GRANITE CITY HOSPITALITY LTD
No. SC140973
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
GRANITE CITY HOSPITALITY LTD
COMPANY INFORMATION
Directors
Allan Henderson
Derren McRae
Jamie Gilbert
Kirsten Gilbert
Secretary
Raeburn Christie Clark & Wallace LLP
Company number
SC140973
Registered office
12-16 Albyn Place
Aberdeen
AB10 1PS
Business addresses
No. 10 Bar & Restaurant
Aberdeen
AB10 1XL
Ferryhill House Hotel
169 Bon Accord Street
Aberdeen
AB11 6UA
The Silver Darling
Pocra Quay
North Pier
Aberdeen
AB11 5DQ
Under The Hammer
11 North Silver Street
Aberdeen
AB10 1RJ
Auditor
Hall Morrice LLP
6 & 7 Queens Terrace
Aberdeen
AB10 1XL
Bankers
Royal Bank of Scotland
Queens Cross
40 Albyn Place
Aberdeen
AB10 1YN
Solicitors
Raeburn Christie Clark & Wallace LLP
12-16 Albyn Place
Aberdeen
AB10 1PS
GRANITE CITY HOSPITALITY LTD
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 32
GRANITE CITY HOSPITALITY LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 1 -
The directors present the strategic report for the year ended 30 September 2024.
Principal activities
The principal activity of the group continued to be the operation of licensed premises.
Fair review of the business
The consolidated statement of comprehensive income for the year shows a 5.3% decrease in group turnover to £7.9m (2023 - £8.3m). The gross profit % has increased from 68.5% to 69.3% in 2024 as the directors maintain a close control of costs. The loss before tax for the year of £594k (2023 - £242k) has increased in comparison to last year, mainly due to an exceptional impairment cost of £546k.
Overhead and interest costs have increased by 1.8% from £6.01m to £6.12m.
The balance sheet shows that the group's net assets at the year end have increased from £899k to £2.41m. This is mainly due to the revaluation of tangible assets in 2024 which has resulted in higher tangible assets for the group. At the year end, total bank borrowings have increased from £2.5m to £3.0m due to the purchase of the property at 9 & 10 Queens Terrace, Aberdeen.
Principal risks and uncertainties
Some of the principal risks and uncertainties facing the group are:
Business risk
The principal risks to the revenues of the group are local competitive prices and demand and the robustness of the local oil and gas industry. Cost associated with the running of the group are exposed to rising wage expectations of the local workforce due to competing employers and the lack of labour in the market place.
The group continues to manage these business risks within its various areas of operation by way of a focused management approach on customer relationships alongside proactive management of the operating cost base.
Financial risk
The group's financial position comprises borrowings, cash and short-term deposits, and various items such as trade debtors and trade creditors that arise directly from its operations. The purpose of these financial instruments is to fund the group's operations as well as to manage its working capital. The principal risks to these instruments comprise liquidity risk and interest risk on borrowings.
Liquidity risk is managed through maintaining a mixture of long-term and short-term debt finance that is designed to ensure the group has sufficient available funds for operation and planned developments. In addition, interest rate risk is managed through focus on the level of debt finance utilised and the related financial cost, both current and expected. The company does not use derivative financial instruments to manage financial cost or for any other purpose.
The group has maintained a prudent approach to dividend distribution.
Development and performance
The group has seen an decrease in revenue with a loss this year. The directors are confident that they will be able to continue to provide a high standard of service and product to satisfy their customers.
The directors have always ensured that the group uses a high standard of ingredient and that they are prepared in such a manor that they more than satisfy the health and safety standards required by the hospitality industry. The directors take compliance with health and safety regulations very seriously. The group is subject to checks of its health and safety by various bodies. This has ensured the continuous provision of a high quality service and product.
Key performance indicators
Annual budgets incorporating strong seasonal trends are set to assess the level of financial performance against actual. A key performance indicator of financial success for the group is the monthly gross margin achievement for each operating department, staff retention rates and environmental impacts.
