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REGISTERED NUMBER: 05280362 (England and Wales)















GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE PERIOD 25TH DECEMBER 2023 TO 29TH DECEMBER 2024

FOR

1ST RATE INVESTMENT (UK) LIMITED

1ST RATE INVESTMENT (UK) LIMITED (REGISTERED NUMBER: 05280362)

CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIOD 25TH DECEMBER 2023 TO 29TH DECEMBER 2024










Page

Company Information 1

Group Strategic Report 2

Report of the Directors 5

Report of the Independent Auditors 7

Consolidated Statement of Comprehensive Income 9

Consolidated Balance Sheet 10

Company Balance Sheet 11

Consolidated Statement of Changes in Equity 12

Company Statement of Changes in Equity 13

Consolidated Cash Flow Statement 14

Notes to the Consolidated Financial Statements 15


1ST RATE INVESTMENT (UK) LIMITED

COMPANY INFORMATION
FOR THE PERIOD 25TH DECEMBER 2023 TO 29TH DECEMBER 2024







DIRECTORS: Mr Z Abbasi
Mr I Suleman





REGISTERED OFFICE: Suite 201 Churchill House
120 Bunns Lane
London
NW7 2AS





REGISTERED NUMBER: 05280362 (England and Wales)





AUDITORS: PSJ Alexander & Co
Chartered Accountants & Statutory Auditors
1 Doughty Street
London
WC1N 2PH

1ST RATE INVESTMENT (UK) LIMITED (REGISTERED NUMBER: 05280362)

GROUP STRATEGIC REPORT
FOR THE PERIOD 25TH DECEMBER 2023 TO 29TH DECEMBER 2024


The directors present their strategic report of the company and the group for the period 25th December 2023 to 29th December 2024.

REVIEW OF BUSINESS
Turnover increased by 1.65% in the period to (2023: ££40,360,297).

Results and KPIs:
2024 2023
£    £   
Turnover 41,027,408 40,360,297
Gross Profit 10,471,254 9,061,914
EBITDA 2,287,530 1,332,703
Amortisation/Depreciation costs 1,993,771 2,073,192
Profit/(loss) after tax (60,679 ) (846,930 )

The increase in turnover is primarily due to price increases during the year.

The directors consider the results for the year to be satisfactory.

The directors consider staff numbers and their performance to be the key non-financial indicators, in particular staff retention and turnover levels are monitored. The directors also monitor stock control and waste management as key performance indicators and are continuously looking to improve in these areas based upon the findings.

The directors do not consider that any further analysis using non-financial key performance indicators, including those relating to environmental matters is necessary for an understanding of the performance and position of the business of the company.

PRINCIPAL RISKS AND UNCERTAINTIES
The principal risk to the group is changes in short term consumer habits. Both Kentucky Fried Chicken and the group monitor this and maintain a marketing policy with a view to smoothing these fluctuations.

Financial Instruments
The group's treasury activities are operated within policies and procedure approved by the Board, which include defined controls on the use of financial instruments to manage the group's risk.

Liquidity risk
The company finances its operations through a mixture of retained profits and financing from the parent company. The group seeks to ensure there is short term flexibility through the availability of overdraft facilities. The group monitors its cash balance on a regular basis to ensure that all foreseeable future needs can be met from available resources.


1ST RATE INVESTMENT (UK) LIMITED (REGISTERED NUMBER: 05280362)

GROUP STRATEGIC REPORT
FOR THE PERIOD 25TH DECEMBER 2023 TO 29TH DECEMBER 2024

SECTION 172(1) STATEMENT
The Board of Directors confirms that, during the year under review, it has continued to promote the long-term success of the Group for the benefit of shareholders, whilst having due regard to the matters set out in section 172(1) (a) to (f) of the Companies Act 2006, being:

- the likely consequences of any decision in the long term
- the desirability of the Group maintaining a reputation for high standards of business conduct
- the impact of the Group's operations on the community and the environment
- the need to foster the Group's business relationships with customers
- the interests of the Group's colleagues
- the need to foster the Group's business relationships with suppliers, lenders and others
- the need to act fairly as between members of the Group.

Each of the Directors is mindful of their duties under section 172 (s172) to run the Group for the benefit of its shareholders, and in doing so, to take into account the long-term impact of any decisions on stakeholder relationships and the impact of its activities on its reputation for high standards of business conduct. We can only grow and prosper sustainably if we conduct ourselves in a responsible manner and have positive relationships with all of our stakeholders. This has been more evident than ever through inflationary pressures and staff shortages, as we balanced both short and long-term considerations, the need to preserve our financial stability, to protect our most vulnerable stakeholders. Throughout the year, we carefully listened to our customers, colleagues, suppliers and shareholders, and drew on their support and commitment as we move in protecting our business.

Although we have taken the matters set out in section 172 into consideration for some years, the Code now requires us to provide more specific information about how the Group and the Directors have considered them. The areas which are encompassed in s172 touch on everything that we do, and our Report contains many examples of how this operates in practice. Most of the day-to-day decision making and stakeholder engagement is carried out by our senior leadership team at the business level, but more material matters require the attention of the Board, and we describe below how they are considered through formal Board processes, and how the Board engages with stakeholders and oversee how the business acts.

