REGISTERED NUMBER: SC161669

ASHTON PROPERTIES (GLASGOW) LIMITED

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

Page

Strategic Report

1

Report of the Directors

2

Report of the Independent Auditors

4

Statement of Other Comprehensive Income

7

Balance Sheet

8

Statement of Changes in Equity

9

Cash Flow Statement

10

Notes to the Cash Flow Statement

11

Notes to the Financial Statements

12

The directors present their strategic report for the year ended 31 December 2024.

REVIEW OF BUSINESS

We aim to present a balanced and comprehensive review of the development and performance of the business during the year and its position at the year end. The review is consistent with the size and nature of this business and is written in the context of the risks and uncertainties faced.

The key financial performance indicators are those that communicate the financial performance and strength of the company as a whole. They are turnover, net profit and EBITDA. Turnover increased 18% from £6.28M in 2023 to £7.41M in 2024. The 2023 loss of £22k increased to a profit of £527k in the current year as a result of venues performing well. EBITDA increased from £560k in 2023 to £1.39m in 2024.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks and uncertainties facing the company are competition from other venues. We operate in a highly competitive market and in the current economic and political climate, there is a risk of suppliers passing on further costs due to inflation. We continue to upgrade and refurbish our premises and monitor supplier costs to mitigate these risks.

FUTURE DEVELOPMENTS

Through a commitment to look after our teams, drive product innovation and operational excellence we are confident our growth will continue.

FINANCIAL INSTRUMENTS

-

The company has adopted the disclosure and presentational requirements of FRS 102. When a financial asset or liability is disclosed initially it is measured at its fair value plus or minus transaction costs. The company regularly monitors its exposure to risks including pricing, credit, liquidity and cash flow.

-

The company is satisfied with the level of cash flow being maintained after taking into consideration the timing aspect of payments to trade creditors and business expenses.

-

The company's deposits are all in place with major UK financial institutions which are regulated by the Financial Conduct Authority.

ON BEHALF OF THE BOARD:

O J Norman - Director

26 September 2025

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

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the operating of licensed outlets.

DIVIDENDS

Interim dividends totalling £213,875 were paid during the period. The total distribution for the period ended 31 December 2024 is £213,875.

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2024 to the date of this report.

O J Norman

Ms N Wilkinson

DISCLOSURE IN THE STRATEGIC REPORT

The company has chosen in accordance with Section 414C(11) Companies Act 2006 to set out in the company's Strategic Report information required by Schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 to be contained in the Directors' Report. It has done so in respect of financial instruments and future developments.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are 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 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 of 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 judgements and accounting estimates that are reasonable and prudent;

- state whether applicable accounting standards have been followed subject to any material departures disclosed and explained in the financial statement;.

- 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are 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 each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:

O J Norman - Director

26 September 2025

Opinion

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

In our opinion the financial statements:

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

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

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

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, 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 Directors 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 Directors 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 Directors.

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 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 Statement of Directors' Responsibilities set out on page two, 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 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.

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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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 engagement partner 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;

-

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;

-

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.

Auditors' responsibilities for the audit of the financial statements - continued

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;

-

assessed whether judgements and assumptions made in determining the accounting estimates set out in Note 2 were indicative of potential bias; and

-

investigated the rationale behind significant or unusual transactions.

To address risks associated with income recognition we:

-

performed analytical procedures to identify unusual relationships;

-

vouched sample of customer sales to the sales nominal in the accounts;

-

performed cut off testing on sales around the year end.

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, relevant regulators and the company's legal advisors.

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 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.

