ACCOUNTS - Final Accounts

An analysis of turnover by class of business is as follows:

Registered number: 03991418

BARONS PUB COMPANY LTD

AUDITED

ANNUAL REPORT
AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED
30 SEPTEMBER 2024

BARONS PUB COMPANY LTD

COMPANY INFORMATION

Directors	Mr C M Price
	Miss H M Pillinger


Company secretary	Mrs L C Price


Registered number	03991418


Registered office	Albany House
	Claremont Lane
	Esher
	Surrey
	KT10 9FQ


Independent auditors	Wellden Turnbull Limited
	Chartered Accountants & Statutory Auditors
	Albany House
	Claremont Lane
	Esher
	Surrey
	KT10 9FQ

BARONS PUB COMPANY LTD

CONTENTS

	Page
Strategic Report	1 - 2
Directors' Report	3 - 5
Independent Auditors' Report	6 - 9
Statement of Income and Retained Earnings	10
Balance Sheet	11
Statement of Cash Flows	12
Notes to the Financial Statements	13 - 29

BARONS PUB COMPANY LTD

STRATEGIC REPORT

FOR THE YEAR ENDED 30 SEPTEMBER 2024

Introduction

The Directors present their Strategic Report together with the audited financial statements for the year ended 30 September 2024.

Business review

The year to September 2024 has been one of solid trading and careful financial management for Barons Pub Company Ltd.
Turnover was £19.59m (2023: £19.96m), broadly in line with the prior year, with a slight dip reflecting industry-wide consumer pressures and adverse weather conditions in parts of the summer. Due to this, gross profit decreased to £6.57m (2023: £6.67m), but margins strengthened to 33.6% (2023: 33.4%), demonstrating effective supplier management, menu pricing and cost control.
Operating profit decreased to £630k (2023: £695k), due to the inflationary cost environment.Profit after tax was £35k (2023: £259k).
The Company invested £182k in refurbishments, fixtures and kitchen equipment to maintain high standards across the estate. Net assets decreased to £757k (2023: £886k), underlining a resilient balance sheet position.
Cash flow was carefully managed, with the Company generating £639k of cash from operations. Loan repayments, dividends of £209k and higher interest costs contributed to a fall in cash balances to £83k at year end (2023: £773k).
The business continues to benefit from strong customer loyalty, premium locations with excellent gardens, and diversification of revenue through our pizza trailers, which support growth and broaden our offer.

Principal risks and uncertainties

The Company operates in a competitive and highly regulated hospitality sector. The principal risks are:

Strategic risks

∙Compliance with food hygiene, licensing and health & safety regulations.

∙Labour availability and compliance with employment law.

Commercial risks

∙Ongoing inflationary pressures, particularly wage costs following National Minimum Wage increases.

∙Consumer confidence and discretionary spend levels.

∙Supply chain disruption.

Operational risks

∙Recruitment and retention remain challenging, though Barons has been successful in maintaining strong management teams and a positive “Barons Values” culture.

∙IT and systems risks, mitigated by investment and resilience planning.

Financial risks

∙Exposure to rising interest rates, impacting borrowing costs.

∙Debt refinancing requirements: In November 2024, the Company successfully consolidated existing loans into a single facility, providing greater stability going forward.

∙Working capital pressures remain actively managed through close cost control and supplier engagement.

Page 1

BARONS PUB COMPANY LTD

STRATEGIC REPORT (CONTINUED)

FOR THE YEAR ENDED 30 SEPTEMBER 2024

Financial key performance indicators

The Board uses several KPIs to monitor performance:

∙Turnover: £19.59m (2023: £19.96m)

∙Gross Profit Margin: 33.6% (2023: 33.4%)

∙Operating Profit: £630k (2023: £695k)

∙Net Assets: £757k (2023: £886k)

Alongside financial KPIs, non-financial measures remain important, including staff retention, training completion rates, customer satisfaction, and compliance audits.

