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REGISTERED NUMBER: SC421599 (Scotland)















CRAIGTON FOODS LIMITED

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 December 2024






CRAIGTON FOODS LIMITED (REGISTERED NUMBER: SC421599)






Contents of the Financial Statements
for the year ended 31 December 2024




Page

Company Information 1

Strategic Report 2 to 3

Report of the Directors 4 to 5

Report of the Independent Auditors 6 to 8

Income Statement 9

Other Comprehensive Income 10

Balance Sheet 11

Statement of Changes in Equity 12

Cash Flow Statement 13

Notes to the Cash Flow Statement 14

Notes to the Financial Statements 15 to 23


CRAIGTON FOODS LIMITED

Company Information
for the year ended 31 December 2024







Directors: C G Duncan
H C Duncan





Registered office: Mcdonald's Restaurants
12-22 High Street
Inverness
IV1 1JQ





Registered number: SC421599 (Scotland)





Auditors: Cooper Parry Group Limited
New Derwent House
69-73 Theobalds Road
London
WC1X 8TA

CRAIGTON FOODS LIMITED (REGISTERED NUMBER: SC421599)

Strategic Report
for the year ended 31 December 2024

The directors present their strategic report for the year ended 31 December 2024.

Review of business
The company operates four McDonald's franchised restaurants in North Scotland, employing over 571 members of staff.

The lower than expected supply chain inflation across 2024 resulted in gross profit margin above plan. This allowed the company to invest the benefit into value driving initiatives to increase guest counts and sales.

The IEO (Informal Eating Out) and QSR (Quick Service Restaurant) markets have continued to see a decline in customer visits versus 2023, which in turn has led to challenging guest count and sales performance. Despite the challenging backdrop we have launched several trading initiatives to increase footfall in to our restaurants, which have seen strong results and led to market share gains.

Given the direct link between our approach to pricing, the external environment, and our success in relation to our customers, we will continue to remain close to understanding this relationship and look constantly to evaluate how our internal actions are impacting our customers.

The financial position of the company is healthy with the balance sheet showing net assets of £5.24 million, increased from £5.15 million in 2023.

Key performance indicators
We consider our key financial performance indicators are those that communicate the financial performance and strength of the company as a whole, including turnover and gross profit margin.

Sales for the year amounted to £27.72 million, a decrease of £10.81 million from 2023, giving an overall sales decrease of approximately 28.06%. The reduction is sales is due to the sale of two stores during the year. On a like for like basis, sales for the four stores open for the whole of both 2023 and 2024 increased by approximately 2.01%.

The gross profit margin is 66.15% compared to 64.65% in 2023 and is in line with expectations.

Future developments
2024 economic trends are broadly expected to continue into 2025.

In 2025 we anticipate more optimism in the market, partly driven by anticipated interest rate cuts. However, consumer sentiment remains low, as customers continue to feel the impact from the economic environment over recent years. Sales growth will be driven by our ability to meet the increasing demands of our customers, through investing in the customer experience as well as a strong marketing calendar with a continued focus on value and a number of innovative products including the Big Arch.

Our ambition for 2025 and beyond is to continue our sustainable growth of gross profit margin. To support this, we anticipate making menu board price increases in 2025 and any pricing considerations will remain customer led in, with the focus being growing guest counts and sales. This will in turn strengthen gross profit and cash flow, whilst sustainably growing gross profit margin in an attempt to achieve increased margins for Q4 2025. Absolute gross profit margin will vary by store dependent on pricing and product mix amongst other factors.

The 2025 pricing strategy will provide gross profit margin growth by taking more price than supply chain inflation, whilst maintaining the business' core value proposition. The key focus will be on driving sustainable growth by building upon the work which has been implemented on value, opportunities driven by investment in IRLX (In Real Life Experience) and refining the long-term view of pricing and menu architecture.

It is the strategy of the company to carry out store refurbishments projects at regular intervals, under the guidance of McDonald's national store refurbishment program, in order to benefit the customers in store dining experience. The re-imaging strategy continues to have a positive impact on guest counts which in turn powers sales growth in line with directors' expectations and objectives.


CRAIGTON FOODS LIMITED (REGISTERED NUMBER: SC421599)

Strategic Report
for the year ended 31 December 2024

Principal risks and uncertainties
The company operates in a highly competitive market, High street consumer behaviour impacts the company’s turnover and the variability of commodity prices impact profitability.

The company is continually assessing all risks with an aim to mitigate any future threats these may have on the business.

