REGISTERED NUMBER: 07457928 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 December 2024

for

JJ & Team Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

7

Statement of Comprehensive Income

11

Balance Sheet

12

Statement of Changes in Equity

13

Cash Flow Statement

14

Notes to the Cash Flow Statement

15

Notes to the Financial Statements

16

DIRECTORS:

A A Jivraj

K Jukhoop

REGISTERED OFFICE:

Suite 201 Moda Business Centre

Stirling Way

Borehamwood

Hertfordshire

WD6 2BW

REGISTERED NUMBER:

07457928 (England and Wales)

AUDITORS:

RA Audit Services Limited (Statutory Auditor)

2nd Floor

Grove House

55 Lowlands Road

Harrow

Middlesex

HA1 3AW

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

REVIEW OF BUSINESS

JJ & TEAM LTD is a company registered in England and Wales and a franchisee of Pizza Hut (UK) Ltd. A store count over England of 27 locations in the course of the reporting period. The management is headed by Arif Jivraj having a vast experience in the QSR sector and take away food industry.

The company has continued to perform with in management expectations and the company continues to maintain a healthy balance of working capital to meet its liabilities. The company has navigated the business through a challenging trading environment with increased competition in the delivery market specifically the pizza delivery sector, driven by the accelerated growth of third party aggregators like Deliveroo, Just Eat & Uber Eats.

Improvements in more effective marketing campaigns, establishing a more frictionless customer journey, providing deals that offered a stronger value proposition and partnering with the third party aggregators saw sales and profit rise significantly in the second half of the trading year.

Furthermore, the business continued to position itself for sustained long-term growth by investing in the staffing structure and providing developmental training across the company. The company is closely working with its Franchisor and has invested in new available technology e.g. Pizza Hut's Tech stack, it's Loyalty Scheme, Third Party Aggregators partnership platforms, Dragon Tail systems, Zonal EPOS systems and Fourth labour scheduling tools. All this new technology will help increase the customer experience, reflecting on higher top line growth, enabling more efficiencies in key cost lines and hence leading to better overall financial results.

Post year end, the company has performed broadly in line with the Director's expectation and continues to grow despite increasing cost of sales and reducing margins.

PRINCIPAL RISKS AND UNCERTAINTIES

The management of the business and execution of company's strategies are subject to risks, the key risks being the competition in the market place, operational risk and liquidity risk.

The Director regards the following as the principal risks and uncertainties for the company:

Financial risks

The exposure to credit risk is not high as all the consumer sales are paid for by the customer at the point of order with the payment being made by the major online payment providers typically within 3 days. The rapid receipt of cash from customers also reduces the exposure to risks surrounding cash flows allowing the company to maintain sufficient cash reserves to meet its payments as they fall due. The company monitors the financial risks carefully and has strategies in place to manage these effectively.

Competitive risks

The fast food market is a competitive and over-crowded market, however due to a strong brand and established position in the market place Pizza Hut is able to mitigate these risks. Performance is carefully monitored across all stores via a daily review of a specific range of KPIs.

Commercial risks

The principal activity within the company is managing the Pizza Hut branches. The main commercial risks facing the business is ensuring the procedures and standards required by Pizza Hut are satisfied, so the customer journey is consistent across all the franchisees. The business has policies and procedures in place to ensure that on an ongoing basis its commercial risks are carefully monitored and mitigated against. The business has procedures in place to ensure its Franchise agreement is being adhered to.

KEY PERFORMANCE INDICATORS

The company's key performance indicators for the year ended 31 December 2024 are as follows:

YE 31.12.2024

YE 31.12.2023

£

£

Turnover

18,019,162

18,485,118

Gross profit

7,267,881

7,723,880

Gross profit margin

40.33%

41.78%

(Loss)/Profit before tax

(339,292)

(354,951)

Shareholders' equity

1,507,529

1,833,509

Earnings before interest, tax, depreciation and amortisation (EBITDA)

4,364

166,147

In the year ending 31 December 2024 Turnover, has decreased by 2.50%. Gross profit margin has reduced and operational costs have increased. This has resulted in Loss before tax. The company considers EBITDA figure is more comparable measure of performance which has remained positive during the year despite increasing labour costs.

The company continues to maintain a healthy balance of reserves to meet its current and long-term liabilities as they fall due.

ON BEHALF OF THE BOARD:

A A Jivraj - Director

29 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 take-away food shops and mobile food stands.

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2024.

DIRECTORS

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

A A Jivraj

K Jukhoop

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors 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;

-	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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, RA Audit Services Limited (Statutory Auditor),were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General meeting.

ON BEHALF OF THE BOARD:

A A Jivraj - Director

29 September 2025

Opinion

We have audited the financial statements of JJ & Team Limited (the 'company') for the year ended 31 December 2024 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the 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 loss 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 five, 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.

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 client partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify and recognise non-compliance with applicable laws and regulations.

1) We identified the laws and regulations applicable to the company through discussions with directors, key management personnel and from our commercial knowledge and experience.

2) We focused on specific laws and regulations which we considered may have a direct effect on financial statements or the operations of the company including Companies Act 2006, current taxation legislation, data protection, anti-bribery and money laundering, employment and health and safety legislation.

