| REGISTERED NUMBER: |
| AG RESTAURANTS LTD |
| Strategic Report, Report of the Director and |
| Financial Statements for the Year Ended 31 December 2024 |
| REGISTERED NUMBER: |
| AG RESTAURANTS LTD |
| Strategic Report, Report of the Director and |
| Financial Statements for the Year Ended 31 December 2024 |
| AG RESTAURANTS LTD (REGISTERED NUMBER: SC287991) |
| Contents of the Financial Statements |
| for the year ended 31 December 2024 |
| Page |
| Company Information | 1 |
| Strategic Report | 2 | to | 4 |
| Report of the Director | 5 | to | 9 |
| Report of the Independent Auditors | 10 | to | 11 |
| Income Statement | 12 |
| Other Comprehensive Income | 13 |
| Balance Sheet | 14 |
| Statement of Changes in Equity | 15 |
| Cash Flow Statement | 16 |
| Notes to the Cash Flow Statement | 17 |
| Notes to the Financial Statements | 18 | to | 26 |
| AG RESTAURANTS LTD |
| Company Information |
| for the year ended 31 December 2024 |
| Director: |
| Secretary: |
| Registered office: |
| Registered number: |
| Auditors: |
| 4th Floor |
| Llanthony Warehouse |
| The Docks |
| Gloucester |
| GL1 2EH |
| AG RESTAURANTS LTD (REGISTERED NUMBER: SC287991) |
| Strategic Report |
| for the year ended 31 December 2024 |
| The director presents his strategic report for the year ended 31 December 2024. |
| Review of business |
| The company operates twenty five McDonald's restaurants in Central and Greater Glasgow, employing over 2,850 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 £11.59 million, compared with £11.22 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 £130.69 million, a decrease of £4.56 million from 2023 giving an overall sales decrease of approximately 3.37%. The reduction in sales is predominantly due to the sale of two restaurants during the year. On a like for like basis for the twenty five stores trading over the full financial year, sales have increased by 0.35%. |
| The gross profit margin is 65.96% compared to 64.33% 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, 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. The IRLX upgrade programme was carried out at one store during the year. |
| AG RESTAURANTS LTD (REGISTERED NUMBER: SC287991) |
| 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. |
| AG RESTAURANTS LTD (REGISTERED NUMBER: SC287991) |
| Strategic Report |
| for the year ended 31 December 2024 |
| Section 172(1) statement |
| Statement by the director in performance of his statutory duties in accordance with s172(1) Companies Act 2006: |
| The director takes into account the likely consequences of long-term decisions; build relationships with stakeholders; understand the importance of engaging with our employees; understand the impact of our operations on the communities within which we operate; and attribute importance to behaving as a responsible business. |
| The director considers, both individually and together, that they have acted in the way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole (having regard to the stakeholders and matters set out in s172(1)(a-f) of the Act) in the decisions taken during the year ended 31 December 2024. In particular by reference to the approval of our business plan, which is updated on an annual basis. Our business plan was designed to have a long-term beneficial impact on the company and to contribute to its success in delivering high quality quick-service food. |
| Our employees are fundamental to the delivery of our plan. We aim to be a responsible employer in our approach to pay and benefits our employees receive. The health, safety and well-being of our employees is one of our primary considerations in the way we do business. |
| As the director, my intention is to behave responsibly and ensure that management operate the business in a responsible manner, operating within the high standards of business conduct and good governance expected for a business such as ours, and in doing so, will contribute to the delivery of our plan. |
| On behalf of the board: |
| AG RESTAURANTS LTD (REGISTERED NUMBER: SC287991) |
| Report of the Director |
| for the year ended 31 December 2024 |
| The director presents his 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: |
| A Ordinary £1 shares | £25,078.89 | - 6 April 2024 |
| B Ordinary £1 shares | £ |
- 6 April 2024 |
| The director recommends that no final dividends be paid. |
| The total distribution of dividends for the year ended 31 December 2024 will be £ |
| Research and development |