GRANITE CITY HOSPITALITY LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 2 -
Allan Henderson
Director
25 June 2025
GRANITE CITY HOSPITALITY LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 3 -
The directors present their report and audited financial statements for the year ended 30 September 2024.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Allan Henderson
Alan Aitken
(Resigned 6 June 2025)
Derren McRae
Jamie Gilbert
Kirsten Gilbert
Results and dividends
The results for the year are set out on page 8.
No ordinary dividends were paid. The directors do not recommend payment of a further dividend.
Future developments
Information on future developments is included within the Strategic report on page 1.
Auditor
The auditor, Hall Morrice LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of directors' responsibilities
The directors are responsible for preparing the Strategic report, Directors' report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
GRANITE CITY HOSPITALITY LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 4 -
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company and group is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company and group is aware of that information.
On behalf of the board
Allan Henderson
Director
25 June 2025
GRANITE CITY HOSPITALITY LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GRANITE CITY HOSPITALITY LTD
- 5 -
Opinion
We have audited the financial statements of Granite City Hospitality Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the group's and the parent company's affairs as at 30 September 2024 and of the group's loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and 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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.
GRANITE CITY HOSPITALITY LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GRANITE CITY HOSPITALITY LTD
- 6 -
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 their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept 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, as set out in the Directors' report, 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 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 parent company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
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.
In identifying and assessing the risk of material misstatement due to non-compliance with laws and regulations we have:
Ensured that the engagement team had the appropriate competence, capabilities and skills to identify or recognise non-compliance with laws and regulations;
Identified the laws and regulations applicable to the entity through discussions with directors and management and through our own knowledge of the sector;
Focused on the specific laws and regulations we consider may have a direct effect on the financial statements, including FRS 102, the Companies Act 2006 and tax compliance regulations;
Focused on the specific laws and regulations we consider may have an indirect effect on the financial statements that are central to the entity’s ability to trade including those relating to food hygiene and alcohol licencing;
Reviewed the financial statement disclosures and tested to supporting documentation to assess compliance with applicable laws and regulations;
Made enquiries of management and inspected legal correspondence; and
Ensured the engagement team remained alert to instances of non-compliance throughout the audit.
GRANITE CITY HOSPITALITY LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GRANITE CITY HOSPITALITY LTD
- 7 -
In identifying and assessing the risk of material misstatement due to irregularities, including fraud and how it may occur, and the potential for management bias and the override of controls we have:
Obtained an understanding of the entity’s operations, including the nature of its revenue sources and of its objectives and strategies, to understand the classes of transactions, account balances, expected financial disclosures and business risks that may result in risk of material misstatement;
Obtained an understanding of the internal controls in place to mitigate risks of irregularities, including fraud;
Vouched balances and reconciling items in key control account reconciliations to supporting documentation;
Carried out detailed testing, on a sample basis, to verify the completeness, occurrence, existence and accuracy of transactions and balances;
Carried out detailed testing to verify the completeness, validity, existence and accuracy of income including cut-off testing and ensuring income recognition is in line with stated accounting policies;
Made enquiries of management as to where they consider there was a susceptibility to fraud, and their knowledge of any actual, suspected or alleged fraud;
Tested journal entries to identify any unusual transactions;
Performed analytical procedures to identify any significant or unusual transactions;
Investigated the business rationale behind any significant or unusual transactions; and
Evaluated the appropriateness of accounting policies and the reasonableness of accounting estimates.
We did not identify any matters relating to non-compliance with laws and regulations, or relating to fraud.
Because of the inherent limitations of an audit, there is an unavoidable risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. The risk of not detecting a material misstatement due to fraud is inherently more difficult than detecting those that result from error as fraud may involve intentional concealment, forgery, collusion, omission or misrepresentation. In addition, the further removed any non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the group’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 group’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 group and the group’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Robert J C Bain MA CA CTA
Senior Statutory Auditor
For and on behalf of Hall Morrice LLP
Statutory Auditor
Aberdeen
25 June 2025
GRANITE CITY HOSPITALITY LTD
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
7,926,684
8,343,694
Cost of sales
(2,434,888)
(2,626,229)
Gross profit
5,491,796
5,717,465
Administrative expenses
(5,927,023)
(5,841,034)
Other operating income
35,738
14,905
Operating loss
4
(399,489)
(108,664)
Interest receivable and similar income
900
Interest payable and similar expenses
7
(194,552)
(165,501)
Loss before taxation
(594,041)
(273,265)
Tax on loss
8
88,115
30,926
Loss for the financial year
23
(505,926)
(242,339)
Other comprehensive income
Revaluation of tangible fixed assets
2,101,087
Total comprehensive income for the year
1,595,161
(242,339)
Loss for the financial year is attributable to:
- Owners of the parent company
(496,793)
(239,577)
- Non-controlling interests
(9,133)
(2,762)
(505,926)
(242,339)
The statement of comprehensive income has been prepared on the basis that all operations are continuing operations.
