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Registered number:
FOR THE PERIOD ENDED 30 MARCH 2025
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VALIANT ASSET COMPANY 2 LIMITED
COMPANY INFORMATION
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VALIANT ASSET COMPANY 2 LIMITED
CONTENTS
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VALIANT ASSET COMPANY 2 LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 30 MARCH 2025
The directors present their report and the financial statements for the period ended 30 March 2025.
The Company was incorporated on 9 February 2024 and commenced trading on 24 June 2024.
The directors are responsible for preparing the Directors' Report and the financial statements in accordance with applicable law and regulations.
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;
∙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.
The directors who served during the period were:
In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.
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VALIANT ASSET COMPANY 2 LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 30 MARCH 2025
This report was approved by the board and signed on its behalf.
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VALIANT ASSET COMPANY 2 LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF VALIANT ASSET COMPANY 2 LIMITED
We have audited the financial statements of Valiant Asset Company 2 Limited (the 'Company') for the period ended 30 March 2025, which comprise the Statement of Comprehensive Income, the Statement of Financial Position 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.
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.
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VALIANT ASSET COMPANY 2 LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF VALIANT ASSET COMPANY 2 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 Directors' Report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
∙the Directors' Report has 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 Directors' Report.
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VALIANT ASSET COMPANY 2 LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF VALIANT ASSET COMPANY 2 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:
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud. Based on our understanding of the Company and industry, we identified that the principal risks of non-compliance with laws and regulations related to employment law, foods standards regulations, licencing regulations and health and safety laws, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and corporation tax. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting inappropriate journal entries to overstate revenue and management bias in accounting estimates. Audit procedures performed by the engagement team included:
∙inspecting correspondence with regulators and tax authorities;
∙discussions with management including consideration of known or suspected instances of non-compliance with laws and regulation and fraud;
∙evaluating management's controls designed to prevent and detect irregularities;
∙identifying and testing accounting journal entries, in particular those journal entries which exhibited the characteristics we had identified as possible indicators of irregularities; and
∙challenging assumptions and judgements made by management in their critical accounting estimates such as whether there are indicators of impairment on fixed assets.
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VALIANT ASSET COMPANY 2 LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF VALIANT ASSET COMPANY 2 LIMITED (CONTINUED)
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.
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
Statutory Auditors
10 Queen Street Place
EC4R 1AG
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VALIANT ASSET COMPANY 2 LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 30 MARCH 2025
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VALIANT ASSET COMPANY 2 LIMITED
REGISTERED NUMBER: 15475635
STATEMENT OF FINANCIAL POSITION
AS AT 30 MARCH 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 9 to 15 form part of these financial statements.
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VALIANT ASSET COMPANY 2 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 MARCH 2025
Valiant Asset Company 2 Limited is a private company, limited by shares, and incorporated in England and Wales. The Company's registered number is 15475635 and registered office address is Third Floor, 5 Lower Temple Street, Birmingham, England, B2 4JD.
The Company was incorporated on 9 February 2024 and commenced trading on 24 June 2024. The principal activity of the Company is the operation of public houses.
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 FRS 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' and the requirements of the Companies Act 2006. The disclosure requirements of Section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The following principal accounting policies have been applied:
As part of the going concern assessment, future cashflow forecasts and budgets have been prepared which take account of expected trading performance as well as compliance with the conditions of the bank debt in place. These forecasts show that the Company has adequate resources to continue in operational existence for the foreseeable future.
In addition to bank debt, the Company is funded by intercompany debt from the wider Valiant Pub Group and it is reliant on continued funding to continue with its expansion, which is available under the Groups shareholder agreement. The directors have therefore concluded that the Company is a going concern and the financial statements have been prepared on this basis.
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VALIANT ASSET COMPANY 2 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 MARCH 2025
2.Accounting policies (continued)
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 rebates, value added tax and other sales taxes.
Revenue is generated from the sale of food and beverages in managed pubs, as well as the provision of accommodation. Food and beverage revenue is recognised at the point of sale and the below criteria must be met before revenue is recognised: - the Company has transferred the significant risks and rewards of ownership to the buyer; - the Company retains no effective control over the goods sold; - the amount of revenue can be measured reliably; - it is probable that the Company will receive the consideration due under the transaction; and - the costs incurred or to be incurred in respect of the transaction can be measured reliably. Accommodation income is recognised at the point the accommodation is provided. Any amounts received in advance are recognised in deferred income and released to turnover at the point of the stay. Any stays offered on a credit basis are recognised in trade debtors until the amount is paid. Gambling machine income is recognised, in the Company’s capacity as agent, where net takings are recognised as earned on the Company’s proportion of gambling machine proceeds in the period of sale.
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.
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VALIANT ASSET COMPANY 2 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 MARCH 2025
2.Accounting policies (continued)
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.
Depreciation is provided on the following bases:
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.
During the year, certain assets were transferred from Valiant Pub Company Limited to the Company
as part of an internal group restructuring. The transfer was accounted for at net book value, with no gain or loss recognised. Following the transfer, the Company did not reassess the useful economic lives of the transferred assets. The assets continue to be depreciated over their original estimated useful lives.
Assets that are subject to depreciation are assessed at each reporting date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset (or cash-generating unit to which the asset has been allocated) is tested for impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's (or CGU's) fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). Non-financial assets that have been previously impaired are reviewed at each reporting date to assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have decreased.
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VALIANT ASSET COMPANY 2 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 MARCH 2025
2.Accounting policies (continued)
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments, resulting in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
Impairment of tangible fixed assets In carrying out the impairment review of fixed assets, it has been necessary to make estimates and judgements. Individual sites are viewed as separate cash generating units. The recoverable amount of each cash generating unit (CGU) has been identified as the higher of the fair value less cost to sell, or the value in use. A fair value of each CGU was identified using an EBITDA multiple which requires an estimation of future cashflows for a mature site post redevelopment, and judgment around the multiple that could be achieved on sale. If the estimated future cashflows were not achieved or the multiple could not be achieved on sale of a site, there could be a material impact on the financial statements through an impairment charge. Useful lives of tangible fixed assets The estimated useful economic lives of tangible fixed assets are based on management's judgement and experience. When management identifies that the actual useful economic lives differ materially from the estimates used to calculate depreciation, that charge is adjusted prospectively. Due to the significance of tangible fixed asset investment to the Company, variations between actual and estimated useful economic lives could impact operating results both positively and negatively.
The average monthly number of employees, including directors, during the period was 5.
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VALIANT ASSET COMPANY 2 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 MARCH 2025
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VALIANT ASSET COMPANY 2 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 MARCH 2025
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VALIANT ASSET COMPANY 2 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 MARCH 2025
The immediate parent is Valiant Pub Company Limited, a company registered in England and Wales. The registered office address is Third Floor, 5, Lower Temple Street, Birmingham, England, B2 4JD.
The smallest group in which they are consolidated is that headed by Valiant Pub Holdco Limited, a company incorporated in England and Wales. Its registered office address is Third Floor, 5, Lower Temple Street, Birmingham, England, B2 4JD. The ultimate controlling party is Njord Partners LLP, an entity registered in England and Wales. The registered office address is 4th Floor Phoenix House, 1 Station Hill, Reading, Berkshire, United Kingdom, RG1 1NB.
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