Econ Restaurants Limited Company accounts

COMPANY REGISTRATION NUMBER: 03956144

Econ Restaurants Limited

Financial Statements

31 December 2024

Econ Restaurants Limited

Financial Statements

Year ended 31 December 2024

Contents	Page

Officers and professional advisers	1

Strategic report	2

Directors' report	4

Independent auditor's report to the members	6

Statement of income and retained earnings	10

Statement of financial position	11

Statement of cash flows	12

Notes to the financial statements	13

Econ Restaurants Limited

Officers and Professional Advisers

The board of directors	Mr N J Pennington
	Mr D Duncan

Company secretary	Mr D Duncan

Registered office	Arkle House
	Lonsdale Street
	Carlisle
	Cumbria
	CA1 1BJ

Auditor	Lamont Pridmore
	Chartered Accountants & Statutory Auditor
	31 Lonsdale Street
	Carlisle
	Cumbria
	CA1 1BJ

Bankers	NatWest Bank PLC
	Parkland
	De Havilland Way
	Horwich
	Bolton
	BL6 4YU

Econ Restaurants Limited

Strategic Report

Year ended 31 December 2024

Principal activities and business review

The company continued to operate unlicensed restaurants during the year. The directors report that profits on ordinary activities before taxation in 2024 decreased to £363,307 from £702,196 achieved in 2023. The company's turnover decreased slightly by 1.6% to £26,136,926 and gross profit remained at a similar level to 2023 at 64.6% from 64.5%. Operating profit decreased slightly from 3.2% in 2023 to 1.8% in 2024. Total comprehensive income for the year after taxation was £263,493 (2023: £461,888) out of which dividends of £720,000 were paid (2023: £720,000). The company balance sheet as at 31 December 2024 shows net assets of £1,333,999 (2023: £1,790,506). The company's financial and other performance indicators during the year were as follows:

	2024	2023
	£	£
Turnover	26,136,926	26,559,447
Profit on ordinary activities before taxation	363,307	702,196
Gross profit %	65	65
Net current assets/(liabilities)	545,659	1,319,746
Average number of employees	459	468
Turnover per employee	56,943	56,751

Customer satisfaction and service, supplier and product quality, employee relations and health and safety remain a priority. These are monitored on a regular basis to sustain and improve all current levels of performance. The directors use a number of key performance indicators (KPIs) to assist them in the management of the business. The main KPIs are sales to target, cash at bank and gross profit.

Financial risk management objectives and policies

The company has various financial instruments such as the availability of bank facilities and trade creditors that arise directly from its operations. No trading in financial instruments is undertaken. The directors review and agree policies for managing each financial instrument risk and consider the company's exposure to such risks is well controlled.

Future developments

The directors anticipate that the next year will continue to be profitable. Sales are expected to be similar to last year whilst costs are anticipated to increase due to economic pressures with a resulting reduction in profit. The programme of refurbishing the restaurants will continue.

This report was approved by the board of directors on 24 September 2025 and signed on behalf of the board by:

Mr D Duncan

Director

Registered office:

Arkle House

Lonsdale Street

Carlisle

Cumbria

CA1 1BJ

Econ Restaurants Limited

Directors' Report

Year ended 31 December 2024

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

Principal activities

The principal activity of the company during the year was selling food in unlicensed restaurants.

Directors

The directors who served the company during the year were as follows:

Mr N J Pennington
Mr D Duncan

Dividends

Particulars of recommended dividends are detailed in note 12 to the financial statements.

Employment of disabled persons

The company gives full consideration to applications for employment from disabled persons where the requirements of the job can be adequately fulfilled by a handicapped or disabled person. Where existing employees become disabled, it is the company's policy wherever practicable to provide continuing employment under normal terms and conditions and to provide training and career development and promotion to disabled employees wherever appropriate.

Employee involvement

Employee numbers have increased during the year to an average of 459 (2023: 468). During the year the policy of providing employees with information about the company has been continued through internal media methods in which employees have also been encouraged to present their suggestions and views on the company's performance. Regular meetings are held between local management and employees to allow a free flow of information and ideas. The company is opposed to all forms of unlawful and unfair discrimination: selection for employment, promotion, training or any other benefit is on the basis of aptitude and ability.