GRANITE CITY HOSPITALITY LTD
GROUP BALANCE SHEET
AS AT
30 SEPTEMBER 2024
30 September 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
10
464
23,448
Tangible assets
11
7,610,756
5,267,123
7,611,220
5,290,571
Current assets
Stocks
14
125,022
147,680
Debtors
15
232,699
211,983
Cash at bank and in hand
160,166
193,642
517,887
553,305
Creditors: amounts falling due within one year
16
(2,724,059)
(2,537,450)
Net current liabilities
(2,206,172)
(1,984,145)
Total assets less current liabilities
5,405,048
3,306,426
Creditors: amounts falling due after more than one year
17
(2,834,847)
(2,185,796)
Provisions for liabilities
19
(76,222)
(221,812)
Net assets
2,493,979
898,818
Capital and reserves
Called up share capital
22
2
2
Revaluation reserve
23
2,101,087
Profit and loss reserves
23
389,040
885,833
Equity attributable to owners of the parent company
2,490,129
885,835
Non-controlling interests
3,850
12,983
Total equity
2,493,979
898,818
The financial statements were approved by the board of directors and authorised for issue on 25 June 2025 and are signed on its behalf by:
25 June 2025
Allan Henderson
Director
GRANITE CITY HOSPITALITY LTD
COMPANY BALANCE SHEET
AS AT 30 SEPTEMBER 2024
30 September 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
10
10,856
31,830
Tangible assets
11
6,621,138
4,249,949
Investments
12
35,000
35,000
6,666,994
4,316,779
Current assets
Stocks
14
108,113
130,930
Debtors
15
219,369
569,024
Cash at bank and in hand
138,009
175,800
465,491
875,754
Creditors: amounts falling due within one year
16
(2,669,291)
(2,316,276)
Net current liabilities
(2,203,800)
(1,440,522)
Total assets less current liabilities
4,463,194
2,876,257
Creditors: amounts falling due after more than one year
17
(1,891,631)
(1,795,664)
Provisions for liabilities
19
(60,029)
(196,673)
Net assets
2,511,534
883,920
Capital and reserves
Called up share capital
22
2
2
Revaluation reserve
23
2,101,087
Profit and loss reserves
23
410,445
883,918
Total equity
2,511,534
883,920
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company's loss for the year was £473,473 (2023 - £231,122).
The financial statements were approved by the board of directors and authorised for issue on 25 June 2025 and are signed on its behalf by:
25 June 2025
Allan Henderson
Director
Company Registration No. SC140973
GRANITE CITY HOSPITALITY LTD
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 11 -
Share capital
Revaluation reserve
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
£
£
£
£
£
£
Balance at 1 October 2022
2
1,125,410
1,125,412
15,745
1,141,157
Year ended 30 September 2023:
Loss and total comprehensive income for the year
-
-
(239,577)
(239,577)
(2,762)
(242,339)
Balance at 30 September 2023
2
885,833
885,835
12,983
898,818
Year ended 30 September 2024:
Loss for the year
-
-
(496,793)
(496,793)
(9,133)
(505,926)
Other comprehensive income:
Revaluation of tangible fixed assets
-
2,101,087
-
2,101,087
-
2,101,087
Total comprehensive income for the year
-
2,101,087
(496,793)
1,604,294
(9,133)
1,595,161
Balance at 30 September 2024
2
2,101,087
389,040
2,490,129
3,850
2,493,979
GRANITE CITY HOSPITALITY LTD
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 12 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 October 2022
2
1,115,040
1,115,042
Year ended 30 September 2023:
Loss and total comprehensive income for the year
-
-
(231,122)
(231,122)
Balance at 30 September 2023
2
883,918
883,920
Year ended 30 September 2024:
Loss for the year
-
-
(473,473)
(473,473)
Other comprehensive income:
Revaluation of tangible fixed assets
-
2,101,087
-
2,101,087
Total comprehensive income for the year
-
2,101,087
(473,473)
1,627,614
Balance at 30 September 2024
2
2,101,087
410,445
2,511,534
GRANITE CITY HOSPITALITY LTD
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 13 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
828,650
405,557
Interest paid
(194,552)
(165,501)
Income taxes paid
(3,008)
(24,005)
Net cash inflow from operating activities
631,090
216,051
Investing activities
Purchase of tangible fixed assets
(1,096,410)
(221,209)
Interest received
900
Net cash used in investing activities
(1,096,410)
(220,309)
Financing activities
Proceeds of new bank loans
2,050,000
-
Repayment of bank loans
(1,618,156)
(346,936)
Net cash generated from/(used in) financing activities
431,844
(346,936)
Net decrease in cash and cash equivalents
(33,476)
(351,194)
Cash and cash equivalents at beginning of year
193,642
544,836
Cash and cash equivalents at end of year
160,166
193,642
GRANITE CITY HOSPITALITY LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 14 -
