ACCOUNTS - Final Accounts preparation

Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:

Registered number: 02860364

W. LIDDY & COMPANY LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

W. LIDDY & COMPANY LIMITED

COMPANY INFORMATION

Director	W Liddy


Company secretary	S Davis


Registered number	02860364


Registered office	Unit 28
	Apex Business Village
	Cramlington
	Northumberland
	NE23 7BF


Independent auditors	Ryecroft Glenton
	Chartered Accountants & Statutory Auditors
	32 Portland Terrace
	Jesmond
	Newcastle upon Tyne
	NE2 1QP


Bankers	HSBC
	110 Grey Street
	Newcastle upon Tyne
	NE1 6JG


Solicitors	Mincoffs Solicitors LLP
	5 Osborne Terrace
	Newcastle upon Tyne
	NE2 1SQ

W. LIDDY & COMPANY LIMITED

CONTENTS

	Page
Strategic Report	1 - 2
Director's Report	3 - 5
Independent Auditors' Report	6 - 9
Statement of Income and Retained Earnings	10
Balance Sheet	11
Statement of Cash Flows	12 - 13
Analysis of Net Debt	14
Notes to the Financial Statements	15 - 30

W. LIDDY & COMPANY LIMITED

STRATEGIC REPORT

FOR THE YEAR ENDED 31 DECEMBER 2024

Introduction

The director presents the strategic report and financial statements for the year ended 31 December 2024.

Business review

The results for the company show a profit before tax for the year of £2,402,469 (2023: £1,137,714 loss), sales of £32,305,018 (2023: £36,396,064) and net assets of £2,889,800 (2023: £929,727).
The results for the year include the profit on disposal of two franchises of £1,009,235 (see note 13).
The decrease in turnover for the year relates mainly to the disposal of the two franchises noted above. Gross margins have increased partly due to reduced food costs and delivery charges as a percentage of sales. Delivery charges also includes a VAT refund of £831,598 this year (see note 13).
As mentioned below, the company is affected by the UK economy generally, McDonalds UK price and marketing strategies and by price pressures from the fast food industry, but more recently by the home delivery services now prevalent in the fast food industry.

Principal risks and uncertainties

The UK fast food market is highly price sensitive and extremely competitive.
The company takes strategic decisions in setting prices, managing margins and staffing levels while complying with the wishes of McDonalds UK to maintain the global reputation and image of the brand and to comply with strict food and hygiene requirements, helping it to maintain its position against competitors.
The process of risk management is addressed through a framework of policies, procedures and internal controls. All policies are subject to review and approval by the directors and compliance with regulation, legal and ethical standards are a high priority for the director.
A suite of key performance indicators are used in monitoring performance of the business which in turn assist the director in managing generic risk of business performance within the current economic climate, together with specific risk as appertains to the fast food industry.
Pricing and margin are carefully controlled through regular monitoring and reporting. Staff are well educated on these risks and close control of margin is therefore achieved. Additionally, the director monitors the cash position on a daily basis ensuring the business always has sufficient funds to manage its extensive working capital requirements.
Despite working hard to accommodate the significant increase in labour and food costs which the business has suffered, the continued preference for delivery (which incurs significant delivery royalties affecting margin), coupled with McDonalds UK rent & service charges being based on turnover rather than gross margin, has impacted the results of the company severely. McDonalds imposed restrictions on prices mean only reductions in direct costs can improve margin.
The company continues to monitor the impact of these changes reviewing all controllable overheads in an attempt to minimise the reduction in profits.

Page 1

W. LIDDY & COMPANY LIMITED

STRATEGIC REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2024

Financial key performance indicators

The results for the year are much improved, however these have been largely affected by the three exceptional items totalling £2.2m (see note 13). Except for these, the company would have made a small profit before tax of £200k which although much improved than the losses in the last few years is still disappointing.
The company sold two of its stores during the year and thus remains financially stable and strong, with healthy reserves and cash balances.
Many "uncontrollable" overheads are direct linked to turnover, so the director continues to watch all "controllable" overheads very closely
In addition to monitoring overheads, the three main factors used in monitoring performance and their status are as follows:
Sales and gross profit
Turnover reduced by approximately 11%, whereas food, labour and other direct costs have decreased by approximately 18% (excluding the exceptional item noted above) during the year. Overall, these factors have resulted in a 43% increase in gross margin.
Staff numbers and costs
Staff numbers have reduced from 961 to 736 during the year, mainly due to the sale of two franchises during the year. Additionally, the cost of living crisis has resulted in significant pay increases over the last couple of years increasing labour costs and eroding margin.
Cash position
Shows a healthy year end balance of £2.6m, an increase of £0.7m from the previous year.