Economic risk
Following some very challenging times, we are optimistic about the economic future. Principal risks are increasing commodity prices, increased utility costs and labour rates adding pressure to margins.

The company’s supply chain is closely maintained by McDonald’s, who are able to negotiate effectively on behalf of franchisees to ensure enhanced purchasing terms. They have continued to work at mitigating the impact of food and paper inflation with an expectation that circa 30% of our costs will be secured.

This forecast reflects our confidence in the stability of key cost drivers, however, there still remains some uncertainty with geopolitical uncertainty and legislative Impact. Our focus remains on working closely with supplier partners to manage inevitable cost increases.

Regulatory risks
The company's operations demand a high level of compliance within a wide range of regulatory requirements. In particular -
* Health and safety
* Hygiene procedures
* Employment laws
* Licensing

The above, along with a number of other areas, are monitored in detail by McDonald's, as being in the fast food industry brings a high level of regulatory concerns.

Consumer taste
Any material changes in the way the consumer views the fast food industry could have an adverse effect on the company. However, this can also work in the opposite direction and could assist the company to achieve growth. As a result, the company focuses, in detail, on recognising demographic trends, ensuring innovation and the use of the freshest and highest quality products through its stores. The company has strict policies to ensure that all stores are maintaining the McDonald's ethos.

Competitors
The fast food market is a very competitive market, with a high number of large competitors trading in the sector. In order to remain as one of the main players, McDonald's have dedicated teams who focus on ensuring they remain a leading company within the market. This allows them to compete with other large fast food chains.

On behalf of the board:





C G Duncan - Director


26 August 2025

CRAIGTON FOODS LIMITED (REGISTERED NUMBER: SC421599)

Report of the Directors
for the year ended 31 December 2024

The directors present their report with the financial statements of the company for the year ended 31 December 2024.

Principal activity
The principal activity of the company in the year under review was that of the operation of McDonald's franchised restaurants.

Dividends
Interim dividends per share were paid as follows:
Ordinary A £1 shares £200 - 6 April 2024
Ordinary B £1 shares £1600 - 6 April 2024


The directors recommend that no final dividends be paid.

The total distribution of dividends for the year ended 31 December 2024 will be £ 55,000 .

Research and development
The company does not carry out any independent research and development. However the franchisor, McDonalds' Restaurants Limited, carries out its own research and development on behalf of all franchisees. The company makes a contribution towards this through its existing payments to the franchisor.

Directors
The directors shown below have held office during the whole of the period from 1 January 2024 to the date of this report.

C G Duncan
H C Duncan

Going concern
The directors have considered the application of the going concern basis of accounting. In doing so they have considered the period from the date of this report until 31 December 2026. The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the annual financial statements.

Employment of disabled persons
The company operates a policy of giving full & fair consideration to employment applications from disabled persons.

Provision of information to employees
The company has a system for providing employees with information of concern to them. It also consults employees on a regular basis so that their views can be taken into account in making decisions affecting them. It regularly explains to employees the financial and economic factors affecting the performance of the company and makes them aware of the provision of training, career development and employment of disabled employees.

Engagement with employees
Our employees are fundamental to the delivery of our plan. We aim to be a responsible employer in our approach to the pay and benefits our employees receive. The health, safety and wellbeing of our employees is one of our primary considerations in the way we do business.

Statement of directors' responsibilities
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.


CRAIGTON FOODS LIMITED (REGISTERED NUMBER: SC421599)

Report of the Directors
for the year ended 31 December 2024

Statement of directors' responsibilities - continued
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement as to disclosure of information to auditors
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

Auditors
The auditors, Cooper Parry Group Limited, are deemed re-appointed under Section 487(2) of the Companies Act 2006.

On behalf of the board:





C G Duncan - Director


26 August 2025

Report of the Independent Auditors to the Members of
Craigton Foods Limited

Opinion
We have audited the financial statements of Craigton Foods Limited (the 'company') for the year ended 31 December 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 Auditors' 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 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 company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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 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 the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

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 directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Report of the Independent Auditors to the Members of
Craigton Foods Limited


Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on pages four and five, 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 necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors 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:

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:

Based on our understanding of the industry, we identified that the principal risks of non-compliance related to breaches of health and safety, including food hygiene. We considered the extent to which non-compliance might have a material affect on the financial statements.