| The company does not carry out any independent research and development. However the franchisor, McDonald's 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. |
| Director |
| 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 having regard for their aptitudes and abilities. We will support the career development and provide the appropriate training for employees who become disabled during their employment with the company. |
| 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 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. |
| Engagement with suppliers, customers and others |
| The board of directors take into account the likely consequences of long-term decisions; build relationships with stakeholders; understand the impact of our operations on the communities within which we operate; and attribute importance to behaving as a responsible business. |
| Statement of corporate governance arrangements |
| The company is owned and controlled by a single director. By reference to the Corporate Governance Guidance and Principles for Unlisted Companies in the UK, published by the Institute of Directors, the director has established a framework of company processes and attitudes that add value to the business, help build its reputation and ensure its long-term continuity and success. This framework aligns with the business system and processes established by the franchisor and contributes to the continued success of the company. |
| Streamlined energy and carbon reporting |
| AG RESTAURANTS LTD (REGISTERED NUMBER: SC287991) |
| Report of the Director |
| for the year ended 31 December 2024 |
| The company's greenhouse gas emissions, reportable under SECR from 1st January 2024 - 31st December 2024, were 3,481 tonnes of carbon dioxide equivalent (tCO2e). These include emissions associated with electricity, natural gas, transport consumption and refrigerant leaks. The number of sites contributing to this report has decreased from 27 in 2023 to 25 in 2024. The company's total greenhouse gas emissions increased by 12.8% compared to 2023 figures, because purchased electricity energy consumption (kWh) has decreased by 16.2% and natural gas energy consumption (kWh) has increased by 7.8%, from 2023 to 2024. |
| Notable factors that could have contributed to the movement in emissions are as follows: |
| - A change in the methodology for missing data estimation will have affected the emissions associated with electricity, natural gas and purchased fuel. In 2023, extrapolation was conducted by Aligned Incentives, whereas in 2024, extrapolation was conducted by Mitie. |
| - Decrease in productivity (3.37% decrease in revenue), which translates to an decrease in total energy consumption. |
| - The number of sites reporting on their emissions changed from 2023 to 2024. |
| - A change in the market-based methodology led to an increase in electricity emissions under the market-based methodology. In 2023, all electricity consumption was considered renewable, whereas in 2024, only meters where electricity is supplied by Npower are considered renewable. This has been confirmed by the Mitie Energy Team, who procure electricity for McDonald’s sites supplied by Npower. It is not known whether the other meters/sites use renewable electricity. |
| - Improved refrigerant leak data capture from suppliers compared to the prior year, which has been confirmed by McDonald's, has led to an increase in emissions associated with refrigerants. |
| As per SECR guidelines, the company's emission intensity is calculated as the ratio of annual emissions (tCO2e) to the turnover (in £million). For FY 2024, this resulted in an emission intensity of 26.8 tCO2e per £million, which represents a 9.4% decrease compared to the previous year (29.6 tCO2e per £million). |
| Greenhouse Gas Emissions |
| Table 1: Greenhouse gas emissions by year (tCO2e) - location-based |
| Emissions Source | 2023 | 2024 | % change | % share |
| Electricity | 3,647 | 3,061 | -16 | 87.9 |
| Natural Gas | 308 | 332 | 8 | 9.5 |
| Purchased fuel (LPG) | - | - | - | - |
| Transportation - direct | - | 53 | - | 1.5 |
| Transportation - indirect | 36 | 14 | -60 | 0.4 |
| Refrigerants | - | 21 | - | 0.6 |
| Total emissions (tC02e) | 3,991 | 3,481 | -13 |
| Turnover (£m) | 135 | 130 | -4 |
| Intensity (tC02e per £m) | 29.6 | 26.8 | -9 |
| Location-based reporting uses a national carbon emissions factor to calculate the emissions from the generation of electricity, reflecting the diverse source of electricity generation supplied to the national grid. |
