Company registration number 07396077 (England and Wales)
LARS (GFUK) HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 24 DECEMBER 2024
LARS (GFUK) HOLDINGS LIMITED
COMPANY INFORMATION
Directors
Mr A Khan
Mr S Muhammad
Mr R D Smith
Mr P Khan
Company number
07396077
Registered office
1st Floor, KFC
Earls Park, Arlington Way
Battlefield Road
Shrewsbury
Shropshire
England
SY1 4AB
Auditor
Hammond McNulty LLP
Bank House
Market Square
Congleton
Cheshire
United Kingdom
CW12 1ET
LARS (GFUK) HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Profit and loss account
9
Statement of comprehensive income
8
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 18
LARS (GFUK) HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 24 DECEMBER 2024
- 1 -
The directors present the strategic report for the year ended 24 December 2024.
Review of the business
The primary objective of the Company is to act as a holding company and to provide funding to various subsidiaries, Gastronomy Foods, Gastronomy Restaurants, Fry Mill and What’s Klukkin LTD. All subsidiaries are engaged in the QSR industry and operate one brand, as KFC.
Principal risks and uncertainties
The management of the business is subject to a number of risks. While the Directors acknowledge their responsibility for the overall management of these risks, as a wholly owned subsidiary of the Group, they are centrally managed within the risk and control functions of the Group.
The Directors note that the key business risks and uncertainties affecting the Company stem from the market and credit risks associated with its investments and amounts owed by group undertakings. Management of any. Market and credit risks will involve undertaking transactions with the ultimate parent and fellow subsidiary undertakings of the Company.
Key performance indicators
The results of the Company for the year ended 24th December 2024 show a post-tax profit of £ 2.5 M (2023: Loss of 124 K).
As a holding company, the profit or loss is driven by events in relation to the Company's fixed assets. During the year, the Company received 4.5 M dividends, mainly from its shares in group undertakings.
The key performance indicators are below:
2024
2023
Profit before tax
2,552,063
(124,127)
Fixed Assets
21,064,108
21,353,478
Net Assets
1,226,608
396,541
Other information and explanations
The Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the annual report and financial statements.
The outlook of the business is stable, and it is expected that the Company will maintain its current level of activity.
LARS (GFUK) HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 24 DECEMBER 2024
- 2 -
Promoting the success of the company
As per revised UK Corporate code ('2018') that requires considering the interest of other stakeholders which will have an impact on the long-term success of the company. This S172 statement explains how directors:
Have engaged with employees, suppliers, customers and other have had regard to employee's interest, the need to foster the company relationships with Suppliers, customers and others and effect of that regards, including decision taken by the company during financial year.
We have developed a clear framework for determining the matters. Approval matrix have determined to engage management from all levels and identifying matter requiring board consideration and approval. This has been set in a manual to cover the scope across broader business.
We, directors, do understand the business and the evolving environment in which we operate. We do every effort to minimise the corban reduction, through managing the consumption, changing to more energy efficient equipment, adding solar energy where possible and introducing more & more electric vehicles for the filed managers and directors. Our policies do cover the impact of operations on community and the environment.
The directors recognise that employees are fundamental and core to our business to deliver our strategic ambitions. We have introduced the long-term incentive at different management level to keep the employees engage and share the profits as business grows. Employees do have the option to encash all the long-term incentive at different stages of their careers. We do also have an extended benefit package, including health benefit. We do maintain a reputation for high standard of business conduct through fair policies that helps to act fairly between members of the company.
We do recognise the importance of business relationship with suppliers, customers, government, and joint venture partners. The ability to promote these principles effectively is an important factor in the decision to enter or remain in such relationship. The business continuously assesses the priorities related to customers and those with whom we do business.
Mr A Khan
Director
11 June 2025
LARS (GFUK) HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 24 DECEMBER 2024
- 3 -
The directors present their annual report and financial statements for the year ended 24 December 2024.
Principal activities
The principal activity of the company continued to be that of a KFC franchise.
Results and dividends
The results for the year are set out on page 9.
Ordinary dividends were paid amounting to £1,691,996. 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:
Mr A Khan
Mr S Muhammad
Mr R D Smith
Mr P Khan
Energy and carbon report
As the company has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.
Statement of directors' responsibilities
The directors are responsible for preparing the annual 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 of the profit or loss of the company 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 UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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 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.
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.
LARS (GFUK) HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 24 DECEMBER 2024
- 4 -
On behalf of the board
Mr A Khan
Director
11 June 2025
LARS (GFUK) HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LARS (GFUK) HOLDINGS LIMITED
- 5 -
Opinion
We have audited the financial statements of LARS (GFUK) Holdings Limited (the 'company') for the year ended 24 December 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity 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).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 24 December 2024 and of its profit for the year 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.