We also considered those laws and regulations that have a direct impact on preparation of the financial statements, such as the Companies Act 2006. We examined management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of overriding of controls) and determined that the principal risks were relating to management bias in accounting estimates, in particular those of accrued liabilities and the useful life of tangible assets.

We also discussed with management the possibility of non-compliance with health and safety and food hygiene regulations and reviewed the management controls in place to detect such irregularities. Audit procedures included challenging assumptions made by management in their significant accounting estimates. There are inherent limitations in the Audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions described in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one due to error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

In assessing the potential risks of material misstatement we obtained an understanding of; the entities operations, including the nature of its revenue sources and services and of its objectives and strategies to understand the classes of transactions, account balances, expected financial statement disclosures and business risks that may result in risks of material.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Report of the Independent Auditors to the Members of
Craigton Foods Limited


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 a Report of the Auditors 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.




Nicola Pearson ACA (Senior Statutory Auditor)
for and on behalf of Cooper Parry Group Limited
New Derwent House
69-73 Theobalds Road
London
WC1X 8TA

28 August 2025

CRAIGTON FOODS LIMITED (REGISTERED NUMBER: SC421599)

Income Statement
for the year ended 31 December 2024

2024 2023
Notes £ £

Turnover 3 27,716,926 38,533,015

Cost of sales (9,382,683 ) (13,623,241 )
Gross profit 18,334,243 24,909,774

Administrative expenses (18,308,605 ) (21,373,574 )
Operating profit 5 25,638 3,536,200

Interest receivable and similar income 132,941 5,778
158,579 3,541,978

Interest payable and similar expenses 6 (26,504 ) (26,854 )
Profit before taxation 132,075 3,515,124

Tax on profit 7 5,950 (885,282 )
Profit for the financial year 138,025 2,629,842

CRAIGTON FOODS LIMITED (REGISTERED NUMBER: SC421599)

Other Comprehensive Income
for the year ended 31 December 2024

2024 2023
Notes £ £

Profit for the year 138,025 2,629,842


Other comprehensive income - -
Total comprehensive income for the year 138,025 2,629,842

CRAIGTON FOODS LIMITED (REGISTERED NUMBER: SC421599)

Balance Sheet
31 December 2024

2024 2023
Notes £ £ £ £
Fixed assets
Intangible assets 9 1,366,259 1,924,359
Tangible assets 10 721,876 1,409,077
Investments 11 7,500 8,750
2,095,635 3,342,186

Current assets
Stocks 12 91,180 127,011
Debtors 13 3,398,410 3,322,185
Cash at bank and in hand 1,741,724 2,430,138
5,231,314 5,879,334
Creditors
Amounts falling due within one year 14 2,002,165 3,824,722
Net current assets 3,229,149 2,054,612
Total assets less current liabilities 5,324,784 5,396,798

Provisions for liabilities 17 89,053 244,092
Net assets 5,235,731 5,152,706

Capital and reserves
Called up share capital 18 100 100
Retained earnings 19 5,235,631 5,152,606
Shareholders' funds 5,235,731 5,152,706

The financial statements were approved by the Board of Directors and authorised for issue on 26 August 2025 and were signed on its behalf by:





C G Duncan - Director


CRAIGTON FOODS LIMITED (REGISTERED NUMBER: SC421599)

Statement of Changes in Equity
for the year ended 31 December 2024

Called up
share Retained Total
capital earnings equity
£ £ £
Balance at 1 January 2023 100 2,657,764 2,657,864

Changes in equity
Dividends - (135,000 ) (135,000 )
Total comprehensive income - 2,629,842 2,629,842
Balance at 31 December 2023 100 5,152,606 5,152,706

Changes in equity
Dividends - (55,000 ) (55,000 )
Total comprehensive income - 138,025 138,025
Balance at 31 December 2024 100 5,235,631 5,235,731

CRAIGTON FOODS LIMITED (REGISTERED NUMBER: SC421599)

Cash Flow Statement
for the year ended 31 December 2024

2024 2023
Notes £ £
Cash flows from operating activities
Cash generated from operations 1 (425,272 ) (1,624,019 )
Interest paid (26,504 ) (26,854 )
Tax paid (885,312 ) 125,409
Net cash from operating activities (1,337,088 ) (1,525,464 )

Cash flows from investing activities
Purchase of tangible fixed assets (319,167 ) (337,249 )
Sale of intangible fixed assets 566,974 2,418,672
Sale of tangible fixed assets 583,026 1,181,274
Sale of fixed asset investments 8,587 3,006
Interest received 132,941 5,778
Net cash from investing activities 972,361 3,271,481

