REGISTERED NUMBER: 01723893 (England and Wales)

Strategic Report,

Report of the Director and

Financial Statements

for the Year Ended 31 March 2025

for

Adil Catering Limited

Page

Company Information

1

Strategic Report

2

Report of the Director

3

Report of the Independent Auditors

6

Income Statement

8

Other Comprehensive Income

9

Balance Sheet

10

Statement of Changes in Equity

11

Notes to the Financial Statements

12

DIRECTOR:

M Adil

REGISTERED OFFICE:

34-36 London Road

Wembley

Middlesex

HA9 7EX

REGISTERED NUMBER:

01723893 (England and Wales)

AUDITORS:

Wright Vigar Limited

Statutory Auditors

Chartered Accountants & Business Advisers

15 Newland

Lincoln

Lincolnshire

LN1 1XG

We aim to present a balanced and comprehensive review of the development and performance of the business during the year and our position at the year end by reflection of the size and non-complex nature of the business.

REVIEW OF BUSINESS

During the year the company continued to operate as a Burger King franchisee and investment property business.

Turnover in the year decreased from £15,868,830 to £15,248,801, despite the majority of stores within the company's portfolio performing well with strong sales.

Despite the inflationary pressures on food, beverages and packing materials EBITDA has increased to £1,472,286 (2024: £999,588), with gross profit margins also increasing from 34.8% to 37.6%.

Rental income in the year increased from £288,939 to £572,962. Net assets at the balance sheet date amounted to £21,602,330 (2024: £20,986,658).

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks of the company are changes in consumer spending habits, the entry of new competitors within geographical areas in which the company operates and changes in government controls and policies towards the fast food industry. The company continues to monitor this and Burger King has continued to evolve its menu and set appropriate recommended prices.

Other Risks

The Director continues to assess risks arising from food and wage inflation by budgeting and reducing wastage and targeting sales growth to counter act reducing margins.

FINANCIAL KEY PERFORMANCE INDICATORS

Financial Key Performance Indicators for the stores are the level of turnover, gross profit and EBITDA.

Turnover: £15,248,801 (2024: £15,868,830)

Gross profit: £5,727,949 (2024: £5,528,807)

EBITDA: £1,472,286 (2024: £999,588)

Rental income: £572,962 (2024: £288,939)

OTHER KEY PERFORMANCE INDICATORS

The principal non-financial key performance indicator is the performance against inspections by Burger King, and the company continues to achieve satisfactory gradings overall.

ON BEHALF OF THE BOARD:

M Adil - Director

15 December 2025

The director presents his report with the financial statements of the company for the year ended 31 March 2025.

PRINCIPAL ACTIVITY

The principal activity of the company is that of operating as a Burger King franchisee.

DIVIDENDS

No dividends will be distributed for the year ended 31 March 2025.

FUTURE DEVELOPMENTS

Stores will continue to be refurbished in order to meet Burger King's guidelines and remain at a high standard.

DIRECTORS

M Adil has held office during the whole of the period from 1 April 2024 to the date of this report.

Other changes in directors holding office are as follows:

Ms I Adil ceased to be a director after 31 March 2025 but prior to the date of this report.

FINANCIAL INSTRUMENTS

The company uses a variety of financial instruments, including cash, inter-company debt and trade creditors that arise from its operations. The main purpose of these financial instruments are to provide working capital for the company's operations.

The company is financed with appropriate short-term and long-term finance to match the need of the business and enable the company to utilise its working capital in the most effective way.

ENGAGEMENT WITH EMPLOYEES

The company's policy is to consult and discuss with employees, at meetings, matters likely to affect employees' interests.

Information of matters of concern to employees is given through the information bulletins and reports which seeks to achieve a common awareness on the part of all employees of the financial economic factors affecting the company's performance.

Disabled employees

The company's policy to recruit disabled workers for those vacancies that they are able to fill. All necessary assistance with initial training courses is given. Once employed, a career plan is developed to ensure suitable opportunities for each disabled person. Arrangements are made, wherever possible, for retraining employees who become disabled, to enable them to perform work identified as appropriate to their aptitudes and abilities.