| Table 2: Greenhouse gas emissions by scope (tonnes CO2e) - location-based |
| Emissions Source | 2023 | 2024 | % change | % share |
| Scope 1 | 308 | 405 | 31 | 12 |
| Scope 2 | 3,357 | 2,813 | -16 | 81 |
| Scope 3 | 326 | 263 | -19 | 8 |
| Total emissions (tC02e) | 3,991 | 3,481 | -13 |
| Scope 1: Natural gas and purchased fuel (LPG). Scope 2: Electricity (generation). Scope 3: Losses from electricity distribution and transmission (T&D). This only includes emissions reportable under SECR and may not reflect the entire carbon footprint of the organisation. |
| AG RESTAURANTS LTD (REGISTERED NUMBER: SC287991) |
| Report of the Director |
| for the year ended 31 December 2024 |
| Energy Consumption |
| Table 3: Greenhouse gas emissions by source (tCO2e) - market-based |
| Emissions Source | 2023 | 2024 | % change | % share |
| Electricity | 290 | 311 | -8 | 43 |
| Natural Gas | 308 | 332 | -13 | 45 |
| Purchased fuel | - | - | - | - |
| Transportation - direct | - | 53 | - | 7 |
| Transportation - indirect | 36 | 14 | 61 | 2 |
| Refrigerants | - | 21 | - | 3 |
| Total emissions (tC02e) | 634 | 731 | 15 |
| Turnover (£m) | 135 | 130 | -4 |
| Intensity (tC02e per £m) | 4.7 | 5.6 | 20 |
| Market-based emissions figure for purchased electricity reflects our investment in zero-carbon electricity tariffs for our buildings. In terms of the Greenhouse Gas Protocol, the accounting of zero carbon electricity tariffs is called ‘market-based’, as opposed to ‘location-based’ reporting. Location-based reporting does not consider the electricity supply contracts, which a company has procured and instead uses a national carbon emissions factor to calculate the emissions from the generation of electricity, reflecting the diverse sources of electricity generation supplied to the national grid. Thus, the emissions reported for electricity only consider transmission and distribution losses. |
| Table 4: Greenhouse gas emissions by scope (tonnes CO2e) - market-based |
| Emissions Source | 2023 | 2024 | % change | % share |
| Scope 1 | 308 | 405 | 31 | 55 |
| Scope 2 | - | 63 | - | 8 |
| Scope 3 | 326 | 263 | -19 | 36 |
| Total emissions (tC02e) | 634 | 731 | 15 |
| Scope 1: Natural gas and purchased fuel (LPG). Scope 2: Electricity (generation). Scope 3: Losses from electricity distribution and transmission (T&D). This only includes emissions reportable under SECR and may not reflect the entire carbon footprint of the organisation. |
| Energy Consumption |
| Table 5: Energy consumption per source (kWh) |
| Emissions Source | 2023 | 2024 | % change | % share |
| Electricity | 16,210,132 | 13,583,241 | -16 | 87 |
| Natural Gas | 1,683,499 | 1,815,059 | 8 | 12 |
| Purchased fuel | - | - | - | - |
| Transportation - direct | - | 209,088 | - | 1 |
| Transportation - indirect | 146,652 | 59,582 | -59 | - |
| Refrigerants | - | - | - | - |
| Total energy consumption (kWh) |
18,040,283 |
15,666,970 |
-13 |
| Turnover (£m) | 135 | 130 | 4 |
| Intensity (kWh per £m) | 133,632 | 120,515 | -10 |
| Boundary, Methodology and Exclusions |
| An 'operational control' approach has been used to define the Greenhouse Gas emissions boundary. An operational control approach is defined as ''Your organisation has operational control over an operation if it, or one of its subsidiaries, has the full authority to introduce and implement its operating policies at the operation''. |
| This approach captures emissions associated with the operation of all buildings, such as warehouses, offices and manufacturing sites, plus company-owned and leased transport. This report covers UK operations only, as required by SECR for Non-Quoted Large Companies. |
| This information was collected and reported in line with the methodology set out in the UK Government's Environmental Reporting Guidelines, 2019. |
| AG RESTAURANTS LTD (REGISTERED NUMBER: SC287991) |
| Report of the Director |
| for the year ended 31 December 2024 |
| Emissions have been calculated using the latest conversion factors provided by the UK Government. No other material omissions from the mandatory reporting scope. For Refrigerant emissions, GWP conversion factors have been used [High-GWP Refrigerants | California Air Resources Board, Greenhouse Gas Inventory Guidance: Fugitive Emissions (epa.gov)]. There are no material omissions from the mandatory reporting scope. |