Cash flows from financing activities
Loan repayments in year - (368,077 )
Amount introduced by directors 55,000 135,000
Amount withdrawn by directors (323,687 ) (443,791 )
Equity dividends paid (55,000 ) (135,000 )
Net cash from financing activities (323,687 ) (811,868 )

(Decrease)/increase in cash and cash equivalents (688,414 ) 934,149
Cash and cash equivalents at beginning of year 2 2,430,138 1,495,989

Cash and cash equivalents at end of year 2 1,741,724 2,430,138

CRAIGTON FOODS LIMITED (REGISTERED NUMBER: SC421599)

Notes to the Cash Flow Statement
for the year ended 31 December 2024

1. Reconciliation of profit before taxation to cash generated from operations

2024 2023
£ £
Profit before taxation 132,075 3,515,124
Depreciation charges 587,497 983,206
Profit on disposal of fixed assets (180,367 ) (2,875,894 )
Finance costs 26,504 26,854
Finance income (132,941 ) (5,778 )
432,768 1,643,512
Decrease in stocks 35,831 43,415
Increase in trade and other debtors (76,224 ) (2,981,427 )
Decrease in trade and other creditors (817,647 ) (329,519 )
Cash generated from operations (425,272 ) (1,624,019 )

2. Cash and cash equivalents

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2024
31/12/24 1/1/24
£ £
Cash and cash equivalents 1,741,724 2,430,138
Year ended 31 December 2023
31/12/23 1/1/23
£ £
Cash and cash equivalents 2,430,138 1,495,989


3. Analysis of changes in net funds

At 1/1/24 Cash flow At 31/12/24
£ £ £
Net cash
Cash at bank and in hand 2,430,138 (688,414 ) 1,741,724
2,430,138 (688,414 ) 1,741,724
Total 2,430,138 (688,414 ) 1,741,724

CRAIGTON FOODS LIMITED (REGISTERED NUMBER: SC421599)

Notes to the Financial Statements
for the year ended 31 December 2024

1. Statutory information

Craigton Foods Limited is a private company, limited by shares, registered in Scotland. The company's registered number and registered office address can be found on the Company Information page.

The financial statements are prepared in Sterling (£) which is the functional currency of the company.

2. Accounting policies

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Going Concern
The directors have considered the application of the going concern basis of accounting in doing so they have considered the period from the date of this report until 31 December 2026. The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the annual financial statements.

Turnover
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer, usually at the point of sale, the amount of revenue can be reliably measured, it is probable that the associated economic benefits will flow to the entity and the costs incurred or to be incurred in respect of the transactions can be reliably measured.

Franchise rights & fees
Franchise rights, being the amounts paid on acquisition of restaurants, are being written off evenly over the terms of the franchise agreements or, in the case of restaurants acquired mid term, written off over 20 years. The 20 year write off period for any restaurants purchased mid term is on the basis that, on expiry of the existing 20 year franchise agreements, the company will be granted a further 20 year term. The franchisor operates a formal "new term process" which sets out requirements for granting of a new term and the director does not anticipate any difficulty in meeting these requirements.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Short leasehold - at varying rates on cost
Restaurant equipment - 15% on cost and 10% on cost
Motor vehicles - 20% on cost
Computer equipment - at varying rates on cost

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Cash at bank and in hand
Cash at bank and in hand are basic financial assets comprising of cash in hand, demand deposits with bank, other short-term liquid investments with original maturities of three months or less and bank overdrafts. Bank overdrafts are shown within current liabilities.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


CRAIGTON FOODS LIMITED (REGISTERED NUMBER: SC421599)

Notes to the Financial Statements - continued
for the year ended 31 December 2024

2. Accounting policies - continued
Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

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

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Impairment of fixed assets
At each reporting end date, the company 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.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated 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 each 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.

Holiday pay accrual
A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the Balance Sheet date and carried forward to future periods. This is measured at the undiscounted cost of the future holiday entitlement so accrued at the Balance Sheet date.

CRAIGTON FOODS LIMITED (REGISTERED NUMBER: SC421599)

Notes to the Financial Statements - continued
for the year ended 31 December 2024

2. Accounting policies - continued

Financial instruments
The Company only enters into basic financial instruments that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.

For financial assets measured at amortised cost, the impairment cost is measured at the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the assets effective interest rate. If the financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the balance sheet date.