3) We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management.

4) Identified laws and regulations were communicated with 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;

1) Making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual suspected and alleged fraud and

2) 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:

1) Performed analytical procedures to identify any unusual and unexpected relationships,

2) Tested journal entries to identify unusual transactions,

3) Investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

1) Agreeing financial statements disclosures to underlying supporting documentation.

2) Enquiring of management as to actual and potential litigation and claims and

3) Reviewing correspondence with HMRC, enquiring of management over health and safety.

There are inherent limitations in our audit procedures described above. Auditing standards also limit the audit procedures required to identifying 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.

Abdul Hafeez ACA, FCCA (Senior Statutory Auditor)

for and on behalf of RA Audit Services Limited (Statutory Auditor)

2nd Floor

Grove House

55 Lowlands Road

Harrow

Middlesex

HA1 3AW

29 September 2025

TURNOVER

4

18,019,162

18,485,118

Cost of sales

10,751,281

10,761,238

GROSS PROFIT

7,267,881

7,723,880

Administrative expenses

7,570,754

8,074,760

(302,873

)

(350,880

)

Other operating income

5

61,820

97,335

OPERATING LOSS

7

(241,053

)

(253,545

)

Interest payable and similar expenses

8

98,239

101,406

LOSS BEFORE TAXATION

(339,292

)

(354,951

)

Tax on loss

9

(13,562

)

(10,988

)

LOSS FOR THE FINANCIAL YEAR

(325,730

)

(343,963

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(325,730

)

(343,963

)

FIXED ASSETS

Intangible assets

10

102,868

268,486

Tangible assets

11

1,174,609

1,245,699

1,277,477

1,514,185

CURRENT ASSETS

Stocks

12

91,813

95,858

Debtors

13

3,604,425

1,183,820

Cash at bank and in hand

1,820,232

4,059,581

5,516,470

5,339,259

CREDITORS

Amounts falling due within one year

14

3,032,671

2,851,115

NET CURRENT ASSETS

2,483,799

2,488,144

TOTAL ASSETS LESS CURRENT LIABILITIES

3,761,276

4,002,329

CREDITORS

Amounts falling due after more than one year

15

(2,017,834

)

(1,919,595

)

PROVISIONS FOR LIABILITIES

18

(235,913

)

(249,475

)

NET ASSETS

1,507,529

1,833,259

CAPITAL AND RESERVES

Called up share capital

19

99

99

Capital contribution reserve

383,665

481,904

Retained earnings

1,123,765

1,351,256

SHAREHOLDERS' FUNDS

1,507,529

1,833,259

The financial statements were approved by the Board of Directors and authorised for issue on 29 September 2025 and were signed on its behalf by:

A A Jivraj - Director

Called up

Capital

share

Retained

contribution

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 January 2023

99

1,593,813

583,310

2,177,222

Changes in equity

Total comprehensive income

-

(242,557

)

(101,406

)

(343,963

)

Balance at 31 December 2023

99

1,351,256

481,904

1,833,259

Changes in equity

Total comprehensive income

-

(227,491

)

(98,239

)

(325,730

)

Balance at 31 December 2024

99

1,123,765

383,665

1,507,529

Cash flows from operating activities

Cash generated from operations

1

(2,174,003

)

(353,912

)

Interest paid

(98,239

)

(101,406

)

Tax paid

41,602

(2,953

)

Net cash from operating activities

(2,230,640

)

(458,271

)

Cash flows from investing activities

Purchase of tangible fixed assets

(8,709

)

(170,276

)

Net cash from investing activities

(8,709

)

(170,276

)

Decrease in cash and cash equivalents

(2,239,349

)

(628,547

)

Cash and cash equivalents at beginning of year

2

4,059,581

4,688,128

Cash and cash equivalents at end of year

2

1,820,232

4,059,581

1.	RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

31.12.24

31.12.23

£

£

Loss before taxation

(339,292

)

(354,951

)

Depreciation charges

245,417

422,644

Finance costs

98,239

101,406

4,364

169,099

Decrease/(increase) in stocks

4,045

(6,983

)

Increase in trade and other debtors

(2,411,894

)

(630,842

)

Increase in trade and other creditors

229,482

114,814

Cash generated from operations

(2,174,003

)

(353,912

)

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

1,820,232

4,059,581

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

4,059,581

4,688,128

3.	ANALYSIS OF CHANGES IN NET FUNDS/(DEBT)

At 1.1.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank and in hand

4,059,581

(2,239,349

)

1,820,232

4,059,581

(2,239,349

)

1,820,232

Debt

Debts falling due after 1 year

(1,919,595

)

(98,239

)

(2,017,834

)

(1,919,595

)

(98,239

)

(2,017,834

)

Total

2,139,986

(2,337,588

)

(197,602

)

1.	STATUTORY INFORMATION

JJ & Team Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the companies Act 2006. The financial statements have been prepared under the historical cost convention.

The financial statements are prepared in sterling, which is the functional currency of the company Monetary amounts in those non statutory financial statements are rounded to the nearest £.