Colette Callaghan FCCA (Senior Statutory Auditor)

for and on behalf of Armstrong Watson Audit Limited

Chartered Accountants & Statutory Auditors

Caledonia House

89 Seaward Street

Glasgow

G41 1HJ

26 September 2025

TURNOVER

7,413,278

6,276,718

Cost of sales

(3,834,021

)

(3,611,852

)

GROSS PROFIT

3,579,257

2,664,866

Administrative expenses

(2,946,075

)

(2,610,291

)

633,182

54,575

Other operating income

347,032

98,333

Gain on revaluation of

investment property

66,485

67,075

OPERATING PROFIT

5

1,046,699

219,983

Interest payable and similar expenses

6

(257,315

)

(276,622

)

PROFIT/(LOSS) BEFORE TAXATION

789,384

(56,639

)

Tax on profit/(loss)

7

(261,521

)

34,863

PROFIT/(LOSS) FOR THE FINANCIAL YEAR

527,863

(21,776

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

527,863

(21,776

)

FIXED ASSETS

Intangible assets

9

60,056

74,566

Tangible assets

10

5,073,452

6,127,367

Investment property

11

1,633,560

867,075

6,767,068

7,069,008

CURRENT ASSETS

Stocks

12

69,038

96,527

Debtors

13

911,262

114,281

Cash at bank and in hand

402,362

578,107

1,382,662

788,915

CREDITORS

Amounts falling due within one year

14

2,389,105

3,257,726

NET CURRENT LIABILITIES

(1,006,443

)

(2,468,811

)

TOTAL ASSETS LESS CURRENT LIABILITIES

5,760,625

4,600,197

CREDITORS

Amounts falling due after more than one year

15

(4,204,667

)

(3,392,252

)

PROVISIONS FOR LIABILITIES

19

(130,101

)

(96,076

)

NET ASSETS

1,425,857

1,111,869

CAPITAL AND RESERVES

Called up share capital

20

50,000

50,000

Share premium

21

45,550

45,550

Non-distributable reserve

21

906,222

906,222

Retained earnings

21

424,085

110,097

SHAREHOLDERS' FUNDS

1,425,857

1,111,869

The financial statements were approved by the Board of Directors and authorised for issue on 26 September 2025 and were signed on its behalf by:

O J Norman - Director

Called up

share

Retained

Share

Non-distributable

Total

capital

earnings

premium

reserve

equity

£

£

£

£

£

Balance at 1 January 2023

50,000

248,498

45,550

906,222

1,250,270

Changes in equity

Dividends

-

(116,625

)

-

-

(116,625

)

Total comprehensive income

-

(21,776

)

-

-

(21,776

)

Balance at 31 December 2023

50,000

110,097

45,550

906,222

1,111,869

Changes in equity

Dividends

-

(213,875

)

-

-

(213,875

)

Total comprehensive income

-

527,863

-

-

527,863

Balance at 31 December 2024

50,000

424,085

45,550

906,222

1,425,857

Cash flows from operating activities

Cash generated from operations

1

1,226,354

1,235,967

Interest paid

(257,315

)

(276,622

)

Tax paid

-

(28,333

)

Net cash from operating activities

969,039

931,012

Cash flows from investing activities

Purchase of tangible fixed assets

(135,137

)

(513,863

)

Sale of tangible fixed assets

69,290

-

Net cash from investing activities

(65,847

)

(513,863

)

Cash flows from financing activities

New loans in year

4,760,000

420,000

Loan repayments in year

(5,625,062

)

(338,900

)

Equity dividends paid

(213,875

)

(116,625

)

Net cash from financing activities

(1,078,937

)

(35,525

)

(Decrease)/increase in cash and cash equivalents

(175,745

)

381,624

Cash and cash equivalents at beginning of year

2

578,107

196,483

Cash and cash equivalents at end of year

2

402,362

578,107

1.	RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2024

2023

£

£

Profit/(loss) before taxation

789,384

(56,639

)

Depreciation charges

340,541

340,043

Profit on disposal of fixed assets

(281

)

-

Gain on revaluation of fixed assets

(66,485

)

(67,075

)

Impairment of assets

94,013

239,921

Interest costs

257,315

276,622

1,414,487

732,872

Decrease/(increase) in stocks

27,489

(26,809

)

(Increase)/decrease in trade and other debtors

(75,884

)

114,741

(Decrease)/increase in trade and other creditors

(139,738

)

415,163

Cash generated from operations

1,226,354

1,235,967

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

402,362

578,107

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

578,107

196,483

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.1.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank and in hand

