Company Registration No. SC216552 (Scotland)
O.C.O. WEST END LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2024
O.C.O. WEST END LIMITED
COMPANY INFORMATION
Directors
J J O'Hara
J Hamilton
A Hay
Secretary
E S O'Hara
Company number
SC216552
Registered office
Pavillion 3 12 Marchburn Drive
Glasgow Airport Business Park
Paisley
Renfrewshire
Scotland
PA3 2SJ
Auditor
Johnston Carmichael LLP
227 West George Street
Glasgow
G2 2ND
O.C.O. WEST END LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 24
O.C.O. WEST END LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 1 -

The directors present the strategic report for the year ended 30 November 2024.

Fair review of the business

The directors are delighted with the performance of the business in 2024, particularly given the challenging economic climate during the year.

Principal risks and uncertainties

Like the rest of the business sector, we remain cautious about the economic landscape looking forward. Household income remains under pressure from inflation. Additionally the business sector is struggling to cope with exceptional levels of inflation particularly around wages & Cost of Goods.

Development and performance

Our development will continue in light of the risks mentioned above. We have already opened 1 store in our 2025 fiscal year, with 2 further stores planned to open by the end of Summer 2025. Our existing estate continues to perform strongly, allowing us to look forward to the year ahead with confidence.

Key performance indicators

The trading results for the company are set on page 8. The results show:

 

 

          2024          2023

        

Turnover      £29,621,647 £25,713,988

        

Gross profit      £10,929,534      £9,335,864

,

Gross margin     37%         36%

        

Profit before tax     £3,986,530     £3,496,594

        

Net current assets £7,848,186      £5,636,205

 

Net assets     £12,632,559 £10,679,428

On behalf of the board

J J O'Hara
Director
1 May 2025
O.C.O. WEST END LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 2 -

The directors present their annual report and financial statements for the year ended 30 November 2024.

Principal activities
The principal activity of the company continued to be that of a coffee house franchise.
Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £854,568 (2023: £690,643). 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:

J J O'Hara
J Hamilton
A Hay
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 reporting date events

In January 2025, we took the commercial decision to close our Dumfries store.

Future developments

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the 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 future developments.

Auditor

The auditor, Johnston Carmichael LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

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.

O.C.O. WEST END LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 3 -
On behalf of the board
J J O'Hara
Director
1 May 2025
O.C.O. WEST END LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 4 -

The directors are responsible for preparing the strategic report, directors' 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). 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 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.

O.C.O. WEST END LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF O.C.O. WEST END LIMITED
- 5 -
Opinion

We have audited the financial statements of O.C.O. West End Limited (the 'company') for the year ended 30 November 2024 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).

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.

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 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:

 

O.C.O. WEST END LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF O.C.O. WEST END LIMITED
- 6 -
Matters on which we are required to report by exception

In the light of our 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 and 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 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.

 

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Extent to which the audit was considered capable of detecting irregularities, including fraud

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 assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations by considering their experience, past performance and support available.

All engagement team members were briefed on relevant identified laws and regulations and potential fraud risks at the planning stage of the audit. Engagement team members were reminded to remain alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

We obtained an understanding of the legal and regulatory frameworks that are applicable to the company and the sector in which it operates, focusing on those provisions that had a direct effect on the determination of material amounts and disclosures in the financial statements. The most relevant frameworks we identified include:

O.C.O. WEST END LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF O.C.O. WEST END LIMITED
- 7 -

We gained an understanding of how the company is complying with these laws and regulations by making enquiries of management and those charged with governance. We corroborated these enquiries through our review of relevant correspondence with regulatory bodies and board meeting minutes.

We assessed the susceptibility of the financial statements to material misstatement, including how fraud might occur, by meeting with management and those charged with governance to understand where it was considered there was susceptibility to fraud. This evaluation also considered how management and those charged with governance were remunerated and whether this provided an incentive for fraudulent activity. We considered the overall control environment and how management and those charged with governance oversee the implementation and operation of controls. We identified a heightened fraud risk in relation to:

In addition to the above, the following procedures were performed to provide reasonable assurance that the financial statements were free of material fraud or error:

Our audit procedures were designed to respond to the risk of material misstatements in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve intentional concealment, forgery, collusion, omission or misrepresentation. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.