Outlook

Despite the challenging external environment, Barons Pub Company remains in a strong position to trade profitably and grow. Our focus in 2025 is on:

∙Leveraging our pub gardens, pizza trailers and outside trading space to drive sales.

∙Continuing investment in sites to maintain high standards.

∙Improving productivity and adopting technology to offset rising wage costs.

∙Exploring selective expansion opportunities, supported by the new consolidated loan facility.

The Directors remain confident that the Company is well placed to meet challenges and deliver long-term value to shareholders.

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

Mr C M Price

Director

Date: 30 September 2025

Page 2

BARONS PUB COMPANY LTD

DIRECTORS' REPORT

FOR THE YEAR ENDED 30 SEPTEMBER 2024

The Directors present their report and the financial statements for the year ended 30 September 2024.

Directors' responsibilities statement

The Directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.

Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have elected to prepare the financial statements in accordance with 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 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 for the Company's financial statements and then apply them consistently;

∙make judgements and accounting estimates that are reasonable and prudent;

∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The 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 to 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.

Principal activity

The principal activity of the Company in the year under review continued to be that of restaurateur and publicans.

Results and dividends

The profit for the year, after taxation, amounted to £79,630 (2023 - £258,593).

During the year dividends of £209,000 (2023 - £364,569) were paid.

Directors

The Directors who served during the year were:

Mr C M Price

Miss H M Pillinger

Financial instruments

The Company holds financial instruments to finance its operations, being trade debtors, trade creditors and loans from third parties. Trade debtors and trade creditors arise directly from the Company's operations. Loans from third parties were mainly used to fund the acquisition and fit out of new premises. The operations and working capital of the Company are funded principally out of retained profits.

Page 3

BARONS PUB COMPANY LTD

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 30 SEPTEMBER 2024

Engagement with employees

The Company implements a policy of providing employees with information through the use of regular meetings, internal e-mails, monthly training briefs, staff briefings, compliance suite & our intranet system.
Regular communication occurs between management and employees through the direct involvement of management in the day to day running of the business.

Disabled employees

The Company is an equal opportunities employer, which means that we are committed to providing equality of opportunity in employment to all persons. When recruiting new employees or when offering our current employees with opportunities for promotion, it means we will:

∙follow the good practice recommendations of the codes of practice and other guidance issued by the Equality Commission;

∙not discriminate unlawfully against any person and select the best person for the job in terms of qualification and abilities; and

∙to achieve these aims we have set up a recruitment and selection procedure. The Operations Director has the main responsibility for implementing this policy procedure.

Matters covered in the Strategic Report

The review of the business, key performance indicators and the principal risks and uncertainties are not shown in the Directors Report as they are shown in the Strategic Report in accordance with S414C (11) of the Companies Act 2006.

Disclosure of information to auditors

Each of the persons who are Directors at the time when this Directors' Report is approved has confirmed that:

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

∙the Director 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.

Post balance sheet events

In November 2024, the Company completed a refinancing exercise, consolidating all existing bank loans into a single new facility. This provided a clearer repayment profile and improved stability in managing future cash flows.
Also in November 2024, the Company acquired The Curious Pig in the Parlour from Marston’s PLC. This acquisition further strengthens the Barons estate, adds a high-quality asset to the portfolio, and aligns with the Company’s strategy of selective expansion in premium locations.

Page 4

BARONS PUB COMPANY LTD

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 30 SEPTEMBER 2024

Auditors

Under section 487(2) of the Companies Act 2006, Wellden Turnbull Limited will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.

