Company Registration No. 08484482 (England and Wales)
FABULOUS FAN FAYRE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
FABULOUS FAN FAYRE LIMITED
COMPANY INFORMATION
Directors
Mr N J Harris
Mr M Bekolay
Mr G A Kennerley
Company number
08484482
Registered office
The Shed
Charbridge Lane
Bicester
OX26 4SS
Auditor
Shaw Gibbs (Audit) Limited
264 Banbury Road
Oxford
OX2 7DY
FABULOUS FAN FAYRE LIMITED
CONTENTS
Page
Strategic report
1 - 4
Directors' report
5 - 6
Independent auditor's report
7 - 9
Statement of comprehensive income
10
Balance sheet
11
Statement of changes in equity
12
Statement of cash flows
13
Notes to the financial statements
14 - 23
FABULOUS FAN FAYRE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present the strategic report and financial statements for the year ended 31 December 2023.

 

Principal activities

The principal activity of the company during the year was the provision of event catering services at Manchester City Football Club (MCFC). As detailed further on page 3, the contract with MCFC ended during 2024, the directors have since transitioned the business to provide consultancy services in the hospitality industry.

Fair review of the business

Revenue increased by £2.3m versus the prior year, which was a continuation of the positive bounce back from the Covid-19 pandemic. All revenue streams saw organic growth and were helped by additional first team fixtures (domestic and European cup) and non matchday event growth.

Development and performance during the financial year

The company was delighted to be part of innovative Match-Day experiences and continued to partner with the client and customers to improve and develop both the hospitality and fan experience at the stadia.

The company’s activities are closely monitored by the directors with the assistance of monthly management accounts and supporting reports and a comprehensive schedule of directors and senior management meetings. The business continues to place great emphasis on strong financial controls and undertakes monthly management reviews on all operational performances against market led KPI’s, being food and beverage costs, gross margins, labour and variable cost expenditure as a percentage of revenue.

The company uses several financial measures to monitor progress against strategies and corporate objectives. These are summarised as follows:

                        2023        2022        2021

    Turnover (£’000)                21,777        19,475        7,275

    Gross Profit %                44%        45%        34%

    (Loss) /​​​​​ Profit before Tax (£’000)        1,194        424        (1,751)

 

The improvement in financial performance, is reflective of a full season of attended football season plus the added benefit of 5 nights of concerts in May and June. The return to profit since 2022 reflects the belief in the business and the board and their subsequent support during the years severely affected by the pandemic.

At 31 December 2023, cash at bank and in hand was £1,246k (£712k in 2022). Short-term liquidity is improving year on year as the profitability recovers from the pandemic. To demonstrate this the company’s balance sheet illustrates a quick ratio of 1.3 at December 2023 versus 1 in 2022.

FABULOUS FAN FAYRE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Principal risks and uncertainties

The company looks to mitigate the risks it faces through constant reviews and measuring business performance. Strong short, medium and long term objective planning is in place and communicated across the business ensuring all management are clear of their responsibilities in supporting business performance. The directors are confident that food hygiene, health and safety, financial and economic risks have been identified and managed appropriately.

 

Strategic and financial

 

The board of directors meet monthly to review strategic and financial risks facing the business and there is a separate finance committee, who deal with the detail to present to the board and ensure there is adequate financial governance.

 

Regulatory Risks

 

We recognise that catering exposes the business to a variety of hazards and risks, laws and regulations. We understand that changes in laws and regulations could have a direct impact on the business and/​​​​​or the services provided, and a board director takes responsibility for adherence to the above.

 

Economic Risks

 

Fluctuations in food prices, periods of notable inflation and difficulties in supply chain is something the company is exposed to daily. The company has contracts which allow for increases in prices and menu changes, but the delays in implementing these changes, mean a reduction in margins cannot be ruled out.

 

Brexit and supply chain impacts including from the Ukraine conflict

 

Following the exit from the EU and the more recent conflict in Ukraine, the company and its parent company have worked hard to ensure continuity of supply, and to maintain acceptable prices for goods across the business. They have worked closely with management at site and within all parts of the supply chain to deliver the right product at the right time and at the right price regardless of any impacts.

Diversity Policy

Across Fabulous Fan Fayre we value diversity and seek to employ a diverse workforce and offer all employees the opportunity to reach their full potential.

By treating everyone fairly and equally and embracing diversity, we can create a positive working environment for all that work at Fabulous Fan Fayre.