1
Accounting policies
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The company is a qualifying entity for the purposes of FRS 102, being the parent of a group that prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
Section 4 ‘Statement of Financial Position’ – Reconciliation of the opening and closing number of shares;
Section 7 ‘Statement of Cash Flows’ – Presentation of a statement of cash flow and related notes and disclosures; and
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’ – Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income.
1.2
Basis of consolidation
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.
Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.
The consolidated group financial statements consist of the financial statements of the parent company Granite City Hospitality Ltd together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
1.3
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for at least twelve months from the date of signing the financial statements. Thus the directors have continued to adopt the going concern basis of accounting in preparing the financial statements.
GRANITE CITY HOSPITALITY LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies (continued)
- 15 -
1.4
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
1.5
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
1.6
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings
Nil
Leasehold land and buildings
1% Straight line
Leasehold improvements
20% Straight line and 10% Straight line
Fixtures and fittings
20% Straight line and 33 1/3% Straight line
Motor vehicles
25% Straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
Freehold land and buildings are included at valuation and no depreciation has been provided for as the directors are of the opinion that the building concerned is maintained at a high standard through a programme of refurbishment and maintenance. As a consequence the life of the building its residual value is such that any depreciation charge would be immaterial.
GRANITE CITY HOSPITALITY LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies (continued)
- 16 -
1.7
Fixed asset investments
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.8
Impairment of fixed assets
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.9
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
GRANITE CITY HOSPITALITY LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies (continued)
- 17 -
1.10
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.11
Financial instruments
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
GRANITE CITY HOSPITALITY LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies (continued)
- 18 -
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
1.12
Equity instruments
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
1.13
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
GRANITE CITY HOSPITALITY LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies (continued)
- 19 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.14
Provisions
Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
1.15
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.16
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.17
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
GRANITE CITY HOSPITALITY LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 20 -
2
Judgements and key sources of estimation uncertainty
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Useful economic lives of tangible assets
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual value of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 11 for the carrying amount of each asset and note 1.6 for the useful economic lives for each class of assets.
Goodwill
The group establishes a reliable estimate of the useful life of goodwill arising on business combinations. This estimate is based on a variety of factors such as the expected use of the acquired business, the expected usual life of the cash generating units to which the goodwill is attributed, any legal, regulatory or contractual provisions that can limit useful life and assumptions that market participants would consider in respect of similar businesses. See note 10 for the carrying amount of the goodwill and note 1.5 for its useful economic life.
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Restaurant and bar takings
7,926,684
8,343,694
2024
2023
£
£
Other revenue
Interest income
-
900
Turnover is wholly attributable to the principal activity of the company and arises solely with the United Kingdom.