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.

Fiona Munro (Senior Statutory Auditor)
For and on behalf of Johnston Carmichael LLP
1 May 2025
Statutory Auditor
227 West George Street
Glasgow
G2 2ND
O.C.O. WEST END LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
29,621,647
25,713,988
Cost of sales
(18,692,113)
(16,378,124)
Gross profit
10,929,534
9,335,864
Administrative expenses
(6,849,433)
(5,774,612)
Operating profit
4
4,080,101
3,561,252
Interest receivable and similar income
7
22,593
40,506
Interest payable and similar expenses
8
(116,164)
(105,163)
Amounts written off fixed asset investments
-
(1)
Profit before taxation
3,986,530
3,496,594
Tax on profit
9
(1,178,831)
(972,377)
Profit and total comprehensive income for the financial year
2,807,699
2,524,217

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

O.C.O. WEST END LIMITED
BALANCE SHEET
AS AT
30 NOVEMBER 2024
30 November 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
11
77,994
233,968
Other intangible assets
11
249,092
224,521
Total intangible assets
327,086
458,489
Tangible assets
12
6,276,963
6,046,064
Investment properties
13
78,000
78,000
6,682,049
6,582,553
Current assets
Stocks
15
181,949
179,194
Debtors
16
9,577,280
7,440,838
Cash at bank and in hand
2,869,422
2,572,877
12,628,651
10,192,909
Creditors: amounts falling due within one year
17
(4,780,465)
(4,556,704)
Net current assets
7,848,186
5,636,205
Total assets less current liabilities
14,530,235
12,218,758
Creditors: amounts falling due after more than one year
18
(1,029,965)
(968,682)
Provisions for liabilities
Deferred tax liability
20
867,711
570,648
(867,711)
(570,648)
Net assets
12,632,559
10,679,428
Capital and reserves
Called up share capital
22
120
120
Profit and loss reserves
23
12,632,439
10,679,308
Total equity
12,632,559
10,679,428
The financial statements were approved by the board of directors and authorised for issue on 1 May 2025 and are signed on its behalf by:
J J O'Hara
Director
Company Registration No. SC216552
O.C.O. WEST END LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 December 2022
120
8,845,734
8,845,854
Year ended 30 November 2023:
Profit and total comprehensive income for the year
-
2,524,217
2,524,217
Dividends
10
-
(690,643)
(690,643)
Balance at 30 November 2023
120
10,679,308
10,679,428
Year ended 30 November 2024:
Profit and total comprehensive income for the year
-
2,807,699
2,807,699
Dividends
10
-
(854,568)
(854,568)
Balance at 30 November 2024
120
12,632,439
12,632,559
O.C.O. WEST END LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
29
5,930,666
5,991,121
Interest paid
(116,164)
(105,163)
Income taxes paid
(1,213,673)
(614,483)
Net cash inflow from operating activities
4,600,829
5,271,475
Investing activities
Purchase of intangible assets
(68,000)
(106,019)
Purchase of tangible fixed assets
(1,372,780)
(3,124,463)
Proceeds on disposal of tangible fixed assets
-
0
114,303
Net movement in loans to related parties
(2,120,858)
(2,217,330)
Interest received
22,593
40,506
Net cash used in investing activities
(3,539,045)
(5,293,003)
Financing activities
Proceeds from borrowings
400,000
-
0
Repayment of bank loans
(310,671)
(333,775)
Dividends paid
(854,568)
(690,643)
Net cash used in financing activities
(765,239)
(1,024,418)
Net increase/(decrease) in cash and cash equivalents
296,545
(1,045,946)
Cash and cash equivalents at beginning of year
2,572,877
3,618,823
Cash and cash equivalents at end of year
2,869,422
2,572,877
O.C.O. WEST END LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 12 -
1
Accounting policies
Company information

O.C.O West End Limited is a private company limited by shares incorporated in Scotland. The registered office is Pavillion 3 12 Marchburn Drive, Glasgow Airport Business Park, Paisley, Renfrewshire, Scotland, PA3 2SJ.