Fabulous Fan Fayre will not tolerate any discrimination in the workplace and prohibits, in any situation, unfair treatment, discrimination and/​​​​​or harassment by employees against another individual or group, directly or indirectly because of an actual or perceived protected characteristic. Protected characteristics include: Age, Disability, Gender reassignment, Marriage and Civil Partnership, Pregnancy and Maternity, Race, Religion, Sex, Sexual Orientation.

We are committed to the principle that we should all be able to work in an environment free from intimidation, bullying and harassment and are fully committed to improving the working environment and creating further opportunities for all.

This policy applies to all aspects of employment including recruitment and selection, training, promotion, transfer, pay and benefits and performance management, in addition to all terms and conditions of employment.

FABULOUS FAN FAYRE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

Disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Employee involvement

The company's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.

Information about 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.

There is no employee share scheme at present, but the directors are considering the introduction of such a scheme as a means of further encouraging the involvement of employees in the company's performance.

Post balance sheet event

During 2024 Manchester City Football Club made the strategic decision to in-house their event catering offering from the commencement of the 24/25 Premier League season and not to renew their catering agreement with Fabulous Fan Fayre. The Management of Fabulous Fan Fayre have worked collaboratively through the off season to ensure this transfer of services was executed seamlessly with no disruption to match day services. As part of this transfer a high proportion of match day staff were transferred to the direct employment of Manchester City Football Club through a TUPE process. In addition, all material financial and operational liabilities with respect to Manchester City operations were transferred from Fabulous Fan Fayre to Manchester City Football Club.

On the 30th August 2024 the Directors of Food + Drink reached agreement with Legends Hospitality (UK) Limited to purchase all shares held by Legends Hospitality (UK) Limited in Fabulous Fan Fayre Limited and shareholder loans extended to Fabulous Fan Fayre Limited by Legends Hospitality (UK) Limited. As of this date significant control of the entity passed solely to Food + Drink Limited.

Subsequently on the 26th September 2024 Mr J Ruzich and Mr D Smith, collectively Directors representing Legends Hospitality (UK) Limited resigned from the Board.

Going concern

The directors have reviewed the financial performance of the company and they are mindful of the net liabilities of the company totalling £1,119,204. The relevant balance includes £2,725,733 of amounts due to related parties. Following the exit of Legends Hospitality (UK) Limited, as detailed in the post balance sheet event section above, the relevant balances sit with Food + Drink Limited (the parent company) and members of the sister group The Menu Partners Limited (TMP).

Both the parent company and TMP have provided letters of support stating they will support the company for at least 12 months from the approval of these financial statements.

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

FABULOUS FAN FAYRE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

Future developments

 

The company is to continue to develop and offer best in class stadium catering services. The directors are actively in discussion with clients, to explore new opportunities, provided that these are compatible with the core strategy of the company and will further enhance the existing operations.

 

Furthermore, utilising the expertise of the retained management team, the company is in a number of dialogues on new revenue generating opportunities to collaborate with hotels, pubs and restaurants to enhance their offerings through:

 

On behalf of the board

Mr N J Harris
Director
26 March 2025
FABULOUS FAN FAYRE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -

The directors present their annual report and financial statements for the year ended 31 December 2023.

Results and dividends

The results for the year are set out on page 10.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr N J Harris
Mr D Smith
(Resigned 26 September 2024)
Mr J Ruzich
(Resigned 26 September 2024)
Mr M Bekolay
Mr G A Kennerley
Mr R S Tawwater
(Resigned 28 June 2023)
Auditor

The auditor, Shaw Gibbs (Audit) Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of directors' responsibilities

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law including FRS 102). 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:

 

 

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.

Information included in the 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 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 fair review of the business, development and performance, principal risks and uncertainties, disabled persons and employee involvement.

FABULOUS FAN FAYRE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
Mr N J Harris
Director
26 March 2025
FABULOUS FAN FAYRE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF FABULOUS FAN FAYRE LIMITED
- 7 -
Opinion

We have audited the financial statements of Fabulous Fan Fayre Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

FABULOUS FAN FAYRE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FABULOUS FAN FAYRE LIMITED
- 8 -
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 directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

 

  1. At the planning stage of the audit, we gain an understanding of the laws and regulations which apply to the company and how the management seek to comply with those laws and regulations. This helps us to plan appropriate risk assessments.