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

Mr C M Price

Director

Date: 30 September 2025

Page 5

BARONS PUB COMPANY LTD

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BARONS PUB COMPANY LTD

Opinion

We have audited the financial statements of Barons Pub Company Ltd (the 'Company') for the year ended 30 September 2024, which comprise the Statement of Income and Retained Earnings, 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 30 September 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 Directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

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

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

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The Directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Page 6

BARONS PUB COMPANY LTD

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BARONS PUB COMPANY LTD (CONTINUED)

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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

∙the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

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

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

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

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

∙certain disclosures of Directors' remuneration specified by law are not made; or

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

Responsibilities of directors

As explained more fully in the Directors' Responsibilities Statement set out on page 3, the Directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Page 7

BARONS PUB COMPANY LTD

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BARONS PUB COMPANY LTD (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.

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. We have identified the greatest risk of a material impact on the financial statements from irregularities, including fraud, to relate to the timing and recognition of revenue, and the override of controls by management. We have obtained an understanding of the legal and regulatory frameworks that the Company operates within including both those that directly have an impact on the financial statements and more widely those for which non-compliance could have a significant impact on the Company’s operations and reputation. The Companies Act 2006, employee legislation, food hygiene regulations, alcohol licensing regulations, health and safety legislation and data protection are those we have identified in this regard. Auditing standards limit the required procedures as to non-compliance with laws and regulations to enquiries of those charged with governance and review of any applicable correspondence.

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

∙Enquiry of management and those charged with governance as to actual and potential litigation and claims;

∙Enquiry of management, staff in compliance functions and roles to identify any instances of non-compliance

with laws and regulations;

∙Assessing the reasonableness of revenue recognised in the period based on the nature of the Company's
business operations, underlying contractual terms and obligations and the requirements of accounting standards, ensuring that sales are recorded in the correct period;

∙Assessing the reasonableness, in the context of financial reporting standards and the Company’s business,
any recognised provisions;

∙Reviewing financial statement disclosures and testing to supporting documentation to assess compliance
with applicable laws and regulations and accounting standards; and

∙Performing audit work over the risk of management override of controls, including testing of journal entries
and other adjustments for appropriateness, evaluating the business rationale of significant transactions
outside the normal course of business, and reviewing accounting estimates for bias.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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.

Page 8

BARONS PUB COMPANY LTD

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BARONS PUB COMPANY LTD (CONTINUED)

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.

Mark Nelligan FCA (Senior Statutory Auditor)

for and on behalf of

Wellden Turnbull Limited

Chartered Accountants

Statutory Auditors

Albany House

Claremont Lane

Esher

Surrey

KT10 9FQ

30 September 2025

Page 9

BARONS PUB COMPANY LTD

STATEMENT OF INCOME AND RETAINED EARNINGS

FOR THE YEAR ENDED 30 SEPTEMBER 2024

	2024	2023
Note	£	£


Turnover	4	19,587,817	19,962,756
Cost of sales		(13,013,935)	(13,293,044)
Gross profit		6,573,882	6,669,712
Administrative expenses		(5,959,279)	(5,974,328)
Other operating income	5	14,962	-
Operating profit	6	629,565	695,384
Interest receivable and similar income	10	13,530	1,108
Interest payable and expenses	11	(406,501)	(387,622)
Profit before tax		236,594	308,870
Tax on profit	12	(156,964)	(50,277)
Profit after tax		79,630	258,593



Retained earnings at the beginning of the year	886,197	1,016,173
Profit for the year	79,630	258,593
Dividends declared and paid	(209,000)	(388,569)
Retained earnings at the end of the year	756,827	886,197

There were no recognised gains and losses for 2024 or 2023 other than those included in the statement of income and retained earnings.

The notes on pages 13 to 29 form part of these financial statements.

