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Registration number: 04201937

Blades Restaurants Ltd

Annual Report and Financial Statements

for the Year Ended 31 December 2024

 

Blades Restaurants Ltd

Contents

Company Information

1

Strategic Report

2 to 3

Director's Report

4 to 8

Statement of Director's Responsibilities

9

Independent Auditor's Report

10 to 13

Income Statement

14

Statement of Financial Position

15

Statement of Changes in Equity

16

Statement of Cash Flows

17

Notes to the Financial Statements

18 to 31

 

Blades Restaurants Ltd

Company Information

Director

J D Nicholls

Company secretary

T Nicholls

Registered office

Units 7 & 8 Chettles Trade Park
Midland Way
Nottingham
NG7 3AG

Accountants

Munslows Accountants Ltd
Chartered Certified Accountant32 High Street
Wall Heath
Kingswinford
West Midlands
DY6 0HB

Auditors

Manex Accountants Ltd
Chartered Accountants and Statutory Auditors9 Castle Court 2
Castlegate Way
Dudley
West Midlands
DY1 4RD

 

Blades Restaurants Ltd

Strategic Report for the Year Ended 31 December 2024

The director presents his strategic report for the year ended 31 December 2024.

Principal activity

The principal activity of the company is an operator of a group of McDonald's restaurants.

Fair review of the business

The results for the year and the financial position at the end of the year are shown in the annexed financial statements. The director aims to present a fair review of the development and performance of the company during the year under review and of its position at the end of the year.

The principal activity of the company during the year continued to be a franchise operator of a group of McDonald’s restaurants.

During the year digital sales via McDelivery, mobile apps and self-order kiosks have continued to increase as the company seeks to make the food ordering process ever more customer friendly. The company has continued to invest in the business and in the development and training of its employees, as well as continued investment in IT and store equipment.

As an operator of a group of McDonald's restaurants the director considers the company's key performance indicators to be turnover and gross profit. Turnover for the year decreased by 10%, in part due to the sale of one of the company's stores. The company also recorded a decrease in gross profit of 8.6%, due mainly to increases in food, labour and utility costs. Net profit for the year before taxation amounted to £432,671, compared to £533,544 in the previous year.

The director believes that the trading environment in which the company operates will continue to be challenging but remain optimistic regarding future trading and is committed to increasing both future turnover and profitability and to continuing the company’s reinvestment program.

Principal risks and uncertainties

The company operates in a highly competitive market with high levels of price sensitivity. Consumer behaviour can impact the company's turnover and profitability. The company continually assesses these risks and mitigates them by adopting a policy of constantly assessing its pricing strategy with ongoing market research.

The company remains exposed to periods of food cost inflation together with the variability of commodity prices both of which impact on profitability. The company continually assesses any risks identified, with the aim of mitigating the threats these may have on the company's operations and profitability. The company's supply chain is closely maintained by McDonald's, who endeavour to negotiate effectively on behalf of all franchisees to ensure better purchasing terms. This helps as much as possible to protect the company from risks associated with fluctuating food costs.

The company is also inherently exposed to pressures within the labour market and to wage cost inflation. The company mitigates this risk by a policy of adopting remuneration and benefits packages designed to be competitive within the market as well as ensuring full compliance with labour market regulations, with employment policies to allow fulfilling career opportunities for all employees.

By its very nature, the Q.S.R. market is extremely competitive, with large numbers of companies operating in the sector. In order to remain at the forefront of this industry, McDonald’s have dedicated teams whose focus is on ensuring they remain the leading brand in the market.

 

Blades Restaurants Ltd

Strategic Report for the Year Ended 31 December 2024

Section 172(1) statement

The success of the Company is the driving factor behind all decisions made by the Director. Decision making processes are structured to enable the Director to evaluate the merit of proposed business activities and the likely consequences of decisions taken over the short, medium and long term. The director remains mindful that any strategic decisions taken can have long term implications for the business and its stakeholders, and these implications are carefully assessed. An example of this is in decisions taken relating to capital investment in terms of possible new store acquisitions and equipment upgrades.

