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Registered number:
FOR THE YEAR ENDED 30 SEPTEMBER 2024
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RAREBREED HOLDINGS LIMITED
COMPANY INFORMATION
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RAREBREED HOLDINGS LIMITED
CONTENTS
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RAREBREED HOLDINGS LIMITED
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
The directors present their Strategic Report and financial statements for the year ended 30 September 2024.
The year ended 30 September 2024 was marked by sustained economic pressures across the UK hospitality industry, influenced significantly by persistent inflation, fluctuating consumer confidence, and elevated interest rates. While inflationary pressure eased slightly compared to the prior year, consumer discretionary spending remained cautious amid ongoing cost-of-living challenges. The Bank of England maintained historically high interest rates to manage inflation, directly impacting consumer spending power and our operational financing costs.
Labour market constraints remain a substantial issue, driven by workforce shortages and ongoing wage pressures linked to government-mandated increases in the National Minimum Wage and National Living Wage. This regulatory change required us to adjust our internal pay structures to maintain staff morale and retention. The Group continued to prioritise talent retention and invested significantly in training and employee welfare. Our efforts in workforce management have positively impacted operational consistency, quality, and customer satisfaction, particularly within our kitchen and front-of-house teams. Despite the challenging environment, the Group demonstrated resilience during the year. Turnover for the year was £3,851,705 (2023: £4,078,106), reflecting the closure of the Corn Stores following the decision to discontinue its operations and sell the site, which reduced turnover from that area by £459,299. This closure, however, enabled the Company to focus on more profitable areas of the business, driving EBITDA up to £210,890 (2023: £42,214). During the year, £441,053 of accrued loan interest owed to Havisham Associates Limited was written off, reducing accruals from £564,088 to £101,608. Combined with the operational improvements, this enabled the Company to achieve a profit after tax of £166,381 (2023: £(513,507)). As a result, net liabilities decreased to £1,883,080 (2023: £2,049,461) in the Statement of Financial Position. The business continues to benefit from improving margins, supported by refined operational efficiencies, improved pricing strategies, and strong cost control measures.
Competition:
The UK restaurant market remains fiercely competitive. Competition has intensified with the rise of delivery services and in-home dining trends. To retain market share, we continually innovate our offerings, maintain competitive pricing, and invest in marketing initiatives that highlight our quality, service excellence, and unique value proposition. Labour market challenges: Labour shortages remain a critical risk, exacerbated by ongoing regulatory changes in employment laws and wage legislation. The business is focused on employee retention strategies, competitive remuneration packages, staff training, and maintaining an attractive workplace culture. Supply chain stability and cost management: Geopolitical tensions, particularly the ongoing fallout from the Ukraine crisis, continue to impact ingredient availability and pricing. We manage these risks through robust relationships with diverse suppliers, agile inventory management, and regular pricing negotiations to maintain quality and consistency. Economic conditions and consumer spending: The economic landscape continues to pose risks, with ongoing uncertainty around inflation, interest rates, and cost-of-living pressures potentially suppressing consumer spending. The hospitality industry remains highly sensitive to changes in disposable income, consumer confidence, and employment levels. To mitigate this risk, we closely monitor economic indicators and proactively manage cost structures to maintain profitability and
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RAREBREED HOLDINGS LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
flexibility.
Regulatory compliance and taxation: The regulatory framework continues to evolve, with increased compliance requirements around food safety, allergens, health and safety regulations, employment laws, and environmental standards. Additionally, potential changes in UK corporate tax rates, business rates relief adjustments, and Tronc regulations specifically targeted at hospitality businesses represent ongoing financial and compliance risks. Our robust compliance processes, alongside regular audits and staff training, mitigate these risks. Changing consumer preferences and sustainability: Consumer preference towards healthier food options, allergen transparency, and environmentally sustainable practices continues to evolve. Failure to effectively adapt could risk market share. We regularly conduct customer feedback surveys, actively adapt our menu offerings, and invest in sustainability initiatives to stay ahead of market trends and expectations.
The directors review a number of key performance indicators on a regular basis, the principal financial measures are revenue, gross profit margins and EBITDA.
