Company registration number 10336189 (England and Wales)
LEO TAVERNS LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
PAGES FOR FILING WITH REGISTRAR
LEO TAVERNS LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 8
LEO TAVERNS LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 1 -
2024
2023
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
4
6,058,737
5,793,247
Current assets
Debtors
5
1,526,341
1,104,701
Cash at bank and in hand
669
492
1,527,010
1,105,193
Creditors: amounts falling due within one year
6
(3,017,948)
(2,200,637)
Net current liabilities
(1,490,938)
(1,095,444)
Total assets less current liabilities
4,567,799
4,697,803
Provisions for liabilities
(884,738)
(818,366)
Net assets
3,683,061
3,879,437
Capital and reserves
Called up share capital
1
1
Revaluation reserve
7
2,366,411
2,291,411
Profit and loss reserves
1,316,649
1,588,025
Total equity
3,683,061
3,879,437
These notes form part of these financial statements.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
The financial statements were approved by the board of directors and authorised for issue on 2 May 2025 and are signed on its behalf by:
Mr JD Waddington
Director
Company registration number 10336189 (England and Wales)
LEO TAVERNS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
1
Accounting policies
Company information
Leo Taverns Limited is a private company, limited by shares, registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, as modified by certain revalued assets.
The principal accounting policies adopted are set out below.
1.2
Going concern
At the time of signing these accounts, having considered the economic climate, the Directors' expectations and intentions for the next twelve months, and the availability of working capital, the Directors are of the opinion that the Company will remain viable for the foreseeable future and therefore these Financial Statements have been prepared on the going concern basis.
Inglenook Inns & Taverns Limited has issued a letter of support to provide ongoing financial support to the company to enable the company to meet its financial obligations as and when they fall due so that the company will continue as a going concern in the foreseeable future for 12 months from the approval date of these financial statements.
1.3
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.
1.4
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
0%
Plant and equipment
20% reducing balance
Fixtures and fittings
10% reducing balance
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 credited or charged to profit or loss.
The freehold properties owned by the company are utilised as part of the company's trading activities. The directors' are also holding the assets for capital growth and therefore the properties have been valued under the fair value and as a consequence are not being depreciated.
LEO TAVERNS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 3 -
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible 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.
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.
1.6
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.
1.7
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
LEO TAVERNS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 4 -
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.8
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.9
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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
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 when the company has 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.
1.10
The company has taken advantage of exemption, under the terms of the Financial Reporting Standard 102 'The Financial Reporting Standard appliable in the UK and Republic of Ireland', not to disclose any related party transactions with wholly owned subsidiaries within the group.
LEO TAVERNS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 5 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Revaluation of freehold property
The Company has opted to account for its freehold property at fair value which was determined by independent qualified valuers using evidence from observed prices in market transactions for similar properties in similar locations.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
3
3
4
Tangible fixed assets
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Total
£
£
£
£
Cost or valuation
At 1 January 2024
5,575,000
6,316
227,189
5,808,505
Additions
195,836
195,836
Revaluation
100,000
100,000
At 31 December 2024
5,675,000
6,316
423,025
6,104,341
Depreciation and impairment
At 1 January 2024
2,407
12,851
15,258
Depreciation charged in the year
782
29,564
30,346
At 31 December 2024
3,189
42,415
45,604
Carrying amount
At 31 December 2024
5,675,000
3,127
380,610
6,058,737
At 31 December 2023
5,575,000
3,909
214,338
5,793,247
LEO TAVERNS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
4
Tangible fixed assets
(Continued)
- 6 -
The carrying value of land and buildings comprises:
Cost - £2,519,784
Revaluations:
2021 - £2,859,515
2022 - £160,701
2023 - £350,000
2024 - £100,000
In December 2024 the freehold property was revalued by CBRE Group on the basis of market values.
5
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,622
Amounts owed by group undertakings
1,526,341
1,103,079
1,526,341
1,104,701
6
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
30
30
Amounts owed to group undertakings
2,995,099
2,158,367
Corporation tax
22,819
42,240
3,017,948
2,200,637
LEO TAVERNS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 7 -
7
Revaluation reserve
2024
2023
£
£
At the beginning of the year
2,242,661
2,705,215
Prior year adjustment
48,750
As restated
2,291,411
2,705,215
Revaluation surplus arising in the year
100,000
350,000
Deferred tax on revaluation of tangible assets
(25,000)
(763,804)
At the end of the year
2,366,411
2,291,411
8
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006.
The auditor's report is unqualified and includes the following:
Opinion
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 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.
Senior Statutory Auditor:
Diccon Thornely
Statutory Auditor:
Sedulo Audit Limited
Date of audit report:
2 May 2025
9
Parent company
The financial statements of the company are consolidated in the financial statements of KH V Properties 122 Limited, Registered in Jersey.
The directors are of the view that there is no ultimate controlling party.
10
Prior period adjustment
In 2023 a property with a cost of £235,000 was incorrectly disposed. As a result of the restatement, land and buildings were increased by £235,000 with a similar adjustment to equity. Furthermore, the property was revalued to £300,000 resulting in an increase of the revaluation reserve of £48,250 net of deferred tax.
Furthermore, the properties held by the Company are financed through a loan in Inglenook Inns & Taverns Holdings (102) Ltd on which the aforementioned pay interest. The interest charges have been recharged to the Company from August 2023 onwards.
LEO TAVERNS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
10
Prior period adjustment
(Continued)
- 8 -
Reconciliation of changes in equity
1 January
31 December
2023
2023
£
£
Adjustments to prior year
Incorrect treatment of property
-
300,000
Deferred tax
-
(16,250)
Finance fee
-
(200,600)
Total adjustments
-
83,150
Equity as previously reported
3,266,169
3,796,287
Equity as adjusted
3,266,169
3,879,437
Analysis of the effect upon equity
Revaluation reserve
-
48,750
Profit and loss reserves
-
34,400
-
83,150
Reconciliation of changes in profit for the previous financial period
2023
£
Adjustments to prior year
Incorrect treatment of property
235,000
Finance fee
(200,600)
Total adjustments
34,400
Profit as previously reported
566,368
Profit as adjusted
600,768