Our people are key to our success. That is why we endeavour to create jobs and opportunities for all our people, regardless of gender, age, or life stage that enhance their work experience. Understanding how our employees feel about McDonald’s is vital. The director takes active steps to ensure that the suggestions, views and interests of the workforce are incorporated and considered as part of any decision-making process, helping to ensure that our employees are given the right support to help achieve their potential. We have developed various employee communication channels such as OurLounge, MyStuff and the McDonald’s UK Intranet, which provide weekly operations updates, employee assistance programs and a means for employees to share ideas and feedback. We also conduct regular surveys into our employee’s job satisfaction and how they feel about their role in the company. We encourage and provide access to online learning and development, as well as providing our people with a mobile friendly platform to manage their own data, holidays, time off and access to view their wage slips.

Our customers are the reason for our existence and we therefore strive to provide high quality food with superior service in a clean and welcoming environment, all at an exceptional value. Long-term commitment to supply McDonald’s UK, has enabled our suppliers to grow with us and drive positive change within their own businesses.

The director carefully considers the impact of the business on communities and the environments in which the company operates. We arrange regular litter collections in the local area around our restaurants. Recycling units are installed around our restaurants and our paper cups are sent to specialist recycling centres in the UK. We endeavour to help our customers build communities, support charitable organisations, and use our size, scope and resources to help make local communities and the environment a better place.

In all our activities the director requires that employees and suppliers conduct business with the highest ethical and professional standards by adhering to our Standards of Business Conduct set by McDonald’s Corporation.

Approved and authorised by the director on 8 April 2025
 

.........................................
J D Nicholls
Director

 

Blades Restaurants Ltd

Director's Report for the Year Ended 31 December 2024

The director presents his report and the financial statements for the year ended 31 December 2024.

Director of the company

The director who held office during the year was as follows:

J D Nicholls

Results and dividends
The profit for the year, after taxation, amounted to £371,038 (2023 - profit £394,448).

During the year, dividends paid amounted to £1,150,000 (2023: £360,000). The directors do not recommend the payment of a final dividend.
 

Financial instruments

Objectives and policies

The company’s principle financial instruments comprise bank balances, trade creditors and bank loans. The main purpose of these instruments is to finance the company’s operations and to ensure the smooth running of the company’s operations.

Due to the nature of the financial instruments used by the company there is no exposure to price risk.

In respect of bank balances, the liquidity risk is managed by maintaining a balance to ensure the continuity of trading, through the use of detailed cash flow analysis, forecasts and projections which are regularly updated. In addition, the company has access to overdraft facilities from its bankers which are repayable on demand, should the business require them.

In respect of bank loans, these are provided by financial institutions. The interest rate on these loans is variable, although usually the monthly repayments are fixed. The company manages the liquidity risk by ensuring that there are sufficient funds to meet the payments through the constant review and updating of cashflow forecasts. The interest rate is managed through regular reviews of current and expected future interest rates.

Trade creditor liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

Price risk, credit risk, liquidity risk and cash flow risk

The main risks arising from the company's financial instruments are interest risk and liquidity risk. The board reviews and agrees policies for managing each of these risks and they are summarised below.

Interest rate risk
The company's exposure to market risk for changes in interest rates is limited to bank loans. The additional requirement for medium to long term debt will be reviewed by the directors based on the company's forecast requirements.

Liquidity risk
The company's objective is to maintain a balance between continuity of funding and flexibility through the use of cash and bank loans.

 

Blades Restaurants Ltd

Director's Report for the Year Ended 31 December 2024

Employment of disabled persons

The company operates an equal opportunities policy in all areas of recruitment and seeks to offer suitable work and training wherever practicable to persons with disabilities. The policy of the company is to ensure that disabled applicants are given full and fair consideration having regards to their particular aptitudes and abilities. Existing disabled employees are given equal access to appropriate training, career development and promotion opportunities within the company. In the event of employees becoming disabled while in the employment of the company, all reasonable means are explored to achieve retention in employment in the same or an alternative capacity.