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

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

1.2
Going concern

Due trueto the financial position demonstrated by the company’s balance sheet combined with its ability to generate sufficient profit and cash from its operations, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence and meet its liabilities as they fall due for a period of at least 12 months from the approval date of the financial statements. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover relates to the sale of food and drink and is recognised at the point of sale. Turnover is shown net of VAT and other sales related taxes.

1.4
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 5 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.5
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Amortisation 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:

Franchise fees
20% straight line
Domain Name
10% straight line
1.6
Tangible fixed assets

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

O.C.O. WEST END LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
1
Accounting policies
(Continued)
- 13 -

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

Leasehold improvements
10% straight line
Fixtures, fittings & equipment
20% straight line
Computer equipment
33.3% 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 the statement of comprehensive income.

1.7
Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in the statement of comprehensive income.

1.8
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in the statement of comprehensive income.

1.9
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and overheads that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in the statement of comprehensive income. Reversals of impairment losses are also recognised in the statement of comprehensive income.

1.10
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks.

O.C.O. WEST END LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
1
Accounting policies
(Continued)
- 14 -
1.11
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 certain 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 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 the statement of comprehensive income.

 

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 the statement of comprehensive income.

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.

Basic financial liabilities

Basic financial liabilities, including certain creditors and bank loans, 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.

O.C.O. WEST END LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
1
Accounting policies
(Continued)
- 15 -
Derecognition of financial liabilities

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

1.12
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.

1.13
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the statement of comprehensive income because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the statement of comprehensive income, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.14
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.

1.15
Retirement benefits

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

1.16
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

O.C.O. WEST END LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 16 -
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.

Key sources of estimation uncertainty
Useful life of tangible fixed assets - £6.3m (2023 - £6.0m)

Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. This assessment requires the directors to exercise judgement as to the period over which the associated economic benefits are expected to arise.

Useful life of intangible fixed assets - £0.3m (2023 - £0.5m)

Intangible fixed assets are amortised over their useful lives taking into account residual values, where appropriate. This assessment again requires the directors to exercise judgement as to the period over which the associated economic benefits are expected to arise.

3
Turnover and other revenue

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

2024
2023
£
£
Turnover analysed by class of business
Coffee house sales
29,621,647
25,713,988
2024
2023
£
£
Other significant revenue
Interest income
22,593
40,506
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
20,100
19,500
Depreciation of owned tangible fixed assets
1,141,881
903,751
Loss on disposal of tangible fixed assets
-
226,894
Amortisation of intangible assets
199,403
230,563
Operating lease charges
1,621,785
1,332,393
O.C.O. WEST END LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 17 -
5
Employees

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

2024
2023
Number
Number
Total employees
462
418

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
7,893,274
6,613,281
Social security costs
452,530
366,512
Pension costs
140,980
182,539
8,486,784
7,162,332
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
235,765
42,730
Company pension contributions to defined contribution schemes
36,619
95
272,384
42,825

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2023 - 1).

 

Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
123,333
-
Company pension contributions to defined contribution schemes
28,267
-

As total remuneration paid to directors in the comparative reporting period was less than £200,000, no disclosure in respect of the highest paid director has been made in that period.