COMMUNITY AND CHARITY
From the neighbourhoods where our stores are located to global initiatives providing food and support to people in need - we believe in doing our part. Bringing people together, inspiring change and making a difference in people's lives - it is important to our culture.

CUSTOMERS
Traditionally, we engage with our customers in order to accommodate their needs and aspirations. It is a fast pace retail environment and we continually look to evolve the business with the help of our franchisor who develops new products for the market. We are also looking long-term to move our estate into drive-through restaurants which are very popular with our customers.

COLLEAGUES
The Group has established a highly experienced and capable leadership team with extensive industry experience. Importantly, we are devoted to our employees and the unique culture that we have built, where pride is infectious and translates to satisfied guests at each of our restaurants.

SUPPLIERS AND LENDERS
We have worked with most of our major suppliers and lenders for some time now and continually strive to protect their needs as well as our own. During the financial year, and due to inflationary pressures, we continued to reach out to our suppliers to confirm that we would continue to pay them in full, whilst also communicating regularly with our lenders. The Group also honours its obligations under the facility agreement with the lenders.

SHAREHOLDERS
During the year, there were times of inflationary pressures; so, even despite the positive Company's EBITDA, we continued to take steps to preserve the cash resources of the business by reducing non-essential operating costs.


1ST RATE INVESTMENT (UK) LIMITED (REGISTERED NUMBER: 05280362)

GROUP STRATEGIC REPORT
FOR THE PERIOD 25TH DECEMBER 2023 TO 29TH DECEMBER 2024

STREAMLINED ENERGY AND CARBON REPORTING (SECR)
The business reports an annual kWh usage of over 6.8m for the period ended in December 2024 (2023 - over 6.6m) as detailed below:
Period ended Period ended
29 December 2024 24 December 2023

Energy consumption used to calculate emissions (kWh) 6,813,866 6,570,595

Energy consumption break down (kWh):
- Gas (Scope 1) 1,589,012 1,207,239
- Electricity (Scope 2) 5,157,124 5,291,861
- Transport Fuel (Scope 1 - Company Cars) 67,730 71,496

Scope 1 emissions in tonnes CO2e
- Gas 325 221
- Transport Fuel (Company Cars) 17 20

Scope 2 emissions in tonnes CO2e
- Electricity 1,068 1,096

Scope 3 emissions in tonnes CO2e 0 0
Total gross emissions in tonnes CO2e 1,410 1,337

Intensity ratio kg CO2e / million GBP turnover 0.034 0.033

- The methodology used follows best practise and is based on HM Government Environmental Reporting Guidelines March
2019.
- For December 2024 and 2023, all emissions factors are taken from UK Government GHG Conversion Factors for Company
Reporting, 2024 factors.
- Scope 1 (natural gas) and Scope 2 consumption data (electricity) was taken from validated and verified Utility Suppliers
invoices.
- Scope 1 (Company cars) mileage data was taken from internal records/logs.
- Due to the nature of the business, the most applicable normalisation parameter relating to carbon emissions is 'annual
turnover'. Therefore, the intensity ratio for B.J.R. Foods Ltd is kilograms of CO2e per million GBP turnover.

No energy efficiency measures were carried out during the period ended 29 December 2024; however, plans are currently being agreed moving forward.

ON BEHALF OF THE BOARD:





Mr Z Abbasi - Director


28th May 2025

1ST RATE INVESTMENT (UK) LIMITED (REGISTERED NUMBER: 05280362)

REPORT OF THE DIRECTORS
FOR THE PERIOD 25TH DECEMBER 2023 TO 29TH DECEMBER 2024


The directors present their report with the financial statements of the company and the group for the period 25th December 2023 to 29th December 2024.

PRINCIPAL ACTIVITY
The principal activity of the parent company in the period under review was that of a holding company.

The principal activity of the trading subsidiary company in the period under review was that of the retail of Kentucy Fried Chicken.

DIVIDENDS
The total dividend distribution for the period ended 29th December 2024 was £1,200,000 (2023: £Nil).

EVENTS SINCE THE END OF THE PERIOD
Information relating to events since the end of the period is given in the notes to the financial statements.

DIRECTORS
The directors shown below have held office during the whole of the period from 25th December 2023 to the date of this report.

Mr Z Abbasi
Mr I Suleman

EMPLOYEE INVOLVEMENT
The group maintains procedures for the dissemination of information of particular concern to employees, and for receiving their views on important matters on policy.

The group accepts, for equal consideration, applications for employment from disabled persons and accordingly the employment of disabled persons is entirely dependent upon their experience, capability and suitability for the particular vacancy.

ENGAGEMENT WITH EMPLOYEES
The group maintains procedures for the dissemination of information of particular concern to employees and for receiving their views on important matters of policy.