Other key performance indicators

The company submits monthly trading results for all its stores to McDonalds and these are scrutinised to ensure all KPIs are consistent between each store and within expectation for all UK franchisees.

This report was approved by the board on 29 September 2025 and signed on its behalf.

W Liddy

Director

Page 2

W. LIDDY & COMPANY LIMITED

DIRECTOR'S REPORT

FOR THE YEAR ENDED 31 DECEMBER 2024

The director presents his report and the financial statements for the year ended 31 December 2024.

Principal activity

The principal activity of the company continued to be that of a McDonalds franchisee.

Results and dividends

The profit for the year, after taxation, amounted to £2,240,073 (2023 - loss £1,296,459).

Director

The director who served during the year was:

W Liddy

Director's responsibilities statement

The director is responsible for preparing the Strategic Report, the Director's Report 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), 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 for the Company's financial statements 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 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 to 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.

Page 3

W. LIDDY & COMPANY LIMITED

DIRECTOR'S REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2024

Engagement with employees

Despite the high employee turnover expected within the restaurant industry, the company looks to engage and motivate its staff by investing in training and development to assist staff in realising their full potential.
The company's policy is to consult and discuss with employees matters likely to affect their interests. Information of matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.
The company operates bonus schemes for certain categories of staff, based upon performance and the director continues to look at new schemes and incentives which will encourage and improve staff loyalty and performance.

Disabled employees

The company's policy is to recruit disabled workers for those vacancies that they are able to fill. All necessary assistance with initial training courses is given. Once employed, a career plan is developed so as to ensure suitable opportunities for each disabled person. Arrangements are made, wherever possible, for retraining employees who become disabled, to enable them to perform work identified as appropriate to their aptitudes and abilities.

Statement of corporate governance arrangements

The company's corporate governance is based upon McDonalds world wide approach of building a foundation of personal and professional integrity and building customer trust by serving safe food and being respectful of employees and customers.
The company strives to deliver outstanding value, service, quality and cleanliness and uses the principles of remaining ethical, truthful and dependable to all individuals and businesses who interact with W. Liddy & Co Limited.
Mr W Liddy, sole director, with more than 40 years experience in the food industry, is responsible for corporate governance and strictly follows the company's principles outlined above.
He uses a team of management to support him with his regular reviews of restaurant performance, operations, compliance with the law (especially food hygiene) and the company's financial position.
His senior managers are encouraged to challenge him on any important issues that are detrimental to the core principles mentioned above.

Disclosure of information to auditors

The director at the time when this Director's Report is approved has confirmed that:

∙so far as he is aware, there is no relevant audit information of which the Company's auditors are unaware, and

∙he has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Page 4

W. LIDDY & COMPANY LIMITED

DIRECTOR'S REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2024

Auditors

The auditors, Ryecroft Glenton, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 29 September 2025 and signed on its behalf.

W Liddy

Director

Page 5

W. LIDDY & COMPANY LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF W. LIDDY & COMPANY LIMITED

Opinion

We have audited the financial statements of W. Liddy & Company Limited (the 'Company') for the year ended 31 December 2024, which comprise the Statement of Income and Retained Earnings, the , the Balance Sheet, the 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 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 United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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.

Page 6

W. LIDDY & COMPANY LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF W. LIDDY & COMPANY LIMITED (CONTINUED)

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The director is 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.

Opinion 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 Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

∙the Strategic Report and the Director's 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 Director's 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 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 directors

As explained more fully in the Director's Responsibilities Statement set out on page 3, 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 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 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.