Employee involvement

The company aims to promote a working environment free from harassment, victimisation, bullying and discrimination. The company regards all employees as members of a team, where opinions are valued, and everyone is regarded as equal in status and treated with fairness and respect.

The company's recruitment procedures are intended to ensure that employees are selected, promoted, and treated according to their ability and that everyone has an equal opportunity to receive training and development.

The company communicates regularly with all employees on matters relating to its performance, with employees encouraged to contribute to the decision-making process through regular staff meetings and quarterly surveys. In addition, there are bulletin boards in each restaurant and Workplace by Meta is used to communicate memoranda relating to company policy. There is also an online portal known as MyStuff, which contains news and information for McDonald's employees.

Streamlined Energy and Carbon Reporting

In line with the government's streamlined energy and carbon reportingrequirements we are required to report our organisation's carbon emissions for the period 1st January 2024 to 31st December 2024 against the previous year.
 

 

Blades Restaurants Ltd

Director's Report for the Year Ended 31 December 2024

Strategy

Boundary, Methodology and Exclusions

An ‘operational control’ approach has been used to define the Greenhouse Gas emissions boundary[1].

This approach captures emissions associated with the operation of all buildings, such as warehouses, offices and manufacturing sites, plus company-owned and leased transport. This report covers UK operations only, as required by SECR for Non-Quoted Large Companies.

This information was collected and reported in line with the methodology set out in the UK Government’s Environmental Reporting Guidelines, 2019.

Emissions have been calculated using the latest conversion factors provided by the UK Government. For Refrigerant emissions, GWP conversion factors have been used (High-GWP Refrigerants | California Air Resources Board, Greenhouse Gas Inventory Guidance: Fugitive Emissions (epa.gov). There are no material omissions from the mandatory reporting scope.

Regarding market-based reporting, all electricity supplied by NPower is confirmed to be covered by Renewable Energy Guarantees of Origin (REGOs). All RoadChef MSA sites and ASDA sites (up until 31 March 2024) are also covered by REGOs (confirmed by the supplier). Due to a lack of information, the remaining electricity supply is assumed to be non-renewable.

Energy consumption (in kWh) for the period 1st January 2024 – 31st December 2024 have been used to calculate emissions for Blades Restaurants Ltd FY 2024.

[1] An operational control approach to GHG emissions boundary is defined as: “Your organisation has operational control over an operation if it, or one of its subsidiaries, has the full authority to introduce and implement its operating policies at the operation”.

 

Blades Restaurants Ltd

Director's Report for the Year Ended 31 December 2024

Metrics and targets

The company has continued to seek and implement energy efficiency measures within both the work processes and the use of work equipment. McDonald’s Restaurants Limited is actively participating in mandatory compliance schemes, such as the Energy Savings Opportunity Scheme, TCFD, and is considering implementing the recommendations outlined in the ESOS audit reports.

The following are examples of energy efficiency initiatives that are being implemented at McDonald's Restaurants Limited and its franchisees’ restaurants after recommendations from site energy audits conducted by the Mitie Energy Optimisation Team:

- Reductions to the time schedule for internal lighting, external lighting (signage, car parking lighting, etc.), Air Handling Unit (AHU) conditioning, kitchen extract system, etc.

- Improvements to the Car Park lighting schedule.

- Decreased temperature set points in dining and kitchen areas, e.g. overdoor heater setpoint reduced from 28 degrees Celsius to 22 degrees Celsius.

- Increased temperature deadbands in dining and kitchen areas, especially to AHUs.

- Local control settings change from ‘Always On’ to ‘Normal.

- Heating set point temperature reduction.

- BMS time adjusted to sync with actual time.