GRANITE CITY HOSPITALITY LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 21 -
4
Operating loss
2024
2023
£
£
Operating loss for the year is stated after charging:
Depreciation of owned tangible fixed assets
307,574
374,959
Impairment of owned tangible fixed assets
546,290
-
Amortisation of intangible assets
22,984
22,984
Operating lease charges
105,692
136,460
Fees payable to the group's auditor
22,000
22,000
5
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Directors
6
5
5
5
Restaurant and bar staff
178
189
135
150
Administrative
2
2
2
2
Total
186
196
142
157
Their aggregate remuneration comprised:
Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
2,913,496
2,954,857
2,350,726
2,445,426
Social security costs
172,394
173,729
172,394
173,729
Pension costs
51,733
66,575
44,629
49,877
3,137,623
3,195,161
2,567,749
2,669,032
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
201,450
213,583
Company pension contributions to defined contribution schemes
8,452
14,394
209,902
227,977
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2023 - 3).
GRANITE CITY HOSPITALITY LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
6
Directors' remuneration (continued)
- 22 -
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
99,000
113,000
Company pension contributions to defined contribution schemes
6,000
12,000
7
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
194,552
165,501
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
57,475
3,008
Deferred tax
Origination and reversal of timing differences
(145,590)
(33,934)
Total tax credit
(88,115)
(30,926)
Changes to the UK corporation tax rates were substantively enacted as part of Finance Bill 2023 (on 10 January 2023). These changes included an increase in the main rate to 25% from April 2023. Deferred taxes at the balance sheet date, in relation to UK companies, are measured using tax rates enacted as at the balance sheet date (25%).
GRANITE CITY HOSPITALITY LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
8
Taxation (continued)
- 23 -
The actual credit for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Loss before taxation
(594,041)
(273,265)
Expected tax credit based on the standard rate of corporation tax in the UK of 25% (2023: 19%)
(148,510)
(51,920)
Tax effect of expenses that are not deductible in determining taxable profit
1,156
7,245
Unutilised tax losses carried forward
3,429
Depreciation in excess of permanent capital allowances
59,239
17,677
Deferred tax adjustments in respect of prior years
(7,085)
Tax at marginal rate
(138)
Pension provision movement
(134)
Taxation credit
(88,115)
(30,926)
9
Impairments
Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:
2024
2023
Notes
£
£
In respect of:
Property, plant and equipment
11
546,290
-
Recognised in:
Administrative expenses
546,290
-
The impairment losses in respect of financial assets are recognised in other gains and losses in the profit and loss account.
GRANITE CITY HOSPITALITY LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 24 -
10
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 October 2023 and 30 September 2024
931,269
Amortisation and impairment
At 1 October 2023
907,821
Amortisation charged for the year
22,984
At 30 September 2024
930,805
Carrying amount
At 30 September 2024
464
At 30 September 2023
23,448
Company
Goodwill
£
Cost
At 1 October 2023 and 30 September 2024
209,744
Amortisation and impairment
At 1 October 2023
177,914
Amortisation charged for the year
20,974
At 30 September 2024
198,888
Carrying amount
At 30 September 2024
10,856
At 30 September 2023
31,830
GRANITE CITY HOSPITALITY LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 25 -
11
Tangible fixed assets
Group
Freehold land and buildings
Leasehold land and buildings
Leasehold improvements
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
£
Cost or valuation
At 1 October 2023
3,024,759
679,584
1,948,100
589,749
4,500
6,246,692
Additions
1,070,120
4,299
21,991
1,096,410
Revaluation
1,516,420
1,020,416
(985,371)
1,551,465
At 30 September 2024
5,611,299
1,700,000
967,028
611,740
4,500
8,894,567
Depreciation and impairment
At 1 October 2023
41,017
17,655
696,052
220,345
4,500
979,569
Depreciation charged in the year
14,182
3,898
145,740
143,754
307,574
Impairment losses
523,573
22,717
546,290
Revaluation
(19,635)
(529,987)
(549,622)
At 30 September 2024
55,199
1,918
835,378
386,816
4,500
1,283,811
Carrying amount
At 30 September 2024
5,556,100
1,698,082
131,650
224,924
7,610,756
At 30 September 2023
2,983,742
661,929
1,252,048
369,404
5,267,123
Company
Freehold land and buildings
Leasehold land and buildings
Leasehold improvements
Fixtures and fittings
Total
£
£
£
£
£
Cost or valuation
At 1 October 2023
2,013,460
679,584
1,948,100
828,297
5,469,441
Additions
1,070,120
4,299
19,918
1,094,337
Revaluation
1,516,420
1,020,416
(985,371)
1,551,465
At 30 September 2024
4,600,000
1,700,000
967,028
848,215
8,115,243
Depreciation and impairment
At 1 October 2023
17,655
696,052
505,785
1,219,492
Depreciation charged in the year
3,898
145,740
128,307
277,945
Impairment losses
523,573
22,717
546,290
Revaluation
(19,635)
(529,987)
(549,622)
At 30 September 2024
1,918
835,378
656,809
1,494,105
Carrying amount
At 30 September 2024
4,600,000
1,698,082
131,650
191,406
6,621,138
At 30 September 2023
2,013,460
661,929
1,252,048
322,512
4,249,949
GRANITE CITY HOSPITALITY LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
11
Tangible fixed assets (continued)
- 26 -
More information on impairment movements in the year is given in note 9.