     

  2. During the audit, we focus on relevant risk areas and review the compliance with the laws and regulations by making relevant enquiries and undertaking corroboration, for example by reviewing Board Minutes and other documentation.

     

  3. We assess the risk of material misstatement in the financial statements including as a result of fraud and undertake procedures including:

    1. Reviewing the controls set in place by management;

    2. Making enquiries of management as to whether they consider fraud or other irregularity may have taken place, or where such opportunity might exist;

    3. Challenging management assumptions with regard to accounting estimates; and

    4. Identifying and testing journal entries, particularly those which appear to be unusual by size or nature.

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

FABULOUS FAN FAYRE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FABULOUS FAN FAYRE LIMITED
- 9 -

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 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 an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Malik Nayyer Salim (Senior Statutory Auditor)
For and on behalf of Shaw Gibbs (Audit) Limited
26 March 2025
Chartered Certified Accountants
Statutory Auditor
264 Banbury Road
Oxford
OX2 7DY
FABULOUS FAN FAYRE LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
2023
2022
Notes
£
£
Turnover
3
21,776,662
19,474,508
Cost of sales
(12,286,707)
(10,779,193)
Gross profit
9,489,955
8,695,315
Administrative expenses
(8,263,613)
(8,229,399)
Operating profit
6
1,226,342
465,916
Interest receivable and similar income
5
2,786
-
0
Interest payable and similar expenses
7
(35,178)
(42,077)
Profit before taxation
1,193,950
423,839
Tax on profit
8
-
0
-
0
Profit for the financial year
1,193,950
423,839

The statement of comprehensive income has been prepared on the basis that all operations are continuing operations as at the year end.

FABULOUS FAN FAYRE LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
9
84,124
142,174
Current assets
Stocks
10
483,676
428,098
Debtors
11
3,453,889
5,401,316
Cash at bank and in hand
1,245,605
712,453
5,183,170
6,541,867
Creditors: amounts falling due within one year
12
(3,603,901)
(6,040,129)
Net current assets
1,579,269
501,738
Total assets less current liabilities
1,663,393
643,912
Creditors: amounts falling due after more than one year
13
(2,782,597)
(2,957,066)
Net liabilities
(1,119,204)
(2,313,154)
Capital and reserves
Called up share capital
15
100,000
100,000
Profit and loss reserves
(1,219,204)
(2,413,154)
Total equity
(1,119,204)
(2,313,154)
The financial statements were approved by the board of directors and authorised for issue on 26 March 2025 and are signed on its behalf by:
Mr N J Harris
Director
Company registration number 08484482 (England and Wales)
FABULOUS FAN FAYRE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 29 December 2021
100,000
(2,836,993)
(2,736,993)
Year ended 31 December 2022:
Profit and total comprehensive income
-
423,839
423,839
Balance at 31 December 2022
100,000
(2,413,154)
(2,313,154)
Year ended 31 December 2023:
Profit and total comprehensive income
-
1,193,950
1,193,950
Balance at 31 December 2023
100,000
(1,219,204)
(1,119,204)
FABULOUS FAN FAYRE LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
19
736,274
(746,029)
Interest paid
(35,178)
(42,077)
Income taxes refunded/(paid)
161
-
0
Net cash inflow/(outflow) from operating activities
701,257
(788,106)
Investing activities
Purchase of tangible fixed assets
(83,378)
(69,532)
Interest received
2,786
-
0
Net cash used in investing activities
(80,592)
(69,532)
Financing activities
Increase in long term loan from JV partners
-
999,988
Repayment of bank loans
(87,513)
457,078
Net cash (used in)/generated from financing activities
(87,513)
1,457,066
Net increase in cash and cash equivalents
533,152
599,428
Cash and cash equivalents at beginning of year
712,453
113,025
Cash and cash equivalents at end of year
1,245,605
712,453
FABULOUS FAN FAYRE LIMITED
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
1
Accounting policies
Company information

Fabulous Fan Fayre Limited is a private company limited by shares incorporated in England and Wales. The registered office is The Shed, Charbridge Lane, Bicester, OX26 4SS.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

 

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

1.2
Going concern

The directors have reviewed the financial performance of the company and they are mindful of the net liabilities of the company totalling £1,119,204. The relevant balance includes £2,725,733 of amounts due to related parties. Following the exit of Legends Hospitality (UK) Limited, as detailed in note 16, the relevant balances sit with Food + Drink Limited (the parent company) and members of the sister group The Menu Partners Limited (TMP).true

Both the parent company and TMP have provided letters of support stating they will support the company for at least 12 months from the approval of these financial statements.