DISABLED EMPLOYEES
The group accepts, for equal consideration, applications for employment from disabled persons and accordingly the employment of disabled persons is entirely dependent upon their experience, capability and suitability for the particular vacancy. Once employed by the group, disabled persons have the same rights, entitlements and opportunities as any other member of staff, including training, career development and promotions.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;
- make judgements and accounting estimates that are reasonable and prudent;
- state whether applicable 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 directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

1ST RATE INVESTMENT (UK) LIMITED (REGISTERED NUMBER: 05280362)

REPORT OF THE DIRECTORS
FOR THE PERIOD 25TH DECEMBER 2023 TO 29TH DECEMBER 2024


STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS
The auditors, PSJ Alexander & Co, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





Mr Z Abbasi - Director


28th May 2025

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
1ST RATE INVESTMENT (UK) LIMITED


Opinion
We have audited the financial statements of 1st Rate Investment (UK) Limited (the 'parent company') and its subsidiaries (the 'group') for the period ended 29th December 2024 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Financial Statements, 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).

In our opinion the financial statements:
-give a true and fair view of the state of the group's and of the parent company affairs as at 29th December 2024 and of the group's loss for the period then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 group's and the parent 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 directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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 the audit:
- the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent company financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
1ST RATE INVESTMENT (UK) LIMITED


Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page five, 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 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 group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so.

Auditors' 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 a Report of the Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

- we reviewed the financial statement disclosures and testing to supporting documentation to assess compliance with
provisions of relevant laws and regulations that have a direct effect on the financial statements;
- we enquired with the management team concerning actual and potential litigation and claims;
- we performed analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material
misstatement due to fraud;
- we read minutes of meetings of those charged with governance;
- we obtained an understanding of any provisions and held discussions with management to understand the basis of
recognition or non-recognition of tax provisions/assets; and
- we addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and
other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias;
and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of
business.

Our audit procedures were designed to respond to risks of material misstatement 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 deliberate concealment by, for example, forgery, misrepresentations or through collusion. 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 are to become aware of it.

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 Report of the Auditors.

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 a Report of the Auditors 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.




Vimal Shah (Senior Statutory Auditor)
for and on behalf of PSJ Alexander & Co
Chartered Accountants & Statutory Auditors
1 Doughty Street
London
WC1N 2PH

28th May 2025

1ST RATE INVESTMENT (UK) LIMITED (REGISTERED NUMBER: 05280362)

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD 25TH DECEMBER 2023 TO 29TH DECEMBER 2024

Period Period
25/12/23 26/12/22
to to
29/12/24 24/12/23
Notes £    £   

TURNOVER 4 41,027,408 40,360,297

Cost of sales 30,556,154 31,298,383
GROSS PROFIT 10,471,254 9,061,914

Administrative expenses 10,276,238 9,940,163
195,016 (878,249 )

Other operating income 21,237 1,361
OPERATING PROFIT/(LOSS) 6 216,253 (876,888 )


Interest payable and similar expenses 7 - 42
PROFIT/(LOSS) BEFORE TAXATION 216,253 (876,930 )

Tax on profit/(loss) 8 276,932 (30,000 )
LOSS FOR THE FINANCIAL PERIOD (60,679 ) (846,930 )

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE PERIOD

(60,679

)

(846,930

)

Loss attributable to:
Owners of the parent (60,679 ) (846,930 )

Total comprehensive income attributable to:
Owners of the parent (60,679 ) (846,930 )

1ST RATE INVESTMENT (UK) LIMITED (REGISTERED NUMBER: 05280362)

CONSOLIDATED BALANCE SHEET
29TH DECEMBER 2024

2024 2023
Notes £    £    £   
FIXED ASSETS
Intangible assets 11 572,526 1,223,131
Tangible assets 12 4,146,500 3,667,721
Investments 13 - -
4,719,026 4,890,852

CURRENT ASSETS
Stocks 14 299,025 289,628
Debtors 15 339,859 341,984
Cash at bank and in hand 4,415,230 3,866,546
5,054,114 4,498,158
CREDITORS
Amounts falling due within one year 16 5,379,281 4,331,072
NET CURRENT (LIABILITIES)/ASSETS (325,167 ) 167,086
TOTAL ASSETS LESS CURRENT
LIABILITIES

4,393,859

5,057,938

PROVISIONS FOR LIABILITIES 18 978,799 382,199
NET ASSETS 3,415,060 4,675,739

CAPITAL AND RESERVES
Called up share capital 19 100 100
Retained earnings 20 3,414,960 4,675,639
SHAREHOLDERS' FUNDS 3,415,060 4,675,739

The financial statements were approved by the Board of Directors and authorised for issue on 28th May 2025 and were signed on its behalf by:





Mr Z Abbasi - Director


1ST RATE INVESTMENT (UK) LIMITED (REGISTERED NUMBER: 05280362)

COMPANY BALANCE SHEET
29TH DECEMBER 2024

2024 2023
Notes £    £    £   
FIXED ASSETS
Intangible assets 11 - -
Tangible assets 12 - -
Investments 13 7,738,266 7,738,266
7,738,266 7,738,266

CURRENT ASSETS
Debtors 15 1,264 1,264
Cash at bank 24,207 213,983
25,471 215,247
CREDITORS
Amounts falling due within one year 16 3,107,559 3,332,921
NET CURRENT LIABILITIES (3,082,088 ) (3,117,674 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

