REGISTERED NUMBER: 06816033 (England and Wales)

AOJ RESTAURANTS LIMITED

STRATEGIC REPORT, REPORT OF THE DIRECTOR AND

AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

Page

Company Information

1

Strategic Report

2

Report of the Director

4

Report of the Independent Auditors

6

Statement of Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Cash Flow Statement

13

Notes to the Financial Statements

14

DIRECTOR:

S D Toft

SECRETARIES:

A J Toft

O C Toft

Kerry Secretarial Services Limited

REGISTERED OFFICE:

c/o Cox Costello & Horne

Batchworth Lock House

99 Church Street

Rickmansworth

WD3 1JJ

REGISTERED NUMBER:

06816033 (England and Wales)

SENIOR STATUTORY AUDITOR:

Michael Cox

AUDITORS:

Cox Costello & Horne

Chartered Accountants and Statutory Auditors

Batchworth Lock House

99 Church Street, Rickmansworth

WD3 1JJ

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

REVIEW OF BUSINESS

Simon Toft (the franchisee) is the Sole Director of the company, which is a franchise operator of McDonald's restaurants (the franchisor), the market leader in the quick service restaurant (QSR) market. The company, in common with all franchisee restaurants, pays to its franchisor a Service Fee and Rent based on a % of net Sales that is variable for each restaurant.

The company operates three Drive Thru restaurants located in Greater Manchester with a customer base split across Drive Thru, Instore (dine-in) and Home Delivery food and drink orders. Home Delivery orders are placed by and delivered to customers via Third Party Operators (3PO). The relationship and oversight of the 3PO's is managed centrally by the franchisor on behalf of their franchise operators.

The business continued its operations throughout 2024 with a consistent level of revenue generation, recording turnover of £14.9 million, unchanged from the prior year (2023: £14.9 million).

Despite the flat revenue, the company recorded gross profit of £6.2 million, an increase from £6.0 million in 2023, reflecting improved operational efficiency and some margin enhancement through cost control and strategic menu board price increase at the restaurant level.

The increase in menu board prices contributed to a modest improvement in profitability per customer transaction, despite customer footfall remaining broadly flat. This pricing strategy helped offset some of the ongoing cost pressures from inflation and rising wages, although the benefit was partially eroded by increased energy and overhead expenses. As a result, profit before tax fell significantly to £26,000 (2023: £338,000).

Net assets as at 31 December 2024 were £202,000, down from £242,000 in 2023, in line with the reduced profitability for the year.

Management remains committed to delivering a high-quality customer experience, maintaining compliance with McDonald's operational standards and driving long-term sustainability in performance. Operational improvements and localised marketing campaigns have contributed positively to customer traffic, but cost pressures continue to challenge net margins.

PRINCIPAL RISKS AND UNCERTAINTIES

The Company faces a number of risks and uncertainties which could impact its performance. The Directors monitor these on an ongoing basis and seek to mitigate them wherever possible:

1. Economic Environment: Macroeconomic conditions, particularly inflation and consumer discretionary spending, can directly impact sales. A prolonged downturn could reduce footfall and average transaction values.

2. Cost Inflation: Increasing costs in wages (linked to National Living Wage rises), energy, and raw materials pose significant pressure on margins. Labour availability remains a particular challenge in the hospitality sector.

3. Regulatory and Compliance Risks: As a McDonald's franchisee, the Company must adhere to stringent operational and compliance standards. Any deviation could result in reputational damage or loss of franchise rights.

4. Competition and Consumer Trends: The Company operates in a highly competitive market. Changes in consumer preferences or new competitors entering the local market could affect demand.

5. Operational Risks: These include risks associated with restaurant-level performance, staffing, equipment failures, and health and safety incidents. The Company places strong emphasis on training, safety compliance, and preventative maintenance.

KEY PERFORMANCE INDICATORS (KPIS)

The Directors use a number of financial and operational KPIs to monitor performance. The key indicators for the year were as follows:

2024

2023

£

£

EBITDA

£554,422

£964,381

GP %

41.50%

40.50%

FUTURE DEVELOPMENT

The Company remains cautiously optimistic about 2025. While economic and operational headwinds persist, specifically extraordinary beef cost inflation, changes in government legislation including: increased employer NI contributions and a reduction in Business Rates relief for the hospitality sector, a continued focus on cost control, team engagement and customer service are expected to support stable trading. The Director will also continue to explore opportunities for operational efficiency and growth within the existing restaurant portfolio.

ON BEHALF OF THE BOARD:

S D Toft - Director

19 September 2025

The director presents his report with the financial statements of the company for the year ended 31 December 2024.

DIVIDENDS

An interim dividend of £2.86 (2023 - £2.67) per share was paid during the reporting period. The director recommends that no final dividend be paid.

