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REGISTERED NUMBER: 11663552 (England and Wales)












Report of the Directors and

Unaudited Financial Statements

for the Year Ended 31 December 2024

for

Northern Hospitality (MCR) Limited

Northern Hospitality (MCR) Limited (Registered number: 11663552)






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




Page

Company Information 1

Report of the Directors 2

Balance Sheet 4

Notes to the Financial Statements 6


Northern Hospitality (MCR) Limited

Company Information
for the Year Ended 31 December 2024







DIRECTORS: Andrew Blackburn
John Brearley





REGISTERED OFFICE: Ground Floor
Citygate
Longridge Road
Preston
Lancashire
PR2 5BQ





REGISTERED NUMBER: 11663552 (England and Wales)





ACCOUNTANTS: Xeinadin
Ground Floor
Citygate
Longridge Road
Preston
Lancashire
PR2 5BQ

Northern Hospitality (MCR) Limited (Registered number: 11663552)

Report of the Directors
for the Year Ended 31 December 2024

The directors present their report with the financial statements of the company for the year ended 31 December 2024.

REVIEW OF BUSINESS
Trading results

2024 2023

Turnover 1,994,296 1,944,670
Cost of sales (537,847) (522,040)
Gross Margin 1,434,984 1,422,630
GM% 72.0% 73.2%
Expenses (1,138,099) (1,154,364)
Underlying EBITDA from operations 296,885 262,311
Bank interest receiveable 8,529 9,955
EBITDA before Directors salaries 305,414 272,266
Directors salaries and fees (126,017) (91,791)
EBITDA 179,397 180,475
Depreciation (57,155) (13,833)
Profit/(loss) before interest 122,242 149,525
Interest (5,699) (13,833)
Profit/(loss) fin year 116,543 135,692


Business background

Northern Hospitality (MCR) Ltd was incorporated in 2018 to take over and develop five long established bar and restaurant operations all based in the Northern Quarter, Manchester (namely Hula, Fitzgerald, Rosylee, Walrus and Tusk).

Recognising the longevity and strength in these brands, John Brearley, Andrew Blackburn and the management team took the opportunity to purchase assets from a liquidator and reopen the sites which had been closed for a short period. During 2019 management refurbished a number of the sites and Rosylee was rebranded as Quarter House, a bar and restaurant specialising in draught beers and food cooked over hot coals.

During 2020-2022 the business had to manage the devastating impact of Covid-19 and subsequent disruption to trading this caused. In that period steps were taken to ensure the long-term sustainability of the business - a CBILS loan, insurance claims, CJRS support and various government grants were taken and the Walrus and Tusk site was closed. This provided the basis for a positive recovery post-Covid and a return to profitability.

Financial year 2024

All sites traded well during 2024 with each of them making a profit contribution in the year.
Overall LFL revenue was +2.9% higher than prior year. Revenue in the first half of the year was down (-11.9%) as poor weather affected outdoor sales. In contrast, the second half of the year was strong with sales up (+21.4%) as the trading area outside Quarter House in Stevenson Square proved popular with customers. Christmas sales were also stronger than previous years for all sites.
Underlying profit (before Director salaries and depreciation) was £305k in 2024. Despite the trading challenges in the first half of the year, this was an improvement on a comparative profit of £272k in 2023.
Northern Hospitality recognise the value of our staff. Management remain committed to supporting them and now pay every employee at full National Living Wage irrespective of age.

An improved balance sheet position leaves the company in a secure financial position entering 2025. Cash reserves at the end of 2024 were £266k.

Northern Hospitality (MCR) Limited (Registered number: 11663552)

Report of the Directors
for the Year Ended 31 December 2024


Despite current economic challenges for hospitality in particular, management are confident about the future outlook for the business and expect to deliver a strong trading profit again for 2025 and will pursue new sites if they add value.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2024 to the date of this report.

Andrew Blackburn
John Brearley

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

ON BEHALF OF THE BOARD:





John Brearley - Director


8 May 2025

Northern Hospitality (MCR) Limited (Registered number: 11663552)

Balance Sheet
31 December 2024

2024 2023
Notes £    £    £   
FIXED ASSETS
Tangible assets 4 146,731 137,357

CURRENT ASSETS
Stocks 17,065 29,698
Debtors 5 269,366 90,144
Cash at bank 266,439 348,698
552,870 468,540
CREDITORS
Amounts falling due within one year 6 275,847 260,328
NET CURRENT ASSETS 277,023 208,212
TOTAL ASSETS LESS CURRENT
LIABILITIES

423,754

345,569

CREDITORS
Amounts falling due after more than
one year

7

(55,000

)

(55,000

)

PROVISIONS FOR LIABILITIES (36,683 ) (34,339 )
NET ASSETS 332,071 256,230

CAPITAL AND RESERVES
Called up share capital 9 10,000 10,000
Retained earnings 322,071 246,230
SHAREHOLDERS' FUNDS 332,071 256,230

Northern Hospitality (MCR) Limited (Registered number: 11663552)

Balance Sheet - continued
31 December 2024


The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2024.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2024 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:
(a)ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and
(b)preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 8 May 2025 and were signed on its behalf by:





Andrew Blackburn - Director


Northern Hospitality (MCR) Limited (Registered number: 11663552)

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

1. STATUTORY INFORMATION

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

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Short leasehold - Straight line over 5 years
Fixtures and fittings - 25% on cost

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Northern Hospitality (MCR) Limited (Registered number: 11663552)

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

2. ACCOUNTING POLICIES - continued

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.

Going concern
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.

3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 28 (2023 - 21 ) .

4. TANGIBLE FIXED ASSETS
Fixtures
Short Long and
leasehold leasehold fittings Totals
£    £    £    £   
COST
At 1 January 2024 54,161 - 205,849 260,010
Additions - - 66,529 66,529
Reclassification/transfer (54,161 ) 54,161 - -
At 31 December 2024 - 54,161 272,378 326,539
DEPRECIATION
At 1 January 2024 52,355 - 70,298 122,653
Charge for year - 1,806 55,349 57,155
Reclassification/transfer (52,355 ) 52,355 - -
At 31 December 2024 - 54,161 125,647 179,808
NET BOOK VALUE
At 31 December 2024 - - 146,731 146,731
At 31 December 2023 1,806 - 135,551 137,357

5. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 14,824 24,413
Other debtors 170,000 45,000
Accrued income 3,352 -
Prepayments 81,190 20,731
269,366 90,144

Northern Hospitality (MCR) Limited (Registered number: 11663552)

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

6. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade creditors 114,310 103,942
Tax 24,650 12,674
Social security and other taxes 13,842 2,957
VAT 80,045 63,144
Other creditors 23,258 23,077
Accrued expenses 19,742 54,534
275,847 260,328

7. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2024 2023
£    £   
Directors' loan accounts 55,000 55,000

The directors and shareholders are committed to supporting the company financially. They will not be seeking repayment of their loans in the foreseeable future.

8. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2024 2023
£    £   
Within one year 114,000 114,000
Between one and five years 456,000 456,000
570,000 570,000

9. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
5,000 Ordinary A £1 5,000 5,000
4,000 Ordinary B £1 3,500 3,500
1,000 Ordinary C1 & C3 £1 1,500 1,500
10,000 10,000

10. RELATED PARTY DISCLOSURES

The company is owed £155,000 (2023: £30,000) regarding a loan to Union Inns Ltd, which is a company owned by John Brearley a director of Northern Hospitality (MCR) Limited.

Northern Hospitality charge interest on this loan at a rate of 4% over the Bank of England base rate.