7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
22,593
40,506
O.C.O. WEST END LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 18 -
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
116,164
105,163
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
1,286,062
1,018,121
Adjustments in respect of prior periods
(404,294)
210
Total current tax
881,768
1,018,331
Deferred tax
Origination and reversal of timing differences
(140,172)
(40,747)
Adjustment in respect of prior periods
437,235
(5,207)
Total deferred tax
297,063
(45,954)
Total tax charge
1,178,831
972,377

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:

2024
2023
£
£
Profit before taxation
3,986,530
3,496,594
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.01%)
996,633
804,600
Tax effect of expenses that are not deductible in determining taxable profit
53,542
432
Adjustments in respect of prior years
(404,294)
210
Effect of change in corporation tax rate
-
0
(3,242)
Deferred tax adjustments in respect of prior years
437,235
(5,207)
Fixed asset differences
95,715
175,584
Taxation charge for the year
1,178,831
972,377

A change in the UK Corporation tax rate to 25% took effect from 1 April 2023. This change has had a consequential effect on the company's tax charge with the standard rate of tax in the current year reflective of a marginal tax rate arising from the company's period straddling the 19% and 25% tax rates. Deferred tax has been calculated at 25%.

O.C.O. WEST END LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 19 -
10
Dividends
2024
2023
£
£
Interim paid
854,568
690,643
11
Intangible fixed assets
Goodwill
Franchise fees
Domain Name
Total
£
£
£
£
Cost
At 1 December 2023
779,866
542,458
5,270
1,327,594
Additions
-
0
68,000
-
0
68,000
At 30 November 2024
779,866
610,458
5,270
1,395,594
Amortisation and impairment
At 1 December 2023
545,898
321,194
2,013
869,105
Amortisation charged for the year
155,974
43,429
-
0
199,403
At 30 November 2024
701,872
364,623
2,013
1,068,508
Carrying amount
At 30 November 2024
77,994
245,835
3,257
327,086
At 30 November 2023
233,968
221,264
3,257
458,489
12
Tangible fixed assets
Leasehold improvements
Fixtures, fittings & equipment
Computer equipment
Total
£
£
£
£
Cost
At 1 December 2023
5,547,381
2,330,834
540,764
8,418,979
Additions
693,792
550,366
128,622
1,372,780
At 30 November 2024
6,241,173
2,881,200
669,386
9,791,759
Depreciation and impairment
At 1 December 2023
1,083,688
1,009,326
279,901
2,372,915
Depreciation charged in the year
585,429
438,469
117,983
1,141,881
At 30 November 2024
1,669,117
1,447,795
397,884
3,514,796
Carrying amount
At 30 November 2024
4,572,056
1,433,405
271,502
6,276,963
At 30 November 2023
4,463,693
1,321,508
260,863
6,046,064
O.C.O. WEST END LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 20 -
13
Investment property
2024
£
Fair value
At 1 December 2023 and 30 November 2024
78,000

Investment property comprises one property. The fair value of the investment property has been arrived at on the basis of a valuation carried out at 30 November 2024 by the directors. The value is based on the price paid for the toilet block which the Directors believe is representative of the current market value, given that it remains unopened and there have been no significant changes to the area in which the property is located.

14
Joint ventures

Details of the company's joint ventures at 30 November 2024 are as follows:

Name of undertaking
Registered office
Nature of business
Interest
% Held
held
Direct
Indirect
Goam Holdings Ltd
First Floor, 227 West George Street, Glasgow, G2 2ND
Holding company
Ordinary
50.00
-
Goam Property Ltd
First Floor, 227 West George Street, Glasgow, G2 2ND
Property investment
Ordinary
0
50.00
15
Stocks
2024
2023
£
£
Finished goods and goods for resale
181,949
179,194
16
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
-
0
68,508
Amounts owed by undertakings in which the company has a participating interest
20,000
25,000
Other debtors
8,960,830
6,818,534
Prepayments and accrued income
596,450
528,796
9,577,280
7,440,838
O.C.O. WEST END LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 21 -
17
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
19
322,882
294,836
Trade creditors
1,481,834
1,718,959
Corporation tax
234,215
566,120
Other taxation and social security
663,968
609,004
Other creditors
664,717
200
Accruals and deferred income
1,412,849
1,367,585
4,780,465
4,556,704

Bank loans are secured by a fixed and floating charge over the company's assets.

18
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans
19
1,029,965
968,682

Bank loans are secured by a fixed and floating charge over the company's assets.