Turnover

Revenue comprises the fair value of the sale of goods to external customers, net of value added tax, and returns. Revenue is recognised on the sale of goods when the significant risks and rewards of ownership of goods have passed to the buyer and the amount of revenue can be measured reliably. Revenue on goods delivered is recognised when the customer accepts delivery.

Intangible assets - goodwill

Goodwill arising on acquisitions, represents any excess of the fair value of the consideration given over the fair value of the identifiable assets acquired, and is capitalised and written off on a straight line basis over its useful economic life, up to a maximum 10 years. In estimating the useful economic life of goodwill, account has been taken of the nature of the business acquired and the period over which the value of the business will remain in excess of its tangible assets. Goodwill is reviewed for impairment at the end of the first full year following the acquisition and in other periods if events or changes in circumstances indicate that the carrying value may not be recoverable.

Intangible assets - franchisee fees

Franchisee fees are initially measured at cost. After initial recognition, they are measured at cost less and accumulated amortisation and any accumulated impairment losses.

Franchisee fees are being amortised over its estimated useful life of ten years.

Tangible fixed assets

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

Leasehold

-

2% on cost

Improvements to property

-

2% on cost

Fixtures and fittings

-

10% on reducing balance

Motor Bikes

-

10% on reducing balance

Computer equipment

-

10% on reducing balance

Tangible fixed assets are measured at cost, net of depreciation and any impairment losses.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

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. Stock includes raw material for food preparation.

Financial instruments

The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' 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.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally 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.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

Classification of 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 deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

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

Taxation

Taxation for the year comprises current and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

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

Hire purchase and leasing commitments

Rentals payable under operating lease, including any lease incentive received, are charged to income on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative time pattern in which economic benefits from the lease asset are

Pension costs and other post-retirement benefits

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

Cash and cash equivalents

Cash at bank and in hand are basic financial assets and include cash in hand and deposits held at call with banks and bank overdraft. Bank overdrafts are shown within borrowings in current liabilities.

Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they no longer at the discretion of the company.

3.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCER

In the application of the company's accounting policies, the directors are required to make judgments estimates and assumptions about the carrying amount of the assets and liabilities that are not readily apparent from other 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key Sources of estimation uncertainty

The following judgements have had the most significant effect on amounts recognised in the financial statements.

Useful lives of intangible fixed assets

Intangible fixed assets consist of goodwill and fanchisee fees. The annual amortisation charge depends on estimated useful economic life of the asset. The directors regularly review the remaining useful life of these assets. Changes in asset's useful economic life can have a significant impact on amortisation charge for the period. Detail of the useful economic life is included in accounting policies.

Useful lives of tangible fixed assets

The costs of tangible fixed assets less their residual value are depreciated over their estimated useful economic lives which are estimated by the director. Changes in the expected level of usage and technological developments could impact on the useful economic lives of these assets; therefore, further depreciation charges could be revised.Detail of the useful economic life is included in accounting policies.

4.

TURNOVER

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

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

31.12.24

31.12.23

£

£

Sales of goods

18,019,162

18,485,118

18,019,162

18,485,118

5.	OTHER OPERATING INCOME

31.12.24

31.12.23

£

£

Rents received

54,510

61,260

Interest income

7,310

33,123

HMRC interest

-

2,952

61,820

97,335

6.	EMPLOYEES AND DIRECTORS

31.12.24

31.12.23

£

£

Wages and salaries

5,836,461

5,624,035

Social security costs

392,287

330,929

Other pension costs

123,832

131,356

6,352,580

6,086,320

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

31.12.24

31.12.23

Direct labour

354

378

Admin

2

2

356

380

31.12.24

31.12.23

£

£

Directors' remuneration

-

-

7.	OPERATING LOSS

The operating loss is stated after charging:

31.12.24

31.12.23

£

£

Other operating leases

624,900

616,632

Depreciation - owned assets

79,799

95,773

Goodwill amortisation

150,547

311,801

Franchise Fees amortisation

15,071

15,070

Auditors' remuneration

9,500

9,550

8.

INTEREST PAYABLE AND SIMILAR EXPENSES

31.12.24

31.12.23

£

£

Notional interest payable

98,239

101,406

9.

TAXATION

Analysis of the tax credit

The tax credit on the loss for the year was as follows:

31.12.24

31.12.23

£

£

Current tax:

UK corporation tax

-

6,206

(over)/underprovision in previ

-

(2,159

)

Total current tax

-

4,047

Deferred tax

(13,562

)

(15,035

)

Tax on loss

(13,562

)

(10,988

)

Reconciliation of total tax 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:

31.12.24

31.12.23

£

£

Loss before tax

(339,292

)

(354,951

)

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

(84,823

)

(88,738

)

Effects of:

Expenses not deductible for tax purposes

-

947

Depreciation in excess of capital allowances

52,123

94,657

Adjustments to tax charge in respect of previous periods

-

(2,159

)

deferred tax

(13,562

)

(15,035

)

Marginal relief

-

(660

)

Group relief

32,700

-

Total tax credit

(13,562

)

(10,988

)