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Registered number: 07161009 Deckers Hospitality Group Limited Annual Report and Financial Statements For the year ended 30 September 2024
Deckers Hospitality Group Limited Company Information
Directors | Clifford Brierley
| Maxwell Brierley
| Victoria Cosgrove
| Andrew Waller
Company secretary | Victoria Cosgrove
Registered number | 07161009
Registered office | Unit F
| Royle Pennine Trading Estate
| Lynroyle Way
| Rochdale
| OL11 3EX
Independent auditors | Hurst Accountants Limited
| Chartered Accountants & Statutory Auditors
| 3 Stockport Exchange
| Stockport
| Cheshire
| SK1 3GG
Bankers | HSBC UK Bank PLC
| St Peter's Square
| Landmark 1 Oxford Street
| Manchester
| M1 4PB
Solicitors | Gunnercooke LLP
| 53 King Street
| Manchester
| M2 4LQ
Deckers Hospitality Group Limited Contents
| Page
Group strategic report | 1 - 3
Directors' report | 4 - 6
Independent auditors' report | 7 - 10
Consolidated statement of comprehensive income | 11
Consolidated balance sheet | 12 - 13
Company balance sheet | 14 - 15
Consolidated statement of changes in equity | 16
Company statement of changes in equity | 17
Consolidated statement of cash flows | 18
Consolidated analysis of net debt | 19
Notes to the financial statements | 20 - 45
Deckers Hospitality Group Limited Group Strategic Report For the year ended 30 September 2024
Introduction
The directors present the strategic report and financial statements for the year ended 30 September 2024.
Business review
The group saw significant growth year-on-year with a 15% increase in turnover. This was driven by a wider wholesale drinks customer base and strengthening route to market opportunities for suppliers. The Royal Toby faced challenges from increased competition and a decline in the wedding market. However the underlying trade remained strong with customer experience feedback remaining high. Investment in the business in the year remains high with a capital expenditure of £387,511. The final floor of The Royal Toby Hotel refurbishment was completed during the year. The group also invested in vehicles and butchery equipment to support the growth of the businesses. Despite the strong sales growth and 6% increase in gross profit, the operating profit saw a small decrease to £522,074. This reflects the inflationary pressures on the cost base in particular on wages, power, and fuel. These increases in costs could not be passed on in full to customers. The directors believe the disproportionately large cost increases due to inflation and market conditions are masking the improved trade and progression of the business. Net assets saw a 2.7% increase to £5,688,491. Page 1
Deckers Hospitality Group Limited Group Strategic Report (continued) For the year ended 30 September 2024
Principal risks and uncertainties
The directors consider the principal risks and uncertainties facing the group to be financial, liquidity, credit, compliance and legislative. Government Policy The change in government and the outcomes of the Autumn 2024 budget have inherent risks to the hospitality industry and family owned businesses. The directors consider the unpredictability and strain on businesses of these policy decisions is a key risk to the business. Pandemic Risk Although the risk of another Pandemic exists, the directors believe the learnings from Covid 19 can be applied to mitigate the impact of any future closures. Financial Risk The directors monitor the interest rate closely. The group has previously used interest rate hedges and may do so again in the future if the directors consider it necessary to reduce the uncertainty. Liquidity Risk The group aims to mitigate liquidity risk by managing cash generation from operations. Investment is carefully monitored, with authorisation limits operating up to Board level. The approval procedures apply to all capital items. The method of funding to be used is dictated in each case by the cash flow implications. Credit Risk Debtors represent a significant level of the group's financial assets. Levels of credit are carefully monitored and reviewed by the directors. The group manages its credit risk through credit insurance for the substantial part of the debt contained within the wholesale business. Compliance risk The group is subject to the Alcohol Wholesaler Registration Scheme (AWRS) and the Warehousekeepers and Owners of Warehoused Goods Regulations 1999 (WOWGR). The directors consider compliance with these regulations as critical to the operation of the business and have implemented appropriate procedures and controls. Legislative risk The group is subject to Health, Hygiene and Safety legislation which is constantly reviewed. Compliance imposes costs and failure to comply with these standards could result in the business being unable to operate. The group has a Health & Safety policy and promotes the culture of a safe working environment. All employees are included in the internal training programme. Employee legislation is subject to continuous revision and any new Directive may have a material impact on the ability of the group to operate profitably. Page 2
Deckers Hospitality Group Limited Group Strategic Report (continued) For the year ended 30 September 2024
Financial key performance indicators
The group's key financial performance indicators are as follows. All figures are for continuing operations.
| 2024 | 2023 | Movement
| £000 | £000 | %
Turnover | 46,651 | 40,572 | 14.98
Gross profit | 6,440 | 6,062 | 6.23
Profit before tax | 229 | 274 | (16.4)
Cash at bank | 1,106 | 1,340 | (17.44)
Net assets | 5,688 | 5,540 | 2.67
Gross margin | 13.8% | 14.9% | (1.1)
EBITDA margin excl exceptional items | 1.73% | 1.98% | (0.25)
Staff costs a % of sales | 8.36% | 8.6% | (0.24)
Other key performance indicators
Non-financial key performance indicators monitored by management comprise delivery targets and customer feedback. This report was approved by the board and signed on its behalf.
Victoria Cosgrove Director
Date: 13 June 2025
Page 3
Deckers Hospitality Group Limited Directors' Report For the year ended 30 September 2024 The directors present their report and the financial statements for the year ended 30 September 2024.
Directors' responsibilities statement
The directors are responsible for preparing the group strategic report, the directors' report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Group's financial statements and then apply them consistently; ∙make judgments and accounting estimates that are reasonable and prudent; ∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group 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 the Group and to 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.
Results and dividends
The profit for the year, after taxation, amounted to £156,572 (2023 - £205,560). A dividend of £8,370 (2023: £Nil) was paid during the year. The directors do not recommend payment of a final dividend.