Emissions and energy consumption

Summary of greenhouse gas emissions and energy consumption for the year ended 31 December 2024:

Emissions source

2023

2024

% share

% change

Electricity

1295

1049

78%

-19%

Electricity

112

97

7%

-13%

Natural Gas

75

114

8%

52%

Refrigerants

0

79

6%

8%

Transportation

0

4

0.3%

Total Emissions (tCO2e)

1482

1343

100%

-9%

Turnover (£'000)

45,044

40,535

-10%

Intensity (tCO2e per £'000)

0.0329

0.0331

-3%

Energy consumption (kWh)

Electricity

6,251,772

5,086,887

89%

-19%

Natural Gas

409,124

620,775

11%

52%

Transportation

0

15,847

0.3%

Total

6,660,896

5,723,509

100%

-14%

Intensity (kWh per £'000)

148

141

-5%

Disclosure of information to the auditors

The director has taken steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. The director confirms that there is no relevant information that he knows of and of which he knows the auditors are unaware.

 

Blades Restaurants Ltd

Director's Report for the Year Ended 31 December 2024

Reappointment of auditors

The auditors Manex Accountants Ltd are deemed to be reappointed under section 487(2) of the Companies Act 2006.

Approved and authorised by the director on 8 April 2025
 

.........................................
J D Nicholls
Director

 

Blades Restaurants Ltd

Statement of Director's Responsibilities

The director acknowledges his responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable United Kingdom 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 director is 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 him to ensure that the financial statements comply with the Companies Act 2006 and in accordance with FRS 102. He is 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.

 

Blades Restaurants Ltd

Independent Auditor's Report to the Members of Blades Restaurants Ltd

Opinion

We have audited the financial statements of Blades Restaurants Ltd (the 'company') for the year ended 31 December 2024, which comprise the Income Statement, Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the company's affairs as at 31 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.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.

Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.

Other information

The director are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

 

Blades Restaurants Ltd

Independent Auditor's Report to the Members of Blades Restaurants Ltd

Opinion on other matter 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 Strategic Report and Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Director's Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Director's Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

adequate accounting records have not been kept, 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 director's remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

Responsibilities of the director

As explained more fully in the Statement of Director's Responsibilities [set out on page 9], the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or have no realistic alternative but to do so.

 

Blades Restaurants Ltd

Independent Auditor's Report to the Members of Blades Restaurants Ltd

Auditor Responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

We obtained an understanding of the legal and regulatory frameworks applicable to the company and the industry in which it operates. We determined that the following laws and regulations were most significant: The Companies Act 2006/FRS 102, Employment Law and Waste, Health and Safety. We enquired of management and those responsible for legal and compliance procedures to obtain an understanding of how the company is complying with those legal and regulatory frameworks and whether they had any knowledge of actual or suspected fraud. We corroborated the results of our enquiries through our discussions with the directors and management. We did not identify any matters relating to non-compliance with laws and regulations or matters in relation to fraud.

In assessing the potential risks of material misstatements, we obtained an understanding of the company’s operations, including its objectives and strategies to understand the expected financial statement disclosures and business risks that may result in risks of material misstatement;

In assessing the appropriateness of the collective competence and capabilities of the engagement team the engagement partner considered the engagement team’s :
 Understanding of, and practical experience with, audit engagements of a similar nature and complexity through appropriate training and participation,
 The specialist skills required and
 Knowledge of the industry in which the client operates.

We assessed the susceptibility of the company’s financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:
 Assessing the design effectiveness of controls management has in place to prevent and detect fraud;
 Challenging assumptions and judgements made by management in its significant accounting estimates;
 Identifying and testing journal entries, in particular manual journal entries made at year end for financial statement preparation; and
 Assessing the extent of compliance with the relevant laws and regulations as part of our procedures on the related financial statement item.