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's 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
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
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:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
LARS (GFUK) HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LARS (GFUK) HOLDINGS LIMITED (CONTINUED)
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the 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:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the 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.
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's 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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
We obtained an understanding of laws and regulations that affect the company, focusing on those that had a direct effect on the financial statements or that had a fundamental effect on its operations. Key laws and regulations that we identified included the UK Companies Act, tax legislation, and employment legislation.
We enquired of the directors, reviewed correspondence with HMRC and reviewed legal tor evidence of non-compliance with relevant laws and regulations. We also reviewed controls the directors have in place to ensure compliance.
We gained an understanding of the controls that the directors have in place to prevent and detect fraud. We enquired of the directors about any incidences of fraud that had taken place during the accounting period.
The risk of fraud and non-compliance with laws and regulations and fraud was discussed within the audit team and tests were planned and performed to address these risks. We identified the potential for fraud in the following areas: misappropriation of sales during the cut off' period, understatement of costs, potential for management override and related party transactions
We reviewed financial statements disclosures and tested to supporting documentation to assess compliance with relevant laws and regulations discussed above.
LARS (GFUK) HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LARS (GFUK) HOLDINGS LIMITED (CONTINUED)
- 7 -
We enquired of the directors about actual and potential litigation and claims.
We performed analytical procedures at the planning stage to identify any unusual or unexpected relationships that might indicate risks of material misstatement due to fraud.
In addressing the risk of fraud due to management override of internal controls we tested the appropriateness of journal entries and assessed whether the judgements made in making accounting estimates were indicative of a potential bias.
Due to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing fraud or non-compliance laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations.
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/auditors responsibilities. This description forms part of our Report of the Auditors
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Marie Ann Shenton FCCA (Senior Statutory Auditor)
For and on behalf of Hammond McNulty LLP, Statutory Auditor
Chartered Certified Accountants
Bank House
Market Square
Congleton
Cheshire
CW12 1ET
United Kingdom
11 June 2025
LARS (GFUK) HOLDINGS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 24 DECEMBER 2024
- 8 -
2024
2023
£
£
Profit/(loss) for the year
2,522,063
(124,127)
Other comprehensive income
-
-
Total comprehensive income for the year
2,522,063
(124,127)
LARS (GFUK) HOLDINGS LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 24 DECEMBER 2024
- 9 -
2024
2023
Notes
£
£
Administrative expenses
(379,840)
(289,370)
Interest receivable and similar income
6
4,491,996
1,681,022
Interest payable and similar expenses
7
(1,590,093)
(1,515,779)
Profit/(loss) before taxation
2,522,063
(124,127)
Tax on profit/(loss)
8
Profit/(loss) for the financial year
2,522,063
(124,127)
The profit and loss account has been prepared on the basis that all operations are continuing operations.
LARS (GFUK) HOLDINGS LIMITED
BALANCE SHEET
AS AT
24 DECEMBER 2024
24 December 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
10
578,739
868,109
Investments
11
20,485,369
20,485,369
21,064,108
21,353,478
Current assets
Debtors
13
3,786,741
1
Cash at bank and in hand
470
3,787,211
1
Creditors: amounts falling due within one year
14
(1,963,448)
(3,149,341)
Net current assets/(liabilities)
1,823,763
(3,149,340)
Total assets less current liabilities
22,887,871
18,204,138
Creditors: amounts falling due after more than one year
15
(21,661,263)
(17,807,597)
Net assets
1,226,608
396,541
Capital and reserves
Called up share capital
17
12
12
Share premium account
349,998
349,998
Profit and loss reserves
876,598
46,531
Total equity
1,226,608
396,541
The financial statements were approved by the board of directors and authorised for issue on 11 June 2025 and are signed on its behalf by:
Mr A Khan
Director
Company registration number 07396077 (England and Wales)
LARS (GFUK) HOLDINGS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 24 DECEMBER 2024
- 11 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 25 December 2022
12
349,998
651,680
1,001,690
Year ended 24 December 2023:
Loss and total comprehensive income
-
-
(124,127)
(124,127)
Dividends
9
-
-
(481,022)
(481,022)
Balance at 24 December 2023
12
349,998
46,531
396,541
Year ended 24 December 2024:
Profit and total comprehensive income
-
-
2,522,063
2,522,063
Dividends
9
-
-
(1,691,996)
(1,691,996)
Balance at 24 December 2024
12
349,998
876,598
1,226,608
LARS (GFUK) HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 24 DECEMBER 2024
- 12 -
1
Accounting policies
Company information
LARS (GFUK) Holdings Limited is a private company limited by shares incorporated in England and Wales. The registered office is 1st Floor, KFC, Earls Park, Arlington Way, Battlefield Road, Shrewsbury, Shropshire, England, SY1 4AB.
