FOR THE PERIOD ENDED 16 OCTOBER 2024
THE BOSTON TEA PARTY GROUP LIMITED
COMPANY INFORMATION
THE BOSTON TEA PARTY GROUP LIMITED
CONTENTS
THE BOSTON TEA PARTY GROUP LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 16 OCTOBER 2024
The Directors present the Strategic report for the period ended 16 October 2024.
In the financial period ended October 16th, 2024, The Boston Tea Party Group Limited (BTP) generated net sales of £21.1m from their 23 café estate.
The board monitors closely the following financial KPI’s: sales, gross profit margins, team costs, EBITDA, and net cash flow. It also monitors non-financial KPI’s relating to team including team turnover, stability in addition to health and safety audits.
BTP’s purpose is Making Things Better for our team, customers and the planet. These three strategic pillars guide and inform all our thinking.
We continue to deliver sector leading people & customer KPIs and remain truly differentiated by our commitment to sustainability.
The business continues to confidently navigate sector headwinds and remains optimistic about future growth.
The board monitors closely the following financial KPI’s: sales, gross profit margins, team costs, EBITDA, and net cash flow. It also monitors non-financial KPI’s relating to team including team turnover, stability in addition to health and safety audits.
BTP’s purpose is Making Things Better for our team, customers and the planet. These three strategic pillars guide and inform all our thinking.
We continue to deliver sector leading people & customer KPIs and remain truly differentiated by our commitment to sustainability.
The business continues to confidently navigate sector headwinds and remains optimistic about future growth.
The biggest risk to the sector continues to be the long-term effect on the high street, work patterns, consumer behavior and inflationary pressures. BTP continues to mitigate those risks by delivering a great customer experience and menu innovation as well as being well positioned in residential and non-high street locations.
GOING CONCERN
People Metrics & Strategic Impact
Our people remain the heartbeat of Boston Tea Party, and in FY23/24 we delivered sector-leading results across our team KPIs. These metrics are more than numbers, they reflect our culture, values, and the environment we create for our teams to belong and grow.
People Metrics & Strategic Impact
Our people remain the heartbeat of Boston Tea Party, and in FY23/24 we delivered sector-leading results across our team KPIs. These metrics are more than numbers, they reflect our culture, values, and the environment we create for our teams to belong and grow.
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THE BOSTON TEA PARTY GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 16 OCTOBER 2024
Key Highlights:
∙Turnover & Stability: Annualised turnover was 60% with stability at 58%, clear evidence that our Good Eggs approach is working by bringing in values-led hires who stay and grow with us.
∙Happiness Survey: We achieved a 77% participation rate with an eNPS of 31%, a nine-point uplift on the previous year, highlighting improved engagement and advocacy among our teams.
∙Leadership Development (ALP): 20 future leaders successfully progressed through the Aspiring Leaders Programme, with 4 promotions, strengthening our succession pipeline and building resilience across the estate.
∙Foundation Impact: The Boston Foundation supported 180 young people this year, providing hospitality skills and confidence-building opportunities that showcase BTP as an employer with purpose.
∙Culture & Engagement: Initiatives such as Latte Art Competitions continue to bring teams together, celebrate craft, and foster a sense of community across our cafés.
Strong people metrics underpin our financial success. Greater stability and stronger engagement reduce recruitment costs, improve productivity, and drive consistently high customer experience scores. Our investment in leadership and development ensures we are fit for growth and resilient against sector-wide challenges, such as labour shortages and cost inflation.
Our people strategy directly supports our financial strategy, by building engaged, stable, and values-led teams, we create the conditions for growth, higher profitability, and long-term sustainability.
Custom Metrics & Strategic Impact
We continue to deliver sector leading hospitality for our customers
Our people strategy directly supports our financial strategy, by building engaged, stable, and values-led teams, we create the conditions for growth, higher profitability, and long-term sustainability.
Custom Metrics & Strategic Impact
We continue to deliver sector leading hospitality for our customers
∙Customer Satisfaction Metrics External (online) review scores for the year averaged 4.75 and 4.82/5 on Google and Trip Advisor respectively and by end of year were sitting at an average across both platforms of 4.85. Internal customer scores outperformed all day dining establishments, including achieving an NPS of 67.
∙Menu A full menu reset in early 2024 contributed to food and drink scores of 4.67 and 4.73/5, reflecting the consistent delivery of relevant, high quality dishes to the customer. The product development and dish review process continues to drive exceptional product scores, tracked via a third party insight platform.
∙Events A community engagement and sales driving/outreach programme was launched with a focus on scheduling off peak events and community activities in cafes and driving incremental footfall and frequency through building stronger connections with our local businesses and neighbours.
