Company registration number: 06878814
COMPANY INFORMATION
CONTENTS
STRATEGIC REPORT
FOR THE PERIOD ENDED 26 DECEMBER 2024
The Directors present their strategic review of Healthy Retail Limited (“the Company” or “Pure”) for the 52-week period ending 26 December 2024.
The Company trades as Pure. The Company is a multi-channel business with activities as a food-to-go retailer; caterer for meetings and conferences; and food-to-go wholesaler. Pure’s retail sites specialise in breakfast, lunch and coffee from prime locations in central London and transport hubs. Pure’s delivered-in catering business provides food for meetings, events and conferences. And Pure’s wholesale business specialises in locations where customers are on-the-go or at work
2024 and 2025 have seen the transformation of Pure from a multi-site to a multi-channel business. Pure ends 2025 with retail, catering and wholesale business streams, all in growth and all with lots more opportunities in 2026. Not since the end of 2019 has Pure entered a new year with such strong momentum.
2024 was the first year of the transformation to a multichannel business, which included the formal launch of Pure ‘food for business’ services. After four years of Covid-related impact, the decision was taken in September 2023 to diversify the business. This meant finding new investors, closing unprofitable shops and launching new business streams. This allowed the business to go from several years of significant losses to Adjusted EBITDA breakeven in 2024. This strong performance has continued into 2025, which will be the best EBITDA performance since 2019. And although Pure ended 2024 with three less retail sites than at the end of 2023, this did not stop company sales growing 6% to £23,552,820.
The turnaround in 2024 was even more impressive as it was still impacted by tube and rail strikes, as well as significant inflation. But the remarkable efforts of the Pure team to grow sales, find efficiencies and push ahead with the diversification of the business meant that 2024 was a very successful year.
The most impressive growth came from Pure’s delivered-in catering business. This grew to over £5,000,000 in 2024. Pure’s market-leading menu, the strength of the brand and the unrivalled customer service in this business channel, remains a core strength.
By the end of 2024, the business had also taken its first steps into wholesale, producing longer-life products which can then be sold by other companies. This included the huge team effort to get a SALSA license for Pure’s Central Kitchen in Q4 2024. This business channel has flourished in 2025 with new branding and a new range of products.
The shops continue to be the backbone of the business. It is the part of the brand that is most well known. Nothing is more emblematic of this recognition than Pure’s on-going success in major transport hubs, including Waterloo Station and Gatwick Airport. Pure’s core mission to create moments of joy when people are on the move is most significant in these locations.
2024 was the first year of the transformation to a multichannel business, which included the formal launch of Pure ‘food for business’ services. After four years of Covid-related impact, the decision was taken in September 2023 to diversify the business. This meant finding new investors, closing unprofitable shops and launching new business streams. This allowed the business to go from several years of significant losses to Adjusted EBITDA breakeven in 2024. This strong performance has continued into 2025, which will be the best EBITDA performance since 2019. And although Pure ended 2024 with three less retail sites than at the end of 2023, this did not stop company sales growing 6% to £23,552,820.
The turnaround in 2024 was even more impressive as it was still impacted by tube and rail strikes, as well as significant inflation. But the remarkable efforts of the Pure team to grow sales, find efficiencies and push ahead with the diversification of the business meant that 2024 was a very successful year.
The most impressive growth came from Pure’s delivered-in catering business. This grew to over £5,000,000 in 2024. Pure’s market-leading menu, the strength of the brand and the unrivalled customer service in this business channel, remains a core strength.
By the end of 2024, the business had also taken its first steps into wholesale, producing longer-life products which can then be sold by other companies. This included the huge team effort to get a SALSA license for Pure’s Central Kitchen in Q4 2024. This business channel has flourished in 2025 with new branding and a new range of products.
The shops continue to be the backbone of the business. It is the part of the brand that is most well known. Nothing is more emblematic of this recognition than Pure’s on-going success in major transport hubs, including Waterloo Station and Gatwick Airport. Pure’s core mission to create moments of joy when people are on the move is most significant in these locations.
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STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 26 DECEMBER 2024
For the first time in five years, the risks and uncertainties that the Company faces are starting to diminish. Whilst the trading environment remains challenging, there is far more stability and certainty and measures to mitigate risks are as follows:
Government policy & tax changes
Changes to Employers National Insurance contributions in April 2025 was a significant cost increase for Pure (and every other hospitality business). But the Company does not expect any further significant changes to tax policy over the next 12 months.
Inflation and interest rates
Rapid inflation and the subsequent increase in interest rates has reduced disposable income for consumers over the last few years. But inflation is now gradually coming down, along with interest rates. The Company anticipates this trend continuing with some prices, such as electricity, coming down in 2026.