Freehold land and buildings were revalued at 28 March 2024 by Graham Sibbald Chartered Surveyors, independent valuers not connected with the company on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties.
Leasehold land and buildings were revalued at 28 March 2024 by Graham Sibbald Chartered Surveyors, independent valuers not connected with the company on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties.
The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:
2024
2023
£
£
Group
Cost
3,763,164
-
12
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
13
35,000
35,000
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 October 2023 and 30 September 2024
35,000
Carrying amount
At 30 September 2024
35,000
At 30 September 2023
35,000
13
Subsidiaries
Details of the company's subsidiaries at 30 September 2024 are as follows:
Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Fourmile House (Aberdeen) Ltd
United Kingdom
Operation of licensed premises
Ordinary
70.00
GRANITE CITY HOSPITALITY LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 27 -
14
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Finished goods and goods for resale
125,022
147,680
108,113
130,930
15
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
54,203
82,088
44,477
61,216
Amounts owed by group undertakings
-
-
-
379,713
Other debtors
42,475
74,706
42,475
74,706
Prepayments and accrued income
136,021
55,189
132,417
53,389
232,699
211,983
219,369
569,024
16
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans
18
127,505
344,712
89,278
279,345
Trade creditors
576,502
721,444
480,495
628,686
Amounts owed to group undertakings
140,545
Corporation tax payable
57,488
3,021
57,488
3,021
Other taxation and social security
323,869
337,751
287,679
295,886
Deferred income
20
17,418
19,906
17,418
19,906
Other creditors
1,190,000
590,000
1,190,000
590,000
Accruals
431,277
520,616
406,388
499,432
2,724,059
2,537,450
2,669,291
2,316,276
17
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans
18
2,834,847
2,185,796
1,891,631
1,795,664
GRANITE CITY HOSPITALITY LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 28 -
18
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
2,962,352
2,530,508
1,980,909
2,075,009
Payable within one year
127,505
344,712
89,278
279,345
Payable after one year
2,834,847
2,185,796
1,891,631
1,795,664
The bank loans are secured by a bond and floating charge over all the assets of the company, standard security over the properties at Ferryhill House Hotel, Pocra Quay and 9&10 Queens Terrace.
The various bank loans are repayable over 15 years and interest is charged at 2.25% per annum over the Bank of England base rate.
19
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
83,705
227,432
Tax losses
(6,551)
(3,497)
Retirement benefit obligations
(932)
(2,123)
76,222
221,812
Liabilities
Liabilities
2024
2023
Company
£
£
Accelerated capital allowances
60,811
197,658
Retirement benefit obligations
(782)
(985)
60,029
196,673
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 October 2023
221,812
196,673
Credit to profit or loss
(145,590)
(136,644)
Liability at 30 September 2024
76,222
60,029
GRANITE CITY HOSPITALITY LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
19
Deferred taxation (continued)
- 29 -
20
Deferred income
Group
Company
2024
2023
2024
2023
£
£
£
£
Other deferred income
17,418
19,906
17,418
19,906
21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
51,733
66,575
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
22
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
2
2
2
2
23
Reserves
Revaluation reserve
This reserve records increases in the valuation of Freehold/Leasehold land and buildings and decreases to the extent that such decrease relates to an increase on the same asset previously recognised in this reserve. Revaluation gains on Freehold/Leasehold land and buildings are not realised profits under Company law. Therefore the Group has maintained this non-distributable reserve to facilitate this. Deferred tax liabilities arising on Freehold/Leasehold land and buildings revaluation gains are provided for and movements in such deferred tax provision are also recorded through this reserve. Deferred tax assets arising on Freehold/Leasehold land and buildings revaluation losses are not recognised as it is not considered probable that they will be recovered due to the anticipated future upward movement in the valuation of Freehold/Leasehold land and buildings.