| Regarding market-based reporting, all electricity supplied by NPower is confirmed to be covered by Renewable Energy Guarantees of Origin (REGOs). All RoadChef MSA sites and ASDA sites (up until 31 March 2024) are also covered by REGOs (confirmed by the supplier). Due to a lack of information, the remaining electricity supply is assumed to be non-renewable. |
| Energy consumption (in kWh) for the period 1st January 2024 - 31st December 2024 have been used to calculate emissions for the company's financial year. |
| Energy Efficiency Initiatives |
| The company has continued to seek and implement energy efficiency measures within both the work processes and the use of work equipment. McDonald’s Restaurants Limited is actively participating in mandatory compliance schemes, such as the Energy Savings Opportunity Scheme, TCFD, and is considering implementing the recommendations outlined in the ESOS audit reports. |
| The following are examples of energy efficiency initiatives that are being implemented at McDonald's Restaurants Limited and its franchisees’ restaurants after recommendations from site energy audits conducted by the Mitie Energy Optimisation Team: |
| -Reductions to the time schedule for internal lighting, external lighting (signage, car parking lighting, etc.), Air Handling Unit (AHU) conditioning, kitchen extract system, etc. |
| -Improvements to the car park lighting schedule. |
| -Decreased temperature set points in dining and kitchen areas, e.g. overdoor heater setpoint reduced from 28 degrees celsius to 22 degrees celsius. |
| -Increased temperature deadbands in dining and kitchen areas, especially to AHUs. |
| -Local control settings change from ‘always on’ to ‘normal. |
| -Heating set point temperature reduction. |
| -BMS time adjusted to sync with actual time. |
| The following approaches to energy efficiency are being undertaken by the company and will be expanded over the following years: |
| -Mitie energy audits at stores. |
| Disclosure in the strategic report |
| The company is owned and controlled by a single director. By reference to the Corporate Governance Guidance and Principles for Unlisted Companies in the UK, published by the Institute of Directors, the director has established a framework of company processes and attitudes that add value to the business, help build its reputation and ensure its long-term continuity and success. This framework aligns with the business system and processes established by the franchisor and contributes to the continued success of the company. |
| Statement of director's responsibilities |
| The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations. |
| Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the director is required to: |
| - | select suitable accounting policies and then apply them consistently; |
| - | make judgements and accounting estimates that are reasonable and prudent; |
| - | state whether applicable 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 company will continue in business. |
| The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
| AG RESTAURANTS LTD (REGISTERED NUMBER: SC287991) |
| Report of the Director |
| for the year ended 31 December 2024 |
| Statement as to disclosure of information to auditors |
| So far as the director is 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 he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
| Auditors |
| Griffiths Marshall are deemed re-appointed under Section 487(2) of the Companies Act 2006 |
| On behalf of the board: |
| Report of the Independent Auditors to the Members of |
| AG Restaurants Ltd |
| Opinion |
| We have audited the financial statements of AG Restaurants Ltd (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 director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
| Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
| Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report. |
| Other information |
| The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, 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 Director 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 Director 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 Director. |
| We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
| - | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
| - | the financial statements are not in agreement with the accounting records and returns; or |
| - | certain disclosures of director's remuneration specified by law are not made; or |