578,107

(175,745

)

402,362

578,107

(175,745

)

402,362

Debt

Debts falling due within 1 year

(257,378

)

(218,622

)

(476,000

)

Debts falling due after 1 year

(3,392,252

)

(812,415

)

(4,204,667

)

(3,649,630

)

(1,031,037

)

(4,680,667

)

Total

(3,071,523

)

(1,206,782

)

(4,278,305

)

1.	STATUTORY INFORMATION

Ashton Properties (Glasgow) Limited is a private company, limited by shares, registered in Scotland. The company's registered office is Itison House, 29 Cochrane Street, Glasgow, G1 1HL.

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in compliance with United Kingdom Accounting Standards, including Financial Reporting Standard 102, ‘The Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland’ (‘FRS 102’) and the Companies Act 2006. There were no material departures from this standard. The financial statements are prepared under the historical cost convention as modified by the revaluation of certain fixed assets.

Going concern

After reviewing the company's financial position and forecasts, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

The venues were in a strong position going into 2024 to capitalise on the expected demand for hospitality and social venues. All venues are now generating income, either through reopening or lease income. The management accounts to August 2025 show a profit and cash flow during 2025 has enabled dividend payments to be made on a regular basis.

After consideration of forecasts to December 2026 and the various measures already implemented, the directors have formed the opinion that the company has adequate resources to continue in operational existence for at least 12 months from approval of the financial statements.

Judgements

The company considers on an annual basis the judgements that are made by management when applying its significant accounting policies that would have the most significant effect on amounts that are recognised in the financial statements. In preparing these financial statements, the directors have made the following judgements:-

- Determine whether there are any indicators of impairment of the company's tangible assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset concerned.

Information and key sources of estimation uncertainty

In the application of the company's accounting policies the directors are required to make estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis.

Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The directors consider the key sources of estimation uncertainty to be as follows:-

- Tangible fixed assets are depreciated over their estimated useful lives. The actual lives of the assets are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as level of usage and refurbishment programmes are taken into account. The directors have assessed that no changes were required to the estimated useful lives of the tangible fixed assets and therefore, determined that the stated depreciation policies applied in prior years remain appropriate.

Turnover

Turnover represents net invoiced sales of goods and services excluding value added tax. The company's policy is to recognise income at the point of sale of goods and of hospitality services when substantively all the risks and rewards in connection with the goods and services have been passed to the buyer.

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.

Goodwill is amortised over its expected useful life which is estimated to be ten years. Goodwill is assessed for impairment annually or when indicators of impairment are identified and any impairment is charged to the profit and loss. No reversals of impairment are recognised.

Tangible fixed assets

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

Freehold property

-

10% on cost and 2% on cost

Plant and machinery

-

15% on cost

Fixed assets are included at cost less accumulated depreciation and impairment losses.

Land and buildings are stated at deemed cost (being the fair value at the date of transition to FRS102) less accumulated depreciation and accumulated impairment losses. If the estimated residual value at the balance sheet date is considered to be equivalent to the cost, no depreciation will be charged.

Impairment of non-financial assets

At each reporting date non-financial assets not carried at fair value, like goodwill and plant, property and equipment, are reviewed to determine whether there is an indication that an asset may be impaired. If there is an indication of possible impairment, the recoverable amount which is the higher of value in use and the fair value less cost to sell, is estimated and compared with the carrying amount. If the recoverable amount is lower, the carrying amount of the asset is reduced to its recoverable amount and an impairment loss is recognised immediately in profit and loss.

Investment property

Investment properties are accounted for as follows:

(i) Investment properties are initially recorded at cost which includes purchase cost and any directly attributable expenditure. Investment properties transferred from property, plant and equipment are revalued at the date of transfer. The surplus arising on the revaluation is recognised in other comprehensive income within a non-distributable reserve. Any deficit is recognised in the profit and loss account.

(ii) Thereafter, investment properties are revalued at each balance sheet date to their fair value, where this can be measured reliably.

