REGISTERED NUMBER: 03574622 (England and Wales)

LONETREE LIMITED

Strategic Report, Report of the Director and

Financial Statements for the Year Ended 31 December 2024

Page

Company Information

1

Strategic Report

2

to

4

Report of the Director

5

to

8

Report of the Independent Auditors

9

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

Director:

R M Mounsey

Secretary:

G M Mounsey

Registered office:

Pentresite House

Rhydargaeau Road

Carmarthen

SA32 7AJ

Registered number:

03574622 (England and Wales)

Auditors:

Cooper Parry Group Limited

Statutory Auditor

1st Floor, Abbey Square

Davidson House, The Forbury

Reading

RG1 3EU

The director presents his strategic report for the year ended 31 December 2024.

Review of business

The company operates seventeen McDonald's restaurants in South West Wales, employing over 1,900 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 £7.16 million, compared with £6.52 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 £72.39 million, a increase of £1.04 million from 2023 giving an overall sales increase of approximately 1.45%.

The gross profit margin is 65.65% compared to 63.55% 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.

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.

Section 172(1) statement

The board of directors takes into account the likely consequences of long-term decisions; builds relationships with stakeholders; understands the importance of engaging with its employees; understands the impact of its operations on the communities within which it operates; and attributes importance to behaving as a responsible business.

The board of directors considers, both individually and together, that it has acted in the way it considers, 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 its business plan, which is updated on an annual basis. The 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.

The company's employees are fundamental to the delivery of its plan. The company aims to be a responsible employer in its approach to the pay and benefits its employees receive. The health, safety and wellbeing of its employees is one of the company's primary considerations in the way it does business.

As the board of directors, the intention is to behave responsibly and ensure that management operates the business in a responsible manner, operating within the high standards of business conduct and good governance expected for a business such as this, and in doing so, will contribute to the delivery of the plan.

On behalf of the board:

R M Mounsey - Director

24 September 2025

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 franchised McDonald's restaurants.

Dividends

No dividends will be distributed for the year ended 31 December 2024.

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

R M Mounsey held office during the whole of the period from 1 January 2024 to the date of this report.

Going concern

The directors have considered the application of the going concern basis of accounting, and 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 for at least twelve months from the date of approval of these 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

The company's greenhouse gas emissions, reportable under SECR from 1st January 2024 - 31st December 2024, were 2,372 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 not changed from last year. The company's total greenhouse gas emissions increased by 5.8% compared to 2023 figures, because of improved data capture of refrigerant leaks and increased company vehicle and personal car mileage.

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.

- Increase in productivity (1.4% increase in revenue), which translates to an increase in total energy consumption.

- 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 32.8 tCO2e per £million, which represents a 4.3% increase compared to the previous year (31.4 tCO2e per £million).

Greenhouse Gas Emissions

Table 1: Greenhouse gas emissions by year (tCO2e) - location-based

Emissions Source

2023

2024

% change

% share

Electricity

2,027

1,789

-12

75

Natural Gas

198

184

-7

8

Purchased fuel (LPG)

-

-

-

-

Transportation - direct

1

11

1000

1

Transportation - indirect

15

28

87

1

Refrigerants

-

360

-

15

Total emissions (tC02e)

2,241

2,372

6

Turnover (£m)

71

72

1

Intensity (tC02e per £m)

31.4

32.8

4

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

199

556

179

23

Scope 2

1,866

1,644

-12

69

Scope 3

176

172

-2

7

Total emissions (tC02e)

2,241

2,372

6

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 3: Greenhouse gas emissions by source (tCO2e) - market-based

Emissions Source

2023

2024

% change

% share

Electricity

161

416

158

42

Natural Gas

198

184

-7

18

Purchased fuel

-

-

-

-

Transportation - direct

1

11

1000

1

Transportation - indirect

15

28

87

3

Refrigerants

-

360

-

36

Total emissions (tC02e)

375

999

166

Turnover (£m)

71

72

1

Intensity (tC02e per £m)

5.3

13.8

163

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

199

556

179

56

Scope 2

-

271

-

27

Scope 3

176

172

-2

17

Total emissions (tC02e)

375

999

166

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

9,010,885

7,938,964

-12

86

Natural Gas

1,080,736

1,008,252

-7

12

Purchased fuel

-

-

-

-

Transportation - direct

34,598

43,039

24

1

Transportation - indirect

62,970

116,633

85

1

Refrigerants

-

-

-

-

Total energy consumption (kWh)

10,189,189

9,106,888

-11

Turnover (£m)

71

72

1

Intensity (kWh per £m)

143,327

126,485

-12

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.

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:

-Installation of Heat Pumps in some restaurants.

Disclosure in the strategic report

The Strategic report includes a statement by the directors in performance of their statutory duties in accordance with s172(1) Companies Act 2006.

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.

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

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

On behalf of the board:

R M Mounsey - Director

24 September 2025

Opinion

We have audited the financial statements of Lonetree Limited (the 'company') for the year ended 31 December 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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 other information comprises the information included in the annual report other than the financial statements and our auditor's 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.

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.

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 an auditor's 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 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.

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We discussed amongst the audit team the identified laws and regulations and remained alert to any indications of non-compliance.

Based on our understanding of the industry, we identified that the principal risks of non-compliance with laws and regulations related to breaches of health and safety, including food hygiene. We considered the extent to which non-compliance with these laws and regulations 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 and UK tax legislation.