Creditors
Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Finance costs
Finance costs are charged to the Profit and Loss Account over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Dividends
Equity dividends are recognised when they legally become payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Judgements in applying accounting policies and key sources of estimation uncertainty
In the process of applying the company's accounting policies, management are required to make certain estimates and judgements. The key estimates and judgements are as follows:

Depreciation, amortisation and residual values
The director has reviewed the asset lives and associated residual values of all fixed asset classes and has concluded that asset lives and residual values are appropriate.

Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

Holiday pay accrual
A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the Balance Sheet date and carried forward to future periods. This is measured at the undiscounted cost of the future holiday entitlement so accrued at the Balance Sheet date.

3. Turnover

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

2024 2023
£ £
Food 27,222,209 37,865,577
Non product 494,717 667,438
27,716,926 38,533,015

The whole of turnover is derived from the United Kingdom.

CRAIGTON FOODS LIMITED (REGISTERED NUMBER: SC421599)

Notes to the Financial Statements - continued
for the year ended 31 December 2024

4. Employees and directors
2024 2023
£ £
Wages and salaries 8,087,718 10,181,046
Social security costs 493,932 475,219
Other pension costs 219,604 241,664
8,801,254 10,897,929

The average number of employees during the year was as follows:
2024 2023

Production staff 543 749
Management staff 28 32
571 781

2024 2023
£ £
Directors' remuneration 20,000 20,470
Directors' pension contributions to money purchase schemes 120,000 120,000

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 2 2

5. Operating profit

The operating profit is stated after charging/(crediting):

2024 2023
£ £
Other operating leases 3,107,542 4,524,912
Depreciation - owned assets 424,480 809,128
Profit on disposal of fixed assets (180,367 ) (2,875,894 )
Franchise rights amortisation 153,017 174,027
Franchise fees amortisation 10,000 50
Auditors' remuneration 8,000 8,000
Taxation compliance services 6,900 6,450
Other non- audit services 5,850 5,950

6. Interest payable and similar expenses
2024 2023
£ £
Bank loan interest - 1,854
Loan Interest - 25,000
HMRC Interest 26,504 -
26,504 26,854

CRAIGTON FOODS LIMITED (REGISTERED NUMBER: SC421599)

Notes to the Financial Statements - continued
for the year ended 31 December 2024

7. Taxation

Analysis of the tax (credit)/charge
The tax (credit)/charge on the profit for the year was as follows:
2024 2023
£ £
Current tax:
UK corporation tax 149,089 831,242

Deferred tax (155,039 ) 54,040
Tax on profit (5,950 ) 885,282

UK corporation tax has been charged at 25% (2023 - 25%).

Reconciliation of total tax (credit)/charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2024 2023
£ £
Profit before tax 132,075 3,515,124
Profit multiplied by the standard rate of corporation tax in the UK of 25% (2023 -
25%)

33,019

878,781

Effects of:
Expenses not deductible for tax purposes - (541 )
Depreciation in excess of capital allowances - 223,361
Adjustments to tax charge in respect of previous periods (75,784 ) -
Fixed asset differences 36,724 -
Other permanent differences 91 -
Change in UK corporation tax rate - (52,286 )
Profit/Loss on disposal of assets - (218,073 )
Deferred tax charge - 54,040
Total tax (credit)/charge (5,950 ) 885,282

Deferred tax has been calculated at 25% (2022- 25%).

8. Dividends
2024 2023
£ £
Ordinary A shares of £1 each
Interim 15,000 55,000
Ordinary B shares of £1 each
Interim 40,000 80,000
55,000 135,000

CRAIGTON FOODS LIMITED (REGISTERED NUMBER: SC421599)

Notes to the Financial Statements - continued
for the year ended 31 December 2024

9. Intangible fixed assets
Franchise Franchise
rights fees Totals
£ £ £
Cost
At 1 January 2024 3,126,499 93,500 3,219,999
Disposals (670,000 ) (30,000 ) (700,000 )
At 31 December 2024 2,456,499 63,500 2,519,999
Amortisation
At 1 January 2024 1,258,515 37,125 1,295,640
Amortisation for year 153,017 10,000 163,017
Eliminated on disposal (295,917 ) (9,000 ) (304,917 )
At 31 December 2024 1,115,615 38,125 1,153,740
Net book value
At 31 December 2024 1,340,884 25,375 1,366,259
At 31 December 2023 1,867,984 56,375 1,924,359