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover comprises of sales from conferences, banqueting and catering less estimated commission paid to the clubs and exclusive of Value Added Tax. Income is recognised when events take place.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Plant and machinery etc.
3 to 10 years straight line
Fixtures, fittings & equipment
5 years straight line
Computer equipment
3 to 5 years straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.5
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in-first-out (FIFO) method.

 

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stock over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit and loss.

FABULOUS FAN FAYRE LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
1.6
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.7
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors 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.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

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.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

FABULOUS FAN FAYRE LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.8
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.9
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.10
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

FABULOUS FAN FAYRE LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
- 17 -
Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Useful economic lives of non-current assets

In relation to the company’s tangible fixed assets, useful economic lives have been established using historical experience and an assessment of the nature of the assets involved. Assets are assessed on an ongoing basis to determine whether circumstances exist that could lead to a potential impairment of the carrying value of such assets. No circumstances have been identified to suggest that this is the case.

Stock valuation and obsolescence

Stocks are valued at the lower of cost and estimated selling price less costs to complete and sell. Cost is based on the purchase cost and valued on a FIFO basis. Estimated selling price less costs to complete and sell, includes where necessary, provision for obsolete and slow moving stock. These provisions require estimates to be calculated which include the forecasted customer demand, the promotional, competitive and economic environment as well as the ageing of stock and sell by date of perishable stock items. These variables are monitored by the directors and a provision is in place to mitigate the relevant risks.

Bad debt provision

Having taken into consideration the historic and current levels of bad debts, the directors consider it is appropriate to have a general bad debt provision based on the ageing of the debts. The relevant figure is then adjusted accordingly, if it is considered necessary, as a result of significant bad debts and/or due to underlying economic conditions which suggest a higher than normal risk of bad debts.

3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
Catering Services
21,776,662
19,474,508
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
21,776,662
19,474,508
2023
2022
£
£
Other revenue
Interest income
2,786
-
FABULOUS FAN FAYRE LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
4
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Average number of employees
639
589

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
7,453,791
6,767,340
Social security costs
362,303
331,114
Pension costs
75,026
67,354
7,891,120
7,165,808
5
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
2,786
-
0
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
2,786
-
0
6
Operating profit
2023
2022
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditors for the audit of the company's financial statements
24,000
16,000
Depreciation of owned tangible fixed assets
141,428
90,773
7
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
35,178
42,077
FABULOUS FAN FAYRE LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
8
Taxation

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
1,193,950
423,839
Expected tax charge based on the standard rate of corporation tax in the UK of 23.50% (2022: 19.00%)
280,578
80,529
Tax effect of expenses that are not deductible in determining taxable profit
2,352
43,479
Tax losses brought forward utilised
(288,308)
(117,039)
Depreciation in excess of permanent capital allowances/(permanent capital allowances in excess of depreciation)
5,378
(6,969)
Taxation for the year
-
-
9
Tangible fixed assets
Plant and machinery etc.
Fixtures, fittings & equipment
Computer equipment
Total
£
£
£
£
Cost
At 1 January 2023
391,391
113,521
338,825
843,737
Additions
73,193
-
0
10,185
83,378
At 31 December 2023
464,584
113,521
349,010
927,115
Depreciation and impairment
At 1 January 2023
271,822
105,675
324,066
701,563
Depreciation charged in the year
127,701
7,704
6,023
141,428
At 31 December 2023
399,523
113,379
330,089
842,991
Carrying amount
At 31 December 2023
65,061
142
18,921
84,124
At 31 December 2022
119,569
7,846
14,759
142,174
10
Stocks
2023
2022
£
£
Finished goods and goods for resale
483,676
428,098
FABULOUS FAN FAYRE LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
11
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
3,135,457
4,828,964
Corporation tax recoverable
148,254
148,415
Amounts owed by group and connected companies
142,937
25,442
Other debtors
-
0
4,108
Prepayments and accrued income
27,241
394,387
3,453,889
5,401,316
12
Creditors: amounts falling due within one year
2023
2022
£
£
Loans and overdrafts
86,956
-
0
Trade creditors
746,029
3,170,120
Amounts due to group and connected companies
368,849
337,798
Other taxation and social security
1,103,665
1,489,089
Other creditors
149,162
1,341
Accruals and deferred income
1,149,240
1,041,781
3,603,901
6,040,129
13
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank Loan
282,609
457,078
Related Party Loan
2,499,988
2,499,988
2,782,597
2,957,066

Coutts & Company holds a fixed charge created on 13 January 2016 over all the company's assets.