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

 

Blades Restaurants Ltd

Independent Auditor's Report to the Members of Blades Restaurants Ltd

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

......................................
Clinton Meehan BSc FCA (Senior Statutory Auditor)
For and on behalf of Manex Accountants Ltd, Statutory Auditor
 9 Castle Court 2
Castlegate Way
Dudley
West Midlands
DY1 4RD

8 April 2025

 

Blades Restaurants Ltd

Income Statement for the Year Ended 31 December 2024

Note

2024
£

2023
£

Turnover

3

40,534,625

45,044,127

Cost of sales

 

(14,030,886)

(16,016,767)

Gross profit

 

26,503,739

29,027,360

Administrative expenses

 

(26,121,396)

(28,576,947)

Other operating income

4

69,704

146,112

Operating profit

6

452,047

596,525

Other interest receivable and similar income

7

34

44

Interest payable and similar expenses

8

(19,410)

(63,025)

 

(19,376)

(62,981)

Profit before tax

 

432,671

533,544

Taxation

12

(61,633)

(139,096)

Profit for the financial year

 

371,038

394,448

The above results were derived from continuing operations.

The company has no recognised gains or losses for the year other than the results above.

 

Blades Restaurants Ltd

(Registration number: 04201937)
Statement of Financial Position as at 31 December 2024

Note

2024
£

2023
£

Fixed assets

 

Intangible assets

13

197,112

789,501

Tangible assets

14

1,412,790

2,096,351

Other financial assets

15

11,250

12,500

 

1,621,152

2,898,352

Current assets

 

Inventories

16

205,396

221,737

Debtors

17

655,829

197,510

Cash at bank and in hand

18

2,696,703

3,699,407

 

3,557,928

4,118,654

Creditors: Amounts falling due within one year

19

(2,867,897)

(3,636,345)

Net current assets

 

690,031

482,309

Total assets less current liabilities

 

2,311,183

3,380,661

Creditors: Amounts falling due after more than one year

19

(3,709)

(218,048)

Provisions for liabilities

20

(162,541)

(238,718)

Net assets

 

2,144,933

2,923,895

Capital and reserves

 

Called up share capital

21

100

100

Retained earnings

2,144,833

2,923,795

Shareholders' funds

 

2,144,933

2,923,895

Approved and authorised by the director on 8 April 2025
 

.........................................
J D Nicholls
Director

 

Blades Restaurants Ltd

Statement of Changes in Equity for the Year Ended 31 December 2024

Share capital
£

Retained earnings
£

Total
£

At 1 January 2024

100

2,923,795

2,923,895

Profit for the year

-

371,038

371,038

Dividends

-

(1,150,000)

(1,150,000)

At 31 December 2024

100

2,144,833

2,144,933

Share capital
£

Retained earnings
£

Total
£

At 1 January 2023

100

2,889,347

2,889,447

Profit for the year

-

394,448

394,448

Dividends

-

(360,000)

(360,000)

At 31 December 2023

100

2,923,795

2,923,895

 

Blades Restaurants Ltd

Statement of Cash Flows for the Year Ended 31 December 2024

Note

2024
 £

2023
 £

Cash flows from operating activities

Profit for the year

 

371,038

394,448

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

6

672,933

944,987

(Profit)/loss on disposal of tangible assets

5

(5)

98,134

(Profit)/loss on disposal of intangible assets

5

(267,637)

16,930

Finance income

7

(34)

(44)

Finance costs

8

19,410

63,025

Income tax expense

12

61,633

139,096

 

857,338

1,656,576

Working capital adjustments

 

Decrease in inventories

16

16,341

30,767

Increase in receivables

17

(75,498)

(14,547)

Decrease in payables

19

(435,363)

(737,427)

Cash generated from operations

 

362,818

935,369

Income taxes paid

12

(243,001)

(107,434)

Net cash flow from operating activities

 

119,817

827,935

Cash flows from investing activities

 

Interest received

7

34

44

Acquisitions of tangible assets

(179,341)

(286,733)

Proceeds from sale of tangible assets

 

227,950

34,483

Acquisition of intangible assets

13

-

(38,360)

Proceeds from sale of intangible assets

 

822,050

-

FA investment - unlisted other shares disposals

 