Directors
The directors who served during the year were:
Clifford Brierley
Maxwell Brierley
Victoria Cosgrove
Andrew Waller
Page 4
Deckers Hospitality Group Limited Directors' Report (continued) For the year ended 30 September 2024
Future Developments and going concern Post year end the group purchased a free-trade wholesale business, Young’s Beers Wines and Spirits Ltd. This further expands the group's route to market offering, delivering direct to on-trade customers. As a family business, it is both an exciting and a natural fit to bring the Young's family business into the Deckers group. Whilst the Young's business will continue as a stand-alone operation, it will benefit from access to both a wider product portfolio and additional skill sets that will fit perfectly with today’s consumer trends. Young's will continue to trade from the current East Lancashire site under the Young's name, all the current staff will remain while the team will grow with the addition of 4 members of staff transferring in from the wider Deckers group to help achieve the group’s growth aspirations. The directors are committed to delivering the high levels of service and customer relationships this business already has. HSBC helped finance the acquisition and are very supportive of expansion plans for the group. They remain a key partner to the group. For the existing businesses, the continued “cost of living crisis” and consistently increasing prices remains a challenge for the group. The impact of the national living wage increase, the employer NI cost increases and the reduction in the hospitality rates reliefs are all putting immense pressure on the hospitality industry. The directors are continually reassessing the impact of these government policy decisions resulting in a redesign of job roles and menus to increase productivity and reduce hours of employment per £ of revenue generated. The group continues to review each company’s impact on the wider world, with a continuous improvement plan in place. Education and enrolment of colleagues and supply chains about the benefits of carbon reduction are key areas of focus. The directors have no concerns over the viability of the business to continue as a going concern. The group is financed centrally, and forecasts are performed on an ongoing basis. Actual sales performance along with forecast sales remain strong. Cash availability is forecast to be more than sufficient to meet the businesses requirements.
Disclosure of information to auditors
Each of the persons who are directors at the time when this directors' report is approved has confirmed that: ∙so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and ∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.
Post balance sheet events
As noted above, on 14 March 2025 Deckers Hospitality Group acquired Young's Beers Wines and Spirits Ltd and warehouses for a combined estimated consideration of £2.1m. The company financed the purchase via a £1.35m loan from HSBC with the remainder from working capital. The total consideration is estimated at time of the financial statements.
Auditors
The auditors, Hurst Accountants Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006. Page 5
Deckers Hospitality Group Limited Directors' Report (continued) For the year ended 30 September 2024 This report was approved by the board and signed on its behalf.
Victoria Cosgrove Director
Date: 13 June 2025
Page 6
Deckers Hospitality Group Limited Independent Auditors' Report to the Members of Deckers Hospitality Group Limited
Opinion
We have audited the financial statements of Deckers Hospitality Group Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 30 September 2024, which comprise the consolidated statement of comprehensive income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, 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's affairs as at 30 September 2024 and of the Group's 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.
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 United Kingdom, including the Financial Reporting Council'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 or 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 other information comprises the information included in the Annual Report other than the financial statements and our auditors' 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. Page 7
Deckers Hospitality Group Limited Independent Auditors' Report to the Members of Deckers Hospitality Group Limited (continued)
Opinion 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 directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and ∙the group strategic report and the directors' report 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 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 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.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement set out on page 4, 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 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. Page 8
Deckers Hospitality Group Limited Independent Auditors' Report to the Members of Deckers Hospitality Group Limited (continued)
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 an auditors' 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 Group financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: Identifying and assessing potential risks related to irregularities In identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following: ∙The nature of the industry and sector in which the company operates; the control environment and business performance including key drivers for directors' remuneration, bonus levels and performance targets. ∙The outcome of enquiries of local management and parent company management, including whether management was aware of any instances of non-compliance with laws and regulations, and whether management had knowledge of any actual, suspected, or alleged fraud. ∙Supporting documentation relating to the Company's policies and procedures for: °Identifying, evaluating, and complying with laws and regulations °Detecting and responding to the risks of fraud ∙The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations. ∙The outcome of discussions amongst the engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. ∙The legal and regulatory framework in which the Company operates, particularly those laws and regulations which have a direct effect on the financial statements, such as the Companies Act 2006, pensions and tax legislation, or which had a fundamental effect on the operations of the Company, including the Alcohol Wholesaler Registration Scheme, the Warehousekeepers and Owners of Warehoused Goods Regulations, General Data Protection requirements, and Anti-bribery and Corruption legislation. Audit response to risks identified Our procedures to respond to the risks identified included the following: ∙Reviewing the financial statements disclosures and testing to supporting documentation to assess compliance with the provisions of those relevant laws and regulations which have a direct effect on the financial statements. ∙Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud. ∙Evaluation of the operating effectiveness of management’s controls designed to prevent and detect irregularities. ∙Enquiring of management about any actual and potential litigation and claims ∙Performing analytical procedures to identify any unusual or unexpected relationships which may indicate risks of material misstatement due to fraud. ∙Reading minutes of meetings of those charges with governance. Page 9
Deckers Hospitality Group Limited Independent Auditors' Report to the Members of Deckers Hospitality Group Limited (continued) We have also considered the risk of fraud through management override of controls by: ∙Testing the appropriateness of journal entries and other adjustments. ∙Challenging assumptions made by management in their significant accounting estimates, and 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. We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. There are inherent limitations in the audit procedures described above, and the further removed non-compliance with laws and regulations are from the events and transactions reflected in the financial statements, the less likely we would become aware of them. Also, 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 or intentional misrepresentations, or through collusion. 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 auditors' report.
Use of our report
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed. Helen Besant-Roberts (senior statutory auditor) for and on behalf of Hurst Accountants Limited Chartered Accountants Statutory Auditors 3 Stockport Exchange Stockport Cheshire SK1 3GG 15 June 2025 Page 10
Deckers Hospitality Group Limited Consolidated Statement of Comprehensive Income For the year ended 30 September 2024
| 2024 | 2023
Note | £ | £
Turnover | 4 | 46,651,339 | 40,571,592
Cost of sales |  | (40,211,924) | (34,509,970)
Gross profit |  | 6,439,415 | 6,061,622
Distribution costs |  | (3,901,520) | (3,526,190)
Administrative expenses |  | (2,135,375) | (2,104,566)
Other operating income | 5 | 119,554 | 121,865
Operating profit | 6 | 522,074 | 552,731
Interest payable and similar expenses | 10 | (218,049) | (216,974)
Fair value movements |  | (74,841) | (61,553)
Profit before taxation |  | 229,184 | 274,204
Tax on profit | 12 | (72,612) | (68,644)
Profit for the financial year |  | 156,572 | 205,560
Profit for the year attributable to: |  |  |
Owners of the parent Company |  | 156,572 | 205,560
|  | 156,572 | 205,560
There was no other comprehensive income for 2024 (2023:£NIL).
The notes on pages 20 to 45 form part of these financial statements.
