts | 18,165 | 32,347 |
Directors' loan account | 1,075,982 | 1,139,454 |
Other loans | 1,735 | 1,735 |
The bank loans are secured by a fixed and floating charges over all of the assets of the company held by The Royal Bank of Scotland PLC |
The directors' loan account is secured over the company's property known as and forming Angels Hotel. |
The obligations under hire purchase contracts are secured over the assets which the agreements relate to. |
19. | PROVISIONS FOR LIABILITIES |
2024 | 2023 |
£ | £ |
Deferred tax | 204,193 | 198,463 |
Deferred |
tax |
£ |
Balance at 1 April 2023 |
Movement in year | 5,730 |
Balance at 31 March 2024 |
20. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary A | £1 | 50 | 50 |
Ordinary B | £1 | 25 | 25 |
Ordinary C | £1 | 25 | 25 |
100 | 100 |
Lisini Pub Company Limited (Registered number: SC262192) |
Notes to the Financial Statements - continued |
For The Year Ended 31 March 2024 |
21. | RESERVES |
Retained |
earnings |
£ |
At 1 April 2023 |
Profit for the year |
At 31 March 2024 |
22. | RELATED PARTY DISCLOSURES |
During the year, the company made loan repayments to directors totalling £73,072 (2023 - £171,072). At the year end, the total sums due to the directors amounted to £1,066,382 (2023 - £1,139,454). Under the terms of a loan agreement, interest is payable on loans from directors at a commercial rate, and cumulative interest charges since the commencement of the loan agreement of £218,842 have been accrued in the financial statements. |
At the year end, the company was owed a sum of £111,928 (2023 - £171,128) from Haka Properties Ltd, a company with common directors. During the year, the company advanced sums totalling £30,800 to Haka Properties Ltd. The company has made a provision of £90,000 in the financial statements against the total loan sums advanced to Haka Properties Ltd, on the basis that this sum may be irrecoverable. |