19
Loans and overdrafts
2024
2023
£
£
Bank loans
1,352,847
1,263,518
Payable within one year
322,882
294,836
Payable after one year
1,029,965
968,682

The bank loans are repayable by monthly instalments of capital and interest of 2.75% above base. The revolving credit facility is repayable on the final repayment date and incurs interest of 2.25% above base.

20
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
867,711
570,648
O.C.O. WEST END LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
20
Deferred taxation
(Continued)
- 22 -
2024
Movements in the year:
£
Liability at 1 December 2023
570,648
Charge to profit or loss
297,063
Liability at 30 November 2024
867,711

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
140,980
182,539

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.

22
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each
120
120
120
120
23
Profit and loss reserves

Profit and loss reserves represent accumulated comprehensive income or expenditure for the year and prior years less dividends paid.

24
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£
£
Within one year
1,190,746
1,195,720
Between two and five years
2,684,072
4,570,274
In over five years
2,838,238
3,536,985
6,713,056
9,302,979
O.C.O. WEST END LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 23 -
25
Events after the reporting date

In January 2025, the commercial decision was made to close the Dumfries store.

26
Related party transactions
Transactions with related parties

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

Net advances to/(from) related parties
2024
2023
£
£
Entities over which the entity has control, joint control or significant influence
(5,000)
(14,495)
Other related parties
2,126,956
2,231,825

The following amounts were outstanding at the reporting end date:

2024
2023
Amounts due from related parties
£
£
Entities over which the entity has control, joint control or significant influence
20,000
25,000
Other related parties
8,557,089
6,430,132

Loans to related parties have no fixed repayment terms and do not bear interest.

27
Directors' transactions

Dividends totalling £753,905 (2023 - £690,643) were paid in the year in respect of shares held by the company's directors.

The following amounts were advanced to/(received from) a company director during the current financial year:

Description
% Rate
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
Director's loan
-
1,065
687,259
(688,356)
(32)
1,065
687,259
(688,356)
(32)
28
Ultimate controlling party

The company is controlled by one of the directors, JJ O'Hara.