4,656,178

4,620,592

CAPITAL AND RESERVES
Called up share capital 19 100 100
Retained earnings 20 4,656,078 4,620,492
SHAREHOLDERS' FUNDS 4,656,178 4,620,592

Company's profit for the financial year 1,235,586 47,966

The financial statements were approved by the Board of Directors and authorised for issue on 28th May 2025 and were signed on its behalf by:





Mr Z Abbasi - Director


1ST RATE INVESTMENT (UK) LIMITED (REGISTERED NUMBER: 05280362)

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD 25TH DECEMBER 2023 TO 29TH DECEMBER 2024

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 26th December 2022 100 5,522,569 5,522,669

Changes in equity
Total comprehensive income - (846,930 ) (846,930 )
Balance at 24th December 2023 100 4,675,639 4,675,739

Changes in equity
Dividends - (1,200,000 ) (1,200,000 )
Total comprehensive income - (60,679 ) (60,679 )
Balance at 29th December 2024 100 3,414,960 3,415,060

1ST RATE INVESTMENT (UK) LIMITED (REGISTERED NUMBER: 05280362)

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD 25TH DECEMBER 2023 TO 29TH DECEMBER 2024

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 26th December 2022 100 4,572,526 4,572,626

Changes in equity
Total comprehensive income - 47,966 47,966
Balance at 24th December 2023 100 4,620,492 4,620,592

Changes in equity
Dividends - (1,200,000 ) (1,200,000 )
Total comprehensive income - 1,235,586 1,235,586
Balance at 29th December 2024 100 4,656,078 4,656,178

1ST RATE INVESTMENT (UK) LIMITED (REGISTERED NUMBER: 05280362)

CONSOLIDATED CASH FLOW STATEMENT
FOR THE PERIOD 25TH DECEMBER 2023 TO 29TH DECEMBER 2024

Period Period
25/12/23 26/12/22
to to
29/12/24 24/12/23
Notes £    £   
Cash flows from operating activities
Cash generated from operations 26 3,683,296 1,492,312
Interest paid - (42 )
Tax paid 54 267,292
Net cash from operating activities 3,683,350 1,759,562

Cash flows from investing activities
Purchase of intangible fixed assets (24,575 ) (74,678 )
Purchase of tangible fixed assets (1,706,942 ) (1,567,460 )
Sale of tangible fixed assets 2,067 27,047
Net cash from investing activities (1,729,450 ) (1,615,091 )

Cash flows from financing activities
Loan repayments in period (205,216 ) (955,122 )
Equity dividends paid (1,200,000 ) -
Net cash from financing activities (1,405,216 ) (955,122 )

Increase/(decrease) in cash and cash equivalents 548,684 (810,651 )
Cash and cash equivalents at beginning of
period

27

3,866,546

4,677,197

Cash and cash equivalents at end of period 27 4,415,230 3,866,546

1ST RATE INVESTMENT (UK) LIMITED (REGISTERED NUMBER: 05280362)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIOD 25TH DECEMBER 2023 TO 29TH DECEMBER 2024


1. STATUTORY INFORMATION

1st Rate Investment (UK) Limited is a private company, limited by shares, registered in England and Wales. The company's registered number is 05280362 and and registered office address is Suite 201 Churchill House, 120 Bunns Lane, London NW7 2AS, United Kingdom.

2. STATEMENT OF COMPLIANCE

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" and the Companies Act 2006.

3. ACCOUNTING POLICIES

Basis of preparing the financial statements
The financial statements have been prepared under the historical cost convention.

Going Concern
The Group made net loss after taxes amounting to £60,679 (2023: £846,930) and had net current liabilities of £325,167 (2023: net current assets of £167,086), net assets of £3,415,060 (2023: £4,675,739) and bank balances of £4,415,230 (2023: £3,866,546). The Group has no external debts owed to third party lenders. The directors have assessed the going concern risks to the Group and have concluded that financial projections indicate that the Group will continue to meet its liabilities as they fall due over the next twelve months from the date of approval of these financial statements.

Based on these indications, the directors believe that it remains appropriate to prepare the consolidated financial statements on a going concern basis. The consolidated financial statements do not include any adjustments that would result in the basis of preparation being inappropriate.

Basis of consolidation
The financial statements consolidate the accounts of 1st Rate Investment (UK) Limited and all of its subsidiary undertakings. The results of subsidiaries acquired or disposed of during the year are included from or to the date that control passes.

The group applies the acquisition method to account for business combinations.

The cost of a business combination is the fair value of the consideration given, liabilities incurred or assumed and of equity instruments issued plus the costs directly attributable to the business combination. Where control is achieved in stages, the cost is the consideration at the date of each transaction.

On acquisition of a business, fair values are attributed to the identifiable assets, liabilities and contingent liabilities unless the fair value cannot be measured reliably, in which case the value is incorporated in goodwill. Where the fair value of contingent liabilities cannot be reliably measured they are disclosed on the same basis as other contingent liabilities.