The total interim dividends for the year ended 31 December 2024 was £64,458 (2023 - £60,051).

DIRECTOR

S D Toft held office during the whole of the period from 1 January 2024 to the date of this report.

DONATIONS

The company made voluntary donations of £5,784 (2023: £5,829) to Ronald McDonald House Charity (RMHC) of at least 0.04% of sales turnover and supports other related charitable and local community events as part of our corporate social responsibility commitment.

Additional £4,940 (2023: £4,929) were also made to Ronald McDonald House Charities to support various fund raising events.

EMPLOYEES

The company operates non-discriminatory employment policies which are designed to attract, retain and motivate the very best people, recognising that this can only be achieved through offering equal opportunities regardless of age, disability, gender, race, religion, colour, nationality, marital status and sexual orientation.

Applications for employment by disabled persons are always fully considered, bearing in mind the respective aptitudes and abilities of the applicant concerned.

In the event of members of staff becoming disabled, every effort is made to ensure that their employment with the company continues and that appropriate facilities are available and training is arranged. It is the policy of the company that the training, career development and promotion of a disabled person should, as far as possible, be identical to that of a person who does not suffer from a disability.

Staff are encouraged to plan their careers within the group and to participate in appropriate ongoing training, consistent with the needs of the business.

Restaurants develop their own internal communications and employees receive regular updates on the company strategies, policies and results.

The company has taken appropriate steps during the financial year to introduce, maintain, or develop arrangements aimed at consulting employees or their representatives on a regular basis so that the views of employees can be taken into account in making decisions that are likely to affect their interests.

Our success is due to the teamwork and co-operation of the people within the group. The director thanks all those who have worked so hard and contributed so much to achieve these results during a demanding time. The company continues to develop and maintain a culture which encourages long service and we are proud that so many employees choose to remain with us over many years.

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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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;

-	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, Cox Costello & Horne, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

S D Toft - Director

19 September 2025

Opinion

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

In our opinion the financial statements:

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

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Director.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of director's remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on pages four and five, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the director is responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

We designed procedures in line with our responsibilities outlined above, to detect material misstatements in respect of irregularities, including fraud.

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our: general commercial and sector experience; through verbal and written communications with those charged with governance and other management; and via inspection of the company's regulatory and legal correspondence.

We discussed with those charged with governance and other management the policies and procedures regarding compliance with laws and regulations.

We communicated identified laws and regulations to our team and remained alert to any indicators of non-compliance throughout the audit, we also specifically considered where and how fraud may occur within the company.

The potential effect of these laws and regulations on the financial statements varies considerably.

Firstly, the company is subject to laws and regulations that directly affect the financial statements, including: the company's constitution, relevant financial reporting standards; company law; tax legislation and distributable profits legislation and we assess the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

Secondly the company is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on the amounts or disclosures in the financial statements, for instance through the imposition of fines and penalties, or through losses arising from litigations. We identified the following areas as those most likely to have such an effect: laws and regulations relevant to employment legislation; health and safety legislation; data protection legislation; anti-bribery and corruption legislation.

International Auditing Standards (UK) limit the required procedures to identify non-compliance with these laws and regulations, and no procedures over and above those already noted are required. These limited procedures did not identify any actual or suspected non-compliance with laws and regulations that could have a material impact on the financial statements.

In relation to fraud, we performed the following specific procedures in addition to those already noted:

- Challenging assumptions made by management in its significant accounting estimates;

- Identifying and testing journal entries, in particular any entries posted with unusual nominal ledger account combinations, journal entries crediting cash or any revenue account, and journal entries posted by senior management;

- Performing analytical procedures to identify unexpected movements in account balances which may be indicative of fraud; and

- Ensuring that testing undertaken on both the performance statement and the Balance Sheet includes a number of items selected on a random basis.

These procedures did not identify any actual or suspected fraudulent irregularity that could have a material impact on 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 International Auditing Standards (UK). 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 procedures that we are required to undertake would identify it. In addition, as with any audit, there remains a high risk of non-detection of irregularities, as these might involve collusion, forgery, intentional omissions, misrepresentation, or the override of internal controls. We are not responsible for preventing non-compliance with laws and regulations or fraud, and cannot be expected to detect non-compliance with all laws and regulations or every incidence of fraud.

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.