STREAMLINED ENERGY AND CARBON REPORTING

The reporting period is the most recent financial year 01/04/2024 to 31/03/2025. This report has been compiled in line with the March 2019 BEIS 'Environmental Reporting Guidelines: Including streamlined energy and carbon reporting guidance', and the EMA methodology for SECR reporting. All measured emissions from activities which the organisation has financial control over are included as required under The Companies (Director's Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018, unless otherwise stated in the exclusions statement.

The carbon figures have been calculated using the DESNZ 2024 carbon conversion factors for all fuels, other than the market based electricity which has been taken from EDF as the UK supplier.

The Company's greenhouse gas emissions and energy consumption are as follows:

Scope

Description

Emissions Source

tCO2e

2024/25

2023/24

Scope 1

Combustion of fuel on

On Site: Natural Gas

Location based

205

225

site and transportation

Market based

205

225

Scope 2

Purchased energy

Electricity, EV

Location based

501

548

Market based

326

360

Scope 3

Indirect emissions

Employee Business

Location based

-

-

Mileage

Market based

-

-

Total

Location based

706

773

Market based

532

585

Intensity

tCO2e / £m Turnover

Location based

46.58

48.73

Ratio

Market based

35.09

14.21

Energy

Total kWh consumed

Electricity, Natural Gas, Diesel, EV

3,531,204

3,871,632

Ratio

Renewable %

Electricity

35%

Year on Year Emissions Changes

- Adil Catering Ltd's location based emissions decreased from 773 tCO2e in 2023/24 to 706 tCO2e in 2024/25, this is an emissions reduction of 8.7%.

- Scope 1 emissions decreased from 225 tCO2e in 2023/24 to 205 tCO2e in 2024/25, this is an emissions reduction of 8.8%. This is due to a reduction in natural gas consumption. Natural gas consumption decreased from 1,207,874 kWh in 2023/24 to 1,083,759 kWh in 2024/25. This resulted in an emissions reduction of 23 tCO2e associated with natural gas consumption.

- Scope 1 transport (petrol & diesel) emissions increased from 4 tCO2e in 2023/24 to 7 tCO2e in 2024/25.

- Scope 2 electricity consumption decreased from 2,646,498 kWh in 2023/24 to 2,417,007 kWh in 2024/25, an 8.6% reduction in consumption. Scope 2 location based emissions were thus reduced from 548 tCO2e in 2023/24 to 501 tCO2e in 2024/25. This is consistent with market based emissions which also decreased from 360 tCO2e in 2023/24 to 326 tCO2e in 2024/25.

- Adil Catering Ltd report their intensity ratio on a turnover basis. Emissions per £m turnover decreased from 48.73 tCO2e/£m turnover in 2023/24 to 46.58 tCO2e/£m turnover in 2024/25.

Energy Efficiency Actions taken

- The company has implemented strict opening and closing procedures to reduce energy wastage and further work is ongoing to deliver efficiencies every year as per our ESOS submissions last month.

DISCLOSURE IN THE STRATEGIC REPORT

Information previously included in the directors' report in respect of the business review, key performance indicators and principal risks and uncertainties can now be found in the strategic report in accordance with S414C(11) of the Companies Act 2006.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:

-	select suitable accounting policies and then apply them consistently;

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

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

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

The director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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 director is 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 he 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, Wright Vigar Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

M Adil - Director

15 December 2025

Opinion

We have audited the financial statements of Adil Catering Limited (the 'company') for the year ended 31 March 2025 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and 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 March 2025 and of its profit for the year then ended;

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

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

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's 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 director with respect to going concern are described in the relevant sections of this report.

Other information

The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, 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 Director 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 Director 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 Director.

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 director's remuneration specified by law are not made; or

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

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page four, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has 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:

Our work is performed to include an assessment of the susceptibility of the entity's financial statements to material misstatement, including the risk of fraud. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK).

In identifying and assessing risk of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

-

We plan our work to gain an understanding of the significant laws and regulations that are of significance to the entity and the sector in which they operate. We perform our work to ensure that the entity is complying with its legal and regulatory framework.

-

We obtained an understanding of how the company is complying with those legal and regulatory frameworks by making inquiries to the management and people charged with governance.