Working From Home
The one very significant change in consumer behaviour since the impact of Covid-19 is where people work. This has not changed significantly over the last 12 months but there is a gradual movement back to the office, particularly for larger companies, and the Company expects to see more people returning to offices over the next 12 months.
Travel strikes
Tube and train strikes impacted Pure in 2024. Other than a tube strike in September 2025, this has also largely stopped in 2025. The Company is hopeful that the worst is now behind us.
Credit & liquidity
On 22/12/2023, all shares of Healthy Retail Limited (HRL) were purchased by Healthy Retail Group Limited (HRGL). As part of the new investment structure, £1.5m was loaned to HRL on 22/12/2023, £1.5m was provided on 05/12/2024 and £0.5m on 22/12/25.
Supply chain
The Company is proud to serve the highest quality food and drink. If there were a fall in the standard of the goods supplied, or availability of products by the Company's supply chain partners, then there would be disruption and/or loss to the business. The Company continues to carefully select partners in this area that share its values to meet the high expectations set.
People
The Company’s employees are its key asset. The Company continues to review pay from Team Member to General Manager level and rewards staff with remuneration that benchmarks strongly when compared with the wider industry. The Company consults regularly with its employees via regular team meetings. It also holds an annual employee feedback survey and shares a weekly newsletter.
Government policy & tax changes
Changes to Employers National Insurance contributions in April 2025 was a significant cost increase for Pure (and every other hospitality business). But the Company does not expect any further significant changes to tax policy over the next 12 months.
Inflation and interest rates
Rapid inflation and the subsequent increase in interest rates has reduced disposable income for consumers over the last few years. But inflation is now gradually coming down, along with interest rates. The Company anticipates this trend continuing with some prices, such as electricity, coming down in 2026.
Working From Home
The one very significant change in consumer behaviour since the impact of Covid-19 is where people work. This has not changed significantly over the last 12 months but there is a gradual movement back to the office, particularly for larger companies, and the Company expects to see more people returning to offices over the next 12 months.
Travel strikes
Tube and train strikes impacted Pure in 2024. Other than a tube strike in September 2025, this has also largely stopped in 2025. The Company is hopeful that the worst is now behind us.
Credit & liquidity
On 22/12/2023, all shares of Healthy Retail Limited (HRL) were purchased by Healthy Retail Group Limited (HRGL). As part of the new investment structure, £1.5m was loaned to HRL on 22/12/2023, £1.5m was provided on 05/12/2024 and £0.5m on 22/12/25.
Supply chain
The Company is proud to serve the highest quality food and drink. If there were a fall in the standard of the goods supplied, or availability of products by the Company's supply chain partners, then there would be disruption and/or loss to the business. The Company continues to carefully select partners in this area that share its values to meet the high expectations set.
People
The Company’s employees are its key asset. The Company continues to review pay from Team Member to General Manager level and rewards staff with remuneration that benchmarks strongly when compared with the wider industry. The Company consults regularly with its employees via regular team meetings. It also holds an annual employee feedback survey and shares a weekly newsletter.
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STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 26 DECEMBER 2024
The Company income statement for the 52 weeks ending 26 December 2024 is set out on page 11.
Operating loss decreased for the period to £1,232,508 (2023: loss of £1,806,829). With the year-on-year sales increase of 6% (2023: 11%) and a stable GP margin of 38.5% (2023: 38.5%) the improved operating loss demonstrates the improving business performance.
Loss for the financial period decreased to £1,391,283 (2023: loss of £3,022,593). Cash at bank as of 26 December 2024 was £1,327,154 (2023: £2,207,064).
The financial loss includes £0.45m of one-off costs or costs related to closed shops; £0.75m of depreciation and amortisation; and £0.16m in interest payments. The Adjusted EBITDA, excluding these costs, was breakeven in 2024. This improvement in EBITDA has continued into 2025.
Operating loss decreased for the period to £1,232,508 (2023: loss of £1,806,829). With the year-on-year sales increase of 6% (2023: 11%) and a stable GP margin of 38.5% (2023: 38.5%) the improved operating loss demonstrates the improving business performance.
Loss for the financial period decreased to £1,391,283 (2023: loss of £3,022,593). Cash at bank as of 26 December 2024 was £1,327,154 (2023: £2,207,064).
The financial loss includes £0.45m of one-off costs or costs related to closed shops; £0.75m of depreciation and amortisation; and £0.16m in interest payments. The Adjusted EBITDA, excluding these costs, was breakeven in 2024. This improvement in EBITDA has continued into 2025.