Page 7

W. LIDDY & COMPANY LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF W. LIDDY & COMPANY LIMITED (CONTINUED)

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 Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which the audit was considered capable of detecting irregularities including fraud

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:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
• the Responsible Individual ensured that the engagement team collectively had the appropriate
competence, capabilities and skills to identify or recognise non-compliance with applicable laws
and regulations;
• we identified the laws and regulations applicable to the company through discussions with directors and
other management, and from our commercial knowledge and experience of the fast food and restaurant
sector;
• we focused on specific laws and regulations which we considered may have a direct material effect on
the financial statements or the operations of the company, including the Companies Act 2006, Health &
Safety Regulations (particularly relating to Food & Hygiene) and McDonalds Operational standards and
inspections;
• we assessed the extent of compliance with the laws and regulations identified above through making
enquiries of management and inspecting legal correspondence; and
• identified laws and regulations were communicated within the audit team regularly and the team
remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
• making enquiries of management as to where they considered there was susceptibility to fraud, their
knowledge of actual, suspected and alleged fraud; and
• considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and
regulations.
To address the risk of fraud through management bias and override of controls, we:
• performed analytical procedures to identify any unusual or unexpected relationships;
• tested journal entries to identify unusual transactions; and
• assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias.

Page 8

W. LIDDY & COMPANY LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF W. LIDDY & COMPANY LIMITED (CONTINUED)

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
• agreeing financial statement disclosures to underlying supporting documentation;
• reading the minutes of meetings of those charged with governance;
• enquiring of management as to actual and potential litigation and claims; and
• reviewing correspondence with HMRC, McDonalds and the company’s legal advisors where appropriate.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.

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 Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.

Ian Smith (Senior Statutory Auditor)

for and on behalf of

Ryecroft Glenton

Chartered Accountants

Statutory Auditors

32 Portland Terrace

Jesmond

Newcastle upon Tyne

NE2 1QP

29 September 2025

Page 9

W. LIDDY & COMPANY LIMITED

STATEMENT OF INCOME AND RETAINED EARNINGS

FOR THE YEAR ENDED 31 DECEMBER 2024

	2024	2023
Note	£	£


Turnover	4	32,305,018	36,396,064
Cost of sales		(26,352,052)	(31,434,975)
Exceptional cost of sales	13	831,598	-
Gross profit		6,784,564	4,961,089
Administrative expenses		(5,744,327)	(6,127,518)
Exceptional administrative expenses	13	1,371,053	-
Other operating income	5	2,284	7,887
Operating profit/(loss)		2,413,574	(1,158,542)
Interest receivable and similar income	9	34,228	25,095
Interest payable and similar expenses	10	(45,333)	(4,267)
Profit/(loss) before tax		2,402,469	(1,137,714)
Tax on profit/(loss)	11	(162,396)	(158,745)
Profit/(loss) after tax		2,240,073	(1,296,459)



Retained earnings at the beginning of the year	613,227	2,269,686
	613,227	2,269,686
Profit/(loss) for the year	2,240,073	(1,296,459)
Dividends declared and paid	(280,000)	(360,000)
Retained earnings at the end of the year	2,573,300	613,227

The notes on pages 15 to 30 form part of these financial statements.

Page 10

W. LIDDY & COMPANY LIMITED

REGISTERED NUMBER: 02860364

BALANCE SHEET

AS AT 31 DECEMBER 2024

		2024		2023
Note		£		£

Fixed assets
Intangible assets	14		281,209		382,356
Tangible assets	15		2,172,019		3,027,067
Investment property	16		137,964		137,964
			2,591,192		3,547,387
Current assets
Stocks	17	90,798		105,904
Debtors: amounts falling due within one year	18	481,416		246,619
Cash at bank and in hand	19	2,625,263		1,898,473
		3,197,477		2,250,996
Creditors: amounts falling due within one year	20	(2,014,849)		(3,816,423)
Net current assets/(liabilities)			1,182,628		(1,565,427)
Total assets less current liabilities			3,773,820		1,981,960
Creditors: amounts falling due after more than one year	21		(464,414)		(612,512)
Provisions for liabilities
Deferred tax	24	(419,606)		(439,721)
			(419,606)		(439,721)
Net assets			2,889,800		929,727

Capital and reserves
Called up share capital	25	316,500	316,500
Profit and loss account	26	2,573,300	613,227
		2,889,800	929,727

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 29 September 2025.

W Liddy

Director

The notes on pages 15 to 30 form part of these financial statements.