Page 11
Deckers Hospitality Group Limited Registered number: 07161009 Consolidated Balance Sheet As at 30 September 2024
|  | 2024 |  | 2023
Note |  | £ |  | £
Fixed assets |  |  |  |  |
Intangible assets | 14 |  | 12,473 |  | 18,568
Tangible assets | 15 |  | 7,326,974 |  | 7,227,126
|  |  | 7,339,447 |  | 7,245,694
Current assets |  |  |  |  |
Stocks | 17 | 3,409,336 |  | 3,218,194 |
Debtors: amounts falling due within one year | 18 | 4,264,024 |  | 3,737,959 |
Cash at bank and in hand | 19 | 1,105,821 |  | 1,339,517 |
|  | 8,779,181 |  | 8,295,670 |
Creditors: amounts falling due within one year | 20 | (7,410,452) |  | (6,773,930) |
Net current assets |  |  | 1,368,729 |  | 1,521,740
Total assets less current liabilities |  |  | 8,708,176 |  | 8,767,434
Creditors: amounts falling due after more than one year | 21 |  | (2,151,242) |  | (2,424,214)
Provisions for liabilities |  |  |  |  |
Deferred taxation | 25 | (811,256) |  | (745,744) |
Other provisions | 26 | (58,498) |  | (58,498) |
|  |  | (869,754) |  | (804,242)
Net assets |  |  | 5,687,180 |  | 5,538,978
Capital and reserves |  |  |  |  |
Called up share capital | 27 |  | 26,999 |  | 26,999
Revaluation reserve | 28 |  | 790,056 |  | 790,056
Capital redemption reserve | 28 |  | 245,000 |  | 245,000
Other reserves | 28 |  | 34,000 |  | 34,000
Profit and loss account | 28 |  | 4,591,125 |  | 4,442,923
|  |  | 5,687,180 |  | 5,538,978
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
Victoria Cosgrove
Director
Date: 13 June 2025
The notes on pages 20 to 45 form part of these financial statements. Page 12
Deckers Hospitality Group Limited Registered number: 07161009 Consolidated Balance Sheet (continued) As at 30 September 2024 Page 13
Deckers Hospitality Group Limited Registered number: 07161009 Company Balance Sheet As at 30 September 2024
|  | 2024 |  | 2023
Note |  | £ |  | £
Fixed assets |  |  |  |  |
Intangible assets | 14 |  | 3,432 |  | 7,082
Tangible assets | 15 |  | 167,364 |  | 219,619
Investments | 16 |  | 272,003 |  | 272,003
|  |  | 442,799 |  | 498,704
Current assets |  |  |  |  |
Debtors: amounts falling due within one year | 18 | 4,088,696 |  | 4,361,179 |
Cash at bank and in hand | 19 | 118,767 |  | 131,401 |
|  | 4,207,463 |  | 4,492,580 |
Creditors: amounts falling due within one year | 20 | (1,948,392) |  | (2,007,134) |
Net current assets |  |  | 2,259,071 |  | 2,485,446
Total assets less current liabilities |  |  | 2,701,870 |  | 2,984,150
Creditors: amounts falling due after more than one year | 21 |  | (2,114,092) |  | (2,386,623)
Provisions for liabilities |  |  |  |  |
Deferred taxation | 25 | (34,284) |  | (20,431) |
|  |  | (34,284) |  | (20,431)
Net assets |  |  | 553,494 |  | 577,096
Capital and reserves |  |  |  |  |
Called up share capital | 27 |  | 26,999 |  | 26,999
Capital redemption reserve | 28 |  | 245,000 |  | 245,000
Profit and loss account brought forward |  | 305,097 |  | 184,199 |
Loss/(profit) for the year |  | (15,232) |  | 120,898 |
Other changes in the profit and loss account |  | (8,370) |  | - |
Profit and loss account carried forward |  |  | 281,495 |  | 305,097
|  |  | 553,494 |  | 577,096
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
Victoria Cosgrove
Director
Date: 13 June 2025
The notes on pages 20 to 45 form part of these financial statements. Page 14
Deckers Hospitality Group Limited Registered number: 07161009 Company Balance Sheet (continued) As at 30 September 2024 Page 15
Deckers Hospitality Group Limited Consolidated Statement of Changes in Equity For the year ended 30 September 2024
| Called up share capital | Capital redemption reserve | Revaluation reserve | Other reserves | Profit and loss account | Total equity
| £ | £ | £ | £ | £ | £
At 1 October 2022 | 26,999 | 245,000 | 790,056 | 34,000 | 4,237,363 | 5,333,418
Comprehensive income for the year |  |  |  |  |  |
Profit for the year | - | - | - | - | 205,560 | 205,560
Total comprehensive income for the year | - | - | - | - | 205,560 | 205,560
At 1 October 2023 | 26,999 | 245,000 | 790,056 | 34,000 | 4,442,923 | 5,538,978
Comprehensive income for the year |  |  |  |  |  |
Profit for the year | - | - | - | - | 156,572 | 156,572
Total comprehensive income for the year | - | - | - | - | 156,572 | 156,572
Contributions by and distributions to owners |  |  |  |  |  |
Dividends: Equity capital | - | - | - | - | (8,370) | (8,370)
Total transactions with owners | - | - | - | - | (8,370) | (8,370)
At 30 September 2024 | 26,999 | 245,000 | 790,056 | 34,000 | 4,591,125 | 5,687,180
| The notes on pages 20 to 45 form part of these financial statements.
Page 16
Deckers Hospitality Group Limited Company Statement of Changes in Equity For the year ended 30 September 2024
| Called up share capital | Capital redemption reserve | Profit and loss account | Total equity
| £ | £ | £ | £
At 1 October 2022 | 26,999 | 245,000 | 184,199 | 456,198
Comprehensive income for the year |  |  |  |
Profit for the year | - | - | 120,898 | 120,898
At 1 October 2023 | 26,999 | 245,000 | 305,097 | 577,096
Comprehensive income for the year |  |  |  |
Loss for the year | - | - | (15,232) | (15,232)
Total comprehensive income for the year | - | - | (15,232) | (15,232)
Contributions by and distributions to owners |  |  |  |
Dividends: Equity capital | - | - | (8,370) | (8,370)
Total transactions with owners | - | - | (8,370) | (8,370)
At 30 September 2024 | 26,999 | 245,000 | 281,495 | 553,494
| The notes on pages 20 to 45 form part of these financial statements.
