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Registered number:
FOR THE YEAR ENDED 30 NOVEMBER 2024
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KBEVERAGE LTD
COMPANY INFORMATION
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KBEVERAGE LTD
CONTENTS
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KBEVERAGE LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2024
The director presents their strategic report for the period 1 December 2023 to 30 November 2024.
The principal activity of the Company during the period was the operation of franchised Starbucks stores. The aim of the Company is to provide products to customers to the brand standards, whilst continuing to invest in development to open further outlets.
During the year ended 30 November 2024, the Company opened six new stores, and acquired two stores, bringing the store count to 58. The sales for year amounted to £29,219,616 (18 month period to 30 November 2023: £31,694,932). The director is pleased with the performance, considering the economic pressures in the year.
Through the expansion of the Company, employment levels have increased. The Company takes the safety and wellbeing of its employees seriously, and various procedures are in place to ensure this. This includes the continued care and training for the Company’s disabled employees, and health and safety is paramount. All staff are made aware of the financial and economic factors affecting the performance of the Company. With the opening of new stores, the Company continues to create employment opportunities for local communities and implement more environmentally-friendly procedures and equipment to help protect our planet.
The UK still remains in a cost of living crisis. Consumers may reduce their spending due to inflationary sales prices, but our coffee is generally considered an inelastic product, and consumer habits have been formed.
Competition from other coffee shops is a threat. However, the franchisor is confident of its loyalty scheme to maintain customers, which works well worldwide. Starbucks continues to grow its stores in the UK. Should the Bank of England increase interest rates dramatically in the future, this may create a cashflow issue for the Company. However, the general consensus amongst economists is interest rates have peaked for the foreseeable future and look to be reducing gradually in time, although inflationary pressures may slow the decline.
The director uses many key performance indicators (KPI's) throughout the running of the Company.
Financial KPI's incude: 2024 2023 Total sales £29,219,616 £31,694,932 Sales by store £503,786 £633,899 (Converted to a 12 month period: £422,599) Cost of sales % to sales 50% 50% Cost of labour % to sales 24% 23% These KPI's assist in understanding how each store is performing, and ensuring the largest controllable costs (labour and cost of sales) are within budget. Number of sales transactions 4,416,433 5,331,146 Average value of transaction £6.62 £5.95 These KPI's help to understand customer trends and allows the director to plan accordingly.
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KBEVERAGE LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
Other non-financial KPI's include: customer service ratings, health & safety compliance, store developments, and compliance with brand standards.
The non-financial KPI's are used to ensure brand standards are being met.
The director acts in a manner to promote the success of the Company for the benefit of its members as a whole, whilst maintaining a reputation of high standards of business conduct.
Section 172(1) of the Companies Act 2006 requires the director to take into consideration the interests of the stakeholders in their decision making. The director continues to have regard to the interests of the Company's employees and other stakeholders, including the impact of its activities on the community, the environment, and the Company's reputation, when making decisions. By acting in good faith and fairly, the director considers what is most likely to promote the success of the Company in the long term. The director is fully aware of his responsibilities to promote the success of the Company in accordance with Section 172 of the Companies Act 2006. To ensure the Company meets this, the director regularly reflects on how the Company engages with its stakeholders, and considers opportunities for enhancements to stakeholder engagement. Such stakeholders include employees, customers, suppliers, and the local community.
This report was approved by the board on 8 May 2025 and signed on its behalf.
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KBEVERAGE LTD
DIRECTOR'S REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2024
The director presents his report and the financial statements for the year ended 30 November 2024.
The director is responsible for preparing the Strategic Report, the Director's Report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the director is required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The director is responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The profit for the year, after taxation, amounted to £192,372 (2023 - £1,096,169).
Dividends of £82,000 were declared during the year (2023 - £381,432).
The directors who served during the year were:
The Company plans to continue to open additional stores. It is aimed to open six new stores in the next 12 months. These will be funded partly by profits generated and additional finance.
Employees are a fundamental part of the performance of the Company, and communication is key to success.
This takes place by regular formal or informal meetings, where suggestions are encouraged to improve the day to day running of the business, with all views respected. Staff are supplied with all necessary training.
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KBEVERAGE LTD
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
The director and senior management, with the help of the franchisor, commits resources to understanding the needs of customers, ensuring the high standards of the brand are met.