Page 10

BARONS PUB COMPANY LTD

REGISTERED NUMBER: 03991418

BALANCE SHEET

AS AT 30 SEPTEMBER 2024

		2024		2023
Note		£		£

Fixed assets
Intangible assets	13		76,726		104,640
Tangible assets	14		6,821,480		7,068,766
			6,898,206		7,173,406
Current assets
Stocks	15	193,841		218,678
Debtors: amounts falling due after more than one year	16	125,752		124,203
Debtors: amounts falling due within one year	16	262,758		251,912
Cash at bank and in hand	17	83,243		773,052
		665,594		1,367,845
Creditors: amounts falling due within one year	18	(4,085,805)		(4,397,275)
Net current liabilities			(3,420,211)		(3,029,430)
Total assets less current liabilities			3,477,995		4,143,976
Creditors: amounts falling due after more than one year	19		(2,363,323)		(2,925,182)
Provisions for liabilities
Deferred tax	21	(357,745)		(332,497)
			(357,745)		(332,497)
Net assets			756,927		886,297

Capital and reserves
Called up share capital	22	100	100
Profit and loss account	23	756,827	886,197
Shareholder's funds		756,927	886,297

The financial statements were approved and authorised for issue by the board and were signed on its behalf by:

Mr C M Price

Director

Date: 30 September 2025

The notes on pages 13 to 29 form part of these financial statements.

Page 11

BARONS PUB COMPANY LTD

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 30 SEPTEMBER 2024

			2024	2023
			£	£

Cash flows from operating activities
Profit for the financial year	79,630	258,593
Adjustments for:
Amortisation of intangible assets	27,914	28,960
Depreciation of tangible assets	429,067	416,236
Interest paid	406,501	387,622
Interest received	(13,530)	(1,108)
Taxation charge	156,964	50,277
Decrease/(increase) in stocks	24,834	(10,562)
(Increase) in debtors	(27,134)	(123,553)
(Decrease) in creditors	(352,872)	(116,224)
Corporation tax paid	(84,109)	-
Loan write off	(8,202)	-
Net cash generated from operating activities	639,063	890,241

Cash flows from investing activities
Purchase of tangible fixed assets	(181,781)	(290,265)
Interest received	13,530	1,108
Net cash from investing activities	(168,251)	(289,157)
Cash flows from financing activities
Repayment of loans	(539,332)	(574,727)
Repayment of other loans	-	(45,692)
Dividends paid	(209,000)	(388,569)
Interest paid	(406,502)	(387,622)
Net cash used in financing activities	(1,154,834)	(1,396,610)
Net (decrease) in cash and cash equivalents	(684,022)	(795,526)
Cash and cash equivalents at beginning of year	756,947	1,552,472
Cash and cash equivalents at the end of year	72,925	756,946

Cash and cash equivalents at the end of year comprise:
Cash at bank and in hand	83,243	773,052
Bank overdrafts	(10,318)	(16,106)
	72,925	756,946

Page 12

BARONS PUB COMPANY LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2024

1.	General information

Barons Pub Company Ltd is a private company, limited by shares and incorporated in England and Wales, registration number 03991418.The registered office is Albany House,Claremont Lane,Esher,Surrey,KT10 9FQ.
The principal place of business is The Cricketers Pub, Horsell Birch, Woking,Surrey,GU21 4XB.

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 judgement in applying the Company's accounting policies (see note 3).

The statements are presented in sterling, which is the functional currency of the Company and rounded to the nearest £.

The following principal accounting policies have been applied:

2.2

Compliance with accounting standards

The financial statements have been prepared in accordance with the provisions of FRS102. There were no material departures from that standard.

2.3

Going concern

The Directors have prepared the financial statements on a going concern basis, which they consider appropriate.
In reaching this conclusion, the Directors have reviewed detailed forecasts covering a period of at least twelve months from the date of approval of these financial statements. These forecasts take into account the current trading environment, the Company’s cost base, and the impact of recent economic pressures including higher wage costs and interest rates.
The Company has traded profitably in the year ended 30 September 2024, generating an operating profit of £629,565 and net cash inflows from operating activities of £639,063. Net assets decreased to £756,927, and the business remains cash generative.
Subsequent to the year end, in November 2024, the Company refinanced its borrowings, consolidating all existing bank loans and facilities into a single new facility. This refinancing provides greater stability, a clearer repayment profile, and improved flexibility in managing cash flows.
The Directors believe that the Company’s estate of high-quality pubs, together with its diversified trading model (including strong gardens and additional revenue from pizza trailers), provides resilience against market challenges.
Having considered the financial position, cash flow forecasts and available facilities, the Directors are confident that the Company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

Page 13

BARONS PUB COMPANY LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2024

2.Accounting policies (continued)

2.4

Revenue

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:

Food and beverage revenue is recognised when goods are delivered to the customer at the point of sale.
Accommodation revenue is recognised over the period of occupancy.