Page 17
Deckers Hospitality Group Limited Consolidated Statement of Cash Flows For the year ended 30 September 2024
|  |  | 2024 | 2023
|  |  | £ | £
Cash flows from operating activities |  |
Profit for the financial year | 156,572 | 205,560
Adjustments for: |  |
Amortisation of intangible assets | 6,095 | 6,739
Depreciation of tangible assets | 277,508 | 242,789
(Profit) on disposal of tangible assets | (1,595) | (8,525)
Interest paid | 218,049 | 222,189
Taxation charge | 72,612 | 68,644
(Increase) in stocks | (191,142) | (221,738)
(Increase)/decrease in debtors | (600,906) | 272,746
Increase/(decrease) in creditors | 779,267 | (844,546)
Corporation tax (paid)/received | (8,920) | -
Movement in valuation of financial instruments | 74,841 | 61,553
Net cash generated from operating activities | 782,381 | 5,411
Cash flows from investing activities |  |
Purchase of tangible fixed assets | (339,817) | (444,749)
Sale of tangible fixed assets | 11,750 | 9,650
HP interest paid | (3,197) | (1,364)
Net cash from investing activities | (331,264) | (436,463)
Cash flows from financing activities |  |
New secured loans | - | 264,504
Repayment of loans | (269,050) | (274,220)
Net repayment of finance leases | (34,138) | (30,677)
Movements on invoice discounting | (158,403) | 90,509
Dividends paid | (8,370) | -
Interest paid | (214,852) | (220,825)
Net cash used in financing activities | (684,813) | (170,709)
Net (decrease) in cash and cash equivalents | (233,696) | (601,761)
Cash and cash equivalents at beginning of year | 1,339,517 | 1,941,278
Cash and cash equivalents at the end of year | 1,105,821 | 1,339,517
Cash and cash equivalents at the end of year comprise: |  |
Cash at bank and in hand | 1,105,821 | 1,339,517
| 1,105,821 | 1,339,517
Page 18
Deckers Hospitality Group Limited Consolidated Analysis of Net Debt For the year ended 30 September 2024
|  | At 1 October 2023 | Cash flows | Other non-cash changes | At 30 September 2024
|  | £ | £ | £ | £
Cash at bank and in hand | 1,339,517 | (233,696) | - | 1,105,821
Debt due after 1 year | (2,386,623) | - | 272,531 | (2,114,092)
Debt due within 1 year | (543,903) | (269,050) | 290,415 | (522,538)
Finance leases | (61,835) | (13,556) | - | (75,391)
Liquid investments | 129,633 | - | (74,841) | 54,792
| (1,523,211) | (516,302) | 488,105 | (1,551,408)
The notes on pages 20 to 45 form part of these financial statements.
Page 19
Deckers Hospitality Group Limited Notes to the Financial Statements For the year ended 30 September 2024
1. | General information
Deckers Hospitality Group Limited is a private company limited by shares and incorporated in England, registered number 07161009. The registered office is Unit F, Royle Pennine Trading Estate, Lynroyle Way, Rochdale, OL11 3EX. The group's principal activities and nature of operations during the period was that of a restaurateur, hotelier, bar operator, butcher, and drinks wholesaler. The principal activity of the company was that of a holding company which incurred central costs for the group. 2.Accounting policies
| 2.1 | Basis of preparation of financial statements
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006. The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3). The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own statement of comprehensive income in these financial statements. The following principal accounting policies have been applied:
| 2.2 | Basis of consolidation
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full. The consolidated financial statements incorporate the results of business combinations using the purchase method. In the balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases. Page 20
Deckers Hospitality Group Limited Notes to the Financial Statements For the year ended 30 September 2024 2.Accounting policies (continued)
| 2.3 | Revenue
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised: Sale of goods Revenue from the sale of goods is recognised when all of the following conditions are satisfied: ∙the Group has transferred the significant risks and rewards of ownership to the buyer; ∙the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; ∙the amount of revenue can be measured reliably; ∙it is probable that the Group will receive the consideration due under the transaction; and ∙the costs incurred or to be incurred in respect of the transaction can be measured reliably. Rendering of services Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied: ∙the amount of revenue can be measured reliably; ∙it is probable that the Group will receive the consideration due under the contract; ∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and ∙the costs incurred and the costs to complete the contract can be measured reliably.
| 2.4 | Operating leases: the Group as lessee
Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term. Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
| 2.5 | Finance costs
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument. Page 21
Deckers Hospitality Group Limited Notes to the Financial Statements For the year ended 30 September 2024 2.Accounting policies (continued)
| 2.6 | Pensions
Defined contribution pension plan The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations. The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the Group in independently administered funds.
| 2.7 | Current and deferred taxation
The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively. The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate income. Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that: ∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; ∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and ∙Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future. Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date. Page 22
Deckers Hospitality Group Limited Notes to the Financial Statements For the year ended 30 September 2024 2.Accounting policies (continued)
| 2.8 | Intangible assets
Goodwill Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the consolidated statement of comprehensive income over its useful economic life. Other intangible assets Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years. Amortisation is provided on the following bases:
|  |  |  | Goodwill | - | 20% | straight line
|  |  |  | Software | - | 20% | straight line
| 2.9 | Tangible fixed assets
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Page 23
Deckers Hospitality Group Limited Notes to the Financial Statements For the year ended 30 September 2024 2.Accounting policies (continued)
| 2.9 | Tangible fixed assets (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method and reducing balance method. Depreciation is provided on the following basis:
|  |  |  | Freehold property and improvements | - | Not depreciated
|  |  |  | Leasehold property | - | Over the duration of the lease
|  |  |  | Motor vehicles | - | 25% reducing balance
|  |  |  | Furniture, fixtures and fittings | - | On a straight line basis over the estimated useful life ranging from 5 to 20 years
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss. No depreciation has been provided on freehold property, contrary to Financial Reporting Standard 102, which requires that provision be made for depreciation of fixed assets having a finite useful life. The directors are of the opinion that the residual values at the end of the estimated useful lives of the buildings are not likely to be materially different from their carrying values. This is because it is the company's policy to maintain buildings in such a condition that their value is not diminished by the passage of time, and the relevant expenditure is charged to profit before tax in the year in which it is incurred. Therefore, any element of depreciation is considered to be immaterial and no provision is made.
| 2.10 | Revaluation of tangible fixed assets
Individual freehold and leasehold properties are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the balance sheet date. Fair values are determined from market based evidence normally undertaken by professionally qualified valuers. Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.