Directors' responsibilities statement

The directors are responsible for preparing the strategic report, directors' report and the financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: - select suitable accounting policies and then apply them consistently; - make judgments and accounting estimates that are reasonable and prudent; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Auditor

Each of the persons who is a director at the date of approval of this report confirms that:

- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. A resolution to reappoint Lamont Pridmore as auditors will be proposed at the forthcoming Annual General Meeting.

This report was approved by the board of directors on 24 September 2025 and signed on behalf of the board by:

Mr D Duncan

Director

Registered office:

Arkle House

Lonsdale Street

Carlisle

Cumbria

CA1 1BJ

Econ Restaurants Limited

Independent Auditor's Report to the Members of Econ Restaurants Limited

Year ended 31 December 2024

Opinion

We have audited the financial statements of Econ Restaurants Limited (the 'company') for the year ended 31 December 2024 which comprise the statement of income and retained earnings, statement of financial position, statement of cash flows 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 FRS 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; - 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 auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The 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. 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

- the strategic report and the directors' report 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 directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of directors' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's 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: The objectives of our audit in respect of fraud are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company. Our approach was as follows: * We obtained an understanding of the legal and regulatory requirements applicable to the company and considered that the most significant are the Companies Act 2006, United Kingdom Accounting Standards including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice) and UK taxation legislation. * We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur. * We inquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations. * We examined supporting documents for all material balances, transactions and disclosures. * We applied analytical procedures to identify any unusual or unexpected relationships. * We tested the appropriateness of journal entries recorded in the general ledger and other adjustments made in the preparation of the financial statements. Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of fraud, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. 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 an auditor's 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.

Christopher Lamont

(Senior Statutory Auditor)

For and on behalf of

Lamont Pridmore

Chartered Accountants & Statutory Auditor

31 Lonsdale Street

Carlisle

Cumbria

CA1 1BJ

24 September 2025

Econ Restaurants Limited

Statement of Income and Retained Earnings

Year ended 31 December 2024

		2024	2023
Note		£	£
Turnover	4	26,136,926	26,559,447

Cost of sales	9,252,399	9,422,389
	-------------	-------------
Gross profit	16,884,527	17,137,058

Administrative expenses		16,404,173	16,291,442
		-------------	-------------
Operating profit	5	480,354	845,616

Other interest receivable and similar income	9	75,868	82,060
Interest payable and similar expenses	10	192,915	225,480
		-------------	-------------
Profit before taxation		363,307	702,196

Tax on profit	11	99,814	240,308
		---------	---------
Profit for the financial year and total comprehensive income		263,493	461,888
		---------	---------

Dividends paid and payable	12	( 720,000)	( 720,000)

Retained earnings at the start of the year	1,790,505	2,048,617
	------------	------------
Retained earnings at the end of the year	1,333,998	1,790,505
	------------	------------

All the activities of the company are from continuing operations.

Econ Restaurants Limited

Statement of Financial Position

31 December 2024

	2024		2023
Note	£	£	£

Fixed assets

Intangible assets	13	146,095	167,060
Tangible assets	14	2,230,703	2,743,120
Investments	15	7,500	7,500
		------------	------------
		2,384,298	2,917,680

Current assets

Stocks	16	126,127	130,253
Debtors	17	5,407,258	4,471,090
Cash at bank and in hand		539,113	2,334,009
		------------	------------
		6,072,498	6,935,352

Creditors: amounts falling due within one year	19	5,526,839		5,615,606
		------------		------------
Net current assets			545,659	1,319,746
			------------	------------
Total assets less current liabilities			2,929,957	4,237,426

Creditors: amounts falling due after more than one year	20		1,509,244	2,260,800

Provisions

Taxation including deferred tax	21	86,714	186,120
		------------	------------
Net assets		1,333,999	1,790,506
		------------	------------

Capital and reserves

Called up share capital	24	1	1
Profit and loss account	25	1,333,998	1,790,505
		------------	------------
Shareholders funds		1,333,999	1,790,506
		------------	------------

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.