Goodwill recognised represents the excess of the fair value and directly attributable costs of the purchase consideration over the fair values to the Group's interest in the identifiable net assets, liabilities and contingent liabilities acquired. Goodwill is amortised over its expected useful life. Goodwill is assessed for impairment when there are indicators of impairment and any impairment is charged to the income statement. Reversals of impairment are recognised when the reasons for the impairment no longer apply.

If the business combination is achieved in stages, the acquisition date carrying value of the acquirer's previously held equity interest in the acquire is re-measured to fair value at the acquisition date; any gains or losses arising from such remeasurement are recognised in profit or loss.

Inter-company transactions, balances and unrealised gains on transactions between group companies are eliminated. Unrealised losses are also eliminated. When necessary, amounts reported by subsidiaries have been adjusted to conform with the group's accounting policies.

Non-controlling interests
Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the Group's equity. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the minority's share of changes in equity since the date of the combination.

The proportions of profit or loss and changes in equity allocated to the owners of the parent and to the non-controlling interests are determined on the basis of existing ownership interests and do not reflect the possible exercise or conversion of options or convertible instruments.

1ST RATE INVESTMENT (UK) LIMITED (REGISTERED NUMBER: 05280362)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE PERIOD 25TH DECEMBER 2023 TO 29TH DECEMBER 2024


3. ACCOUNTING POLICIES - continued

Critical accounting judgements and key sources of estimation uncertainty
The preparation of these financial statements requires management to make judgements, estimates and assumptions that affect amounts recognised for assets and liabilities at the reporting date and the amounts of revenue and expenses incurred during the reporting period. Actual outcomes may differ from these judgements, estimates and assumptions.

The judgements, estimates and assumptions that have the most significant effect on the carrying value of assets and liabilities of the Company as at the balance sheet date are discussed below.

- Estimation of useful economic lives of tangible fixed assets

Tangible fixed assets represent a significant proportion of the asset base of the Company. Therefore, the estimates and assumptions made to determine their carrying values and related depreciation are critical to the Company's financial position and performance.

The charge in respect of periodic depreciation is derived after determining an estimate of an asset's expected useful life and the expected residual value at the end of its life. Increasing an asset's expected life or its residual value would result in a reduced depreciation charge in the Income Statement.

The useful lives of assets are determined by management at the time the asset is acquired and reviewed annually for appropriateness. The lives are based on historical experience with similar assets as well as anticipation of future events, which may impact their life, such as changes in technology.

- Provisions for dilapidation and reinstatement costs

The Company recognises provisions for dilapidation and reinstatement costs when it has a present legal or constructive obligation as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

The Company's obligation for dilapidation and reinstatement is significantly influenced by: (i) the franchise requirement to undertake major refurbishment every 10 years; and (ii) the economic performance of individual restaurants.

For profitable restaurants where continuation of operations is expected, the 10-year refurbishment cycle generally satisfies much of the restoration work that would otherwise be required at lease termination. In these cases, refurbishment expenditure is capitalised as part of the restaurant assets and depreciated over the expected useful life, and a reduced or nil dilapidation provision may be appropriate.

For underperforming or loss-making restaurants where closure is considered likely prior or close to the lease expiry, a full dilapidation and reinstatement provision is recognised to reflect the estimated costs of returning the premises to the condition required under the lease terms.

These provisions are measured at the best estimate of the expenditure required to settle the obligation at the reporting date, taking into account the specific refurbishment history of each location and the likelihood of lease renewal or early termination. Where the effect of the time value of money is material, the amount of the provision is the present value of the expenditures expected to be required to settle the obligation, using a discount rate that reflects current market assessments of the time value of money and the risks specific to the liability.

The determination of whether a dilapidation provision is required, and if so, its amount, represents a key source of estimation uncertainty. Management's assessment includes consideration of:
- individual restaurant performance metrics and forecasts;
- the timing of the next scheduled refurbishment within the 10-year cycle;
- the extent to which planned refurbishments would satisfy lease-end restoration requirements;
- the remaining lease term and renewal options; and
- historical costs of both refurbishments and full site restorations.

The carrying amount of any provision is reviewed at each reporting date and adjusted to reflect management's current best estimate. Estimates are based on the Company's historical experience of restaurant refurbishments and closures and, where appropriate, reports from independent quantity surveyors. Changes in provisions are recognised in profit or loss for the period, except where they relate to the initial recognition of a related asset, in which case they are added to the carrying amount of the asset and depreciated over its useful life or the remaining lease term, whichever is shorter.

1ST RATE INVESTMENT (UK) LIMITED (REGISTERED NUMBER: 05280362)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE PERIOD 25TH DECEMBER 2023 TO 29TH DECEMBER 2024


3. ACCOUNTING POLICIES - continued

Turnover
Turnover is recognised to the extent that it is probable that the economic benefits will flow to the company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebated value added tax and other sales taxes. The turnover is recognised on the date that the KFC orders are placed, which is in all cases also the date when the KFC products are delivered to the customers.

Goodwill
Goodwill, being the amount paid in connection with the acquisition of the businesses, is being amortised evenly over its remaining estimated useful life of 10 years.