| 2.11 | Valuation of investments
Investments in subsidiaries are measured at cost less accumulated impairment. Page 24
Deckers Hospitality Group Limited Notes to the Financial Statements For the year ended 30 September 2024 2.Accounting policies (continued)
| 2.12 | Stocks
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads. At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
| 2.13 | Debtors
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
| 2.14 | Cash and cash equivalents
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value. In the consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.
| 2.15 | Creditors
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
| 2.16 | Provisions for liabilities
Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made. Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties. Increases in provisions are generally charged as an expense to profit or loss. Page 25
Deckers Hospitality Group Limited Notes to the Financial Statements For the year ended 30 September 2024 2.Accounting policies (continued)
| 2.17 | Financial instruments
The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments. Basic financial assets Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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. Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments. Impairment of financial assets Financial assets are assessed for indicators of impairment at each reporting date. Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate. If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss. Financial liabilities Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Group after the deduction of all its liabilities. Basic financial liabilities, which include trade and other payables, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial. Debt instruments are subsequently carried at their amortised cost using the effective interest rate method. Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial. Page 26
Deckers Hospitality Group Limited Notes to the Financial Statements For the year ended 30 September 2024 2.Accounting policies (continued)
| 2.17 | Financial instruments (continued)
Derecognition of financial assets Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Group will continue to recognise the value of the portion of the risks and rewards retained. Derecognition of financial liabilities Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled.
| 2.18 | Hedge accounting
The Group uses an interest rate cap to manage its exposure to interest rate risk on its debt. These derivatives are measured at fair value at each balance sheet date. Gains and losses on the hedging instruments and the hedged items are recognised in profit or loss for the year. When a hedged item is an unrecognised firm commitment, the cumulative hedging gain or loss on the hedged item is recognised as an asset or liability with a corresponding gain or loss recognised in profit or loss.
| 2.19 | Dividends
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting. Page 27
Deckers Hospitality Group Limited Notes to the Financial Statements For the year ended 30 September 2024
3. | Judgements in applying accounting policies and key sources of estimation uncertainty
Preparation of the financial statements requires management to make significant judgements, estimates and assumptions that affect the amounts reported for assets and liabilities at the balance sheet date and amounts reported for revenues and expenses during the year. The nature of estimation means that actual outcomes could be different from those estimates. The items in the financial statements where these judgements and estimates have been made include: Stock provisions Stock is reviewed to assess obsolescence on a regular basis. In determining whether provision for obsolescence should be recorded in profit and loss, the company makes judgements as to whether there is any observable data indicating that there is future saleability of the product and the estimated net realisable value for such product. Accordingly, provision for impairment is made where net realisable value is less than the cost based on best estimates by the management. The provision for obsolescence of stock is based on the ageing and historical sales pattern. At the year end, a stock provision of £15,013 was recognised in these financial statements (2023: £35,895). Depreciation Management of the company exercises judgement in estimating the useful economic life of property, plant and equipment; such estimations are reviewed regularly to ensure they remain appropriate. No depreciation is charged on the freehold property held by The Royal Toby Hotel (Castleton) Limited. Management have judged that the residual values at the end of the estimated useful lives of the buildings are not likely to be materially different from their carrying values. This is because it is the company’s policy to maintain buildings in such a condition that their value is not diminished by the passage of time, and the relevant expenditure is charged to profit before tax in the year in which it is incurred. Value of property Management considers the value of the group's freehold property and makes appropriate provision for impairment where it is believed that the realisable value of a property is below its book value. No impairments were charged to the Statement of Comprehensive Income during the period.
4. | Turnover
| An analysis of turnover by class of business is as follows:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Wholesale | 40,336,189 | 34,852,695
| Hotel and pub operations | 6,282,539 | 5,670,445
| Distribution charges | 32,611 | 48,452
|  | 46,651,339 | 40,571,592
| All turnover arose within the United Kingdom.
Page 28
Deckers Hospitality Group Limited Notes to the Financial Statements For the year ended 30 September 2024
5. | Other operating income
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Other operating income | 98,889 | 110,000
| Net rents receivable | 20,665 | 11,865
|  | 119,554 | 121,865
6. | Operating profit
| The operating profit is stated after charging:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Other operating lease rentals | 166,152 | 153,532
| Depreciation | 277,508 | 242,789
7. | Auditors' remuneration
| During the year, the Group obtained the following services from the Company's auditors:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Fees payable to the Group's auditor for the audit of the consolidated and parent Company's financial statements | 25,775 | 20,985
| Fees payable to the Group's auditors for all other services | 11,000 | 13,990
Page 29
Deckers Hospitality Group Limited Notes to the Financial Statements For the year ended 30 September 2024
8. | Employees
| Staff costs, including directors' remuneration, were as follows:
|  | Group | Group | Company | Company
|  | 2024 | 2023 | 2024 | 2023
|  | £ | £ | £ | £
| Wages and salaries | 3,741,003 | 3,209,609 | 3,741,003 | 712,527
| Social security costs | 95,827 | 267,943 | 95,827 | 79,389
| Cost of defined contribution scheme | 67,258 | 98,908 | 67,258 | 57,617
|  | 3,904,088 | 3,576,460 | 3,904,088 | 849,533
| During the year, the group centralised its payroll function within the parent company. As a result, all the payroll costs for group employees are incurred by the parent company and recharged to the respective subsidiaries on a cost basis.
| The average monthly number of employees, including the directors, during the year was as follows:
|  |  | Group | Group | Company | Company
|  |  | 2024 | 2023 | 2024 | 2023
|  |  | No. | No. | No. | No.
|  | Administration | 20 | 44 | 20 | 20
|  | Operational | 115 | 107 | 115 | -
|  |  | 135 | 151 | 135 | 20
9. | Directors' remuneration
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Directors' emoluments | 321,576 | 289,352
| Group contributions to defined contribution pension schemes | 5,218 | 4,993
|  | 326,794 | 294,345
| During the year retirement benefits were accruing to 4 directors (2023 - 4) in respect of defined contribution pension schemes.
| The highest paid director received remuneration of £106,655 (2023 - £100,946). The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £1,728 (2023 - £1,762).