 

The related party loan is repayable in full on 31 January 2025 and no interest has been charged during the year.

 

FABULOUS FAN FAYRE LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
14
Retirement benefit schemes
Defined contribution schemes

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

The charge to profit or loss in respect of defined contribution schemes was £75,026 (2022 - £67,354).

15
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A of £1 each
50,000
50,000
50,000
50,000
Ordinary B of £1 each
50,000
50,000
50,000
50,000
100,000
100,000
100,000
100,000
16
Events after the reporting date

During 2024 Manchester City Football Club made the strategic decision to in-house their event catering offering from the commencement of the 24/25 Premier League season and not to renew their catering agreement with Fabulous Fan Fayre. The Management of Fabulous Fan Fayre have worked collaboratively through the off season to ensure this transfer of services was executed seamlessly with no disruption to match day services. As part of this transfer a high proportion of match day staff were transferred to the direct employment of Manchester City Football Club through a TUPE process. In addition, all material financial and operational liabilities with respect to Manchester City operations were transferred from Fabulous Fan Fayre to Manchester City Football Club.

On the 30th August 2024 the Directors of Food + Drink reached agreement with Legends Hospitality (UK) Limited to purchase all shares held by Legends Hospitality (UK) Limited in Fabulous Fan Fayre Limited and shareholder loans extended to Fabulous Fan Fayre Limited by Legends Hospitality (UK) Limited. As of this date significant control of the entity passed solely to Food + Drink Limited.

Subsequently on the 26th September 2024 Mr J Ruzich and Mr D Smith, collectively Directors representing Legends Hospitality (UK) Limited resigned from the Board.

FABULOUS FAN FAYRE LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
17
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

Sales
Purchases
2023
2022
2023
2022
£
£
£
£
Legends Hospitality (UK) Limited
14,661
5,580
-
-
0
Absolute Taste Limited
172,185
78,625
64,700
136,826
R R Alden Oxford Ltd
-
0
-
0
-
15,772
The Menu Partners Limited
-
1,076
63,045
15,033
Premier Fruits Limited
7,416
3,490
473,492
371,790
194,262
88,771
601,237
539,421

At 31 December 2023 the company has the following balances with group and its associated companies:

 

2023
2022
Amounts due from / (to) related parties
£
£
Group companies
Food + Drink Limited
(750,000)
(750,000)
Legends Hospitality (UK) Limited
(1,536,540)
(1,549,988)
Associated companies
Absolute Taste Limited
(101,979)
(192,714)
The Menu Partners Limited
(8,810)
1,076
Premier Fruits Limited
-
(20,717)
Premier Food Wholesale Limited
(28,404)
-
Hard 8 Limited
(300,000)
(300,000)
Other related parties
-
243
Other information

As detailed in note 16, following the exit of Legends Hospitality (UK) Limited (Legends), Food + Drink Limited have absorbed the relevant balances due to Legends.

18
Ultimate controlling party

During the period, the company was under the joint control of Food + Drink Limited and Legends Hospitality (UK) Limited by virtue of the joint venture agreement entered into on 12 June 2013.

 

As detailed in note 16, on 30 August 2024 Food + Drink Limited took control of the company.

FABULOUS FAN FAYRE LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
19
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
1,193,950
423,839
Adjustments for:
Finance costs
35,178
42,077
Investment income
(2,786)
-
0
Depreciation and impairment of tangible fixed assets
141,428
90,773
Movements in working capital:
(Increase) in stocks
(55,578)
(171,445)
Decrease/(increase) in debtors
1,947,266
(3,002,999)
(Decrease)/increase in creditors
(2,523,184)
1,871,726
Cash generated from/(absorbed by) operations
736,274
(746,029)
20
Analysis of changes in net debt
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
712,453
533,152
1,245,605
Borrowings excluding overdrafts
(2,957,066)
87,513
(2,869,553)
(2,244,613)
620,665
(1,623,948)
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