Intangible assets
Intangible assets are stated at cost less amortisation. Amortisation is provided at rates calculated to write off the cost over the expected useful life of the asset.

Premium on lease- straight line over period of the lease
Licence fees- straight line over period of the licence
Transfer fees- straight line over period of the licence

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Plant and machinery - at varying rates

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

Taxation
Taxation for the period comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, 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 period 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
Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset.

Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.

Operating lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.

1ST RATE INVESTMENT (UK) LIMITED (REGISTERED NUMBER: 05280362)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE PERIOD 25TH DECEMBER 2023 TO 29TH DECEMBER 2024


3. ACCOUNTING POLICIES - continued

Pension costs and other post-retirement benefits
The group operates a defined contribution pension scheme. Contributions payable to the pension scheme are charged to profit or loss in the period to which they relate.

Investments
Investments in subsidiaries are valued at cost less provision for impairment.

Provisions
Provisions for dilapidation and reinstatement costs in respect to leased properties are recognised when the group has a legal or constructive obligation as a result of past events; it is more likely than not that an outflow of resources will be required to settle the obligation and a reliable estimate of the amount can be made.

The carrying amount of any provision is reviewed at each reporting date and adjusted to reflect management's current best estimate. Estimates are based on the Company's historical experience of restaurant refurbishments and closures and, where appropriate, reports from independent quantity surveyors. Changes in provisions are recognised in profit or loss for the period, except where they relate to the initial recognition of a related asset, in which case they are added to the carrying amount of the asset and depreciated over its useful life or the remaining lease term, whichever is shorter.

4. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the group.

All turnover arose within the United Kingdom.

5. EMPLOYEES AND DIRECTORS
Period Period
25/12/23 26/12/22
to to
29/12/24 24/12/23
£    £   
Wages and salaries 10,809,452 9,961,910
Social security costs 668,691 567,110
Other pension costs 169,635 140,247
11,647,778 10,669,267

The average number of employees during the period was as follows:
Period Period
25/12/23 26/12/22
to to
29/12/24 24/12/23

Shop staff 464 658
Administrative and management staff 54 50
518 708

The average number of employees by undertakings that were proportionately consolidated during the period was 518 (2023 - 708 ) .

Period Period
25/12/23 26/12/22
to to
29/12/24 24/12/23
£    £   
Directors' remuneration 380,036 309,026

1ST RATE INVESTMENT (UK) LIMITED (REGISTERED NUMBER: 05280362)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE PERIOD 25TH DECEMBER 2023 TO 29TH DECEMBER 2024


5. EMPLOYEES AND DIRECTORS - continued

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 2 2

Information regarding the highest paid director is as follows:
Period Period
25/12/23 26/12/22
to to
29/12/24 24/12/23
£    £   
Emoluments etc 320,036 247,588

6. OPERATING PROFIT/(LOSS)

The operating profit (2023 - operating loss) is stated after charging:

Period Period
25/12/23 26/12/22
to to
29/12/24 24/12/23
£    £   
Other operating leases 1,410,271 1,377,332
Depreciation - owned assets 1,318,590 1,378,283
Loss on disposal of fixed assets 77,506 75,040
Goodwill amortisation 563,064 606,791
Licence fees amortisation 95,711 85,458
Lease premiums amortisation 16,405 -
Transfer fees amortisation - 2,660
Auditors remuneration 14,000 12,000
Auditors remuneration - other assurance work 31,769 34,171

7. INTEREST PAYABLE AND SIMILAR EXPENSES
Period Period
25/12/23 26/12/22
to to
29/12/24 24/12/23
£    £   
Interest payable - 42

8. TAXATION

Analysis of the tax charge/(credit)
The tax charge/(credit) on the profit for the period was as follows:
Period Period
25/12/23 26/12/22
to to
29/12/24 24/12/23
£    £   
Current tax:
UK corporation tax 124,932 -

Deferred taxation 152,000 (30,000 )
Tax on profit/(loss) 276,932 (30,000 )

1ST RATE INVESTMENT (UK) LIMITED (REGISTERED NUMBER: 05280362)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE PERIOD 25TH DECEMBER 2023 TO 29TH DECEMBER 2024


8. TAXATION - continued

Reconciliation of total tax charge/(credit) included in profit and loss
The tax assessed for the period is higher than the standard rate of corporation tax in the UK. The difference is explained below:

Period Period
25/12/23 26/12/22
to to
29/12/24 24/12/23
£    £   
Profit/(loss) before tax 216,253 (876,930 )
Profit/(loss) multiplied by the standard rate of corporation tax in the UK of 25 %
(2023 - 19 %)

54,063

(166,617

)

Effects of:
Expenses not deductible for tax purposes 81,602 13,723
Depreciation in excess of capital allowances 62,593 97,528
Adjustments to tax charge in respect of previous periods (4,536 ) -
Current year losses for which no deferred tax is recognised - 55,366
Deferred taxation 152,000 (30,000 )
Marginal relief (543 ) -
Impact of tax losses utilised (68,247 ) -
Total tax charge/(credit) 276,932 (30,000 )

9. INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME

As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements.