1,250

1,250

Net cash flows from investing activities

 

871,943

(289,316)

Cash flows from financing activities

 

Interest paid

8

(19,410)

(63,025)

Proceeds from other borrowing draw downs

 

(427,361)

9,935

Repayment of bank borrowing

 

(397,693)

(1,310,141)

Dividends paid

24

(1,150,000)

(360,000)

Net cash flows from financing activities

 

(1,994,464)

(1,723,231)

Net decrease in cash and cash equivalents

 

(1,002,704)

(1,184,612)

Cash and cash equivalents at 1 January

 

3,699,407

4,884,019

Cash and cash equivalents at 31 December

18

2,696,703

3,699,407

 

Blades Restaurants Ltd

Notes to the Financial Statements for the Year Ended 31 December 2024

1

General information

The company is a private company limited by share capital, incorporated in England.

The address of its registered office is:
Units 7 & 8 Chettles Trade Park
Midland Way
Nottingham
NG7 3AG

These financial statements were authorised for issue by the director on 8 April 2025.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Going concern

At the time of approving the financial statements, the director has a reasonable expectation that the company has
adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to
adopt the going concern basis of accounting in preparing the financial statements.

 

Blades Restaurants Ltd

Notes to the Financial Statements for the Year Ended 31 December 2024

Judgements

In the application of the company's accounting policies, which are described in note 2, the directors are required to make judgements, estimates and assumptions about the carrying amounts 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 of the revision and future periods if the revision affects both current and future periods.

The following are the critical judgements and key sources of estimation uncertainty that the directors have made in the process of applying the company's accounting policies and that have the most significant effect on the amounts recognised in the financial statements.

Income taxes

The company is subject to the corporation tax laws of the United Kingdom. These laws are complex and subject to different interpretations by taxpayers and tax authorities. When establishing corporation tax provisions, the directors make a number of judgments and interpretations about the application and interaction of these laws. Changes in these tax laws or in their interpretation could affect the company's effective tax rate and the results of operations in a given period.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

 

Blades Restaurants Ltd

Notes to the Financial Statements for the Year Ended 31 December 2024

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Plant and equipment

between 3 and 15 years straight line

Office equipment

3 years straight line

Motor vehicles

3 years straight line

Goodwill

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the
company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity
recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently
measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the
currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is
amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be
made.

Intangible assets

Separately acquired trademarks and licences are shown at historical cost.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Franchise rights

Straight line over the franchise term

Licence fees

Straight line over the franchise term

Stamp duty

Straight line over the franchise term

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Receivables

Receivables are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Receivables are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of receivables is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

 

Blades Restaurants Ltd

Notes to the Financial Statements for the Year Ended 31 December 2024

Inventories

Stocks are stated at the lower of average cost and net realisable value. Net realisable value is based on estimated selling price less further costs expected to be incurred prior to completion and disposal.

Payables

Payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Payables are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the income statement over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

 

Blades Restaurants Ltd

Notes to the Financial Statements for the Year Ended 31 December 2024

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3

Turnover

The analysis of the company's revenue for the year from continuing operations is as follows:

2024
 £

2023
 £

Sale of goods

40,534,625

45,044,127

4

Other operating income

The analysis of the company's other operating income for the year is as follows:

2024
£

2023
£

Miscellaneous other operating income

69,704

146,112

5

Other gains and losses

The analysis of the company's other gains and losses for the year is as follows:

2024
£

2023
£

Gain/(loss) on disposal of Tangible assets

5

(98,134)

Gain/(loss) on disposal of intangible assets

267,637

(16,930)

267,642

(115,064)

 

Blades Restaurants Ltd

Notes to the Financial Statements for the Year Ended 31 December 2024

6

Operating profit

Arrived at after charging/(crediting)

2024
£

2023
£

Depreciation expense

634,957

878,033

Amortisation expense

37,976

66,954

Operating lease expense - property

4,369,855

4,666,507

(Profit)/loss on disposal of property, plant and equipment

(5)