These financial statements were approved by the board of directors and authorised for issue on 24 September 2025 , and are signed on behalf of the board by:

Mr D Duncan

Director

Company registration number: 03956144

Econ Restaurants Limited

Statement of Cash Flows

Year ended 31 December 2024

	2024	2023
Note	£	£

Cash flows from operating activities

Profit for the financial year	263,493	461,888

Adjustments for:
Depreciation of tangible assets	623,160	818,004
Amortisation of intangible assets	20,965	27,574
Other interest receivable and similar income	( 75,868)	( 82,060)
Interest payable and similar expenses	192,915	225,480
Tax on profit	99,814	240,308
Accrued expenses	455,798	152,516

Changes in:
Stocks	4,126	( 4,364)
Trade and other debtors	( 936,168)	( 1,215,357)
Trade and other creditors	( 156,270)	( 61,209)
	---------	------------
Cash generated from operations	491,965	562,780

Interest paid	( 192,915)	( 225,480)
Interest received	75,868	82,060
Tax paid	( 61,902)	( 484,204)
	---------	---------
Net cash from/(used in) operating activities	313,016	( 64,844)
	---------	---------

Cash flows from investing activities

Purchase of tangible assets	( 110,743)	( 315,809)
Purchase of intangible assets	–	( 30,000)
	---------	---------
Net cash used in investing activities	( 110,743)	( 345,809)
	---------	---------

Cash flows from financing activities

Proceeds from borrowings	–	207,602
Repayments of borrowings	( 847,219)	–
Dividends paid	( 720,000)	( 720,000)
	------------	---------
Net cash used in financing activities	( 1,567,219)	( 512,398)
	------------	---------

Net decrease in cash and cash equivalents		( 1,364,946)	( 923,051)
Cash and cash equivalents at beginning of year		660,736	1,583,787
		---------	------------
Cash and cash equivalents at end of year	18	( 704,210)	660,736
		---------	------------

Econ Restaurants Limited

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 Arkle House, Lonsdale Street, Carlisle, Cumbria, CA1 1BJ.

2. Statement of compliance

These financial statements have been prepared in compliance with 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. The preparation of the financial statements requires the use of estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. Any estimate that has a degree of uncertainty or where judgement has been exercised in a particular area is expressly disclosed within the relevant accounting policy.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires the use of estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. Any estimate that has a degree of uncertainty or where judgement has been exercised in a particular area is expressly disclosed within the relevant accounting policy.

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; 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 measured reliably.

Taxation

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.

Operating leases

Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.

Goodwill

Intangible assets are measured at cost less accumulated amortisation and any accumulated impairment losses.

Intangible assets

Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses. Any intangible assets carried at revalued amounts, are recorded at the fair value at the date of revaluation, as determined by reference to an active market, less any subsequent accumulated amortisation and subsequent accumulated impairment losses. Intangible assets acquired as part of a business combination are only recognised separately from goodwill when they arise from contractual or other legal rights, are separable, the expected future economic benefits are probable and the cost or value can be measured reliably.

Amortisation

Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:

Goodwill	-	5% straight line
Franchise Fees	-	5% straight line

If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.

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:

Long leasehold property	-	1% - 5% straight line
Short leasehold property	-	10% straight line
Plant and machinery	-	Between 5 - 20 years on cost

Investments

Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.

Listed investments are measured at fair value with changes in fair value being recognised in profit or loss.

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 are 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

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the entity after deducting all of its financial liabilities. Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability. Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity. Compound instruments Compound instruments comprise both a liability and an equity component. At date of issue, the fair value of the liability component is estimated using the prevailing market interest rate for a similar debt instrument. The liability component is accounted for as a financial liability. The residual is the difference between the net proceeds of issue and the liability component (at time of issue). The residual is the equity component, which is accounted for as an equity instrument. The interest expense on the liability component is calculated applying the effective interest rate for the liability component of the instrument. The difference between this amount and any repayments is added to the carrying amount of the liability in the balance sheet.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

4. Turnover

Turnover arises from:

	2024	2023
	£	£
Sale of goods	26,136,926	26,559,447
	-------------	-------------

The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.