2.5

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to Statement of Income and Retained Earnings on a straight-line basis over the lease term.

2.6

Interest income

Interest income is recognised in the Statement of Income and Retained Earnings using the effective
interest method.

2.7

Finance costs

Finance costs are charged in the Statement of Income and Retained Earnings 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.

2.8

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 the Statement of Income and Retained Earnings 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 14

BARONS PUB COMPANY LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2024

2.Accounting policies (continued)

2.9

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in the Statement of Income and Retained Earnings 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.

2.10

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.

The estimated useful lives range as follows:

				Goodwill	-	10	years
				Software	-	3	years

Page 15

BARONS PUB COMPANY LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 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.

At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method and reducing balance basis.

Depreciation is provided on the following basis:

Freehold property	-		held at historic cost less impairment
Short-term leasehold property	-		over the term of the lease
Plant and machinery	-	25%	straight line
Motor vehicles	-	25%	reducing balance
Fixtures and fittings	-	20%	reducing balance
Office equipment	-	33%	straight line
Improvements to freehold property	-	2%	straight line
Improvements to leasehold property	-		over the term of the lease

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 the Statement of Income and Retained Earnings.

2.12

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.
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 the Statement of Income and Retained Earnings.

2.13

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 16

BARONS PUB COMPANY LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2024

2.Accounting policies (continued)

2.14

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.

2.15

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.

2.16

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Company's Balance Sheet when the Company becomes party to the contractual provisions of the instrument.

Basic financial assets

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

Impairment of financial assets

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in the Statement of Income and Retained Earnings.

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the Statement of Income and Retained Earnings.

Page 17

BARONS PUB COMPANY LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2024

2.Accounting policies (continued)

2.16

Financial instruments (continued)

Basic financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.

2.17

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.	Judgements in applying accounting policies and key sources of estimation uncertainty

The preparation of financial statements in conformity with FRS102 requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, income and expenses.
The Directors are of the opinion, there are no material judgements when applying accounting policies or areas where material uncertainty exists regarding an estimation.

Page 18

BARONS PUB COMPANY LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2024

Wet and Dry	19,139,095	19,531,262
Accommodation	350,036	371,738
Rent receivable	98,686	59,756
	19,587,817	19,962,756

All turnover arose within the United Kingdom.

5.	Other operating income
		2024	2023
		£	£

	Insurance funds	14,962	-

Other operating lease rentals

1,191,029

1,183,416

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

16,549

15,290

Page 19

BARONS PUB COMPANY LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2024

Wages and salaries	7,219,464	7,216,750
Social security costs	496,909	477,946
Cost of defined contribution scheme	231,207	351,159
	7,947,580	8,045,855

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

	2024	2023
	No.	No.

Retail staff	486	472
Administration staff	20	31
Directors	2	2

	508	505

9.	Directors' remuneration
		2024	2023
		£	£

Directors' emoluments	81,081	68,414
Company contributions to defined contribution pension schemes	69,408	121,474
	150,489	189,888

During the year retirement benefits were accruing to 2 Directors (2023 - 2) in respect of defined contribution pension schemes.