10. DIVIDENDS
Period Period
25/12/23 26/12/22
to to
29/12/24 24/12/23
£    £   
Interim 1,200,000 -

1ST RATE INVESTMENT (UK) LIMITED (REGISTERED NUMBER: 05280362)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE PERIOD 25TH DECEMBER 2023 TO 29TH DECEMBER 2024


11. INTANGIBLE FIXED ASSETS

Group
Licence Lease
Goodwill fees premiums Totals
£    £    £    £   
COST
At 25th December 2023 14,801,430 656,064 66,404 15,523,898
Additions - 24,575 - 24,575
Disposals - (28,295 ) - (28,295 )
At 29th December 2024 14,801,430 652,344 66,404 15,520,178
AMORTISATION
At 25th December 2023 14,051,479 199,289 49,999 14,300,767
Amortisation for period 563,064 95,711 16,405 675,180
Eliminated on disposal - (28,295 ) - (28,295 )
At 29th December 2024 14,614,543 266,705 66,404 14,947,652
NET BOOK VALUE
At 29th December 2024 186,887 385,639 - 572,526
At 24th December 2023 749,951 456,775 16,405 1,223,131

12. TANGIBLE FIXED ASSETS

Group
Plant and Motor Computer
machinery vehicles equipment Totals
£    £    £    £   
COST
At 25th December 2023 8,384,404 - - 8,384,404
Additions 1,761,513 83,000 32,429 1,876,942
Disposals (944,154 ) - - (944,154 )
Impairments (78,832 ) - - (78,832 )
At 29th December 2024 9,122,931 83,000 32,429 9,238,360
DEPRECIATION
At 25th December 2023 4,716,683 - - 4,716,683
Charge for period 1,310,398 8,192 - 1,318,590
Eliminated on disposal (894,536 ) - - (894,536 )
Impairments (48,877 ) - - (48,877 )
At 29th December 2024 5,083,668 8,192 - 5,091,860
NET BOOK VALUE
At 29th December 2024 4,039,263 74,808 32,429 4,146,500
At 24th December 2023 3,667,721 - - 3,667,721

1ST RATE INVESTMENT (UK) LIMITED (REGISTERED NUMBER: 05280362)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE PERIOD 25TH DECEMBER 2023 TO 29TH DECEMBER 2024


13. FIXED ASSET INVESTMENTS

Company
Shares in
group
undertakings
£   
COST
At 25th December 2023
and 29th December 2024 7,738,266
NET BOOK VALUE
At 29th December 2024 7,738,266
At 24th December 2023 7,738,266

The group or the company's investments at the Balance Sheet date in the share capital of companies include the following:

Subsidiaries

Amber Restaurants Limited
Registered office: Suite 201 Churchill House 120 Bunns Lane, London, United Kingdom, NW7 2AS
Nature of business: dormant company
%
Class of shares: holding
Ordinary 100.00

B.J.R. Foods Limited
Registered office: Suite 201 Churchill House 120 Bunns Lane, London, United Kingdom, NW7 2AS
Nature of business: Retail of KFC
%
Class of shares: holding
Ordinary 100.00

Colonel Foods Limited
Registered office: Suite 201 Churchill House 120 Bunns Lane, London, United Kingdom, NW7 2AS
Nature of business: dormant company
%
Class of shares: holding
Ordinary 100.00


14. STOCKS

Group
2024 2023
£    £   
Raw materials 299,025 289,628

15. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2024 2023 2024 2023
£    £    £    £   
Trade debtors 3,446 2,445 - -
Other debtors 13,422 13,978 1,264 1,264
Prepayments 322,991 325,561 - -
339,859 341,984 1,264 1,264

1ST RATE INVESTMENT (UK) LIMITED (REGISTERED NUMBER: 05280362)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE PERIOD 25TH DECEMBER 2023 TO 29TH DECEMBER 2024


16. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2024 2023 2024 2023
£    £    £    £   
Trade creditors 2,818,627 2,100,353 - -
Amounts owed to group undertakings - - 3,042,917 2,986,674
Taxation 125,038 52 11,574 -
Social security and other taxes 178,998 136,991 16,759 17,623
VAT 1,273,061 879,278 28,755 119,886
Other creditors 385,699 556,668 2,054 205,803
Accrued expenses 597,858 657,730 5,500 2,935
5,379,281 4,331,072 3,107,559 3,332,921

17. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Group
Non-cancellable operating leases
2024 2023
£    £   
Within one year 1,248,934 1,278,820
Between one and five years 3,971,491 3,851,345
In more than five years 4,427,713 4,879,882
9,648,138 10,010,047

18. PROVISIONS FOR LIABILITIES

Group
2024 2023
£    £   
Deferred tax
Accelerated capital allowances 438,999 286,999

Other provisions 539,800 95,200

Aggregate amounts 978,799 382,199

Group
Deferred Other
tax provisions
£    £   
Balance at 25th December 2023 286,999 95,200
Provided during period - 539,800
Charge to Statement of Comprehensive Income during period 152,000 -
Unused amounts reversed during period - (95,200 )
Balance at 29th December 2024 438,999 539,800

1ST RATE INVESTMENT (UK) LIMITED (REGISTERED NUMBER: 05280362)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE PERIOD 25TH DECEMBER 2023 TO 29TH DECEMBER 2024


19. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
10,000 Ordinary £0.01 100 100

20. RESERVES

Group
Retained
earnings
£   

At 25th December 2023 4,675,639
Deficit for the period (60,679 )
Dividends (1,200,000 )
At 29th December 2024 3,414,960

Company
Retained
earnings
£   

At 25th December 2023 4,620,492
Profit for the period 1,235,586
Dividends (1,200,000 )
At 29th December 2024 4,656,078


21. PENSION COMMITMENTS

The group operates a number of defined contribution pension schemes and contributions made to these schemes during the period amounted to £169,635 (2023: 140,247).