External suppliers are carefully reviewed to ensure the appropriate quality can be provided, whilst ensuring payment terms are adhered to.
Carbon emissions using locations based emissions factors
Units 2024 2023 Turnover £ 29,219,616 31,694,932 Statement of Financial Position £ 3,994,192 3,960,869 Number of Employees N 623 551 Energy Inputs Total Electricity Purchases kWh 3,321,768 3,603,169 Total Purchases Gas kWh - - Total Energy Use 3,321,768 3,603,169 Emissions Scope 1 - Combustion of Gas kgCO2e - - Total Scope 1 Emissions kgCO2e - - Scope 2 - Purchased Electricity kgCO2e 687,772 746,123 Total Scope 2 Emissions kgCO2e 687,772 746,123 Total Emissions kgCO2e 687,772 746,123 Total Emissions tCO2e 688 746 Carbon Intensity tCO2e per £m Turnover 23.54 23.54
Quantification and reporting methodology
We have followed the 2019 HM Government Environmental Reporting Guidelines. We have also used the GHG Reporting Protocol - Corporate Standard and have used 2023 UK Government's Conversion Factors for Company Reporting.
Intensity measurement
The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per £million turnover.
Measures taken to improve energy efficiency
We are committed to sustainable practices and have made significant strides in improving energy efficiency across our operations. We have achieved the Greener Store Certification for 50 of our 58 stores. To obtain this certification in the UK, a store must meet 25 required standards across eight environmental impact areas, including: Energy Efficiency Water Stewardship Waste Diversion Responsible Materials Renewable Energy Engagement Communities, Health, and Wellbeing Sites
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KBEVERAGE LTD
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
The process involves implementing sustainable practices, such as energy-efficient appliances and renewable energy installations, and undergoing third-party verification from organizations like SCS Global Services. Once verified, stores are awarded the Greener Store certification. Alongside these efforts, we have also installed solar panels in six of our stores, further reinforcing our commitment to reducing our environmental impact.
Details of the Company's post balance sheet events are disclosed in note 33.
The auditors, Price Bailey LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board on 8 May 2025 and signed on its behalf.
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KBEVERAGE LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KBEVERAGE LTD
We have audited the financial statements of KBeverage Ltd (the 'Company') for the year ended 30 November 2024, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Cash Flows, the Statement of Changes in Equity and the related notes, 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).
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 United Kingdom, including the Financial Reporting Council'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.
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The director is 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.
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KBEVERAGE LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KBEVERAGE LTD (CONTINUED)
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic Report and the Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic Report and the Director's Report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Director's Report.
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KBEVERAGE LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KBEVERAGE LTD (CONTINUED)
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 Auditors' 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:
•We reviewed systems and procedures to identify potential areas of management override risk. In particular, we carried out reviews of journal entries and other adjustments for appropriateness, and evaluated the business rationale of significant or unusual transactions; •We critically assessed significant estimates inherent in the financial statements. This involved considering estimates in light of our expectations which are formed on the basis of past experience and our knowledge of the company and its industry; •We held discussions with those charged with governance, to enquire whether they are aware of any instances of non-compliance with laws and regulations; •We reviewed legal expenses to identify any instances of non-compliance with laws and regulations; •We reviewed correspondence with relevant regulators, to understand if any instances of non-compliance with key laws and regulations have occurred; •We reviewed a sample of food hygiene ratings achieved across the stores to identify any non-compliance with relevant legislation; •We undertook testing to confirm the existence of a sample of employees to ensure that no fictitious employees are paid, and also checked that said employees were being paid in accordance with their contracts of employment; •We reviewed bank details of employees included on payroll, to ensure no duplicate accounts were being paid into; •We reviewed a sample of expenditure and ensured appropriate authorisation had taken place in line with the Company’s policy; •We obtained confirmation directly from the Company's bank, to confirm the accounts and balances held in their name at the balance sheet date; We performed the procedures set out above after gaining an understanding of the legal and regulatory framework applicable to the Company and the industry in which it operates, and after considering the risk of acts by the Company contrary to applicable laws and regulations. We obtained this understanding from discussions with those charged with governance, who did not make the engagement team aware of any non-compliance with laws and regulations throughout the year or since the year end. We also enquired with those charged with governance as to how they ensure the Company complies with the applicable legal & regulatory framework. The Company is subject to annual audits carried out by Starbucks ©, the findings of which are reported to key management. Furthermore the Company employs an internal auditor to perform regular checks across its range of stores to identify instances of non-compliance. Copies of Starbucks’ working practices are kept permanently at each store, and form part of the training programme undertaken by all employees. The Company also obtained advice from overseas employment specialists to ensure their employees are compliant with Right to Work legislation. In performing the above procedures we focused on laws and regulations that could give rise to a material misstatement in the financial statements, including, but not limited to, the Food Safety Act 1990, Health & Safety at Work Act 1974, The Town and Country Planning (Use Classes) Order 1987, Employment Rights Act 1996, Companies Act 2006 and UK tax legislation. As a franchisee, the Company is also governed by franchisor's regulations.