| - | we have not received all the information and explanations we require for our audit. |
| Report of the Independent Auditors to the Members of |
| AG Restaurants Ltd |
| Responsibilities of director |
| As explained more fully in the Statement of Director's Responsibilities set out on page eight, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
| In preparing the financial statements, the director is responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the company or to cease operations, or has 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. |
| 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. |
| 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. |
| for and on behalf of |
| 4th Floor |
| Llanthony Warehouse |
| The Docks |
| Gloucester |
| GL1 2EH |
| AG RESTAURANTS LTD (REGISTERED NUMBER: SC287991) |
| Income Statement |
| for the year ended 31 December 2024 |
| 2024 | 2023 |
| Notes | £ | £ |
| Turnover | 3 |
| Cost of sales | ( |
) | ( |
) |
| Gross profit |
| Administrative expenses | ( |
) | ( |
) |
| Operating profit | 5 |
| Interest receivable and similar income |
| 2,559,437 | 2,472,240 |
| Interest payable and similar expenses | 6 | ( |
) | ( |
) |
| Profit before taxation |
| Tax on profit | 7 | ( |
) | ( |
) |
| Profit for the financial year |
| AG RESTAURANTS LTD (REGISTERED NUMBER: SC287991) |
| Other Comprehensive Income |
| for the year ended 31 December 2024 |
| 2024 | 2023 |
| Notes | £ | £ |
| Profit for the year |
| Other comprehensive income | - | - |
| Total comprehensive income for the year |
| AG RESTAURANTS LTD (REGISTERED NUMBER: SC287991) |
| Balance Sheet |
| 31 December 2024 |
| 2024 | 2023 |
| Notes | £ | £ | £ | £ |
| Fixed assets |
| Intangible assets | 9 |
| Tangible assets | 10 |
| Investments | 11 |
| Current assets |
| Stocks | 12 |
| Debtors | 13 |
| Cash at bank and in hand |
| Creditors |
| Amounts falling due within one year | 14 |
| Net current assets/(liabilities) | ( |
) |
| Total assets less current liabilities |
| Creditors |
| Amounts falling due after more than one year | 15 | ( |
) | ( |
) |
| Provisions for liabilities | 19 | ( |
) | ( |
) |
| Net assets |
| Capital and reserves |
| Called up share capital | 20 |
| Retained earnings | 21 |
| Shareholders' funds |
| The financial statements were approved by the director and authorised for issue on |
| AG RESTAURANTS LTD (REGISTERED NUMBER: SC287991) |
| 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 |
| Changes in equity |
| Dividends | - | ( |
) | ( |
) |
| Total comprehensive income | - |
| Balance at 31 December 2023 |
| Changes in equity |
| Dividends | - | ( |
) | ( |
) |
| Total comprehensive income | - |
| Balance at 31 December 2024 |
| AG RESTAURANTS LTD (REGISTERED NUMBER: SC287991) |
| Cash Flow Statement |
| for the year ended 31 December 2024 |
| 2024 | 2023 |
| Notes | £ | £ |
| Cash flows from operating activities |
| Cash generated from operations | 1 |
| Interest paid | ( |
) | ( |
) |
| Tax paid | ( |
) | ( |
) |
| Net cash from operating activities |
| Cash flows from investing activities |
| Purchase of intangible fixed assets | ( |
) |
| Purchase of tangible fixed assets | ( |
) | ( |
) |
| Purchase of fixed asset investments | - | (1,250 | ) |
| Sale of intangible fixed assets |
| Sale of tangible fixed assets |
| Sale of fixed asset investments |
| Interest received |
| Net cash from investing activities | ( |
) |
| Cash flows from financing activities |
| Loan repayments in year | ( |
) | ( |
) |
| Amount introduced by directors | 1,953,787 | 1,512,139 |
| Amount withdrawn by directors | (969,384 | ) | (1,683,719 | ) |
| Equity dividends paid | ( |
) | ( |
) |
| Net cash from financing activities | ( |
) | ( |
) |
| Increase/(decrease) in cash and cash equivalents | ( |
) |
| Cash and cash equivalents at beginning of year | 2 | 8,992,805 |
| Cash and cash equivalents at end of year | 2 | 11,737,471 | 7,587,480 |
| AG RESTAURANTS LTD (REGISTERED NUMBER: SC287991) |
| 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 |
| Depreciation charges |
| Profit on disposal of fixed assets | ( |
) |
| Finance costs | 13,445 | 104,037 |
| Finance income | (100,245 | ) | (20,528 | ) |
| 5,917,378 | 6,588,998 |
| Increase in stocks | ( |
) | ( |
) |
| Decrease in trade and other debtors |
| (Decrease)/increase in trade and other creditors | ( |
) |
| Cash generated from operations |
| 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 | 11,737,471 | 7,587,480 |
| Year ended 31 December 2023 |
| 31/12/23 | 1/1/23 |