• Turnover for the period was £3.85m (2023: £4.08m); • Gross profit margin for the period was 69.6% (2023: 68.9%); and • EBITDA for the period was of £210,890 (2023: £42,214). The directors also monitor the cash position of the business on a weekly basis in order to ensure compliance with banking covenants and sufficient liquidity is in place to meet future financial obligations.
The Group utilises an in depth daily then weekly report to assess such factors as customer spend per head, table occupancy, table yield, core offering menu items sales mix, along with offering a feedback survey to every booking to assist with maintaining high customer facing operational standards.
In addition, the directors regularly review the product mix and menu, relationships with suppliers and training and monitoring systems to ensure that the business delivers the best food and service possible.
This report was approved by the board and signed on its behalf.
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RAREBREED HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
The directors present their report and the financial statements for the year ended 30 September 2024.
The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Group's financial statements 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 Group will continue in business.
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 the Group and to 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The profit for the year, after taxation, amounted to £166,381 (2023: loss £513,507).
Dividends of £nil were declared during the year (2023: £nil).
The directors who served during the year were:
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RAREBREED HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
Looking ahead, Rarebreed Holdings Limited remains well-positioned to capitalise on emerging opportunities in the UK hospitality market. Despite economic uncertainty, we remain confident in our growth strategy, which is firmly rooted in operational excellence, customer loyalty, and strategic adaptability. The Group intends to enhance its competitive edge and shareholder value through the following initiatives:
1. Expansion in Premium Dining Sector
2. Innovation in Customer Experience 4. Talent Retention and Development 5. Financial Stability and Cost Management 6. Navigating Regulatory and Economic Challenges By remaining adaptive and responsive to the dynamic hospitality landscape, Rarebreed Holdings Limited is confident in its ability to deliver sustainable long-term growth and enhance shareholder value.
There have been no significant events affecting the Group since the year end.
On 18 November 2024, the Group’s auditors changed their name from Haysmacintyre LLP to HaysMac LLP.
The auditors, HaysMac LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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RAREBREED HOLDINGS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF RAREBREED HOLDINGS LIMITED
We have audited the financial statements of Rarebreed Holdings Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 30 September 2024, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated and Company Balance Sheets, the Consolidated Statement of Cash Flows, the Consolidated and Company Statement of Changes in Equity, the Consolidated Analysis of Net Debt and the related notes, 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).
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 Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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RAREBREED HOLDINGS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF RAREBREED HOLDINGS LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.
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RAREBREED HOLDINGS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF RAREBREED HOLDINGS LIMITED (CONTINUED)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Group financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud. Based on our understanding of the Group and industry, we identified that the principal risks of non-compliance with laws and regulations are with respect to food hygiene standards and minimum wage regulations, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, income tax, payroll tax and sales tax. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to revenue and management bias in accounting estimates. Audit procedures performed by the engagement team included:
∙inspecting correspondence with regulators and tax authorities;
∙inquires with management including consideration of known or suspected instances of non-compliance with laws and regulations, such as food hygiene and alcohol licensing, and fraud;
∙evaluating management’s controls designed to prevent and detect irregularities;
∙identifying and testing journals, in particular journal entries posted with no descriptions, containing keywords or for round sum amounts and journals that significantly impact profit; and
∙challenging assumptions and judgements made by management in their critical accounting estimates.
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RAREBREED HOLDINGS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF RAREBREED HOLDINGS LIMITED (CONTINUED)
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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 Auditors' Report.
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Statutory Auditors
10 Queen Street Place
EC4R 1AG
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RAREBREED HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2024
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RAREBREED HOLDINGS LIMITED
REGISTERED NUMBER: 11935042
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 16 to 31 form part of these financial statements.
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RAREBREED HOLDINGS LIMITED
REGISTERED NUMBER: 11935042
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
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RAREBREED HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
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RAREBREED HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
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RAREBREED HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
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RAREBREED HOLDINGS LIMITED
CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
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RAREBREED HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
Rarebreed Holdings Limited is a private company, limited by shares, and incorporated in England and Wales. The Company's registered number is 11935042 and registered office address is Level 12 Thames Tower, Station Road, Reading, United Kingdom, RG1 1LX.
The principal activity of the Group is that of a restaurateur and the principal activity of the parent company is that of a holding company.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of Financial Position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.