O.C.O. WEST END LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 24 -
29
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
2,807,699
2,524,217
Adjustments for:
Taxation charged
1,178,831
972,377
Finance costs
116,164
105,163
Investment income
(22,593)
(40,506)
(Gain)/loss on disposal of tangible fixed assets
-
226,894
Amortisation and impairment of intangible assets
199,403
230,563
Depreciation and impairment of tangible fixed assets
1,141,881
903,751
Loss on disposal of fixed asset investments
-
1
Movements in working capital:
Increase in stocks
(2,755)
(109,353)
(Increase)/decrease in debtors
(15,584)
631,000
Increase in creditors
527,620
547,014
Cash generated from operations
5,930,666
5,991,121
30
Analysis of changes in net funds
1 December 2023
Cash flows
30 November 2024
£
£
£
Cash at bank and in hand
2,572,877
296,545
2,869,422
Borrowings excluding overdrafts
(1,263,518)
(89,329)
(1,352,847)
1,309,359
207,216
1,516,575
2024-11-302023-12-01falsefalsefalseCCH SoftwareCCH Accounts Production 2025.100J J O'HaraJ HamiltonA HayE S O'HaraSC2165522023-12-012024-11-30SC216552bus:Director12023-12-012024-11-30SC216552bus:Director22023-12-012024-11-30SC216552bus:Director32023-12-012024-11-30SC216552bus:CompanySecretary12023-12-012024-11-30SC2165522024-11-30SC2165522022-12-012023-11-30SC216552core:RetainedEarningsAccumulatedLosses2022-12-012023-11-30SC216552core:RetainedEarningsAccumulatedLosses2023-12-012024-11-30SC216552core:Goodwill2024-11-30SC216552core:Goodwill2023-11-30SC216552core:OtherResidualIntangibleAssets2024-11-30SC216552core:OtherResidualIntangibleAssets2023-11-30SC2165522023-11-30SC216552core:PatentsTrademarksLicencesConcessionsSimilar2024-11-30SC216552core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2024-11-30SC216552core:PatentsTrademarksLicencesConcessionsSimilar2023-11-30SC216552core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2023-11-30SC216552core:LeaseholdImprovements2024-11-30SC216552core:FurnitureFittings2024-11-30SC216552core:ComputerEquipment2024-11-30SC216552core:LeaseholdImprovements2023-11-30SC216552core:FurnitureFittings2023-11-30SC216552core:ComputerEquipment2023-11-30SC216552core:CurrentFinancialInstrumentscore:WithinOneYear2024-11-30SC216552core:CurrentFinancialInstrumentscore:WithinOneYear2023-11-30SC216552core:Non-currentFinancialInstrumentscore:AfterOneYear2024-11-30SC216552core:Non-currentFinancialInstrumentscore:AfterOneYear2023-11-30SC216552core:CurrentFinancialInstruments2024-11-30SC216552core:CurrentFinancialInstruments2023-11-30SC216552core:ShareCapital2024-11-30SC216552core:ShareCapital2023-11-30SC216552core:RetainedEarningsAccumulatedLosses2024-11-30SC216552core:RetainedEarningsAccumulatedLosses2023-11-30SC216552core:ShareCapital2022-11-30SC216552core:RetainedEarningsAccumulatedLosses2022-11-30SC2165522022-11-30SC216552core:ShareCapitalOrdinaryShareClass12024-11-30SC216552core:ShareCapitalOrdinaryShareClass12023-11-30SC2165522023-11-30SC216552core:Goodwill2023-12-012024-11-30SC216552core:IntangibleAssetsOtherThanGoodwill2023-12-012024-11-30SC216552core:PatentsTrademarksLicencesConcessionsSimilar2023-12-012024-11-30SC216552core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2023-12-012024-11-30SC216552core:LeaseholdImprovements2023-12-012024-11-30SC216552core:FurnitureFittings2023-12-012024-11-30SC216552core:ComputerEquipment2023-12-012024-11-30SC216552core:UKTax2023-12-012024-11-30SC216552core:UKTax2022-12-012023-11-30SC21655212023-12-012024-11-30SC21655212022-12-012023-11-30SC216552core:Goodwill2023-11-30SC216552core:PatentsTrademarksLicencesConcessionsSimilar2023-11-30SC216552core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2023-11-30SC216552core:Goodwillcore:ExternallyAcquiredIntangibleAssets2023-12-012024-11-30SC216552core:PatentsTrademarksLicencesConcessionsSimilarcore:ExternallyAcquiredIntangibleAssets2023-12-012024-11-30SC216552core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwillcore:ExternallyAcquiredIntangibleAssets2023-12-012024-11-30SC216552core:ExternallyAcquiredIntangibleAssets2023-12-012024-11-30SC216552core:LeaseholdImprovements2023-11-30SC216552core:FurnitureFittings2023-11-30SC216552core:ComputerEquipment2023-11-30SC216552core:JointVenture12023-12-012024-11-30SC216552core:JointVenture22023-12-012024-11-30SC216552core:JointVenture112023-12-012024-11-30SC216552core:JointVenture222023-12-012024-11-30SC216552core:Non-currentFinancialInstruments2024-11-30SC216552core:Non-currentFinancialInstruments2023-11-30SC216552bus:OrdinaryShareClass12023-12-012024-11-30SC216552bus:OrdinaryShareClass12024-11-30SC216552bus:OrdinaryShareClass12023-11-30SC216552core:WithinOneYear2024-11-30SC216552core:WithinOneYear2023-11-30SC216552core:BetweenTwoFiveYears2024-11-30SC216552core:BetweenTwoFiveYears2023-11-30SC216552core:MoreThanFiveYears2024-11-30SC216552core:MoreThanFiveYears2023-11-30SC216552bus:PrivateLimitedCompanyLtd2023-12-012024-11-30SC216552bus:FRS1022023-12-012024-11-30SC216552bus:Audited2023-12-012024-11-30SC216552bus:FullAccounts2023-12-012024-11-30xbrli:purexbrli:sharesiso4217:GBP