∙Tech Ahead of a wider tech stack upgrade across CRM and Loyalty in 2025, we invested in a rebuild of the brand website in the final quarter of the year, launching in October 2024. Since launch we have seen 434,222 sessions on the website, an increase of 7.9% to the equivalent period of the previous year. Session duration has also increased by +16.5%, suggesting stronger website engagement driven by improved searchability optimised for the growth of AI (LLM) search, and more relevant content and promotion of local events. The new site is also 6x less carbon emitting.
∙Continue to invest in our cafe estate with full refurbishments of our two cafes in Bath (Alfred St & Kingsmead Sq) as well as our café in Cheswick Bristol.
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THE BOSTON TEA PARTY GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 16 OCTOBER 2024
Financial Success Metrics
∙Headline sales of £21.1m were flat with the previous year
∙Despite continued supply chain headwinds the business improved its gross profit margin from 76.2% to 78.1%
∙Through menu simplification, tighter forecasting & a wholesale review of our team sheets the business was able to mitigate significant increases in the NLW and improve total labour from 41.7% to 41.2% year on year
∙A move from Uber Eats to Deliveroo in Q3 has produced a 30% uplift in delivery sales
∙All of the above resulted in an 40% year on year uplift in EBITDA to £809k
∙Conversion shifted from 9.7% to 12.8% year on year
∙The business continues to paydown its covid related CBIL, net debt reduced from £2.275m to £1.925m
Management of working capital
The company’s existing overdraft facility is set for renewal with Santander in July 26, an annual exercise undertaken by the Board over many years without issue. As the date of renewal is less than 12 months from the date of signing the Directors report, and as it is not possible for Santander to advise if renewal so far in the future will be forthcoming now, the Board are obliged by our auditors to note that this represents ‘a material uncertainty relating to going concern’. Specifically, if the overdraft is not renewed in July 26, the company would not easily be able to meet its supplier obligations and day to day working capital requirements.
The directors do not believe there is a material risk that facilities will not be renewed given the length of time they have been in place, the improving performance of the business and the long term relationship with Santander. The directors note that the audit report is not qualified in this respect and the financial statements do not include adjustments that would be required if the Company were unable to continue as a going concern, such as the write-down of assets to their recoverable amounts or the reclassification of liabilities. This disclosure is made in accordance with FRS 102, paragraph 3.9, which requires the disclosure of material uncertainties related to events or conditions that may cast significant doubt on the entity’s ability to continue as a going concern.
Future Outlook
The business continues to confidently navigate sector headwinds and remains optimistic about future growth. Our Making Things Better purpose continues to keep us focused on our people, our customers & our planet. In an increasingly digitalised world are cafes remain sanctuaries of human connections. The board remains confident in our ability to continue to both drive productivity (labour gains) and profitability (GP enhancements and tight cost control). They also believe the business remains well placed to continue to benefit from a shift away from both evenings and alcohol.
This report was approved by the board and signed on its behalf.
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THE BOSTON TEA PARTY GROUP LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 16 OCTOBER 2024
The directors present their report and the financial statements for the period ended 16 October 2024.
The loss for the period, after taxation, amounted to £407,164 (2023: loss £614,423).
No dividends were declared or paid during the period (2023: £Nil)
The directors who served during the period were:
All future developments are included within the Strategic Report.
The company encourages the involvement of its employees in its management through meetings and regular communications from directors to employees, including information of particular concern to employees, and actively seeks feedback from employees.
There have been no significant events affecting the Company since the period end.
The auditors, Bishop Fleming Audit Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
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THE BOSTON TEA PARTY GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 16 OCTOBER 2024
This report was approved by the board and signed on its behalf.
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THE BOSTON TEA PARTY GROUP LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE PERIOD ENDED 16 OCTOBER 2024
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 judgments and accounting estimates that are reasonable and prudent;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The 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.
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THE BOSTON TEA PARTY GROUP LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE BOSTON TEA PARTY GROUP LIMITED
We have audited the financial statements of The Boston Tea Party Group Limited (the 'Company') for the period ended 16 October 2024, which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of cash flows, the Statement of changes in equity, Analysis of net debt 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).
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.
We draw attention to note 2.3 in the financial statements, which indicates that the Company is dependent on debt finance which is due for renewal within 12 months of approval of the financial statements amounting to £868k. Whilst the directors are confident that the facilities will be renewed and that financial support will continue, at the time of approving the financial statements, no formal agreements for renewal were in place. As stated in note 2.3, these events or conditions, along with the other matters as set forth in note 2.3, indicate that a material uncertainty exists that may cast significant doubt on the Company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.
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.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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THE BOSTON TEA PARTY GROUP LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE BOSTON TEA PARTY GROUP LIMITED (CONTINUED)
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.
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 period 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.
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.