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RAREBREED HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
2.Accounting policies (continued)
The financial statements have been prepared on a going concern basis, which assumes that the Group will continue in operational existence for at least twelve months from the date of approval of these financial statements. The Group is reliant on the continued financial support of a shareholder in order to continue as a going concern.
The Group has received a letter of support from a shareholder to confirm that additional funding will be provided and letters of support from related company lenders to confirm that debts will not be called for repayment, all for a period of at least 12 months from the date of approval of these financial statements. The directors consider, whilst recognising this commitment is not legally binding, that it is the shareholder’s intention to continue to provide financial support to the Group as and when required. The directors having reviewed the latest financial information and projected forecasts, and on the basis that the Group has the continued financial support for its operations, for which they have no reason to believe will not continue, consider that the Group will continue as a going concern for a period of at least twelve months from the date of signing these financial statements. Accordingly, the directors continue to adopt the going concern basis of accounting in preparing these financial statements. Revenue primarily consists of sales of food and beverage, which is recognised at the point of sale as that is when the risks and rewards transfer to the customer.
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RAREBREED HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
2.Accounting policies (continued)
Goodwill
At each reporting date the Group assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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RAREBREED HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
2.Accounting policies (continued)
Basic financial assets
Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.
The Group only enters into basic financial instrument transactions 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 ordinary shares.
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RAREBREED HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
The estimates and underlying assumptions are reviewed on an ongoing basis. Any revisions to accounting estimates are recognised prospectively. Determining residual values and useful economic lives of property, plant and equipment The Group holds tangible fixed assets with a net book value of £3,892,348 (2023: £4,173,255), which it depreciates over their estimated useful lives. The depreciation charge for the year is £284,838 (2023: £318,873). The estimation of the useful lives of assets is based on historical performance as well as expectations about future use and therefore requires estimates and assumptions to be applied by management. The actual lives of these assets can vary depending on a variety of factors, including technological innovation, product life cycles and maintenance programmes. Judgement is applied by management when determining the residual values for tangible fixed assets. When determining the residual value, management aim to assess the amount that the Group would currently obtain for the disposal of the asset, if it were already of the condition expected at the end of its useful economic life. Determining residual values and useful economic lives of intangible assets The Group holds goodwill intangible assets with a net book value of £2,008,189 (2023: £2,205,662), which it amortises over its estimate useful life. The amortisation charge for the year is £197,473 (2023: £197,473). The estimation of the useful life of goodwill is based on historical performance as well as expectations about future use and therefore requires estimates and assumptions to be applied by management. The actual life of goodwill can vary depending on a variety of factors. Judgement is applied by management when determining the valuation of the Group's goodwill and the Company's investment in its subsidiaries and whether there are any indications of impairment. Impairment occurs when the carrying amount on an asset exceeds its recoverable amount. If the recoverable amount is lower than the carrying amount, the difference may be recognised in profit or loss as an impairment loss. This is assessed at each reporting date, if there is any indication of impairment.
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RAREBREED HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
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RAREBREED HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
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RAREBREED HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
There were no factors that may affect future tax charges.
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RAREBREED HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
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RAREBREED HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
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RAREBREED HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
Page 26
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RAREBREED HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
Page 27
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RAREBREED HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
Page 28
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RAREBREED HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
£15,214 (2023: £25,340) relating to a facility held under the Coronavirus Business Interruption Loan Scheme with National Westminster Bank plc that is payable in annual instalments of £10,644 with a final bullet payment due for the remaining balance on 13 August 2026. It is secured by way of a fixed and floating charge over all of the Company's assets. Interest is payable on the loan at a rate of 2.5% per annum.
Page 29
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RAREBREED HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
Share premium account
Other reserves
Profit and loss account
The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £20,769 (2023: £26,957). Contributions totalling £3,141 (2023: £5,260) were payable to the fund at the balance sheet date and are included in creditors.
Page 30
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RAREBREED HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
Subsequent to the year-end, the Group completed the disposal of its Reading-based site, "The Corn Store," which had ceased trading in 2023. The disposal was finalised in June 2025 and the Board considers the transaction beneficial in streamlining the Group’s portfolio, optimising resources, and focusing operations on profitable sites and strategic growth areas.
The immediate and ultimate parent undertaking is Havisham Assets Limited. The ultimate controlling party is Lord Brownlow, by virtue of his 100% shareholding in Havisham Assets Limited.
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