| £ | £ |
| Cash and cash equivalents | 7,587,480 | 8,992,805 |
| 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 | 7,587,480 | 4,149,991 | 11,737,471 |
| 7,587,480 | 11,737,471 |
| Debt |
| Debts falling due within 1 year | (323,179 | ) | 47,885 | (275,294 | ) |
| Debts falling due after 1 year | (272,868 | ) | 272,868 | - |
| (596,047 | ) | 320,753 | (275,294 | ) |
| Total | 6,991,433 | 4,470,744 | 11,462,177 |
| AG RESTAURANTS LTD (REGISTERED NUMBER: SC287991) |
| Notes to the Financial Statements |
| for the year ended 31 December 2024 |
| 1. | Statutory information |
| AG Restaurants Ltd is a |
| The presentation currency of the financial statements is the Pound Sterling (£). |
| 2. | Accounting policies |
| Basis of preparing the financial statements |
| 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 |
| Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
| 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 & fees, being the amounts paid on acquisition of restaurants are being written off evenly over the terms of the franchise agreements. |
| Tangible fixed assets |
| Short leasehold | - |
| Restaurant equipment | - |
| 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. |
| AG RESTAURANTS LTD (REGISTERED NUMBER: SC287991) |
| 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. |
| AG RESTAURANTS LTD (REGISTERED NUMBER: SC287991) |
| 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 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 |
| £ | £ |
| The whole of turnover is derived from the United Kingdom. |
| AG RESTAURANTS LTD (REGISTERED NUMBER: SC287991) |
| Notes to the Financial Statements - continued |
| for the year ended 31 December 2024 |
| 4. | Employees and directors |
| 2024 | 2023 |
| £ | £ |
| Wages and salaries |
| Social security costs |
| Other pension costs |
| The average number of employees during the year was as follows: |
| 2024 | 2023 |
| Production Staff | 2,811 | 2,962 |
| Management Staff | 85 | 81 |
| 2024 | 2023 |
| £ | £ |
| Director's remuneration |
| 5. | Operating profit |
| The operating profit is stated after charging/(crediting): |
| 2024 | 2023 |
| £ | £ |
| Other operating leases |
| Depreciation - owned assets |
| Profit on disposal of fixed assets | ( |
) |
| Franchise Rights amortisation |
| Franchise Fees amortisation |
| Auditors' remuneration |
| Taxation compliance services |
| Other non- audit services |
| 6. | Interest payable and similar expenses |
| 2024 | 2023 |
| £ | £ |
| Bank interest |
| 7. | Taxation |
| Analysis of the tax charge |
| The tax charge on the profit for the year was as follows: |
| 2024 | 2023 |
| £ | £ |
| Current tax: |
| UK corporation tax |
| Deferred tax | ( |
) |
| Tax on profit |
| UK corporation tax has been charged at 25% (2023 - 25%). |
| AG RESTAURANTS LTD (REGISTERED NUMBER: SC287991) |
| Notes to the Financial Statements - continued |
| for the year ended 31 December 2024 |
| 7. | Taxation - continued |
| Reconciliation of total tax 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 |
| Profit multiplied by the standard rate of corporation tax in the UK of |
| Effects of: |
| Expenses not deductible for tax purposes | ( |
) |
| Income not taxable for tax purposes | ( |
) |
| Depreciation in excess of capital allowances | - |
| Change in UK corporation tax rate | - | (54,213 | ) |
| Deferred tax charge | - | 211,598 |
| Fixed asset differences | 69,869 | - |
| Adjustments to tax charge in respect of previous periods - deferred tax | (481,760 | ) | - |
| Chargeable gains/(losses) | 708 | - |
| Total tax charge | 224,936 | 1,073,497 |
| Deferred tax has been calculated at 25% (2023 - 25%). |
| 8. | Dividends |
| 2024 | 2023 |
| £ | £ |
| A Ordinary shares of £1 each |
| Interim |
| B Ordinary shares of £1 each |
| Interim |
| 9. | Intangible fixed assets |
| Franchise | Franchise |
| Rights | Fees | Totals |
| £ | £ | £ |
| Cost |
| At 1 January 2024 |
| Disposals | ( |
) | ( |
) | ( |
) |
| At 31 December 2024 |
| Amortisation |
| At 1 January 2024 |
| Amortisation for year |
| Eliminated on disposal | ( |
) | ( |
) | ( |
) |
| At 31 December 2024 |
| Net book value |
| At 31 December 2024 |
| At 31 December 2023 |
| AG RESTAURANTS LTD (REGISTERED NUMBER: SC287991) |
| Notes to the Financial Statements - continued |
| for the year ended 31 December 2024 |
| 10. | Tangible fixed assets |
| Short | Restaurant |
| leasehold | equipment | Totals |
| £ | £ | £ |
| Cost |
| At 1 January 2024 |
| Additions |