This report was approved by the board and signed on its behalf.
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DIRECTORS' REPORT
FOR THE PERIOD ENDED 26 DECEMBER 2024
The directors present their report and the financial statements for the period ended 26 December 2024.
The directors have prepared the financial statements to 26 December 2024 to fall in line with the company's management accounting function, which uses a four-four-five weekly reporting cycle.
The directors are responsible for preparing the Strategic Report, 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 loss for the period, after taxation, amounted to £1,391,283 (2023 -loss £3,022,593).
The directors do not recommend the payment of a dividend (2023: £nil).
The directors who served during the period were:
Following Covid-19 related disruption in 2020, 2021 and 2022 and the ongoing strike action in 2022, 2023 and 2024 Pure has taken the decision to pivot the business strategy and focus on its growing B2B business. Whilst it is imperative to maintain a strong retail presence with profitable stores, the Company will focus on growing the B2B sales.
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DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 26 DECEMBER 2024
The Company finances its operations through a mixture of operating profits and, where necessary to fund expansion of capital expenditure programmes, bank and shareholder borrowings. Management's objectives are to:
∙retain sufficient liquid funds to enable it to meet its obligations as they fall due whilst maximising returns on sufficient funds, and
∙match the repayment schedule of any external borrowings or overdrafts with the future cash flows expected to arise from the Company's trading activities
The Company's surplus funds are held primarily in short term variable rate deposit accounts, which allows the Company to release cash resources at short notice if required. Deposits are with a reputable bank and the Directors believe their choice of bank minimises any credit risk.
The Company's Coronavirus Business Interruption Loan is linked to the Bank of England base rate, the carrying value at the at the balance sheet date was £2,091,549 (2023: £2,300,000). All other borrowings carry fixed interest charges.
Credit risk
The Company provides credit terms to a small number of regular customers. Aged debts are reviewed regularly, and if required credit terms are withdrawn until outstanding amounts are paid. Given the value of exposure and the effective credit control procedures in place, management consider the overall credit risk exposure to be low. There were a small amount of bad debt write-offs and no provisions made in the current or prior year.
The Company's Coronavirus Business Interruption Loan is linked to the Bank of England base rate, the carrying value at the at the balance sheet date was £2,091,549 (2023: £2,300,000). All other borrowings carry fixed interest charges.
Credit risk
The Company provides credit terms to a small number of regular customers. Aged debts are reviewed regularly, and if required credit terms are withdrawn until outstanding amounts are paid. Given the value of exposure and the effective credit control procedures in place, management consider the overall credit risk exposure to be low. There were a small amount of bad debt write-offs and no provisions made in the current or prior year.
Pure consults with employees via regular team meetings. An annual employee feedback survey is also held and a weekly newsletter is shared with teams across the Company.
against its Directors.
Details of principal activities have been disclosed in the strategic report.
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DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 26 DECEMBER 2024
Post year end an additional loan of £0.5m has been provided to the Company on 22/12/2025 in order to support its working capital requirements.
Following the year end – and in-line with the Company’s strategy - three stores were closed. One of these was loss-making and the net book value of the fixed assets in this store was nil as it was fully impaired in a previous year. The other two stores had a NBV of £44,631 at the year end.
This report was approved by the board and signed on its behalf.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HEALTHY RETAIL LIMITED
We have audited the financial statements of Healthy Retail Limited (the 'Company') for the period ended 26 December 2024, which comprise the Income Statement, the Statement of Financial Position, the Statement of Changes in Equity 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 draw attention to going concern disclosure note 2.3. As stated within these notes, the Company has net liabilities and there is significant doubt over its ability to continue as 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 evaluation of the directors' assessment of the Company's ability to continue to adopt the going concern basis of accounting included discussion with management their plans for the
future and working capital requirements. We reviewed management's forecasts and resources in place to continue to trade
as a going concern.
future and working capital requirements. We reviewed management's forecasts and resources in place to continue to trade
as a going concern.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's 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.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HEALTHY RETAIL LIMITED (CONTINUED)
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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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HEALTHY RETAIL 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 Auditor's 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:
The company is subject to laws and regulations that directly affect the financial statements including financial reporting
legislation. We determined that the following laws and regulations were most significant including:
The company is subject to laws and regulations that directly affect the financial statements including financial reporting
legislation. We determined that the following laws and regulations were most significant including:
∙FRS 102
∙Companies Act 2006
∙Tax Legislation
∙Employment Legislation
We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial
statement items.
We understood how the Company is complying with those legal and regulatory frameworks by, making inquiries to
management, those responsible for legal and compliance procedures and the company secretary. We corroborated our
inquiries through our review of board minutes.