5. Operating profit

Operating profit or loss is stated after charging:

	2024	2023
	£	£
Amortisation of intangible assets	20,965	27,574
Depreciation of tangible assets	623,160	818,004
	---------	---------

6. Auditor's remuneration

	2024	2023
	£	£
Fees payable for the audit of the financial statements	11,285	10,750
	--------	--------

7. Staff costs

The average number of persons employed by the company during the year, including the directors, amounted to:

	2024	2023
	No.	No.
Production staff	436	447
Management staff	23	21
	----	----
	459	468
	----	----

The aggregate payroll costs incurred during the year, relating to the above, were:

	2024	2023
	£	£
Wages and salaries	6,141,935	6,009,904
Social security costs	357,492	353,233
Other pension costs	86,125	90,375
	------------	------------
	6,585,552	6,453,512
	------------	------------

8. Directors' remuneration

The directors' aggregate remuneration in respect of qualifying services was:

	2024	2023
	£	£
Remuneration	46,097	50,097
	--------	--------

9. Other interest receivable and similar income

	2024	2023
	£	£
Interest on loans and receivables	69,940	52,896
Interest on cash and cash equivalents	5,928	29,164
	--------	--------
	75,868	82,060
	--------	--------

10. Interest payable and similar expenses

	2024	2023
	£	£
Interest on banks loans and overdrafts	192,915	225,480
	---------	---------

11. Tax on profit

Major components of tax expense

	2024	2023
	£	£

Current tax:

UK current tax expense	199,220	274,090

Deferred tax:

Origination and reversal of timing differences	( 99,406)	( 33,782)
	--------	---------
Tax on profit	99,814	240,308
	--------	---------

Reconciliation of tax expense

The tax assessed on the profit on ordinary activities for the year is higher than (2023: higher than) the standard rate of corporation tax in the UK of 25 % (2023: 25 %).

	2024	2023
	£	£
Profit on ordinary activities before taxation	363,307	702,196
	---------	---------
Profit on ordinary activities by rate of tax	90,827	175,549
Effect of expenses not deductible for tax purposes	5,241	( 6,894)
Effect of capital allowances and depreciation	3,746	71,653
	---------	---------
Tax on profit	99,814	240,308
	---------	---------

12. Dividends

Dividends paid during the year (excluding those for which a liability existed at the end of the prior year):

	2024	2023
	£	£
Dividends on equity shares	720,000	720,000
	---------	---------

13. Intangible assets

	Goodwill	Franchise fees	Total
	£	£	£
Cost
At 1 January 2024 and 31 December 2024	934,575	180,000	1,114,575
	---------	---------	------------
Amortisation
At 1 January 2024	877,015	70,500	947,515
Charge for the year	14,965	6,000	20,965
	---------	---------	------------
At 31 December 2024	891,980	76,500	968,480
	---------	---------	------------
Carrying amount
At 31 December 2024	42,595	103,500	146,095
	---------	---------	------------
At 31 December 2023	57,560	109,500	167,060
	---------	---------	------------

Amortisation of intangible fixed assets is included in administrative expenses.

14. Tangible assets

	Freehold property	Long leasehold property	Short leasehold property	Plant and machinery	Assets held for sale	Total
	£	£	£	£	£	£
Cost
At 1 Jan 2024	900,000	236,959	127,246	9,274,205	212,262	10,750,672
Additions	–	–	–	110,743	–	110,743
	---------	---------	---------	------------	---------	-------------
At 31 Dec 2024	900,000	236,959	127,246	9,384,948	212,262	10,861,415
	---------	---------	---------	------------	---------	-------------
Depreciation
At 1 Jan 2024	–	38,780	74,223	7,894,549	–	8,007,552
Charge for the year	–	4,093	10,891	608,176	–	623,160
	---------	---------	---------	------------	---------	-------------
At 31 Dec 2024	–	42,873	85,114	8,502,725	–	8,630,712
	---------	---------	---------	------------	---------	-------------
Carrying amount
At 31 Dec 2024	900,000	194,086	42,132	882,223	212,262	2,230,703
	---------	---------	---------	------------	---------	-------------
At 31 Dec 2023	900,000	198,179	53,023	1,379,656	212,262	2,743,120
	---------	---------	---------	------------	---------	-------------

15. Investments

	Other loans
	£
Cost
At 1 January 2024 and 31 December 2024	7,500
	-------
Impairment
At 1 January 2024 and 31 December 2024	–
	-------

Carrying amount
At 31 December 2024	7,500
	-------
At 31 December 2023	7,500
	-------

