Etch Restaurants Ltd Filleted accounts for Companies House (small and micro)

COMPANY REGISTRATION NUMBER: 10289165

ETCH RESTAURANTS LTD

FILLETED UNAUDITED FINANCIAL STATEMENTS

31 December 2024

ETCH RESTAURANTS LTD

STATEMENT OF FINANCIAL POSITION

31 December 2024

	2024		2023
Note	£	£	£

Fixed assets

Tangible assets	4		472,205	521,159

Current assets

Stocks		15,278	18,018
Debtors	5	38,492	76,639
Cash at bank and in hand		9,365	22,077
		---------	----------
		63,135	116,734

Creditors: amounts falling due within one year	6	194,841		230,704
		----------		----------
Net current liabilities			131,706	113,970
			----------	----------
Total assets less current liabilities			340,499	407,189

Creditors: amounts falling due after more than one year	7		76,373	94,378

Provisions

Taxation including deferred tax	3,979	8,922
	----------	----------
Net assets	260,147	303,889
	----------	----------

Capital and reserves

Called up share capital	333	333
Share premium account	499,774	499,774
Profit and loss account	( 239,960)	( 196,218)
	----------	----------
Shareholders funds	260,147	303,889
	----------	----------

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

In accordance with section 444 of the Companies Act 2006, the statement of income and retained earnings has not been delivered.

For the year ending 31 December 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Director's responsibilities:

- The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476 ;

- The director acknowledges his responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements .

ETCH RESTAURANTS LTD

STATEMENT OF FINANCIAL POSITION (continued)

31 December 2024

These financial statements were approved by the board of directors and authorised for issue on 2 April 2025 , and are signed on behalf of the board by:

Mr S J Edwards
Director

Company registration number: 10289165

ETCH RESTAURANTS LTD

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2024

1. General information

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 168 Church Road, Hove, East Sussex, BN3 2DL.

2. Statement of compliance

These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Going concern

No material uncertainties that may cast significant doubt about the ability of the company to continue as a going concern have been identified by the directors. The directors consider that the uncertainty caused in the restaurant industry as a result of Coronavirus and the recovery from the restrictions put in place by the government should not materially affect the company's ability to continue as a going concern. This assumption has been continued as the economy is hit by the cost of living crisis, and world economic impact of the war in Ukraine.

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods supplied and services rendered, stated net of discounts and of Value Added Tax.

Income tax

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Leasehold Property	-	Over life of lease
Leasehold Improvement	-	4% straight line
Plant & equipment	-	25% reducing balance
Fixture & fittings and equipment	-	25% reducing balance

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. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

Financial instruments

Basic financial instruments are recognised at amortised cost, with changes recognised in profit or loss. Derivative financial instruments are initially recorded at cost and thereafter at fair value with changes recognised in profit or loss.

4. Tangible assets

	Leasehold property	Plant and machinery	Fixtures and fittings	Total
	£	£	£	£
Cost
At 1 January 2024	573,472	52,323	122,995	748,790
Additions	–	666	1,719	2,385
	----------	---------	----------	----------
At 31 December 2024	573,472	52,989	124,714	751,175
	----------	---------	----------	----------
Depreciation
At 1 January 2024	99,273	45,582	82,776	227,631
Charge for the year	22,938	3,833	24,568	51,339
	----------	---------	----------	----------
At 31 December 2024	122,211	49,415	107,344	278,970
	----------	---------	----------	----------
Carrying amount
At 31 December 2024	451,261	3,574	17,370	472,205
	----------	---------	----------	----------
At 31 December 2023	474,199	6,741	40,219	521,159
	----------	---------	----------	----------

5. Debtors

	2024	2023
	£	£
Trade debtors	2,916	1,419
Amounts owed by group undertakings and undertakings in which the company has a participating interest	11,045	49,045
Other debtors	24,531	26,175
	---------	---------
	38,492	76,639
	---------	---------

6. Creditors: amounts falling due within one year

	2024	2023
	£	£
Bank loans and overdrafts	10,000	10,000
Trade creditors	55,010	57,942
Social security and other taxes	72,945	101,604
Other creditors	56,886	61,158
	----------	----------
	194,841	230,704
	----------	----------

7. Creditors: amounts falling due after more than one year

	2024	2023
	£	£
Bank loans and overdrafts	22,178	25,471
Other creditors	54,195	68,907
	---------	---------
	76,373	94,378
	---------	---------

On 28 September 2021 the company issued £120,000 of 6% loan notes, redeemable by 2025.

8. Director's advances, credits and guarantees

As at 31 December 2024 the company owed the director £526 (2023 :£738)

9. Related party transactions

The company was under the control of the directors throughout the previous and current period.