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THE BOSTON TEA PARTY GROUP LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE BOSTON TEA PARTY GROUP LIMITED (CONTINUED)
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. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we have considered the following:
∙The nature of the industry and sector, control environment and business performance;
∙Results of our enquires of management and directors in relation to their own identification and assessment of the risks of irregularities within the Company; and
∙For any matters we identified having obtained and reviewed the Company's documentation of their policies and procedures relating to:
°Identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;
°Detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;
°The internal controls established to mitigate risks of fraud or noncompliance with laws and regulations.
As a result of these procedures, we have considered the opportunities and incentives that may exist within the organisation for fraud and identified the highest area of risk to be in relation to revenue recognition. In common with all audits under ISAS (UK) we are also required to perform specific procedures to respond to the risk of management override.
We have also obtained an understanding of the legal and regulatory frameworks that the company operates in, focussing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures within the financial statements. The key laws and regulations we considered in this context included the UK Companies Act and UK tax legislation. In additions we considered provision of other laws and regulations that do not have a direct effect on the financial statements but compliance with may be fundamental for the Company's ability to operate or avoid a material penalty. These included food hygiene legislation, health and safety regulations, employment legislation and data protection laws.
Our audit procedures performed to respond to the risks identified included, but were not limited to:
We have also obtained an understanding of the legal and regulatory frameworks that the company operates in, focussing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures within the financial statements. The key laws and regulations we considered in this context included the UK Companies Act and UK tax legislation. In additions we considered provision of other laws and regulations that do not have a direct effect on the financial statements but compliance with may be fundamental for the Company's ability to operate or avoid a material penalty. These included food hygiene legislation, health and safety regulations, employment legislation and data protection laws.
Our audit procedures performed to respond to the risks identified included, but were not limited to:
∙Reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
∙Reviewing the financial statement disclosures and testing to supporting documentation to assess the recognition of revenue; Challenging assumptions and judgments made by management in their significant accounting estimates;
∙Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulation and fraud;
∙Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
∙Reviewing board minutes; and
∙Identifying and testing journal entries, evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.
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THE BOSTON TEA PARTY GROUP LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE BOSTON TEA PARTY GROUP LIMITED (CONTINUED)
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from an error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
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.
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.
for and on behalf of
Chartered Accountants
Statutory Auditors
10 Temple Back
BS1 6FL
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THE BOSTON TEA PARTY GROUP LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 16 OCTOBER 2024
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THE BOSTON TEA PARTY GROUP LIMITED
REGISTERED NUMBER:05302325
STATEMENT OF FINANCIAL POSITION
AS AT 16 OCTOBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 17 to 33 form part of these financial statements.
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THE BOSTON TEA PARTY GROUP LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 16 OCTOBER 2024
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THE BOSTON TEA PARTY GROUP LIMITED
STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 16 OCTOBER 2024
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THE BOSTON TEA PARTY GROUP LIMITED
STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE PERIOD ENDED 16 OCTOBER 2024
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THE BOSTON TEA PARTY GROUP LIMITED
ANALYSIS OF NET DEBT
FOR THE PERIOD ENDED 16 OCTOBER 2024
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THE BOSTON TEA PARTY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 16 OCTOBER 2024
The Boston Tea Party Group Limited (BTP) is a private company limited by shares and is registered and incorporated in England and Wales. The registered office is 75 Park Street, Bristol BS1 5PF.
2.ACCOUNTING POLICIES
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
The Company is exempt from the requirement to prepare consolidated financial statements as all of its subsidiaries are required to be excluded from consolidation by section 402 of the Companies Act 2006.
The financial statements have been prepared on the going concern basis which assumes that the Company will continue in operational existence and will be able to meet liabilities as they fall due for the foreseeable future, being a period of at least 12 months from the date of approval of the financial statements.
The company is dependant on an existing overdraft facility which is set for renewal with Santander in July 26, an annual exercise undertaken by the Board over many years without issue. As the date of renewal is less than 12 months from the date of signing the Directors report, and as it is not possible for Santander to advise if renewal so far in the future will be forthcoming now, there exists a material
uncertainty on this basis.
The business continues to confidently navigate sector headwinds and remains optimistic about future growth. Our Making Things Better purpose continues to keep us focused on our people, our customers & our planet. In an increasingly digitalised world are cafes remain sanctuaries of human connections. The board remains confident in our ability to continue to both drive productivity (labour gains) and profitability (GP enhancements and tight cost control). They also believe the business remains well placed to continue to benefit from a shift away from both evenings and alcohol.
The directors do not believe there is a material risk that facilities will not be renewed given the length of time they have been in place, the improving performance of the business and the long term relationship with Santander. The directors note that the audit report is not qualified in this respect and that the financial statements do not reflect the adjustments that would be necessary should the ability of the Company to trade be jeopardised due to a material issue with the renewal of its overdraft facility. As such there is a material uncertainty related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern and, therefore, that it may be unable to realise its assets and discharge its liabilities in the normal course of business.