We assessed the susceptibility of the Company's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:

-

Substantive procedures performed in accordance with the ISAs (UK).

-

Challenging assumptions and judgments made by management in its significant accounting estimates.

-

Identifying and testing journal entries, in particular material journal entries and an assessment of year end journals.

-

Assessing the extent of compliance with the relevant laws and regulations.

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.

Paul Colcomb FCCA (Senior Statutory Auditor)

for and on behalf of Wright Vigar Limited

Statutory Auditors

Chartered Accountants & Business Advisers

15 Newland

Lincoln

Lincolnshire

LN1 1XG

15 December 2025

TURNOVER

3

15,248,801

15,868,830

Cost of sales

9,520,852

10,340,023

GROSS PROFIT

5,727,949

5,528,807

Administrative expenses

5,216,722

5,181,570

511,227

347,237

Other operating income

4

572,962

288,939

OPERATING PROFIT

6

1,084,189

636,176

Interest receivable and similar income

84,966

92,095

1,169,155

728,271

Interest payable and similar expenses

7

259,173

353,779

PROFIT BEFORE TAXATION

909,982

374,492

Tax on profit

8

294,310

98,667

PROFIT FOR THE FINANCIAL YEAR

615,672

275,825

PROFIT FOR THE YEAR

615,672

275,825

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

615,672

275,825

FIXED ASSETS

Intangible assets

9

291,027

317,255

Tangible assets

10

7,340,600

7,245,521

Investments

11

15,000

15,000

Investment property

12

11,160,000

11,160,000

18,806,627

18,737,776

CURRENT ASSETS

Stocks

13

44,852

65,827

Debtors

14

6,320,970

6,920,842

Cash at bank and in hand

4,429,269

4,666,181

10,795,091

11,652,850

CREDITORS

Amounts falling due within one year

15

2,727,020

4,061,791

NET CURRENT ASSETS

8,068,071

7,591,059

TOTAL ASSETS LESS CURRENT LIABILITIES

26,874,698

26,328,835

CREDITORS

Amounts falling due after more than one year

16

(3,478,834

)

(3,618,552

)

PROVISIONS FOR LIABILITIES

19

(1,793,534

)

(1,723,625

)

NET ASSETS

21,602,330

20,986,658

CAPITAL AND RESERVES

Called up share capital

20

100

100

Revaluation reserve

21

941,151

941,151

Retained earnings

21

20,661,079

20,045,407

SHAREHOLDERS' FUNDS

21,602,330

20,986,658

The financial statements were approved by the director and authorised for issue on 15 December 2025 and were signed by:

M Adil - Director

Called up

share

Retained

Revaluation

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 April 2023

100

19,749,931

960,802

20,710,833

Changes in equity

Total comprehensive income

-

295,476

(19,651

)

275,825

Balance at 31 March 2024

100

20,045,407

941,151

20,986,658

Changes in equity

Total comprehensive income

-

615,672

-

615,672

Balance at 31 March 2025

100

20,661,079

941,151

21,602,330

1.	STATUTORY INFORMATION

Adil Catering 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 as modified by the revaluation of certain assets.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows.

Preparation of consolidated financial statements

The financial statements contain information about Adil Catering Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent, Adil Restaurants Limited, 34-36 London Road, Wembley, Middlesex HA9 7EX.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Turnover

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before turnover is recognised:

Sale of goods

Revenue from the sale of food, beverages and merchandise is recognised at the point of sale.

Rental income

Rental income from operating leases and investment properties is recognised on a straight-line basis over the term of the lease. The aggregate cost of incentives provided to lessees is recognised as a reduction of rental income over the lease term on a straight-line basis. Rental revenue recognition commences when the tenant takes possession or controls the physical use of the leased space.

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

The estimated useful lives range as follows:

Franchise fee - 10 and 20 years

Tangible fixed assets

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

Land and Buildings

-

2% on cost

Short leasehold

-

Over the term of the lease - 10-20 years

Fixtures and fittings

-

20% on reducing balance

Motor vehicles

-

25% on reducing balance

Land is not depreciated. Depreciation on other assets is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight line and reducing balance 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.

Revaluation of tangible fixed assets

FRS 102 grants certain first-time adoption exemptions from the full requirements of FRS 102.