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KBEVERAGE LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KBEVERAGE LTD (CONTINUED)
Following detailed team briefings, the Responsible Individual has assessed that the audit engagement team collectively has the appropriate competence and capability to identify or recognise non-compliance with applicable laws and regulation. Nonetheless, 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.
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 Auditors' 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 Auditors' 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.
for and on behalf of
Chartered Accountants
Statutory Auditors
Anglia House, 6 Central Avenue
St Andrews Business Park
Thorpe St Andrew
Norfolk
NR7 0HR
8 May 2025
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KBEVERAGE LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 NOVEMBER 2024
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KBEVERAGE LTD
REGISTERED NUMBER: 09587927
BALANCE SHEET
AS AT 30 NOVEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 8 May 2025.
The notes on pages 15 to 33 form part of these financial statements.
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KBEVERAGE LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 NOVEMBER 2024
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KBEVERAGE LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 NOVEMBER 2024
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KBEVERAGE LTD
ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 30 NOVEMBER 2024
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KBEVERAGE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2024
KBeverage Ltd is a private company limited by shares and incorporated in England & Wales, the registered number is: 09587927. The address of the registered office is Office Suite, Sarbucks Ernest Gage Avenue, New Costessey, Norwich, NR5 0TX. The company has no single place of business due to the nature of its principle activity.
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. The prior year financial statements cover the period from 1 June 2022 to 30 November 2023. The current year covers 365 days and hence the comparatives figures are not entirely comparable.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
The director believes the financial statements should be prepared on the going concern basis on the grounds that current and future sources of funding or support will be more than adequate for the Company's needs. The director also considers such future plans to be feasible.
Projections, including cash flow forecasts, have been prepared using historical data and based on market expectations. The director believe the Company will be able to operate in the foreseeable future and continue its strategic business plan. The director has considered a period of 12 months from the date of approval of the financial statements. The director believesthat no further disclosures relating to the Company's ability to continue as a going concern are required in the financial statements.
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KBEVERAGE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2024
2.Accounting policies (continued)
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KBEVERAGE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2024
2.Accounting policies (continued)
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KBEVERAGE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2024
2.Accounting policies (continued)
Goodwill
Other intangible assets
At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
The estimated useful lives range as follows:
At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
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KBEVERAGE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2024
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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KBEVERAGE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2024
2.Accounting policies (continued)
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income. Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an 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.
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KBEVERAGE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2024
The key assumptions concerning the future and other key sources of estimating uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year include: Depreciation & amortisation Management have estimated the useful economic life (UEL) of fixed assets and have in turn calculated a depreciation & amortisation charge based on the UEL. Depreciation charged in the year amounted to £2,936,558 (2023: £3,144,026). Amortisation charged in the year amounted to £874,607 (2023: £341,111). Dilapidation provisions The Company leases a number of properties, and the director assesses the likelihood and expected future liability for restoring the property to its original condition at each balance sheet date. The director uses specialists to assist in making this estimate. The carrying value of capitalised dilapidation provisions is £1,148,505 (2023: £1,090,430). The carrying value of the provision itself is £1,558,750 (2023: £1,364,250). Impairment of debtors Management makes an estimate of the recoverable value of trade and other debtors. When assessing the impairment of trade and other debtors; the director considers factors including credit worthiness and financial conditions of the stakeholder concerned.
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KBEVERAGE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2024
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KBEVERAGE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2024
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KBEVERAGE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2024
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KBEVERAGE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2024
11.Taxation (continued)
There were no factors that may affect future tax charges.
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KBEVERAGE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2024
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