Michael Cox (Senior Statutory Auditor)

for and on behalf of Cox Costello & Horne

Chartered Accountants and Statutory Auditors

Batchworth Lock House

99 Church Street, Rickmansworth

WD3 1JJ

19 September 2025

TURNOVER

3

14,878,600

14,846,005

Cost of sales

8,699,030

8,833,168

GROSS PROFIT

6,179,570

6,012,837

Administrative expenses

6,108,185

5,609,638

71,385

403,199

Other operating income

7,853

2,268

OPERATING PROFIT

5

79,238

405,467

Interest receivable and similar income

21,408

10,066

100,646

415,533

Interest payable and similar expenses

6

74,587

76,622

PROFIT BEFORE TAXATION

26,059

338,911

Tax on profit

7

1,653

154,867

PROFIT FOR THE FINANCIAL YEAR

24,406

184,044

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

24,406

184,044

FIXED ASSETS

Intangible assets

9

1,605

10,740

Tangible assets

10

839,088

1,272,443

Investments

11

3,750

3,750

844,443

1,286,933

CURRENT ASSETS

Stocks

12

68,560

61,273

Debtors

13

152,469

279,658

Cash at bank and in hand

1,479,732

1,368,828

1,700,761

1,709,759

CREDITORS

Amounts falling due within one year

14

1,780,785

1,689,196

NET CURRENT (LIABILITIES)/ASSETS

(80,024

)

20,563

TOTAL ASSETS LESS CURRENT LIABILITIES

764,419

1,307,496

CREDITORS

Amounts falling due after more than one year

15

(502,066

)

(915,436

)

PROVISIONS FOR LIABILITIES

17

(60,634

)

(150,289

)

NET ASSETS

201,719

241,771

CAPITAL AND RESERVES

Called up share capital

18

22,500

22,500

Capital redemption reserve

19

7,500

7,500

Retained earnings

19

171,719

211,771

SHAREHOLDERS' FUNDS

201,719

241,771

The financial statements were approved by the director and authorised for issue on 19 September 2025 and were signed by:

S D Toft - Director

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 January 2023

22,500

87,778

7,500

117,778

Changes in equity

Dividends

-

(60,051

)

-

(60,051

)

Total comprehensive income

-

184,044

-

184,044

Balance at 31 December 2023

22,500

211,771

7,500

241,771

Changes in equity

Dividends

-

(64,458

)

-

(64,458

)

Total comprehensive income

-

24,406

-

24,406

Balance at 31 December 2024

22,500

171,719

7,500

201,719

Cash flows from operating activities

Cash generated from operations

20

784,778

378,962

Interest paid

(74,587

)

(76,622

)

Tax paid

(78,015

)

-

Taxation refund

-

4,075

Net cash from operating activities

632,176

306,415

Cash flows from investing activities

Purchase of intangible fixed assets

(1,121

)

(745

)

Purchase of tangible fixed assets

(64,715

)

(95,144

)

Sale of tangible fixed assets

984

-

Interest received

21,408

10,066

Net cash from investing activities

(43,444

)

(85,823

)

Cash flows from financing activities

Loan repayments in year

(413,370

)

(70,816

)

Amount withdrawn by directors

-

(25

)

Equity dividends paid

(64,458

)

(60,051

)

Net cash from financing activities

(477,828

)

(130,892

)

Increase in cash and cash equivalents

110,904

89,700

Cash and cash equivalents at beginning of year

21

1,368,828

1,279,128

Cash and cash equivalents at end of year

21

1,479,732

1,368,828

1.	STATUTORY INFORMATION

AOJ Restaurants 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.

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 basis

The current economic conditions continue to create uncertainty over (a) the level of demand for the company's products; and (b) the availability of bank finance for the foreseeable future. The company's forecasts and projections, taking account of reasonably possible changes in trading performance, show that the company should be able to operate within the level of its current facilities. After making enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future; taken to be 12 months after signing the financial statements. No material uncertainties that cast significant doubt about the ability of the company to continue as a going concern have been identified by the directors. The company therefore continues to adopt the going concern basis in preparing its financial statements.

Turnover

Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Sale of goods

The company operates a number of restaurants for the sale of a range of branded products. Sales of goods are recognised on sale to the customer, which is considered the point of delivery. Sales are usually by cash, credit or payment card.

Goodwill

On acquisition of a business, fair values are attributed to the identifiable assets, liabilities and contingent liabilities unless the fair value cannot be measured reliably, in which case the value is incorporated in goodwill. Where the fair value of contingent liabilities cannot be reliably measured they are disclosed on the same basis as other contingent liabilities.

Goodwill recognised represents the excess of the fair value and directly attributable costs of the purchase consideration over the fair values to the company's interest in the identifiable net assets, liabilities and contingent liabilities acquired.

On acquisition, goodwill is allocated to cash-generating units ('CGU's') that are expected to benefit from the combination.

Goodwill is amortised over its expected useful life which is estimated to be ten years. Goodwill is assessed for impairment when there are indicators of impairment and any impairment is charged to the profit and loss account. If an indicator of impairment exists, the goodwill impairment test compares the fair value of a reporting unit, generally based on discounted future cash flows, with its carrying amount including goodwill. No reversals of impairment are recognised.