(iii) The surplus or deficit arising on revaluation in the financial year is recognised in the profit and loss account for that year. Revaluation gains and losses are accumulated in the profit and loss account reserve, unless the revaluation amount exceeds original cost in which case, a transfer is made of the surplus to a non-distributable reserve in the balance sheet.

(iv) Deferred taxation is provided on any gains at the rate expected to apply when a property is sold.

Stocks

Stocks are valued at the lower of cost and estimated selling price less cost to sell. Cost includes the purchase price, including taxes and duties and transport and handling directly attributable to bringing the stock to its present location and condition.

At the end of each reporting period, stock is assessed for impairment. If an item of stock is impaired, the identified stock is reduced to its selling price less costs to sell and an impairment charge is recognised in the profit and loss account.

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 accounts receivable and payable, loans from banks and other third parties and loans to related parties.

Debt instruments like loans and other accounts receivable and payable are initially measured at present value of the future payments and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and trade creditors, are measured, initially and subsequently, at the undiscounted amount of cash or other consideration expected to be paid or received.

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

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

Cash and cash equivalents includes cash in hand, deposits held at call with banks and bank overdrafts. Bank overdrafts, when applicable, are shown within borrowings in current liabilities.

Taxation

Taxation represents the sum of tax currently payable and deferred tax. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

The charge for taxation takes into account taxation deferred as a result of timing differences between the treatment of certain items for taxation and accounting purposes. In general, deferred taxation is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. However, deferred tax assets are recognised only to the extent that the directors consider that it is more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted. Deferred taxation is measured on a non-discounted basis at the tax rates that are expected to apply in the periods in which the timing differences reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date.

With the exception of changes arising on the initial recognition of a business combination, the tax expense is presented either in profit or loss, other comprehensive income or statement of changes in equity depending on the transaction that resulted in the tax expense.

Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors.

Operating leases

Rentals paid under operating leases are charged to the profit and loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

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

Employee benefits

The cost of short term employee benefits are recognised as a liability and an expense. The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received.

Provisions

Provisions are recognised when the company has a legal or constructive obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle the obligation and the amount of the obligation can be reliably estimated. Provisions are recognised at the best estimate of the amount required to settle the obligation at the reporting date.

Rental income

Rental income is recognised on a straight line basis in accordance with the terms of the lease agreement.

3.	EMPLOYEES AND DIRECTORS

2024

2023

£

£

Wages and salaries

1,795,139

1,746,892

Social security costs

125,001

112,018

Other pension costs

43,767

33,757

1,963,907

1,892,667

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

2024

2023

Front of house and kitchens

119

164

Management

3

3

122

167

4.	DIRECTORS' EMOLUMENTS

2024

2023

£

£

Directors' remuneration

-

-

5.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2024

2023

£

£

Hire of plant and machinery

4,296

965

Depreciation - owned assets

326,030

325,532

Profit on disposal of fixed assets

(281

)

-

Goodwill amortisation

14,510

14,511

Auditors' remuneration

23,614

17,580

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2024

2023

£

£

Bank interest

257,315

276,622

7.

TAXATION

Analysis of the tax charge/(credit)

The tax charge/(credit) on the profit for the year was as follows:

2024

2023

£

£

Current tax:

UK corporation tax

227,496

-

Deferred tax

34,025

(34,863

)

Tax on profit/(loss)

261,521

(34,863

)

Reconciliation of total tax charge/(credit) included in profit and loss

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

2024

2023

£

£

Profit/(loss) before tax

789,384

(56,639

)

Profit/(loss) multiplied by the standard rate of corporation tax in the UK of 25% (2023 - 19%)

197,346

(10,761

)

Effects of:

Expenses not deductible for tax purposes

2,906

629

Depreciation in excess of capital allowances

62,604

9,347

Deferred tax

34,025

(34,863

)

Expenses allowable

(828

)

-

Tax losses adjusted

(17,911

)

13,529

Revaluation

(16,621

)

(12,744

)

Total tax charge/(credit)

261,521

(34,863

)

8.

DIVIDENDS

2024

2023

£

£

Ordinary shares of £1 each

Interim

213,875

116,625