Page 30
Deckers Hospitality Group Limited Notes to the Financial Statements For the year ended 30 September 2024
10. | Interest payable and similar expenses
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Bank interest payable | 214,852 | 215,610
| Finance leases and hire purchase contracts | 3,197 | 1,364
|  | 218,049 | 216,974
11. | Fair value movements
|  | 2024 | 2023
|  | £ | £
| Fair value loss on interest rate cap | 74,841 | 61,553
|  | 74,841 | 61,553
12. | Taxation
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Corporation tax |  |
| Current tax on profits for the year | 7,100 | -
| Adjustments in respect of previous periods | - | 8,920
|  | 7,100 | 8,920
| Total current tax | 7,100 | 8,920
| Deferred tax |  |
| Origination and reversal of timing differences | 55,094 | 59,724
| Changes to tax rates | 1,512 | -
| Adjustments in respect of prior periods | 8,906 | -
| Total deferred tax | 65,512 | 59,724
| Tax on profit | 72,612 | 68,644
Page 31
Deckers Hospitality Group Limited Notes to the Financial Statements For the year ended 30 September 2024 12.Taxation (continued)
| Factors affecting tax charge for the year
| The tax assessed for the year is higher than (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 22%). The differences are explained below:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Profit on ordinary activities before tax | 229,184 | 274,204
| Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 22%) | 57,296 | 60,325
| Effects of: |  |
| Expenses not deductible for tax purposes, other than goodwill amortisation and impairment | 1,348 | 277
| Adjustments to tax charge in respect of prior periods | 8,906 | 8,920
| Other timing differences leading to an increase (decrease) in taxation | 4,958 | 2,234
| Super deduction enhancement | - | (3,112)
| Group relief | 29,280 | -
| Marginal relief | (1,116) | -
| Remeasurement of deferred tax for changes in tax rates | (28,060) | -
| Total tax charge for the year | 72,612 | 68,644
| Factors that may affect future tax charges
There were no factors that may affect future tax charges.
13. | Dividends
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Dividends paid | 8,370 | -
|  | 8,370 | -
Page 32
Deckers Hospitality Group Limited Notes to the Financial Statements For the year ended 30 September 2024
14. | Intangible assets
| Group
|  | Computer software | Goodwill | Total
|  | £ | £ | £
| Cost |  |  |
| At 1 October 2023 | 113,162 | 8,940 | 122,102
| At 30 September 2024 | 113,162 | 8,940 | 122,102
| Amortisation |  |  |
| At 1 October 2023 | 101,746 | 1,788 | 103,534
| Charge for the year on owned assets | 4,343 | 1,752 | 6,095
| At 30 September 2024 | 106,089 | 3,540 | 109,629
| Net book value |  |  |
| At 30 September 2024 | 7,073 | 5,400 | 12,473
| At 30 September 2023 | 11,416 | 7,152 | 18,568
Page 33
Deckers Hospitality Group Limited Notes to the Financial Statements For the year ended 30 September 2024 14.Intangible assets (continued)
| Company
|  | Computer software
|  | £
| Cost |
| At 1 October 2023 | 70,529
| At 30 September 2024 | 70,529
| Amortisation |
| At 1 October 2023 | 63,447
| Charge for the year | 3,650
| At 30 September 2024 | 67,097
| Net book value |
| At 30 September 2024 | 3,432
| At 30 September 2023 | 7,082
Page 34
Deckers Hospitality Group Limited Notes to the Financial Statements For the year ended 30 September 2024
15. | Tangible fixed assets
| Group
|  | Freehold property | Long-term leasehold property | Plant and machinery | Motor vehicles | Total
|  | £ | £ | £ | £ | £
| Cost or valuation |  |  |  |  |
| At 1 October 2023 | 5,333,973 | 1,607,425 | 3,226,910 | 577,358 | 10,745,666
| Additions | 94,280 | - | 247,231 | 46,000 | 387,511
| Disposals | - | - | - | (54,362) | (54,362)
| At 30 September 2024 | 5,428,253 | 1,607,425 | 3,474,141 | 568,996 | 11,078,815
| Depreciation |  |  |  |  |
| At 1 October 2023 | - | 792,331 | 2,449,969 | 276,240 | 3,518,540
| Charge for the year on owned assets | - | 30,246 | 169,256 | 57,311 | 256,813
| Charge for the year on financed assets | - | - | 4,278 | 16,417 | 20,695
| Disposals | - | - | - | (44,207) | (44,207)
| At 30 September 2024 | - | 822,577 | 2,623,503 | 305,761 | 3,751,841
| Net book value |  |  |  |  |
| At 30 September 2024 | 5,428,253 | 784,848 | 850,638 | 263,235 | 7,326,974
| At 30 September 2023 | 5,333,973 | 815,094 | 776,941 | 301,118 | 7,227,126
| The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Plant and machinery | 43,416 | -
| Motor vehicles | 47,402 | 63,203
|  | 90,818 | 63,203
The Group's land and buildings were revalued by external valuer CB Richard Ellis Limited on 16 May 2022. The valuation, based on an ongoing trading basis, was £5.9 million, including fixtures and fittings. The directors are not aware of any material variances to the value between the date of the valuation report and the balance sheet date. The group has not depreciated freehold property and improvements as explained in accounting policy 2.10. Page 35
Deckers Hospitality Group Limited Notes to the Financial Statements For the year ended 30 September 2024 15.Tangible fixed assets (continued)
| Company
|  | Plant and machinery | Motor vehicles | Total
|  | £ | £ | £
| Cost or valuation |  |  |
| At 1 October 2023 | 218,052 | 246,763 | 464,815
| Additions | 5,181 | - | 5,181
| At 30 September 2024 | 223,233 | 246,763 | 469,996
| Depreciation |  |  |
| At 1 October 2023 | 198,914 | 46,282 | 245,196
| Charge for the year on owned assets | 7,316 | 50,120 | 57,436
| At 30 September 2024 | 206,230 | 96,402 | 302,632
| Net book value |  |  |
| At 30 September 2024 | 17,003 | 150,361 | 167,364
| At 30 September 2023 | 19,138 | 200,481 | 219,619
Page 36
Deckers Hospitality Group Limited Notes to the Financial Statements For the year ended 30 September 2024
16. | Fixed asset investments
| Company
|  | Investments in subsidiary companies
|  | £
| Cost or valuation |
| At 1 October 2023 | 272,003
| At 30 September 2024 | 272,003
| Subsidiary undertakings
| The following were subsidiary undertakings of the Company:
| Name | Registered office | Principal activity | Class of shares | Holding
| Deckers Trading Limited | Unit F, Royle Pennine Trading Estate, Lynroyle Way, Rochdale, OL11 3EX | Liquor wholesaler and butchery | Ordinary | 100%
| Sale Waterpark Restaurant Limited | Unit F, Royle Pennine Trading Estate, Lynroyle Way, Rochdale, OL11 3EX | Property rental | Ordinary | 100%
| Deckers Retail Limited | Unit E-F, Royle Pennine Trading Estate, Lynroyle Way, Rochdale, OL11 3EX | Bar operator | Ordinary | 100%
| The Royal Toby Hotel (Castleton) Limited | Unit F, Royle Pennine Trading Estate, Lynroyle Way, Rochdale, OL11 3EX | Restaurateur | Ordinary | 100%
| Deckers Group Limited | Unit F, Royle Pennine Trading Estate, Lynroyle Way, Rochdale, OL11 3EX | Dormant | Ordinary | 100%
| Deckers Restaurants Limited | Unit E-F, Royle Pennine Trading Estate, Lynroyle Way, Rochdale, OL11 3EX | Dormant | Ordinary | 100%
| All subsidiary undertakings are included in the consolidation.