Intangible assets

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

Amortisation is calculated, using the straight-line method, to allocate the depreciable amount of the assets to their residual values over their estimated useful lives, as follows:

-

Acquired rights and licenses

- 10% on cost

Amortisation is included in administrative expenses in the profit and loss account.

Where factors, such as technological advancement or changes in market price, indicate that residual value or useful life have changed, the residual value, useful life or amortisation rate are amended prospectively to reflect the new circumstances.

The assets are reviewed for impairment if the above factors indicate that the carrying amount may be impaired.

Patents & licences

Patents & licences are amortised over their useful life of 20 years.

Tangible fixed assets

Tangible fixed assets are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using either a straight line or reducing balance method, as indicated below.

Depreciation is provided on the following basis:

-

Improvements to leasehold property

- straight line over seven years

-

Plant and machinery

- straight line over three to ten years

-

Fixtures and fittings

- straight line over three to seven years

-

Computer equipment

- straight line over three to seven years

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Investments

Investments are stated at historical cost less any accumulated impairment losses.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis.

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

Financial instruments

The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in profit or loss.

Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

a) Debtors

Basic financial assets, including trade and other debtors, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Such assets are subsequently carried at amortised cost using the effective interest method, less any impairment.

b) Creditors

Basic financial liabilities, including trade and other creditors, loans from third parties and loans from related parties, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Such instruments are subsequently carried at amortised cost using the effective interest method, less any impairment.

c) Cash at bank

Cash and bank balances are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Such assets are subsequently carried at amortised cost using the effective interest method, less any impairment. Cash and bank balances are represented by cash in hand, deposits held at call with financial institutions, and other short-term highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

Cash at bank and in hand

Cash and cash equivalents are represented by cash in hand, deposits held at call with financial institutions, and other short-term highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

Taxation

The tax expense for the year comprises current and deferred tax.

Tax is recognised in profit or loss except that a change attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:

-

the recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

-

any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Both current and deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Operating leases

Leases that do not transfer all the risks and rewards of ownership are classified as operating leases. Payments under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

3.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

31.12.24

31.12.23

£

£

Products sales

14,564,177

14,569,160

Non products sales

314,423

276,845

14,878,600

14,846,005

An analysis of turnover by geographical market is given below:

31.12.24

31.12.23

£

£

United Kingdom

14,878,600

14,846,005

14,878,600

14,846,005

4.	EMPLOYEES AND DIRECTORS

31.12.24

31.12.23

£

£

Wages and salaries

3,979,373

3,909,518

Social security costs

155,191

142,082

Other pension costs

90,511

64,149

4,225,075

4,115,749

The average number of employees during the year was as follows:

31.12.24

31.12.23

Administrative staff

17

17

Restaurants crew members

329

347

346

364

31.12.24

31.12.23

£

£

Director's remuneration

12,571

12,500

Director's pension contributions to money purchase schemes

56,811

30,000

5.	OPERATING PROFIT

The operating profit is stated after charging:

31.12.24

31.12.23

£

£

Other operating leases

1,754,036

1,546,176

Depreciation - owned assets

443,520

400,297

Loss on disposal of fixed assets

53,565

-

Patents and licences amortisation

10,256

6,137

Auditors' remuneration

7,779

7,500

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

31.12.24

31.12.23

£

£

Bank interest

74,587

76,622

7.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

31.12.24

31.12.23

£

£

Current tax:

UK corporation tax

87,233

152,480

Priors year under/(over) provn

4,075

(4,075

)

Total current tax

91,308

148,405

Deferred tax

(89,655

)

6,462

Tax on profit

1,653

154,867

UK corporation tax was charged at 23.90%) in 2023.

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

31.12.24

31.12.23

£

£

Profit before tax

26,059

338,911

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2023 - 25%)

6,515

84,728

Effects of:

Depreciation in excess of capital allowances

75,366

77,344

Adjustments to tax charge in respect of previous periods

4,075

(4,075

)

Tax rate adjustment

5,352

(9,592

)

Deferred taxation

(89,655

)

6,462

Total tax charge

1,653

154,867

Factors that may affect future tax charges

Tax rate changes

Changes to the UK corporation tax rates were substantively enacted as part of Finance Act 2021 on 24 May 2021 (Royal Assent received on 10 June 2021). These include increasing the main rate of tax from 19% to 25% from 1 April 2023 on profits over £250,000. The rate for small profits under £50,000 will remain at 19%.

Where a company's profits fall between £50,000 and £250,000 (the lower and upper limits), it will be able to claim an amount of marginal relief, providing a gradual increase in the corporation tax rate.

Deferred taxes at the balance sheet date have been measured using these enacted tax rates and reflected in these financial statements.

Deferred tax

Unrelieved tax losses and other deferred tax assets are only recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

8.

DIVIDENDS

31.12.24

31.12.23

£

£

Ordinary shares of £1 each

Interim

64,458

60,051