Profit and loss reserves
This reserve records the accumulated distributable profits made by the company net of distributions to shareholders.
GRANITE CITY HOSPITALITY LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 30 -
24
Operating lease commitments
Lessee
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
87,922
115,787
87,922
115,787
Between two and five years
277,140
325,006
277,140
325,006
In over five years
-
40,274
-
40,274
365,062
481,067
365,062
481,067
25
Related party transactions
Transactions with related parties
During the year the group entered into the following transactions with related parties:
Interest received
Recharged income
2024
2023
2024
2023
£
£
£
£
Group
Entities over which the group has control, joint control or significant influence
12,000
12,000
14,355
10,966
Other related parties
9,000
14,400
31,628
40,463
Company
Entities over which the company has control, joint control or significant influence
12,000
12,000
8,355
10,966
Other related parties
-
-
27,161
29,068
Expenses recharged
Management charges
2024
2023
2024
2023
£
£
£
£
Group
Entities over which the entity has control, joint control or significant influence
9,627
7,708
-
-
Other related parties
115,711
86,867
32,015
235,112
Company
Entities over which the entity has control, joint control or significant influence
9,627
7,708
-
-
Other related parties
184,786
83,788
32,015
235,112
GRANITE CITY HOSPITALITY LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
25
Related party transactions (continued)
- 31 -
The following amounts were outstanding at the reporting end date:
Amounts due to related parties
2024
2023
£
£
Group
Entities with control, joint control or significant influence over the group
350,000
250,000
Other related parties
886,812
456,546
Company
Entities with control, joint control or significant influence over the company
350,000
250,000
Entities over which the company has control, joint control or significant influence
140,545
-
Other related parties
880,578
465,058
The following amounts were outstanding at the reporting end date:
Amounts due from related parties
2024
2023
Balance
Balance
£
£
Company
Entities over which the company has control, joint control or significant influence
-
379,713
26
Controlling party
The immediate parent company is McGinty's (Aberdeen) Limited.
The largest group in which the financial results of the company are consolidated is that headed by Granite City Hospitality Ltd. No other financial statements include the results of the company. The consolidated accounts for Granite City Hospitality Ltd are available to the public and a copy may be obtained at Companies House.
GRANITE CITY HOSPITALITY LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 32 -
27
Cash generated from group operations
2024
2023
£
£
Loss for the year after tax
(505,926)
(242,339)
Adjustments for:
Taxation credited
(88,115)
(30,926)
Finance costs
194,552
165,501
Investment income
(900)
Amortisation and impairment of intangible assets
22,984
22,984
Depreciation and impairment of tangible fixed assets
853,864
374,959
Movements in working capital:
Decrease/(increase) in stocks
22,658
(13,650)
Increase in debtors
(20,716)
(104,105)
Increase in creditors
351,837
236,522
Decrease in deferred income
(2,488)
(2,489)
Cash generated from group operations
828,650
405,557
28
Analysis of changes in net debt - group
1 October 2023
Cash flows
30 September 2024
£
£
£
Cash at bank and in hand
193,642
(33,476)
160,166
Borrowings excluding overdrafts
(2,530,508)
(431,844)
(2,962,352)
(2,336,866)
(465,320)
(2,802,186)
29
Company information
Granite City Hospitality Ltd (“the company”) is a private limited company domiciled and incorporated in Scotland. The registered office is 12 - 16 Albyn Place, Aberdeen, AB10 1PS.
The group consists of Granite City Hospitality Ltd and its subsidiary, Fourmile House (Aberdeen) Ltd.
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