The engagement director assessed whether the engagement team collectively had the appropriate competence and
capabilities to identify or recognize non-compliance with laws and regulations. The assessment did not identify any issues in
this area.
We assessed the susceptibility of the Company's financial statements to material misstatement, including how fraud might
occur. We considered the opportunities and incentives that may exist within the organisation for fraud and identified the
greatest potential for fraud in the following areas:
statement items.
We understood how the Company is complying with those legal and regulatory frameworks by, making inquiries to
management, those responsible for legal and compliance procedures and the company secretary. We corroborated our
inquiries through our review of board minutes.
The engagement director assessed whether the engagement team collectively had the appropriate competence and
capabilities to identify or recognize non-compliance with laws and regulations. The assessment did not identify any issues in
this area.
We assessed the susceptibility of the Company's financial statements to material misstatement, including how fraud might
occur. We considered the opportunities and incentives that may exist within the organisation for fraud and identified the
greatest potential for fraud in the following areas:
∙Posting of unusual journals and complex transactions
∙Management bias in the calculation of impairment provisions
∙Incorrect capitalisation of fixed assets resulting in an overstatement of fixed assets
∙Overstatement of income due to fictitious sales
As a result of the above, audit procedures performed by the engagement team included:
∙Identifying and assessing the measures management has in place to prevent and detect fraud;
∙Understanding how those charged with governance considered and addressed the potential for override of
controls or other inappropriate influence over the financial reporting process;
∙Challenging assumptions and judgments made by management in its significant accounting estimates.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HEALTHY RETAIL 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 Auditor's 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 Auditor's 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 Auditor
4th Floor
95 Gresham Street
EC2V 7AB
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INCOME STATEMENT
FOR THE PERIOD ENDED 26 DECEMBER 2024
Page 11
STATEMENT OF FINANCIAL POSITION
AS AT 26 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 14 to 31 form part of these financial statements.
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STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 26 DECEMBER 2024
Page 13
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 26 DECEMBER 2024
Healthy Retail Limited (6878814) is private company, limited by shares, and incorporated in England and Wales. The principal place of business and the registered office is 100 Moorgate, London, EC2M 6AB.
The principal activity of the company is disclosed in the Strategic Report on page 1.
The principal activity of the company is disclosed in the Strategic Report on page 1.
2.Accounting policies
The principal accounting policy has been set out below. These policies have been applied consistently to all
years reviewed, unless otherwise stated.
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 financial statements cover the 52 week period ending 26 December 2024.
The preparation of the financial statements is 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. These areas involving a higher degree of judgment or complexity, or areas where uncertainty or estimates are significant to the financial statements are disclosed in note 3.
The presentation currency is Pound Sterling.
years reviewed, unless otherwise stated.
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 financial statements cover the 52 week period ending 26 December 2024.
The preparation of the financial statements is 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. These areas involving a higher degree of judgment or complexity, or areas where uncertainty or estimates are significant to the financial statements are disclosed in note 3.
The presentation currency is Pound Sterling.
The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
∙the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of Healthy Retail Group Limited as at 26 December 2024 and these financial statements may be obtained from Companies House.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 26 DECEMBER 2024
2.Accounting policies (continued)
The ability of the Group and Company to continue as a going concern depends on them being able to continue in operation and meet their liabilities as they fall due for a period of at least 12 months (the Assessment Period) from the date these financial statements are authorised for issue.
Assessment and Financial modelling
The Directors have prepared budgets, trading estimates and cash flow forecasts, covering the Assessment Period, alongside longer-term forecasts, internal and external considerations and market context to identify events or conditions that may cast significant doubt upon the continuing use of the going concern basis of accounting. The Directors have also prepared a sensitivity analysis by changing the most critical assumptions to assess impact on forecasts.
The most significant assumptions made by the Directors in preparing the forecasts were the level of sales volume growth within each of the multi-channel strategies, working capital profiles of the business and levels of cost inflation. Each of these assumptions requires the Directors to exercise significant judgement. The Directors have considered reasonable downside performance scenarios to satisfy themselves that in each scenario the going concern assumption is not broken.
Strategic backdrop and current trading
During 2025, the Directors implemented a multi-channel strategy to promote growth, increase efficiency and improve predictability of trading. Execution of this strategy in 2025 has started to deliver tangible and significant improvements in financial performance compared to prior periods. The Directors also note improving predictability of sales generated from the wholesale and corporate catering business lines, compared to a single store line of business where there is less predictability of sales volumes. As a result, based on data from trading under the new strategy the Directors are confident that this trend of improvement will continue into 2026 and beyond, alongside a belief that the major risks facing the business can be mitigated by planned actions.