Page 11

W. LIDDY & COMPANY LIMITED

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2024

			2024	2023
			£	£

Cash flows from operating activities
Profit/(loss) for the financial year	2,240,073	(1,296,459)
Adjustments for:
Amortisation of intangible assets	35,095	48,595
Depreciation of tangible assets	504,406	671,187
Loss on disposal of tangible assets	(16,692)	-
Interest paid	45,333	4,267
Interest received	(34,228)	(25,095)
Taxation charge	162,396	158,745
Decrease in stocks	15,106	11,100
(Increase)/decrease in debtors	(356,918)	113,118
(Decrease) in creditors	(1,998,358)	(670,672)
Corporation tax received/(paid)	122,126	(2,724)
Net cash generated from operating activities	718,339	(987,938)

Cash flows from investing activities
Purchase of intangible fixed assets	-	(30,000)
Sale of intangible assets	66,052	-
Purchase of tangible fixed assets	(154,014)	(1,569,818)
Sale of tangible fixed assets	521,345	-
Interest received	34,228	25,095
Net cash from investing activities	467,611	(1,574,723)

Page 12

W. LIDDY & COMPANY LIMITED

STATEMENT OF CASH FLOWS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2024

		2024	2023
		£	£


Cash flows from financing activities
New secured loans	-	739,424
Repayment of loans	(131,610)	-
Dividends paid	(280,000)	(360,000)
Interest paid	(45,333)	(4,267)
Net cash used in financing activities	(456,943)	375,157
Net increase/(decrease) in cash and cash equivalents	729,007	(2,187,504)
Cash and cash equivalents at beginning of year	1,896,256	4,083,760
Cash and cash equivalents at the end of year	2,625,263	1,896,256

Cash and cash equivalents at the end of year comprise:
Cash at bank and in hand	2,625,263	1,898,473
Bank overdrafts	-	(2,217)
	2,625,263	1,896,256

Page 13

W. LIDDY & COMPANY LIMITED

FOR THE YEAR ENDED 31 DECEMBER 2024


At 1 January 2024	Cash flows	At 31 December 2024
£	£	£

Cash at bank and in hand	1,898,473	726,790	2,625,263
Bank overdrafts	(2,217)	2,217	-
Debt due after 1 year	(612,512)	148,098	(464,414)
Debt due within 1 year	(129,530)	(16,427)	(145,957)
	1,154,214	860,678	2,014,892

The notes on pages 15 to 30 form part of these financial statements.

Page 14

W. LIDDY & COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

1.	General information

The business is a private limited company, limited by shares, incorporated in England and Wales with a registered office of Unit 28 Apex Business Village, Cramlington, Northumberland, NE23 7BF. The company's registered number is 02860364.
The company trades from numerous McDonalds restaurants across the North East.

2.Accounting policies

2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

These financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The following principal accounting policies have been applied:

2.2

Going concern

Although the company reported excellent profits this year, the results were affected by 3 key items:
- VAT refunds were received for previously overlooked recoverable amounts on fees charges by
delivery companies
- A VAT creditor was released back to the profit and loss account
- The company sold 2 of its stores
Having considered predicted trading results, the director is of the opinion that the company is now stable and unless the UK economy took a significant downturn, resulting in a turnover drop of at least 24%, the business has enough cash reserves to meet its obligations and continue to trade for the foreseeable future.

Page 15

W. LIDDY & COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.3

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:

∙the Company has transferred the significant risks and rewards of ownership to the buyer;

∙the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

∙the amount of revenue can be measured reliably;

∙it is probable that the Company will receive the consideration due under the transaction; and

∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.

2.4

Interest income

Interest income is recognised in profit or loss using the effective interest method.

2.5

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

2.6

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

2.7

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

Page 16

W. LIDDY & COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.8

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge 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.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

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.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

2.9

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence.

2.10

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Statement of Income and Retained Earnings over its useful economic life.

Other intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

Page 17

W. LIDDY & COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.11

Tangible fixed assets

Tangible fixed assets under the cost model 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, on a reducing balance basis.

Depreciation is provided on the following basis:

Long-term leasehold property	-	25%
Plant and machinery	-	15%
Motor vehicles	-	25%
Fixtures and fittings	-	15%

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.

2.12

Investment property

Investment property is carried at fair value determined annually by external valuers and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in profit or loss.

Despite the policy to have property valued by external valuers, the director has valued the investment property himself, using widely available market data. The value of this property is immaterial in the context of these accounts and as a result any adjustment required as a result of employing an external valuer would not significantly impact results and no further disclosure is therefore required.

2.13

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet 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.

2.14

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Page 18

W. LIDDY & COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.15

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are 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.

In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

2.16

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

2.17

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.

Increases in provisions are generally charged as an expense to profit or loss.