10. Tangible fixed assets
Short Restaurant Motor Computer
leasehold equipment vehicles equipment Totals
£ £ £ £ £
Cost
At 1 January 2024 210,949 5,424,007 28,451 346,174 6,009,581
Additions 6,205 312,193 - 769 319,167
Disposals (10,182 ) (1,994,125 ) - (80,666 ) (2,084,973 )
At 31 December 2024 206,972 3,742,075 28,451 266,277 4,243,775
Depreciation
At 1 January 2024 102,439 4,313,777 8,916 175,372 4,600,504
Charge for year 19,736 352,388 4,115 48,241 424,480
Eliminated on disposal (8,798 ) (1,440,634 ) - (53,653 ) (1,503,085 )
At 31 December 2024 113,377 3,225,531 13,031 169,960 3,521,899
Net book value
At 31 December 2024 93,595 516,544 15,420 96,317 721,876
At 31 December 2023 108,510 1,110,230 19,535 170,802 1,409,077

11. Fixed asset investments
Unlisted
investments
£
Cost
At 1 January 2024 8,750
Disposals (1,250 )
At 31 December 2024 7,500
Net book value
At 31 December 2024 7,500
At 31 December 2023 8,750

CRAIGTON FOODS LIMITED (REGISTERED NUMBER: SC421599)

Notes to the Financial Statements - continued
for the year ended 31 December 2024

11. Fixed asset investments - continued

Fixed asset investments consists of 7,500 (2023 - 8,750) ordinary shares of £1 each in Fries Holding Company Limited, a company registered in Guernsey. The investments are included in the accounts at cost.

12. Stocks
2024 2023
£ £
Food 62,776 95,101
Paper 17,915 23,510
Non-product 10,489 8,400
91,180 127,011

13. Debtors: amounts falling due within one year
2024 2023
£ £
Trade debtors 5,126 8,618
Other debtors 3,318,477 3,189,935
Prepayments 74,807 123,632
3,398,410 3,322,185

14. Creditors: amounts falling due within one year
2024 2023
£ £
Trade creditors 634,722 820,870
Corporation tax 95,019 831,242
Social security and other taxes 70,633 113,065
VAT 409,766 869,263
Other creditors 436,953 334,913
Directors' current accounts 216,956 485,643
Accrued expenses 138,116 369,726
2,002,165 3,824,722

15. Leasing agreements

Minimum lease payments under non-cancellable operating leases fall due as follows:
2024 2023
£ £
Within one year 547,608 762,252
Between one and five years 1,732,476 2,776,265
In more than five years 1,862,850 4,206,774
4,142,934 7,745,291

Lease payments recognised as an expense in the year totalled £3,107,542 (2023 - £4,524,912).

The operating lease figure disclosed in land and buildings is the base rent for all the company's operating premises. Each restaurant pays its own unique base rent based on its circumstances, with the remainder of the rent being based on the performance of the restaurant.

CRAIGTON FOODS LIMITED (REGISTERED NUMBER: SC421599)

Notes to the Financial Statements - continued
for the year ended 31 December 2024

16. Financial instruments

Financial Assets 2024 2023
£    £   
Financial assets as an equity instrument 7,500 8,750
Financial assets that are debt instruments measured at amortised cost 5,065,327 5,628,691
5,072,827 5,637,441


Financial Liabilities 1,426,747 2,011,152
1,426,747 2,011,152

17. Provisions for liabilities
2024 2023
£ £
Deferred tax 89,053 244,092

Deferred tax
£
Balance at 1 January 2024 244,092
Provided during year (155,039 )
Balance at 31 December 2024 89,053

18. Called up share capital

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £ £
75 Ordinary A £1 75 75
25 Ordinary B £1 25 25
100 100

19. Reserves
Retained
earnings
£

At 1 January 2024 5,152,606
Profit for the year 138,025
Dividends (55,000 )
At 31 December 2024 5,235,631

20. Related party disclosures

During the year, total dividends of £55,000 (2023 - £135,000) were paid to the directors .

As at the balance sheet date, the balance owed to the director Mr C Duncan from the company amounts to £216,956 (2023 - £485,643) and is repayable on demand.

The accounts include interest payable to Mr C Duncan of £nil (2023: £25,000) being a rate of interest of 5.15%.

Key management personnel remuneration is disclosed under note 4 of the notes to the financial statements.

CRAIGTON FOODS LIMITED (REGISTERED NUMBER: SC421599)

Notes to the Financial Statements - continued
for the year ended 31 December 2024

21. Ultimate controlling party

The ultimate controlling party is C G Duncan.