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, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.
LARS (GFUK) Holdings Limited is a majority owned subsidiary of Yoda Worldwide Limited and the results of LARS (GFUK) Holdings Limited are included in the consolidated financial statements of Yoda Worldwide Limited which are available from its registered office, 1st Floor, KFC Earls Park, Alrington Way, Battlefield Road, Shrewsbury, SY1 4AB.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
LARS (GFUK) HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 24 DECEMBER 2024
1
Accounting policies
(Continued)
- 13 -
1.3
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of a business 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 10 years on Fry Mill Limited and 20 years on Gastronomy Restaurants Limited. Both businesses are a franchise of the KFC brand, however Gastronomy Restaurants Limited has a longer amortisation period due to the ongoing strategic growth plan for the business and that it holds numerous stores.
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.
1.4
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
1.5
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.6
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 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.
LARS (GFUK) HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 24 DECEMBER 2024
1
Accounting policies
(Continued)
- 14 -
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, 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 profit or loss.
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 profit or loss.
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 creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
LARS (GFUK) HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 24 DECEMBER 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.
1.7
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.
1.8
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.
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.
3
Operating loss
2024
2023
Operating loss for the year is stated after charging:
£
£
Amortisation of intangible assets
289,370
289,370
4
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
4,200
4,200
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
LARS (GFUK) HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 24 DECEMBER 2024
- 16 -
6
Interest receivable and similar income
2024
2023
£
£
Income from fixed asset investments
Income from shares in group undertakings
4,491,996
1,681,022
7
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
1,590,093
1,515,779
8
Taxation
The actual charge for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit/(loss) before taxation
2,522,063
(124,127)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
630,516
(31,032)
Tax effect of expenses that are not deductible in determining taxable profit
72,343
72,342
Tax effect of income not taxable in determining taxable profit
(1,122,999)
(420,255)
Unutilised tax losses carried forward
378,945
Group relief
420,140
Taxation charge for the year
-
-
9
Dividends
2024
2023
£
£
Interim paid
1,691,996
481,022
LARS (GFUK) HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 24 DECEMBER 2024
- 17 -
10
Intangible fixed assets
Goodwill
£
Cost
At 25 December 2023 and 24 December 2024
2,893,697
Amortisation and impairment
At 25 December 2023
2,025,588
Amortisation charged for the year
289,370
At 24 December 2024
2,314,958
Carrying amount
At 24 December 2024
578,739
At 24 December 2023
868,109
11
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
12
20,485,369
20,485,369
12
Subsidiaries
Details of the company's subsidiaries at 24 December 2024 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Gastronomy Foods UK Limited
Earls Park, Arlington Way, Battefield Road, Shrewsbury,
SY1 4AB United Kingdom
Ordinary
100.00
Gastronomy Restaurants Limited
Earls Park, Arlington Way, Battefield Road, Shrewsbury,
SY1 4AB United Kingdom
Ordinary
100.00
Fry Mill Limited
Earls Park, Arlington Way, Battefield Road, Shrewsbury,
SY1 4AB United Kingdom
Ordinary
100.00
Whats Klukkin Limited
Lezayre, Quarterbridge Road, Douglas, IM2 3RD
Ordinary
60.00
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Amounts owed by group undertakings
3,786,740
Other debtors
1
1
3,786,741
1
LARS (GFUK) HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 24 DECEMBER 2024
- 18 -
14
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
16
1,956,491
2,323,056
Amounts owed to group undertakings
2,287
765,126
Accruals and deferred income
4,670
61,159
1,963,448
3,149,341
15
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
16
21,661,263
17,807,597
16
Loans and overdrafts
2024
2023
£
£
Bank loans
23,617,754
20,130,653
Payable within one year
1,956,491
2,323,056
Payable after one year
21,661,263
17,807,597
The long-term loans are secured by fixed charges over the assets of the company.
The bank loan is secured by a fixed and floating charge over the assets of the group and connect companies. The interest rate on the loan is 2.9% + SONIA.