Page 19

W. LIDDY & COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.18

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.
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 the Statement of income and retained earnings.
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the balance sheet date.
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.

2.19

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

3.	Judgments in applying accounting policies and key sources of estimation uncertainty

There are no judgements and estimates that have a significant effect on the financial statements.

Turnover

The whole of the turnover arose within the United Kingdom.

Page 20

W. LIDDY & COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

5.	Other operating income
		2024	2023
		£	£

Sundry income	2,284	7,887
	2,284	7,887

Fees payable to the Company's auditors for the audit of the Company's financial statements

18,145

11,150

Wages and salaries	9,053,389	11,030,982
Social security costs	510,025	547,744
Cost of defined contribution scheme	132,534	139,181
	9,695,948	11,717,907

The average monthly number of employees, including the director, during the year was as follows:

	2024	2023
	No.	No.

Management and administration	29	37
Operational staff	707	924

	736	961

Page 21

W. LIDDY & COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

8.	Director's remuneration
		2024	2023
		£	£

Director's emoluments	200,000	200,000
	200,000	200,000

The highest paid director received remuneration of £204,926 (2023 - £201,315).

9.	Interest receivable
		2024	2023
		£	£

	Other interest receivable	34,228	25,095
		34,228	25,095

10.	Interest payable and similar expenses
		2024	2023
		£	£

Bank interest payable	45,333	-
Other interest payable	-	4,267
	45,333	4,267

Page 22

W. LIDDY & COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

Corporation tax
Current tax on profits for the year	182,511	-
Adjustments in respect of previous periods	-	79
	182,511	79

Total current tax	182,511	79

Deferred tax
Origination and reversal of timing differences	(20,115)	158,666
Total deferred tax	(20,115)	158,666


	Tax on profit/(loss)	162,396	158,745

Profit/(loss) on ordinary activities before tax

2,402,469

(1,137,714)

Profit/(loss) on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 23.52%)	600,617	(267,590)
Effects of:
Expenses not deductible for tax purposes, other than goodwill amortisation and impairment	1,972	7,826
Capital allowances for year in excess of depreciation	(8,376)	(98,652)
Adjustments to tax charge in respect of prior periods	-	79
Changes in provisions leading to an increase (decrease) in the tax charge	(20,115)	158,666
Unrelieved tax losses carried forward	-	371,837
Other differences leading to an increase (decrease) in the tax charge	(411,702)	(13,421)
Total tax charge for the year	162,396	158,745

Page 23

W. LIDDY & COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

11.Taxation (continued)

Factors that may affect future tax charges

There are no factors that may affect future tax charges.

12.	Dividends
		2024	2023
		£	£

	Final paid	280,000	360,000
		280,000	360,000

13.	Exceptional items
		2024	2023
		£	£

Profit on disposal of intangible assets	1,009,235	-
Delivery charges VAT refund	831,598	-
Historic VAT error written off	361,818	-
	2,202,651	-

The profit on disposal of intangible assets relates to the sale of two McDonalds restaurants during the year.
The delivery charges VAT refund relates to under declared input tax on delivery charges, covering the period from 1 October 2020 to 30 September 2024, recovered from HMRC during the year.
The historic VAT error, results from the decision to release a provision for VAT repayable, which cannot be corrected, as it is now "out of date" under UK legislation.

Page 24

W. LIDDY & COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

14.	Intangible assets


		£
	Cost
	At 1 January 2024	1,844,283
	Disposals	(230,690)
	At 31 December 2024	1,613,593
	Amortisation
	At 1 January 2024	1,461,927
	Charge for the year on owned assets	35,095
	On disposals	(164,638)
	At 31 December 2024	1,332,384
	Net book value
	At 31 December 2024	281,209
	At 31 December 2023	382,356

Page 25

W. LIDDY & COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

15.	Tangible fixed assets

	Long-term leasehold property	Plant and machinery	Motor vehicles	Fixtures and fittings	Total
	£	£	£	£	£
Cost or valuation
At 1 January 2024	4,452,134	5,176,277	74,306	54,438	9,757,155
Additions	-	74,033	79,981	-	154,014
Disposals	(1,291,832)	(890,150)	-	(237)	(2,182,219)
At 31 December 2024	3,160,302	4,360,160	154,287	54,201	7,728,950
Depreciation
At 1 January 2024	3,572,257	3,054,172	52,152	51,507	6,730,088
Charge for the year on owned assets	186,944	291,505	25,534	426	504,409
Disposals	(1,126,701)	(550,748)	-	(117)	(1,677,566)
At 31 December 2024	2,632,500	2,794,929	77,686	51,816	5,556,931
Net book value
At 31 December 2024	527,802	1,565,231	76,601	2,385	2,172,019
At 31 December 2023	879,877	2,122,105	22,154	2,931	3,027,067

16.	Investment property

		Freehold investment property
		£
	Valuation
	At 1 January 2024	137,964
	At 31 December 2024	137,964

The 2024 valuations were made by the director, on an open market value for existing use basis.