The company is dependant on an existing overdraft facility which is set for renewal with Santander in July 26, an annual exercise undertaken by the Board over many years without issue. As the date of renewal is less than 12 months from the date of signing the Directors report, and as it is not possible for Santander to advise if renewal so far in the future will be forthcoming now, there exists a material
uncertainty on this basis.
The business continues to confidently navigate sector headwinds and remains optimistic about future growth. Our Making Things Better purpose continues to keep us focused on our people, our customers & our planet. In an increasingly digitalised world are cafes remain sanctuaries of human connections. The board remains confident in our ability to continue to both drive productivity (labour gains) and profitability (GP enhancements and tight cost control). They also believe the business remains well placed to continue to benefit from a shift away from both evenings and alcohol.
The directors do not believe there is a material risk that facilities will not be renewed given the length of time they have been in place, the improving performance of the business and the long term relationship with Santander. The directors note that the audit report is not qualified in this respect and that the financial statements do not reflect the adjustments that would be necessary should the ability of the Company to trade be jeopardised due to a material issue with the renewal of its overdraft facility. As such there is a material uncertainty related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern and, therefore, that it may be unable to realise its assets and discharge its liabilities in the normal course of business.
Turnover represents net sales of goods excluding value added tax, recognised at the point of sale. All turnover is derived from the company's principal activity which is included within the Strategic report.
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THE BOSTON TEA PARTY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 16 OCTOBER 2024
2.ACCOUNTING POLICIES (CONTINUED)
Grants of a revenue nature are recognised in the Statement of comprehensive income in the same period as the related expenditure.
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THE BOSTON TEA PARTY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 16 OCTOBER 2024
2.ACCOUNTING POLICIES (CONTINUED)
GOODWILL
OTHER INTANGIBLE ASSETS
Amortisation is recognised so as to write off the cost of assets less their residual values over their useful loves on the following bases:
Amortisation is provided on the following bases:
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THE BOSTON TEA PARTY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 16 OCTOBER 2024
2.ACCOUNTING POLICIES (CONTINUED)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on the following bases.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Assets under construction are not depreciated.
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THE BOSTON TEA PARTY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 16 OCTOBER 2024
2.ACCOUNTING POLICIES (CONTINUED)
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
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 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.
Other financial assets
Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.
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 profit or loss.
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 profit or loss.
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THE BOSTON TEA PARTY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 16 OCTOBER 2024
2.ACCOUNTING POLICIES (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.
Equity instruments
Equity instruments issued by the company are recorded at the fair value of proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
Equity instruments issued by the company are recorded at the fair value of proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
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THE BOSTON TEA PARTY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 16 OCTOBER 2024
The annual amortisation charge is sensitive to any changes in the estimated useful life and residual values of the Intangible assets. The useful economic lives and residual value is assessed on an annual basis and are amended only when evidence shows a change in the estimated economic lives or residual life. Criteria used to assess the economic life and residual value includes technological advancement, economic utilisation condition of the asset and future investments.
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THE BOSTON TEA PARTY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 16 OCTOBER 2024
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THE BOSTON TEA PARTY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 16 OCTOBER 2024
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THE BOSTON TEA PARTY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 16 OCTOBER 2024
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THE BOSTON TEA PARTY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 16 OCTOBER 2024
12.TAXATION (CONTINUED)
There are no factors affecting future tax charges.
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THE BOSTON TEA PARTY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 16 OCTOBER 2024
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Page 28
THE BOSTON TEA PARTY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 16 OCTOBER 2024
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Page 29
THE BOSTON TEA PARTY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 16 OCTOBER 2024
Page 30
THE BOSTON TEA PARTY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 16 OCTOBER 2024
Page 31
THE BOSTON TEA PARTY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 16 OCTOBER 2024
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Share premium account
Capital redemption reserve
Profit and loss account
Page 32
THE BOSTON TEA PARTY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 16 OCTOBER 2024
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £204,098 (2023: £209,238) . Contributions totaling £140,694 (2023: £70,128) were payable to the fund at the reporting date and are included in other creditors.
27.OTHER FINANCIAL COMMITMENTS
During the period the company renegotiated an existing operating lease contract and is now acting as a guarantor on the contract up to 10 August 2035.
This is in addition to an existing operating lease contract that was renogotiated in the prior year that the company still acts as a guarantor for up to 15 September 2028.
The total potential rental liability that may fall due on the company is: £619,500
This is in addition to an existing operating lease contract that was renogotiated in the prior year that the company still acts as a guarantor for up to 15 September 2028.
The total potential rental liability that may fall due on the company is: £619,500
In the opinion of the directors there is no controlling party on the basis that no shareholder has more than a 50% interest.
Page 33