98,134

7

Other interest receivable and similar income

2024
£

2023
£

Other finance income

34

44

8

Interest payable and similar expenses

2024
£

2023
£

Interest on bank overdrafts and borrowings

19,410

59,234

Interest expense on other finance liabilities

-

3,791

19,410

63,025

 

Blades Restaurants Ltd

Notes to the Financial Statements for the Year Ended 31 December 2024

9

Staff costs

The aggregate payroll costs (including director's remuneration) were as follows:

2024
£

2023
£

Wages and salaries

11,198,629

11,941,569

Social security costs

495,832

455,829

Pension costs, defined contribution scheme

105,589

100,607

Other employee expense

59,150

63,286

11,859,200

12,561,291

The average number of persons employed by the company (including the director) during the year, analysed by category was as follows:

2024
No.

2023
No.

Crew labour

1,091

1,202

Management labour

45

44

1,136

1,246

10

Director's remuneration

The director's remuneration for the year was as follows:

2024
£

2023
£

Remuneration

12,570

11,499

11

Auditors' remuneration

2024
£

2023
£

Audit of the financial statements

3,750

3,750


 

 

Blades Restaurants Ltd

Notes to the Financial Statements for the Year Ended 31 December 2024

12

Taxation

Tax charged/(credited) in the income statement

2024
£

2023
£

Current taxation

UK corporation tax

137,810

243,009

UK corporation tax adjustment to prior periods

-

(33)

137,810

242,976

Deferred taxation

Arising from origination and reversal of timing differences

(76,177)

(103,880)

Tax expense in the income statement

61,633

139,096

The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2023 - the same as the standard rate of corporation tax in the UK) of 25% (2023 - 25%).

The differences are reconciled below:

2024
 £

2023
 £

Profit before tax

432,671

533,544

Corporation tax at standard rate

108,168

133,386

Tax increase (decrease) from effect of capital allowances and depreciation

(57,000)

15,062

Tax increase (decrease) from effect of expenses not deductible in determining taxable profit or loss

10,465

12,343

Total tax charge

61,633

160,791

Deferred tax

Deferred tax include ... / is calculated ...

Deferred tax assets and liabilities

2024

Asset
£

Liability
£

Accelerated capital allowances

-

162,541

-

162,541

2023

Asset
£

Liability
£

Accelerated capital allowances

-

238,718

-

238,718

 

Blades Restaurants Ltd

Notes to the Financial Statements for the Year Ended 31 December 2024

13

Intangible assets

Goodwill
 £

Licence fees
 £

Stamp duty
 £

Total
£

Cost or valuation

At 1 January 2024

948,738

330,000

128,614

1,407,352

Disposals

(726,412)

(60,000)

(37,677)

(824,089)

At 31 December 2024

222,326

270,000

90,937

583,263

Amortisation

At 1 January 2024

419,062

146,499

52,290

617,851

Amortisation charge

18,160

14,250

5,566

37,976

Amortisation eliminated on disposals

(214,896)

(38,875)

(15,905)

(269,676)

At 31 December 2024

222,326

121,874

41,951

386,151

Carrying amount

At 31 December 2024

-

148,126

48,986

197,112

At 31 December 2023

529,676

183,501

76,324

789,501

14

Tangible assets

Plant and equipment
£

Office equipment
£

Motor vehicles
 £

Total
£

Cost or valuation

At 1 January 2024

8,660,859

5,423

2,850

8,669,132

Additions

179,341

-

-

179,341

Disposals

(728,325)

(3,238)

(2,850)

(734,413)

At 31 December 2024

8,111,875

2,185

-

8,114,060

Depreciation

At 1 January 2024

6,566,025

3,906

2,850

6,572,781

Charge for the year

634,229

728

-

634,957

Eliminated on disposal

(500,380)

(3,238)

(2,850)

(506,468)