Our procedures in relation to fraud, included but were not limited to: inquiries of management whether they have any knowledge of any actual, suspected or alleged fraud, and discussions amongst the audit team regarding risk of fraud such as opportunities for fraudulent manipulation of financial statements. We determined that the principal risks related to posting manual journal entries to manipulate financial performance and management bias through judgements in accounting estimates and challenged the assumptions and judgements made by management in its significant accounting estimates. We also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud. Our tests included agreeing the financial statement disclosures to underlying supporting documentation.

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 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.

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

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.

Azfar Doshi FCA (Senior Statutory Auditor)

for and on behalf of Cooper Parry Group Limited

Statutory Auditor

1st Floor, Abbey Square

Davidson House, The Forbury

Reading

RG1 3EU

25 September 2025

Turnover

3

72,389,567

71,353,561

Cost of sales

(24,863,754

)

(26,008,851

)

Gross profit

47,525,813

45,344,710

Administrative expenses

(46,808,339

)

(44,420,910

)

Operating profit

5

717,474

923,800

Interest receivable and similar income

188,764

150,263

Profit before taxation

906,238

1,074,063

Tax on profit

6

(267,157

)

(226,078

)

Profit for the financial year

639,081

847,985

Profit for the year

639,081

847,985

Other comprehensive income

-

-

Total comprehensive income for the year

639,081

847,985

Fixed assets

Intangible assets

8

1,809,526

1,974,681

Tangible assets

9

4,316,153

3,813,708

Investments

10

21,250

20,000

6,146,929

5,808,389

Current assets

Stocks

11

500,780

449,119

Debtors

12

1,657,650

1,666,935

Cash at bank and in hand

5,188,756

5,406,878

7,347,186

7,522,932

Creditors

Amounts falling due within one year

13

5,760,196

6,485,863

Net current assets

1,586,990

1,037,069

Total assets less current liabilities

7,733,919

6,845,458

Provisions for liabilities

16

573,560

324,180

Net assets

7,160,359

6,521,278

Capital and reserves

Called up share capital

17

60,000

60,000

Retained earnings

18

7,100,359

6,461,278

Shareholders' funds

7,160,359

6,521,278

The financial statements were approved by the director and authorised for issue on 24 September 2025 and were signed by:

R M Mounsey - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

60,000

7,454,293

7,514,293

Changes in equity

Dividends

-

(1,841,000

)

(1,841,000

)

Total comprehensive income

-

847,985

847,985

Balance at 31 December 2023

60,000

6,461,278

6,521,278

Changes in equity

Total comprehensive income

-

639,081

639,081

Balance at 31 December 2024

60,000

7,100,359

7,160,359

Cash flows from operating activities

Cash generated from operations

1

2,572,371

3,414,952

Tax paid

(177,502

)

(36,911

)

Net cash from operating activities

2,394,869

3,378,041

Cash flows from investing activities

Purchase of intangible fixed assets

(30,000

)

(30,000

)

Purchase of tangible fixed assets

(1,816,247

)

(435,245

)

Purchase of fixed asset investments

(1,250

)

-

Interest received

188,764

150,263

Net cash from investing activities

(1,658,733

)

(314,982

)

Cash flows from financing activities

Amount introduced by directors

-

1,841,000

Amount withdrawn by directors

(954,258

)

(1,733,617

)

Equity dividends paid

-

(1,841,000

)

Net cash from financing activities

(954,258

)

(1,733,617

)

(Decrease)/increase in cash and cash equivalents

(218,122

)

1,329,442

Cash and cash equivalents at beginning of year

2

5,406,878

4,077,436

Cash and cash equivalents at end of year

2

5,188,756

5,406,878

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

2024

2023

£

£

Profit before taxation

906,238

1,074,063

Depreciation charges

1,508,957

1,892,500

Finance income

(188,764

)

(150,263

)

2,226,431

2,816,300

Increase in stocks

(51,661

)

(47,847

)

Decrease/(increase) in trade and other debtors

85,696

(75,491

)

Increase in trade and other creditors

311,905

721,990

Cash generated from operations

2,572,371

3,414,952

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

5,188,756

5,406,878

Year ended 31 December 2023

31/12/23

1/1/23

£

£

Cash and cash equivalents

5,406,878

4,077,436

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

5,406,878

(218,122

)

5,188,756

5,406,878

(218,122

)

5,188,756

Total

5,406,878

(218,122

)

5,188,756

1.	Statutory information

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

The presentation currency of the financial statements is the Pound Sterling (£).

2.	Accounting policies

Basis of preparing the financial statements

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

Going Concern

The directors have considered the application of the going concern basis of accounting, and 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 for at least twelve months from the date of approval of these 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.

Intangible fixed assets

Franchise rights and fees, being the amounts paid on acquisition of restaurants in 1998 and subsequently, are being written off evenly over the terms of the franchise agreements or, in the case of restaurants acquired in 2013, written off over 20 years. The 20 year write off period for the 2013 acquisitions is on the basis that, on expiry of the existing 20 year franchise agreements, the company will be granted further 20 year franchises. The franchisor operates a formal "new term process" which sets out requirements for granting of a new term and the director does not anticipate any difficulty in meeting these requirements.

Tangible fixed assets

Tangible fixed assets are initially recorded at cost and subsequently stated at cost less any accumulated depreciation and impairment losses.

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Short leasehold

- in accordance with the property

Restaurant equipment

- at varying rates on cost

Motor vehicles

- at varying rates on cost

Office equipment

- at varying rates on cost

Stocks

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

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

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.