10.	Interest receivable
		2024	2023
		£	£

Bank interest receivable

13,530

1,108

Page 20

BARONS PUB COMPANY LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2024

11.	Interest payable and similar expenses
		2024	2023
		£	£

Bank interest payable	255,718	236,437
Other loan interest payable	147,252	151,185
Other interest payable	3,531	-
	406,501	387,622

Corporation tax
Current tax on profits for the year	131,717	98,848

	Deferred tax
	Origination and reversal of timing differences	25,247	(48,571)


	Taxation on profit on ordinary activities	156,964	50,277

Profit on ordinary activities before tax

236,594

308,869

Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 22.01%)	59,149	67,982
Effects of:
Non-tax deductible amortisation of goodwill and impairment	15,625	-
Depreciation not attracting capital allowances	31,712	25,320
Amortisation of goodwill	6,978	5,502
Short-term timing difference leading to an increase (decrease) in taxation	(1,544)	(45,603)
Super deduction tax relief	-	(3,775)
Other differences leading to an increase (decrease) in the tax charge	-	851
Change in tax rate	45,044	-
Total tax charge for the year	156,964	50,277

Page 21

BARONS PUB COMPANY LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2024

13.	Intangible assets

	Computer software	Goodwill	Total
	£	£	£
Cost
At 1 October 2023	12,000	436,341	448,341
At 30 September 2024	12,000	436,341	448,341
Amortisation
At 1 October 2023	9,086	334,615	343,701
Charge for the year on owned assets	2,914	25,000	27,914
At 30 September 2024	12,000	359,615	371,615
Net book value
At 30 September 2024	-	76,726	76,726
At 30 September 2023	2,914	101,726	104,640

Page 22


		BARONS PUB COMPANY LTD

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2024

	14.	Tangible fixed assets

	Freehold property	Short-term leasehold property	Plant and machinery	Motor vehicles	Fixtures and fittings	Office equipment	Improvement to properties	Total
	£	£	£	£	£	£	£	£
Cost or valuation
At 1 October 2023	4,130,796	832,158	1,167,375	24,639	1,524,494	350,005	3,384,767	11,414,234
Additions	-	-	130,802	-	44,302	6,677	-	181,781
At 30 September 2024	4,130,796	832,158	1,298,177	24,639	1,568,796	356,682	3,384,767	11,596,015
Depreciation
At 1 October 2023	-	665,975	947,240	21,128	846,888	330,842	1,533,395	4,345,468
Charge for the year on owned assets	-	13,254	112,260	3,511	140,873	14,457	144,712	429,067
At 30 September 2024	-	679,229	1,059,500	24,639	987,761	345,299	1,678,107	4,774,535
Net book value
At 30 September 2024	4,130,796	152,929	238,677	-	581,035	11,383	1,706,660	6,821,480
At 30 September 2023	4,130,796	166,183	220,135	3,512	677,606	19,163	1,851,372	7,068,767

Page 23

BARONS PUB COMPANY LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2024

15.	Stocks
		2024	2023
		£	£

	Wet and dry stocks	193,841	218,678

16.	Debtors
		2024	2023
		£	£

Due after more than one year
Other debtors	125,752	124,203

					2024	2023
					£	£

Due within one year
Trade debtors	1,570	168,343
Other debtors	164,314	13,519
Prepayments and accrued income	96,874	55,311
Tax recoverable	-	14,739
	262,758	251,912

17.	Cash and cash equivalents
		2024	2023
		£	£

Cash at bank and in hand	83,243	773,052
Less: bank overdrafts	(10,317)	(16,105)
	72,926	756,947

Page 24

BARONS PUB COMPANY LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2024

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

Debenture loans	1,400,000	1,400,000
Bank overdrafts	10,317	16,105
Bank loans	555,822	533,297
Other loans	-	8,202
Trade creditors	760,272	980,262
Corporation tax	131,717	98,848
Other taxation and social security	490,412	504,847
Other creditors	272,698	277,713
Accruals and deferred income	464,567	578,001
	4,085,805	4,397,275