Page 26

W. LIDDY & COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

17.	Stocks
		2024	2023
		£	£

Finished goods and goods for resale	90,798	105,904
	90,798	105,904

18.

Debtors

					2024	2023
					£	£


Other debtors	406,987	123,124
Prepayments and accrued income	74,429	123,495
	481,416	246,619

19.	Cash and cash equivalents
		2024	2023
		£	£

Cash at bank and in hand	2,625,263	1,898,473
Less: bank overdrafts	-	(2,217)
	2,625,263	1,896,256

20.	Creditors: Amounts falling due within one year
		2024	2023
		£	£

Bank overdrafts	-	2,217
Bank loans	143,400	126,912
Trade creditors	842,956	954,712
Corporation tax	182,511	-
Other taxation and social security	60,188	1,478,693
Other creditors	9,676	2,618
Accruals and deferred income	776,118	1,251,271
	2,014,849	3,816,423

Page 27

W. LIDDY & COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

21.	Creditors: Amounts falling due after more than one year
		2024	2023
		£	£

Bank loans	464,414	612,512
	464,414	612,512

Amounts falling due within one year
Bank loans	143,400	126,912
	143,400	126,912
Amounts falling due 1-2 years
Bank loans	152,500	126,912
	152,500	126,912
Amounts falling due 2-5 years
Bank loans	311,914	485,600
	311,914	485,600

	607,814	739,424

The loan is repayable over a term of 60 months, the interest rate is variable at 1.4% above the base rate.
The bank loan was repaid in full after the year end on 2 June 2025.

Page 28

W. LIDDY & COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

23.	Financial instruments
		2024	2023
		£	£

	Financial assets
	Financial assets measured at amortised cost	18,757	34,951

	Financial liabilities
	Financial liabilities measured at amortised cost	2,336,101	2,947,624

	Financial assets measured at amortised cost comprise accrued income and other debtors.
	Financial liabilities measured at amortised cost comprise trade creditors, bank loans and overdrafts and accruals.

24.	Deferred taxation

		2024
		£

	At beginning of year	(439,721)
	Charged to profit or loss	20,115
	At end of year	(419,606)

The provision for deferred taxation is made up as follows:
	2024	2023
	£	£

Accelerated capital allowances	(425,110)	(450,572)
Short term timing differences	5,504	10,851
	(419,606)	(439,721)

25.	Share capital
		2024	2023
		£	£

Allotted, called up and fully paid

316,500 (2023 - 316,500) Ordinary shares of £1.00 each	316,500	316,500

Page 29

W. LIDDY & COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

26.

Reserves

Profit and loss account

The profit and loss account includes all current and prior period retained profits and losses net of distributions to shareholders.

27.	Pension commitments

The company operates a defined contribution pension scheme. The assets of the scheme are held
separately from those of the company in an independently administered fund. The pension cost charge
represents contributions payable by the company to the fund and amounted to £132,534 (2023 : £139,181). At the balance sheet date contributions totalling £37,714 (2023 : £43,403) were payable to the fund.

	Not later than 1 year	-	9,054
		-	9,054

29.

Related party transactions

During the year dividends totalling £280,000 (2023: £360,000) were paid to W Liddy, the sole director
and shareholder.
The director and certain senior employees who have authority and responsibility for planning, directing
and controlling the activities of the company are considered to be key management personnel. Total
remuneration in respect of these individuals is £347,067 (2023 : £344,967).
During the year the company sold the Killingworth and Kingston Park franchises to Vieira Group Limited at market value through McDonalds normal procedures.

30.	Post balance sheet events

The bank loan outstanding at the year end of £607,814 was repaid in full on 2 June 2025 (see note 22).

31.	Controlling party

W Liddy, being the sole director and shareholder, is the ultimate controlling party.

Page 30