Page 37
Deckers Hospitality Group Limited Notes to the Financial Statements For the year ended 30 September 2024
17. | Stocks
|  | Group | Group
|  | 2024 | 2023
|  | £ | £
| Raw materials and consumables | 49,600 | 49,600
| Finished goods and goods for resale | 3,359,736 | 3,168,594
|  | 3,409,336 | 3,218,194
| The difference between purchase price or production cost of stocks and their replacement cost is not material.
| The carrying value of stocks are stated net of impairment losses totalling £15,013 (2023 - £35,895). Impairment gains totalling £20,882 (2023 - £158) were recognised in profit and loss.
18. | Debtors
|  | Group | Group | Company | Company
|  | 2024 | 2023 | 2024 | 2023
|  | £ | £ | £ | £
| Trade debtors | 3,557,660 | 2,968,566 | - | -
| Amounts owed by group undertakings | - | - | 4,004,350 | 4,189,072
| Other debtors | 90,137 | 43,524 | - | 17,958
| Prepayments and accrued income | 561,435 | 596,236 | 29,554 | 24,516
| Financial instruments | 54,792 | 129,633 | 54,792 | 129,633
|  | 4,264,024 | 3,737,959 | 4,088,696 | 4,361,179
| An impairment gain was recognised in the year against trade debtors of £1,560 (2023: £899 loss)
19. | Cash and cash equivalents
|  | Group | Group | Company | Company
|  | 2024 | 2023 | 2024 | 2023
|  | £ | £ | £ | £
| Cash at bank and in hand | 1,105,821 | 1,339,517 | 118,767 | 131,401
|  | 1,105,821 | 1,339,517 | 118,767 | 131,401
Page 38
Deckers Hospitality Group Limited Notes to the Financial Statements For the year ended 30 September 2024
20. | Creditors: Amounts falling due within one year
|  | Group | Group | Company | Company
|  | 2024 | 2023 | 2024 | 2023
|  | £ | £ | £ | £
| Bank loans | 272,538 | 269,057 | 272,538 | 269,057
| Trade creditors | 4,736,107 | 3,696,547 | 140,686 | 157,794
| Amounts owed to group undertakings | - | - | 1,016,799 | 1,135,556
| Corporation tax | 11,620 | 13,440 | - | -
| Other taxation and social security | 300,290 | 363,674 | 132,970 | 22,464
| Obligations under finance lease and hire purchase contracts | 38,241 | 24,244 | - | -
| Advances from invoice discounting | 1,357,267 | 1,515,670 | - | -
| Other creditors | 506,005 | 453,387 | 327,975 | 278,057
| Accruals and deferred income | 188,384 | 437,911 | 57,424 | 144,206
|  | 7,410,452 | 6,773,930 | 1,948,392 | 2,007,134
| During the prior year, the group and company received a £400,000 Green Loan from HSBC. This loan enabled the group to claim cashback on qualifying purchases made in accordance with HSBC’s Green Framework, the ability to draw down against this balance has now expired. At 30 September 2024, £171,684 remained outstanding. The loan is also repayable by monthly instalments and carries a fixed interest rate.
| The following liabilities were secured:
|  | Group | Group
|  | 2024 | 2023
|  | £ | £
| Advances from invoice discounting | 1,357,267 | 1,515,670
| Obligations under finance lease and hire purchase contracts | 38,241 | 24,244
|  | 1,395,508 | 1,539,914
| Details of security provided:
The invoice discounting facility with HSBC Equipment Finance (UK) Limited and HSBC Asset Finance (UK) Limited is secured by a charge dated 30 November 2015 over the book debts of Deckers Trading Limited. There is a group cross-company guarantee dated 2 May 2013 in favour of HSBC Bank Plc. The guarantee was given by Deckers Hospitality Group Limited, Deckers Trading Limited, Sale Waterpark Restaurant Limited, and The Royal Toby Hotel (Castleton) Limited. Deckers Trading Limited has a legal assignment of contract monies in favour of HSBC Bank Plc dated 2 September 2013, as security for the bank loan. Deckers Trading Limited entered into a further legal assignment of contract monies in favour of HSBC UK Bank plc, dated 22 November 2023. This charge is registered at Companies House and includes a negative pledge. It forms part of the wider group banking arrangements. Net obligations under finance lease and hire purchase contracts are secured by fixed charges on the assets concerned. Page 39
Deckers Hospitality Group Limited Notes to the Financial Statements For the year ended 30 September 2024
21. | Creditors: Amounts falling due after more than one year
|  | Group | Group | Company | Company
|  | 2024 | 2023 | 2024 | 2023
|  | £ | £ | £ | £
| Bank loans | 2,114,092 | 2,386,623 | 2,114,092 | 2,386,623
| Net obligations under finance leases and hire purchase contracts | 37,150 | 37,591 | - | -
|  | 2,151,242 | 2,424,214 | 2,114,092 | 2,386,623
| At 30 September 2024, the group’s and company's bank loan of £2,216,117 is repayable by equal monthly instalments until 2028. During the prior year, the group and company received a £400,000 Green Loan from HSBC. This loan enabled the group to claim cashback on qualifying purchases made in accordance with HSBC’s Green Framework, the ability to draw down against this balance has now expired. At 30 September 2024, £171,684 remained outstanding. The loan is also repayable by monthly instalments and carries a fixed interest rate.