Fair value revaluation at transition date has been used as deemed cost for freehold land and buildings. No further revaluations of tangible fixed assets will be undertaken by the company.

Investment property

Investment properties are properties which are held either to earn rental income or for capital appreciation or for both. Investment properties are recognised initially at cost.

Subsequent to initial recognition investment properties are carried at fair value determined annually by company directors and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in the Statement of comprehensive income.

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

Financial instruments

The Company only enters into basic financial instrument transactions that result 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.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income.

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an 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.

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Balance Sheet date, except that:

- The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

- Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

Creditors

Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Provisions for liabilities

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.

Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Balance Sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.

When payments are eventually made, they are charged to the provision carried in the Balance Sheet.

Judgments in applying accounting policies and key sources of estimation uncertainty

In the process of applying its accounting policies, the company is required to make certain estimates, judgments and assumptions that it believes are reasonable based on the information available.These judgments, estimates and assumptions affect the amounts of assets and liabilities at the date of the financial statements and the amounts of revenues and expenses recognised during the reporting periods presented.

On an ongoing basis, the group evaluates its estimate using historical experience, consultation with experts and other methods considered reasonable in the particular circumstances. Actual results may differ significantly from the estimates, the effect of which is recognised in the period in which the facts that give rise to the revision become known.

- Tangible fixed assets

The estimated useful economic lives of tangible fixed assets are based on management's judgment and experience. When management identifies that actual useful economic lives differ materially from the estimates used to calculate depreciation, that charge is adjusted prospectively.

- Valuation of investment properties

The Directors exercise judgment in their valuation of investment properties. Valuations are derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset.

- Dilapidation Provisions

The Directors make a best estimate of the expected future dilapidation costs based on historic costs, each store's size and nature.

3.

TURNOVER

All turnover arose within the United Kingdom and relates to the operation of the Burger King stores.

4.	OTHER OPERATING INCOME

2025

2024

£

£

Rents received

572,962

288,939

5.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

4,038,584

4,155,989

Social security costs

152,108

225,763

Other pension costs

44,268

250,316

4,234,960

4,632,068

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

2025

2024

Head office staff

1

2

Restaurant staff

278

313

279

315

2025

2024

£

£

Directors' remuneration

48,550

42,571

Directors' pension contributions to money purchase schemes

20,000

120,000

Key Management Personnel

During the year there were two key management personnel other than directors. The company paid remuneration of £50,000 (2024: £50,000); made contributions to their personal pension schemes of £7,708 (2024: £59,750) and paid healthcare benefits of £24,671 (2024: £26,625).

6.	OPERATING PROFIT

The operating profit is stated after charging:

2025

2024

£

£

Depreciation - owned assets

361,870

337,184

Franchise fees amortisation

26,228

26,226

Auditors' remuneration

29,125

27,766

Auditors' remuneration for non audit work

2,250

2,100

7.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Bank interest

9,686

2,580

Bank loan interest

249,487

351,199

259,173

353,779

8.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2025

2024

£

£

Current tax:

UK corporation tax

224,401

98,667

Deferred tax

69,909

-

Tax on profit

294,310

98,667

UK corporation tax has been charged at 25% (2024 - 25%).

Reconciliation of total tax charge 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:

2025

2024

£

£

Profit before tax

909,982

374,492

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2024 - 25%)

227,496

93,623

Effects of:

Expenses not deductible for tax purposes

7,801

12,020

Capital allowances in excess of depreciation

(10,896

)

(6,976

)

Deferred tax

69,909

-

Total tax charge

294,310

98,667

From 1 April 2023, the Corporation Tax main rate for profits will be increased to 25% applying to profits over £250,000. This will effect the company's corporation tax charges accordingly.

9.	INTANGIBLE FIXED ASSETS

Franchise

fees

£

COST

At 1 April 2024

475,070

Disposals

(17,492

)

At 31 March 2025

457,578

AMORTISATION

At 1 April 2024

157,815

Amortisation for year

26,228

Eliminated on disposal

(17,492

)

At 31 March 2025

166,551

NET BOOK VALUE

At 31 March 2025

291,027

At 31 March 2024

317,255