| REGISTERED NUMBER: |
| Report of the Directors and |
| Unaudited Financial Statements |
| for the Year Ended 31 December 2024 |
| for |
| Northern Hospitality (MCR) Limited |
| REGISTERED NUMBER: |
| 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: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| ACCOUNTANTS: |
| 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. |
| 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: |
| Northern Hospitality (MCR) Limited (Registered number: 11663552) |
| Balance Sheet |
| 31 December 2024 |
| 2024 | 2023 |
| Notes | £ | £ | £ |
| FIXED ASSETS |
| Tangible assets | 4 |
| CURRENT ASSETS |
| Stocks |
| Debtors | 5 |
| Cash at bank |
| CREDITORS |
| Amounts falling due within one year | 6 |
| NET CURRENT ASSETS |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| CREDITORS |
| Amounts falling due after more than one year |
7 |
( |
) |
( |
) |
| PROVISIONS FOR LIABILITIES | ( |
) | ( |
) |
| NET ASSETS |
| CAPITAL AND RESERVES |
| Called up share capital | 9 |
| Retained earnings |
| SHAREHOLDERS' FUNDS |
| Northern Hospitality (MCR) Limited (Registered number: 11663552) |
| Balance Sheet - continued |
| 31 December 2024 |
| 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 were approved by the Board of Directors and authorised for issue on |
| 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 |
| 2. | ACCOUNTING POLICIES |
| Basis of preparing the financial statements |
| 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 |
| Short leasehold | - |
| Fixtures and fittings | - |
| 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 |
| 4. | TANGIBLE FIXED ASSETS |
| Fixtures |
| Short | Long | and |
| leasehold | leasehold | fittings | Totals |
| £ | £ | £ | £ |
| COST |
| At 1 January 2024 |
| Additions |
| Reclassification/transfer | ( |
) |
| At 31 December 2024 |
| DEPRECIATION |
| At 1 January 2024 |
| Charge for year |
| Reclassification/transfer | ( |
) |
| At 31 December 2024 |
| NET BOOK VALUE |
| At 31 December 2024 |
| At 31 December 2023 |
| 5. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 2024 | 2023 |
| £ | £ |
| Trade debtors |
| Other debtors |
| Accrued income |
| Prepayments |
| 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 |
| Tax |
| Social security and other taxes |
| VAT | 80,045 | 63,144 |
| Other creditors |
| Accrued expenses |
| 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 |
| Between one and five years |
| 9. | CALLED UP SHARE CAPITAL |
| Allotted, issued and fully paid: |
| Number: | Class: | Nominal | 2024 | 2023 |
| value: | £ | £ |
| Ordinary A | £1 | 5,000 | 5,000 |
| Ordinary B | £1 | 3,500 | 3,500 |
| 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. |