| The following liabilities were secured:
|  | Group | Group
|  | 2024 | 2023
|  | £ | £
| Net obligations under finance leases and hire purchase contracts | 37,150 | 37,951
| Bank loans | 2,114,092 | 2,386,623
|  | 2,151,242 | 2,424,574
| Details of security provided:
Net obligations under finance lease and hire purchase contracts are secured by fixed charges on the assets concerned. The bank loan is secured by a debenture including a fixed and floating charge over all present freehold and leasehold property, book and other debts, chattels, goodwill, and uncalled capital dated 3 May 2013. Interest is charged at a variable rate. The group has a legal assignment of contract monies in favour of HSBC Bank Plc dated 2 September 2013 as security for the bank loan. Page 40
Deckers Hospitality Group Limited Notes to the Financial Statements For the year ended 30 September 2024
22. | Loans
| Analysis of the maturity of loans is given below:
|  | Group | Group | Company | Company
|  | 2024 | 2023 | 2024 | 2023
|  | £ | £ | £ | £
| Amounts falling due within one year |  |  |  |
| Bank loans | 272,538 | 269,057 | 272,538 | 269,057
| Amounts falling due 1-2 years |  |  |  |
| Bank loans | 276,385 | 272,595 | 276,385 | 272,595
| Amounts falling due 2-5 years |  |  |  |
| Bank loans | 1,837,707 | 2,114,028 | 1,837,707 | 2,114,028
23. | Hire purchase and finance leases
| Minimum lease payments under hire purchase fall due as follows:
|  | Group | Group
|  | 2024 | 2023
|  | £ | £
| Within one year | 43,145 | 24,244
| Between 1-5 years | 38,833 | 37,591
|  | 81,978 | 61,835
24. | Financial instruments
|  | Group | Group | Company | Company
|  | 2024 | 2023 | 2024 | 2023
|  | £ | £ | £ | £
| Financial assets |  |  |  |
| Interest rate cap | 54,792 | 129,633 | 54,792 | 129,633
| On 28 July 2022 the company purchased an interest rate cap to hedge against future interest movements. The existing bank loan is subject to interest charged at base rate plus a margin of 2.35% therefore the company was exposed to interest rate movements and the cap was purchased to limit this exposure. The interest rate cap is valued at fair value through profit or loss account.
25. | Deferred taxation
Page 41
Deckers Hospitality Group Limited Notes to the Financial Statements For the year ended 30 September 2024 25.Deferred taxation (continued)
| Group
|  | 2024 | 2023
|  | £ | £
| At beginning of year | 745,744 | 686,021
| Charged to profit or loss | 65,512 | 59,723
| At end of year | 811,256 | 745,744
| Company
|  | 2024 | 2023
|  | £ | £
| At beginning of year | (20,431) | 11,958
| Charged to profit or loss | (13,853) | (32,389)
| At end of year | (34,284) | (20,431)
|  | Group | Group | Company | Company
|  | 2024 | 2023 | 2024 | 2023
|  | £ | £ | £ | £
| Accelerated capital allowances | 620,078 | 590,829 | 35,048 | 20,431
| Tax losses carried forward | - | (45,169) | - | -
| On revaluations | 200,084 | 200,084 | - | -
| Adjustments in respect of prior periods | (8,906) | - | (764) | -
|  | 811,256 | 745,744 | 34,284 | 20,431
Page 42
Deckers Hospitality Group Limited Notes to the Financial Statements For the year ended 30 September 2024
26. | Provisions
| Group
|  | Dilapidations
|  | £
| At 1 October 2023 | 58,498
| At 30 September 2024 | 58,498
| The provision of £58,498 (2023: £54,498) relates to the expected cost of dilapidations to be paid in respect of lease upon expiration.
Page 43
Deckers Hospitality Group Limited Notes to the Financial Statements For the year ended 30 September 2024
27. | Share capital
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
|  | Allotted, called up and fully paid |  |
|  | 26,999 (2023 - 26,999) Ordinary shares of £1.00 each | 26,999 | 26,999
28. | Reserves
Revaluation reserve The cumulative revaluation gains and losses in respect of land and buildings, except revaluation gains and losses recognised in profit and loss. Capital redemption reserve The nominal value of shares repurchased by the parent company and still held at the year end of the reporting period. Other reserves The nominal value of shares repurchased by Deckers Trading Limited and still held at the end of the reporting date. Profit and loss account All current and prior period retained profits distributable to the owners, net of dividends.
29. | Contingent liabilities
Contingent liabilities with the group's bankers A member of the group has a legal assignment of contract monies in favour of HSBC Bank plc dated 2 September 2013. There is a group cross-company unlimited guarantee dated 2 May 2013 in favour of HSBC Bank plc. The guarantee was given by Deckers Hospitality Group Limited, Deckers Trading Limited, Sale Waterpark Restaurant Limited and The Royal Toby Hotel (Castleton) Limited.
30. | Pension commitments
The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charged represents contributions payable by the group to the fund and amounts to £67,258 (2023: £98,908). Contributions totalling £6,206 (2023: £53,622) were payable to the fund at the balance sheet date. Page 44
Deckers Hospitality Group Limited Notes to the Financial Statements For the year ended 30 September 2024
31. | Commitments under operating leases
| At 30 September 2024 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
|  | Group | Group
|  | 2024 | 2023
|  | £ | £
| Not later than 1 year | 179,399 | 155,698
| Later than 1 year and not later than 5 years | 678,653 | 39,606
| Later than 5 years | 25,798 | -
|  | 883,850 | 195,304
32. | Related party transactions
| The group has taken advantage of the exemptions available under FRS 102 Section 33 "Related Party Transactions" not to disclose transactions with other wholly owned group companies. Loans from directors totalling £250,000 are included in other creditors at 30 September 2024 (2023: £272,000). Directors’ loan interest totalling £6,473 (2023: £11,981) was incurred at an annual interest rate of 1% in excess of base rate. Accrued interest totalling £6,473 (2023: £13,638) remains unpaid at the year end. Group key management personnel remuneration totalled £326,793 (2023: £363,574).
33. | Post balance sheet events
On the 14 March 2025 Deckers Hospitality Group acquired Young's Beers Wines and Spirits Ltd and warehouses for a combined estimated consideration of £2.1m. The company financed the purchase via a £1.35m loan from HSBC with the remainer from working capital. The total consideration is estimated at time of the financial statements.
34. | Controlling party
The ultimate controlling parties are Mr C Brierley, Mr M Brierley and Mrs V Cosgrove by virtue of majority shareholding. Deckers Hospitality Group Limited is the parent company of the largest and smallest group for which group accounts are prepared.
Page 45