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

	Bank loans	2,363,323	2,925,182

Page 25

BARONS PUB COMPANY LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2024

Amounts falling due within one year
Bank loans	555,822	533,297
Other loans	-	8,202
Debenture loans	1,400,000	1,400,000
	1,955,822	1,941,499
Amounts falling due 1-2 years
Bank loans	466,915	540,854
Amounts falling due 2-5 years
Bank loans	356,359	645,221
Amounts falling due after more than 5 years
Bank loans	1,540,050	1,739,107
	4,319,146	4,866,681

Page 26

BARONS PUB COMPANY LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2024

20.Loans (continued)

Bank loans are accounted for at amortised cost and are repayable in instalments.
The bank loans falling due after more than 5 years are in relation to two mortgages, a general business loan, and a Government backed Coronavirus Business Interruption Loan - all of which are repayable by instalments. The mortgages attract interest at 2.5% over the Bank of England base rate and are repayable over a period of 13 years. The general business loan is repayable over a period of 6 years and attracts interest at 3.25% over the Bank of England base rate. The Coronavirus Business Interruption Loan is repayable over a period of 6 years and attracts interest at 3.99% over the Bank of England base rate.
The debenture loans attract interest at 8% per annum and are repayable on demand.
Secured loans
Of the debenture loans, £600,000 is secured by a second legal charge over the freehold property known as The Inn at West End and £350,000 is secured by a legal charge over the leasehold property known as The Black Boy. An additional £220,000 is secured by a second legal charge over the freehold property known as The Jovial Sailor.
The bank loans and overdrafts are secured by legal charges over the following premises as well as the goodwill arising on any business carried on within the following sites:
- The Cricketers Inn, Horsell Birch, Woking, Surrey (a leasehold property);
- The Rose & Crown, Green Road, Thorpe Green, Egham, Surrey (a leasehold property);
- The Inn at West End, 42 Guildford Rd, West End, Woking (a freehold property); and
- The Jovial Sailor, Portsmouth Road, Ripley, Woking, (a freehold property).
Refinancing
In November 2024 the Company consolidated all of its bank loans, totalling £2,852,094, into a single loan. With additional funding of £2,647,906 for an acquistion the new loan amounted to £5,500,000. The loan attracts a rate of 7% for first 60 months and then 5.5% over the Bank of England base rate for next 180 months. The loan is repayable over a period of 20 years.

21.	Deferred taxation

	2024	2023
	£	£

At beginning of year	332,498	381,069
Charged to profit or loss	25,247	(48,571)
At end of year	357,745	332,498

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

Accelerated capital allowances

357,745

332,498

Page 27

BARONS PUB COMPANY LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2024

22.	Share capital
		2024	2023
		£	£

Allotted, called up and fully paid

100 (2023 - 100) Ordinary shares of £1.00 each	100	100

23.

Reserves

Profit and loss account

The profit and loss account represents cumulative profits and losses net of dividends and other adjustments.

24.	Analysis of net debt

		At 1 October 2023	Cash flows	Other non-cash changes	At 30 September 2024
		£	£	£	£

Cash at bank and in hand	773,052	(689,809)	-	83,243
Bank overdrafts	(16,105)	5,788	-	(10,317)
Debt due after 1 year	(2,925,182)	561,859	-	(2,363,323)
Debt due within 1 year	(1,963,269)	(22,526)	8,202	(1,977,593)
	(4,131,504)	(144,688)	8,202	(4,267,990)

Not later than 1 year	705,875	705,875
Later than 1 year and not later than 5 years	2,823,499	2,823,499
Later than 5 years	3,771,334	4,477,208
	7,300,708	8,006,582

Page 28

BARONS PUB COMPANY LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2024

26.	Related party transactions
	At the balance sheet date, the Directors were owed £1,890 (2023 - £1,890) by the Company.This amount is interest free, repayable on demand, this is included within other creditors. Dividends paid to Directors amounted to 104,500 (2023 - £196,051).

27.	Post balance sheet events

Page 29