| Disposals | ( |
) | ( |
) | ( |
) |
| At 31 December 2024 |
| Depreciation |
| At 1 January 2024 |
| Charge for year |
| Eliminated on disposal | ( |
) | ( |
) | ( |
) |
| At 31 December 2024 |
| Net book value |
| At 31 December 2024 |
| At 31 December 2023 |
| 11. | Fixed asset investments |
| Unlisted |
| investments |
| £ |
| Cost |
| At 1 January 2024 |
| Disposals | ( |
) |
| At 31 December 2024 |
| Net book value |
| At 31 December 2024 |
| At 31 December 2023 |
| Fixed asset investments consists of 31,250 (2023 - 33,750) 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 | 375,528 | 371,923 |
| Paper |
| Non-product |
| 13. | Debtors: amounts falling due within one year |
| 2024 | 2023 |
| £ | £ |
| Trade debtors |
| Other debtors |
| Directors' current accounts | - | 378,836 |
| Prepayments |
| AG RESTAURANTS LTD (REGISTERED NUMBER: SC287991) |
| Notes to the Financial Statements - continued |
| for the year ended 31 December 2024 |
| 14. | Creditors: amounts falling due within one year |
| 2024 | 2023 |
| £ | £ |
| Bank loans and overdrafts (see note 16) |
| Trade creditors |
| Corporation tax |
| Social security and other taxes |
| VAT | 1,671,926 | 2,508,928 |
| Other creditors |
| Directors' current accounts | 605,567 | - |
| Deferred income |
| Accrued expenses |
| 15. | Creditors: amounts falling due after more than one year |
| 2024 | 2023 |
| £ | £ |
| Bank loans (see note 16) |
| Deferred income |
| 16. | Loans |
| An analysis of the maturity of loans is given below: |
| 2024 | 2023 |
| £ | £ |
| Amounts falling due within one year or on demand: |
| Bank loans |
| Amounts falling due between one and two years: |
| Bank loans - 1-2 years |
| The remaining bank loan is repayable in one year. The interest rate applied to the loan is based on Base rate plus a margin of 1.4%. |
| 17. | Leasing agreements |
| Minimum lease payments under non-cancellable operating leases fall due as follows: |
| 2024 | 2023 |
| £ | £ |
| Within one year |
| Between one and five years |
| In more than five years |
| Lease payments recognised as an expense in the year totalled £14,622,407 (2023 - £14,320,350). |
| The Company's restaurant premises are leased from McDonalds Restaurants Limited under non-cancellable operating leases with expiry terms of more than five years. Rent is calculated as a percentage of sales above base, the above operating lease commitment only relates to base rent. 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. |
| AG RESTAURANTS LTD (REGISTERED NUMBER: SC287991) |
| Notes to the Financial Statements - continued |
| for the year ended 31 December 2024 |
| 18. | Financial instruments |
| Financial Assets | 2024 | 2023 |
| £ | £ |
| Financial assets as an equity instrument | 31,250 | 33,750 |
| Financial assets that are debt instruments measured at amortised cost | 12,631,297 | 8,739,896 |
| 12,662,547 | 8,773,646 |
| Financial Liabilities | 9,724,366 | 10,708,659 |
| 9,724,366 | 10,708,659 |
| 19. | Provisions for liabilities |
| 2024 | 2023 |
| £ | £ |
| Deferred tax | 90,674 | 904,400 |
| Deferred tax |
| £ |
| Balance at 1 January 2024 |
| Credit to Income Statement during year | ( |
) |
| Balance at 31 December 2024 |
| The deferred tax account consists of the tax effect of timing differences in respect of accelerated capital allowances. |
| 20. | Called up share capital |
| Allotted, issued and fully paid: |
| Number: | Class: | Nominal | 2024 | 2023 |
| value: | £ | £ |
| A Ordinary | £1 | 75 | 75 |
| B Ordinary | £1 | 25 | 25 |
| 100 | 100 |
| 21. | Reserves |
| Retained |
| earnings |
| £ |
| At 1 January 2024 |
| Profit for the year |
| Dividends | ( |
) |
| At 31 December 2024 |
| 22. | Related party disclosures |
| During the year, total dividends of £1,880,917 (2023 - £1,464,906) were paid to the director . |
| Total dividends of £72,870 (2023 - £47,233) were paid to the directors spouse. |
| As at the balance sheet date, the amount owed from the company to the director Mr A S Gibson totals £605,567 (2023 - owed to the company £378,836). The loan is provided interest free and is repayable on demand. |
| AG RESTAURANTS LTD (REGISTERED NUMBER: SC287991) |
| Notes to the Financial Statements - continued |
| for the year ended 31 December 2024 |
| 22. | Related party disclosures - continued |
| Key management personnel remuneration is disclosed under note 4 of the notes to the financial statements. |
| 23. | Ultimate controlling party |
| The ultimate controlling party is |