REGISTERED NUMBER: 07402025 (England and Wales)

Group Strategic Report,

Report of the Directors and

Consolidated Financial Statements

for the Year Ended 31 March 2025

for

Adil Restaurants Limited

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

7

Consolidated Income Statement

9

Consolidated Other Comprehensive Income

10

Consolidated Balance Sheet

11

Company Balance Sheet

12

Consolidated Statement of Changes in Equity

13

Company Statement of Changes in Equity

14

Consolidated Cash Flow Statement

15

Notes to the Consolidated Cash Flow Statement

16

Notes to the Consolidated Financial Statements

17

DIRECTORS:

M Adil

R J Adil

REGISTERED OFFICE:

34-36 London Road

Wembley

Middlesex

HA9 7EX

REGISTERED NUMBER:

07402025 (England and Wales)

AUDITORS:

Wright Vigar Limited

Statutory Auditors

Chartered Accountants & Business Advisers

15 Newland

Lincoln

Lincolnshire

LN1 1XG

The directors present their strategic report of the company and the group for the year ended 31 March 2025.

We aim to present a balances 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 £15,248,800, 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 £21,602,328 (2024: £20,986,656).

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.

SECTION 172(1) STATEMENT

The board of directors of Adil Restaurants Limited consider that they have fulfilled their individual and collective duty under section 172(1) of the Companies Act 2006 to act in the way that they consider, in good faith, would be most likely to promote the success of the Group for the benefit of shareholders as a whole and in doing so, have regard to a number of broader matters which are set out below.

Adil Restaurants Limited is a holding company whose main operating subsidiary is Adil Catering Limited. Adil Restaurant's success is entirely dependent on the success of Adil Catering Limited.

The group'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 group's performance.

The Group engages with suppliers on terms appropriate to its size and pays supplier invoices promptly.

The Group relies on strong customer satisfaction and scorings. Customer service and engagement is key for the Group's long term success and we measure customer satisfaction on their feedback to us both in store and online. The Director's give regular feedback to Burger King to provide suggestions which it feels will assist in meeting customer needs.

Community engagement by staff is encouraged and a number of staff are actively engaged with projects within their own communities. The Group seeks to engage with its local community and regularly donates to UK charities.

The Group is responsible for compiling and rolling out key regional policies that are applicable for our colleagues and suppliers, and include key risk coverage. Our major policies include: Code of Conduct, Anti-Bribery and Corruption Policy, Health and Safety Policy and Data Protection Policy.

Beyond this, our Environmental Policy outlines our commitment to compliance and to improving performance across key areas such as energy and carbon, waste and packaging and water usage.

FINANCIAL KEY PERFORMANCE INDICATORS

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

Turnover: £15,248,800 (2024: £15,868,830)

Gross profit: £5,727,948 (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 directors present their report with the financial statements of the company and the group for the year ended 31 March 2025.

DIVIDENDS

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

The profit for the year, after taxation, amounted to £615,672 (2024: £275,824).

The Directors have recommended that no dividends are payable in respect of the current year's trading results.

FUTURE DEVELOPMENTS

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

DIRECTOR

M Adil 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:

R J Adil was appointed as 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.

ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS

The Group engages with suppliers on terms appropriate to its size and pays supplier invoices promptly.

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 Group'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 DIRECTORS' RESPONSIBILITIES

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

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

-	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 directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group'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 Restaurants Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2025 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 31 March 2025 and of the group's 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 group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

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

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

Other information

The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

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

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

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

-	the parent company financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

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

Responsibilities of directors

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

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

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

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

15,248,800

15,868,830

Cost of sales

9,520,852

10,340,023

GROSS PROFIT

5,727,948

5,528,807

Administrative expenses

5,216,721

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

353,780

PROFIT BEFORE TAXATION

909,982

374,491

Tax on profit

8

294,310

98,667

PROFIT FOR THE FINANCIAL YEAR

615,672

275,824

Profit attributable to:

Owners of the parent

615,672

275,824

PROFIT FOR THE YEAR

615,672

275,824

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

615,672

275,824

Total comprehensive income attributable to:

Owners of the parent

615,672

275,824

FIXED ASSETS

Intangible assets

10

291,027

317,255

Tangible assets

11

7,340,599

7,245,520

Investments

12

-

-

Investment property

13

11,160,000

11,160,000

18,791,626

18,722,775

CURRENT ASSETS

Stocks

14

44,852

65,827

Debtors

15

6,320,970

6,920,842

Cash at bank and in hand

4,430,269

4,667,181

10,796,091

11,653,850

CREDITORS

Amounts falling due within one year

16

2,727,021

4,061,792

NET CURRENT ASSETS

8,069,070

7,592,058

TOTAL ASSETS LESS CURRENT LIABILITIES

26,860,696

26,314,833

CREDITORS

Amounts falling due after more than one year

17

(3,478,834

)