17
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A Ordinary shares of 1p each
630
630
6
6
B Ordinary shares of 1p each
240
240
2
2
C Ordinary shares of 1p each
100
100
1
1
D Ordinary shares of 1p each
240
240
2
2
G Ordinary shares of 1p each
64
64
1
1
1,274
1,274
12
12
2024-12-242023-12-25falsefalsefalseCCH SoftwareCCH Accounts Production 2025.100Mr A KhanMr S MuhammadMr R D SmithMr P Khan073960772023-12-252024-12-2407396077bus:Director12023-12-252024-12-2407396077bus:Director22023-12-252024-12-2407396077bus:Director32023-12-252024-12-2407396077bus:Director42023-12-252024-12-2407396077bus:RegisteredOffice2023-12-252024-12-24073960772024-12-24073960772022-12-252023-12-2407396077core:RetainedEarningsAccumulatedLosses2022-12-252023-12-2407396077core:RetainedEarningsAccumulatedLosses2023-12-252024-12-2407396077core:Goodwill2024-12-2407396077core:Goodwill2023-12-24073960772023-12-2407396077core:CurrentFinancialInstrumentscore:WithinOneYear2024-12-2407396077core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-2407396077core:Non-currentFinancialInstrumentscore:AfterOneYear2024-12-2407396077core:Non-currentFinancialInstrumentscore:AfterOneYear2023-12-2407396077core:CurrentFinancialInstruments2024-12-2407396077core:CurrentFinancialInstruments2023-12-2407396077core:ShareCapital2024-12-2407396077core:ShareCapital2023-12-2407396077core:SharePremium2024-12-2407396077core:SharePremium2023-12-2407396077core:RetainedEarningsAccumulatedLosses2024-12-2407396077core:RetainedEarningsAccumulatedLosses2023-12-2407396077core:ShareCapital2022-12-2407396077core:SharePremium2022-12-2407396077core:RetainedEarningsAccumulatedLosses2022-12-2407396077core:ShareCapitalOrdinaryShareClass12024-12-2407396077core:ShareCapitalOrdinaryShareClass12023-12-2407396077core:ShareCapitalOrdinaryShareClass22024-12-2407396077core:ShareCapitalOrdinaryShareClass22023-12-2407396077core:ShareCapitalOrdinaryShareClass32024-12-2407396077core:ShareCapitalOrdinaryShareClass32023-12-2407396077core:ShareCapitalOrdinaryShareClass42024-12-2407396077core:ShareCapitalOrdinaryShareClass42023-12-2407396077core:ShareCapitalOrdinaryShareClass52024-12-2407396077core:ShareCapitalOrdinaryShareClass52023-12-2407396077core:ShareCapitalOrdinaryShares2024-12-2407396077core:ShareCapitalOrdinaryShares2023-12-2407396077core:Goodwill2023-12-252024-12-2407396077core:UKTax2023-12-252024-12-2407396077core:UKTax2022-12-252023-12-2407396077core:Goodwill2023-12-2407396077core:Non-currentFinancialInstruments2024-12-2407396077core:Non-currentFinancialInstruments2023-12-2407396077core:Subsidiary12023-12-252024-12-2407396077core:Subsidiary22023-12-252024-12-2407396077core:Subsidiary32023-12-252024-12-2407396077core:Subsidiary42023-12-252024-12-2407396077core:Subsidiary112023-12-252024-12-2407396077core:Subsidiary222023-12-252024-12-2407396077core:Subsidiary332023-12-252024-12-2407396077core:Subsidiary442023-12-252024-12-2407396077bus:OrdinaryShareClass12023-12-252024-12-2407396077bus:OrdinaryShareClass22023-12-252024-12-2407396077bus:OrdinaryShareClass32023-12-252024-12-2407396077bus:OrdinaryShareClass52023-12-252024-12-2407396077bus:OrdinaryShareClass42023-12-252024-12-2407396077bus:OrdinaryShareClass12024-12-2407396077bus:OrdinaryShareClass12023-12-2407396077bus:OrdinaryShareClass22024-12-2407396077bus:OrdinaryShareClass22023-12-2407396077bus:OrdinaryShareClass32024-12-2407396077bus:OrdinaryShareClass32023-12-2407396077bus:OrdinaryShareClass42024-12-2407396077bus:OrdinaryShareClass42023-12-2407396077bus:OrdinaryShareClass52024-12-2407396077bus:OrdinaryShareClass52023-12-2407396077bus:AllOrdinaryShares2024-12-2407396077bus:AllOrdinaryShares2023-12-2407396077bus:PrivateLimitedCompanyLtd2023-12-252024-12-2407396077bus:FRS1022023-12-252024-12-2407396077bus:Audited2023-12-252024-12-2407396077bus:FullAccounts2023-12-252024-12-24xbrli:purexbrli:sharesiso4217:GBP