At 31 December 2024

6,699,874

1,396

-

6,701,270

Carrying amount

At 31 December 2024

1,412,001

789

-

1,412,790

At 31 December 2023

2,094,834

1,517

-

2,096,351

 

Blades Restaurants Ltd

Notes to the Financial Statements for the Year Ended 31 December 2024

15

Other financial assets (current and non-current)

2024
£

2023
£

Non-current financial assets

Financial assets at cost less impairment

11,250

12,500

16

Inventories

2024
£

2023
£

Closing stocks of food, paper and non-products

205,396

221,737

17

Debtors

Current

Note

2024
£

2023
£

Receivables

 

44,302

-

Amounts owed by related parties

26

382,821

-

Other debtors

 

6,384

2,470

Prepayments

 

222,322

195,040

   

655,829

197,510

18

Cash and cash equivalents

2024
£

2023
£

Cash on hand

25,000

28,000

Cash at bank

2,671,703

3,671,407

2,696,703

3,699,407

 

Blades Restaurants Ltd

Notes to the Financial Statements for the Year Ended 31 December 2024

19

Creditors

Note

2024
£

2023
£

Due within one year

 

Loans and borrowings

22

208,509

391,861

Payables

 

1,255,361

1,213,997

Amounts due to related parties

26

-

44,542

Social security and other taxes

 

409,483

723,990

Outstanding defined contribution pension costs

 

24,097

22,714

Other payables

 

322,579

355,736

Accruals

 

510,092

640,538

Income tax liability

12

137,776

242,967

 

2,867,897

3,636,345

Due after one year

 

Loans and borrowings

22

3,709

218,048

20

Deferred tax and other provisions

Deferred tax
£

Total
£

At 1 January 2024

238,718

238,718

Increase (decrease) in existing provisions

(76,177)

(76,177)

At 31 December 2024

162,541

162,541

 

Blades Restaurants Ltd

Notes to the Financial Statements for the Year Ended 31 December 2024

21

Share capital

Allotted, called up and fully paid shares

2024

2023

No.

£

No.

£

Ordinary shares of £1 each

100

100

100

100

       

22

Loans and borrowings

Non-current loans and borrowings

2024
£

2023
£

Bank borrowings

3,709

218,048

Current loans and borrowings

2024
£

2023
£

Bank borrowings

208,509

391,861

Bank borrowings

HSBC term loan is denominated in sterling with a nominal interest rate of 1.2% over base rate%, and the final instalment is due on 9 January 2026. The carrying amount at year end is £212,218 (2023 - £411,559).

 

Blades Restaurants Ltd

Notes to the Financial Statements for the Year Ended 31 December 2024

23

Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

2024
£

2023
£

Not later than one year

941,496

1,289,484

Later than one year and not later than five years

2,951,473

4,718,646

Later than five years

4,195,099

8,115,125

8,088,068

14,123,255

The amount of non-cancellable operating lease payments recognised as an expense during the year was £4,380,472 (2023 - £4,666,507).

24

Dividends

 

2024

2023

 

£

£

Interim dividend of £11,500.00 (2023 - £3,600.00) per ordinary share

1,150,000

360,000

 

Blades Restaurants Ltd

Notes to the Financial Statements for the Year Ended 31 December 2024

25

Analysis of changes in net debt

At 1 January 2024
£

Financing cash flows
£

At 31 December 2024
£

Cash and cash equivalents

Cash

3,699,408

(1,002,704)

2,696,704

Borrowings

Long term borrowings

(218,050)

214,341

(3,709)

Short term borrowings

(391,861)

183,352

(208,509)

Directors loan account

(44,540)

427,361

382,821

(654,451)

825,054

170,603

 

3,044,957

(177,650)

2,867,307

26

Related party transactions

Transactions with the director

2024

At 1 January 2024
£

Advances to director
£

At 31 December 2024
£

J D Nicholls

Directors loan account

(44,540)

427,361

382,821

27

Ultimate controlling party

The ultimate controlling party is Mr J D Nicholls.