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

16. Stocks

	2024	2023
	£	£
Raw materials and consumables	126,127	130,253
	---------	---------

17. Debtors

	2024	2023
	£	£
Prepayments and accrued income	87,230	79,365
Directors loan account	3,320,802	2,743,616
Other debtors - S455 tax	1,066,793	871,993
Other debtors	932,433	776,116
	------------	------------
	5,407,258	4,471,090
	------------	------------

18. Cash and cash equivalents

Cash and cash equivalents comprise the following:

	2024	2023
	£	£
Cash at bank and in hand	539,113	2,334,009
Bank overdrafts	( 1,243,323)	( 1,673,273)
	------------	------------
	( 704,210)	660,736
	------------	------------

19. Creditors: amounts falling due within one year

	2024	2023
	£	£
Bank loans and overdrafts	1,940,058	2,465,671
Trade creditors	1,064,799	1,014,022
Accruals and deferred income	1,114,278	658,480
Corporation tax	613,292	475,974
Social security and other taxes	774,295	996,480
Other creditors	20,117	4,979
	------------	------------
	5,526,839	5,615,606
	------------	------------

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

	2024	2023
	£	£
Bank loans and overdrafts	1,509,244	2,260,800
	------------	------------

Included in amounts payable over 5 years are loans taken to finance improvements to existing stores. These are being repaid monthly with an interest rate of 1.2% over base rate.

The bank loans and overdrafts are secured against the assets of the company.

21. Provisions

	Deferred tax (note 22)
	£
At 1 January 2024	186,120
Charge against provision	( 99,406)
	---------
At 31 December 2024	86,714
	---------

22. Deferred tax

The deferred tax included in the statement of financial position is as follows:

	2024	2023
	£	£
Included in provisions (note 21)	86,714	186,120
	--------	---------

The deferred tax account consists of the tax effect of timing differences in respect of:

	2024	2023
	£	£
Accelerated capital allowances	86,714	186,120
	--------	---------

23. Employee benefits

Defined contribution plans

The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 86,125 (2023: £ 90,375 ).

24. Called up share capital

Issued, called up and fully paid

	2024		2023
	No.	£	No.	£
Ordinary shares of £ 1 each	1	1	1	1
	----	----	----	----

25. Reserves

Profit and loss account - This reserve records retained earnings and accumulated losses.

26. Analysis of changes in net debt

	At 1 Jan 2024	Cash flows	At 31 Dec 2024
	£	£	£
Cash at bank and in hand	2,334,009	(1,794,896)	539,113
Bank overdrafts	(1,673,273)	429,950	(1,243,323)
Debt due within one year	(792,398)	95,663	(696,735)
Debt due after one year	(2,260,800)	751,556	(1,509,244)
	------------	------------	------------
	( 2,392,462)	( 517,727)	( 2,910,189)
	------------	------------	------------

27. Operating leases

The total future minimum lease payments under non-cancellable operating leases are as follows:

	2024	2023
	£	£
Not later than 1 year	717,360	717,360
Later than 1 year and not later than 5 years	2,869,440	2,869,440
Later than 5 years	7,914,111	8,629,046
	-------------	-------------
	11,500,911	12,215,846
	-------------	-------------

28. Directors' advances, credits and guarantees

During the year the directors entered into the following advances and credits with the company:

	2024
	Balance brought forward	Advances/ (credits) to the directors	Amounts repaid	Balance outstanding
	£	£	£	£
Mr D Duncan	2,743,616	1,899,069	( 1,321,883)	3,320,802
	------------	------------	------------	------------

	2023
	Balance brought forward	Advances/ (credits) to the directors	Amounts repaid	Balance outstanding
	£	£	£	£
Mr D Duncan	2,145,442	2,033,262	( 1,435,088)	2,743,616
	------------	------------	------------	------------

Econ Restaurants Limited

Notes to the Financial Statements (continued)

Year ended 31 December 2024

28. Directors' advances, credits and guarantees (continued)

The maximum overdrawn amount on the directors loan during the year was £3,320,802 (2023 - £2,743,616). At the year end the director owed the company £3,320,802. This loan is unsecured with no fixed date for repayment. Interest is charged at a rate of 2.25% (2023 - 2.19%) per annum.