(3,618,552

)

PROVISIONS FOR LIABILITIES

21

(1,793,534

)

(1,723,625

)

NET ASSETS

21,588,328

20,972,656

CAPITAL AND RESERVES

Called up share capital

22

100

100

Revaluation reserve

23

941,151

941,151

Retained earnings

23

20,647,077

20,031,405

SHAREHOLDERS' FUNDS

21,588,328

20,972,656

The financial statements were approved by the Board of Directors and authorised for issue on 15 December 2025 and were signed on its behalf by:

M Adil - Director

FIXED ASSETS

Intangible assets

10

-

-

Tangible assets

11

-

-

Investments

12

100

100

Investment property

13

-

-

100

100

TOTAL ASSETS LESS CURRENT LIABILITIES

100

100

CAPITAL AND RESERVES

Called up share capital

22

100

100

SHAREHOLDERS' FUNDS

100

100

Company's profit for the financial year

-

-

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Board of Directors and authorised for issue on 15 December 2025 and were signed on its behalf by:

M Adil - Director

Called up

share

Retained

Revaluation

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 April 2023

100

19,735,930

960,802

20,696,832

Changes in equity

Total comprehensive income

-

295,475

(19,651

)

275,824

Balance at 31 March 2024

100

20,031,405

941,151

20,972,656

Changes in equity

Total comprehensive income

-

615,672

-

615,672

Balance at 31 March 2025

100

20,647,077

941,151

21,588,328

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2023

100

-

100

Changes in equity

Balance at 31 March 2024

100

-

100

Changes in equity

Balance at 31 March 2025

100

-

100

Cash flows from operating activities

Cash generated from operations

1

919,035

(108,103

)

Interest paid

(259,173

)

(353,780

)

Tax paid

(295,952

)

(212,814

)

Net cash from operating activities

363,910

(674,697

)

Cash flows from investing activities

Purchase of intangible fixed assets

-

(53,063

)

Purchase of tangible fixed assets

(456,949

)

(475,343

)

Interest received

84,966

92,095

Net cash from investing activities

(371,983

)

(436,311

)

Cash flows from financing activities

Loan repayments in year

(148,360

)

(44,592

)

Net cash from financing activities

(148,360

)

(44,592

)

Decrease in cash and cash equivalents

(156,433

)

(1,155,600

)

Cash and cash equivalents at beginning of year

2

4,575,834

5,731,434

Cash and cash equivalents at end of year

2

4,419,401

4,575,834

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

2025

2024

£

£

Profit before taxation

909,982

374,491

Depreciation charges

388,097

363,410

Finance costs

259,173

353,780

Finance income

(84,966

)

(92,095

)

1,472,286

999,586

Decrease/(increase) in stocks

20,975

(9,638

)

Decrease/(increase) in trade and other debtors

599,872

(1,156,462

)

(Decrease)/increase in trade and other creditors

(1,174,098

)

58,411

Cash generated from operations

919,035

(108,103

)

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 March 2025

31.3.25

1.4.24

£

£

Cash and cash equivalents

4,430,269

4,667,181

Bank overdrafts

(10,868

)

(91,347

)

4,419,401

4,575,834

Year ended 31 March 2024

31.3.24

1.4.23

£

£

Cash and cash equivalents

4,667,181

5,731,434

Bank overdrafts

(91,347

)

-

4,575,834

5,731,434

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.24

Cash flow

At 31.3.25

£

£

£

Net cash

Cash at bank and in hand

4,667,181

(236,912

)

4,430,269

Bank overdrafts

(91,347

)

80,479

(10,868

)

4,575,834

(156,433

)

4,419,401

Debt

Debts falling due within 1 year

(116,210

)

8,642

(107,568

)

Debts falling due after 1 year

(3,618,552

)

139,718

(3,478,834

)

(3,734,762

)

148,360

(3,586,402

)

Total

841,072

(8,073

)

832,999

1.	STATUTORY INFORMATION

Adil Restaurants 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 General 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.

Basis of consolidation

The consolidated financial statements present the results of the company and its own subsidiaries ("the group") as if they form a single entity. The intercompany transactions and balances between group companies are therefore eliminated in full.

The consolidated financial statements incorporate the results of business combinations using the purchase method. In the balance sheet, the acquiree's identifiable assets, liabilities, contingent liabilities are initially recognised at their values at the acquisition date. The results of acquired operations are included in the consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.

In accordance with the transitional exemption available in FR102, the group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS102, being 01 April 2014.

Turnover

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the group 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 group 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

Franchise fees are recorded at cost and amortised between 10 and 20 years on a straight line basis