22. CAPITAL COMMITMENTS
2024 2023
£    £   
Contracted but not provided for in the
financial statements 284,000 -

23. RELATED PARTY DISCLOSURES

The group has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

1ST RATE INVESTMENT (UK) LIMITED (REGISTERED NUMBER: 05280362)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE PERIOD 25TH DECEMBER 2023 TO 29TH DECEMBER 2024


23. RELATED PARTY DISCLOSURES - continued

Smith Parker Management Ltd
Common directors

The group paid management charges amounting to £Nil (2023: £10,000) to the related party during the period.

Xcel Consulting Limited
Common director

The group undertook the following transactions with the related party during the period:
2024 2023
£ £
Director services - 10,400
Support and administrative services 53,000 52,000
Bank balance held by related party as at balance sheet date as a nominee of the
Company

155,488

158,609
1st Rate Properties Limited
Common director and/or shareholder

The Company paid rent of £149,045 (2023: £147,327) to the related party during the year. The Company also purchased a motor vehicle of £32,000 (2023: £Nil) from the related party during the year. The amount due to the related party at the balance sheet date was £Nil (2023: £Nil).

Mr A. Mammadov
Ultimate controller

2024 2023
£ £
Payments to or on behalf of related party 1,305,216 955,122
Dividend payments to related party 1,100,000 -
Amount due to related party at the balance sheet date - 205,216

Highgrove Investments Services Limited
Common Director / Shareholder of the company

2024 2023
£ £
Dividends declared 122,222 -
Dividends waived (22,222 ) -
Dividend payments to related party 100,000 -
Balance due to related party at balance sheet date - -

1ST RATE INVESTMENT (UK) LIMITED (REGISTERED NUMBER: 05280362)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE PERIOD 25TH DECEMBER 2023 TO 29TH DECEMBER 2024


24. POST BALANCE SHEET EVENTS

The Company's Board has approved plans to open two new restaurants. Capital expenditure for the two restaurants is estimated to be £1.03m. The restaurants are expected to be operational later in 2025 and the total projected expenditure will be financed through internal resources.

The Company’s board has also approved the closure of one of its restaurants. In February 2025, employees were notified of the termination and the company paid redundancy and termination costs amounting to £80,000 after the balance sheet date.

As at balance sheet date, the Company had five property leases due to expire in April 2025. The Company was in negotiations with the respective landlords regarding the renewal of these leases. Subsequent to the balance sheet date and prior to the approval of the financial statements, the Company reached agreement on the principal terms for all five properties. However, the formal lease agreements have not yet been signed as at the date of approval of the financial statements. Based on the agreed terms, the total future financial commitments amount to £4,460,000.

The above events are considered non-adjusting events and, consequently, the financial statements for the period ended 29th December 2024 do not reflect any adjustments related to these events.

25. ULTIMATE CONTROLLING PARTY

The ultimate controlling party is Mr A. Mammadov.

26. RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

Period Period
25/12/23 26/12/22
to to
29/12/24 24/12/23
£    £   
Profit/(loss) before taxation 216,253 (876,930 )
Depreciation charges 1,993,770 2,073,192
Loss on disposal of fixed assets 77,506 75,040
Unwinding of reinstatement provision - 3,400
Goodwill impairment - 61,401
Increase in reinstatement/dilapidation 274,600 -
Finance costs - 42
2,562,129 1,336,145
(Increase)/decrease in stocks (9,397 ) 32,286
Decrease in trade and other debtors 2,125 237,672
Increase/(decrease) in trade and other creditors 1,128,439 (113,791 )
Cash generated from operations 3,683,296 1,492,312

27. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Period ended 29th December 2024
29/12/24 25/12/23
£    £   
Cash and cash equivalents 4,415,230 3,866,546
Period ended 24th December 2023
24/12/23 26/12/22
£    £   
Cash and cash equivalents 3,866,546 4,677,197


1ST RATE INVESTMENT (UK) LIMITED (REGISTERED NUMBER: 05280362)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE PERIOD 25TH DECEMBER 2023 TO 29TH DECEMBER 2024


28. ANALYSIS OF CHANGES IN NET FUNDS

At 25/12/23 Cash flow At 29/12/24
£    £    £   
Net cash
Cash at bank and in hand 3,866,546 548,684 4,415,230
3,866,546 548,684 4,415,230
Total 3,866,546 548,684 4,415,230