Market backdrop
UK inflation is falling giving more stability to the cost base and less pressure to increase prices, which in turn should stabilise customer purchasing. Bank base rates are also falling and predicted to fall further, which should improve all customer lines of business and reduce pressures on our suppliers to increase costs. Whilst we are cautious in our outlook for a general return of employees to offices, we are beginning to see encouraging signs of workers having more of an office presence than in the last five years which should improve or at least stabilise store sales volumes. As a result, whilst the Directors acknowledge the risks inherent in the quick service food industry and have planned accordingly, there are signs that the general macroeconomic environment is at least stabilising and possibly improving.
Supportive shareholders
Based on trading in 2025 following adoption of the multi-channel strategy, the Directors were able to raise £0.5m of new funding from shareholders in December 2025, which provides the Directors with confidence that the major shareholder supports the strategic actions being taken and the future of the business. Whilst there is always risk associated with a refinancing event, given the progress of the business, the recent successful raise and the improvement in trading thus far, the Directors do not consider there to be a material uncertainty concerning availability of financing.
Conclusion
Whilst the Company enters 2026 with sufficient funding to meeting its obligations in a range of reasonable trading scenarios, the principal risks and uncertainties section of this report highlights a range of items where uncertainty and risk remains elevated, and this may create material uncertainty regarding the company’s ability to continue as a going concern in more severe downside scenarios.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 26 DECEMBER 2024
2.Accounting policies (continued)
The company sells a range of products including food, beverages and catering services net of VAT and trade discounts. Revenue from the sale of food and beverages are recognised at the point of sale and revenue from catering services are recognised on delivery of the products.
Intangible assets are initially recognised at cost. Once recognised, they 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 five years.
Development Expenditure have estimated useful life of 3 -10 years. Development Expenditure relates to costs incurred for design and project management of the implementation of menu boards, new software and websites.
Trademarks have estimated useful life of 3 - 10 years. Trademarks relates to costs incurred for design and project management of the Pure brand.
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 five years.
Development Expenditure have estimated useful life of 3 -10 years. Development Expenditure relates to costs incurred for design and project management of the implementation of menu boards, new software and websites.
Trademarks have estimated useful life of 3 - 10 years. Trademarks relates to costs incurred for design and project management of the Pure brand.
The Company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the Company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.
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 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.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 26 DECEMBER 2024
2.Accounting policies (continued)
Grants of a revenue nature are recognised in the Income Statement in the same period as the related expenditure.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.
At each reporting date, inventories are assessed for impairment. If inventory 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.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 26 DECEMBER 2024
2.Accounting policies (continued)
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.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other
accounts receivable and payable, are initially measured at present value of the future cash flows and
subsequently at amortised cost using the effective interest method. Debt instruments that are payable or
receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at
the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the
arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt
deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the
financial asset or liability is measured, initially at the present value of future cash flows discounted at a market
rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan
from a director in the case of a small company, or a public benefit entity concessionary loan.
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 Income Statement.
For financial assets measured at amortised cost, the impairment loss is measured as the difference between
an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original
effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any
impairment loss is the current effective interest rate determined under the contract.
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.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other
accounts receivable and payable, are initially measured at present value of the future cash flows and
subsequently at amortised cost using the effective interest method. Debt instruments that are payable or
receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at
the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the
arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt
deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the
financial asset or liability is measured, initially at the present value of future cash flows discounted at a market
rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan
from a director in the case of a small company, or a public benefit entity concessionary loan.
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 Income Statement.
For financial assets measured at amortised cost, the impairment loss is measured as the difference between
an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original
effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any
impairment loss is the current effective interest rate determined under the contract.
Page 18
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 26 DECEMBER 2024
2.Accounting policies (continued)
Page 19
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 26 DECEMBER 2024
Provision for impairment of tangible and intangible assets
FRS 102 requires management to assess at each reporting date where there are events or changes in circumstances that indicate the carrying amount of tangible and intangible assets may not be recoverable. Management will carry out an impairment test if there are indicators of impairment. This is a complex area involving management judgement. Further details of intangible and tangible assets can be seen in note 13 and 14.
Analysis of turnover by country of destination:
Page 20
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 26 DECEMBER 2024
Page 21
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 26 DECEMBER 2024
The Company has trading losses carried forward of £16,289,665 (2023: £15,293,032) to set off against future profits of the same trade.
Page 22
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 26 DECEMBER 2024
Page 23
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 26 DECEMBER 2024
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Page 24
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 26 DECEMBER 2024
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Page 25
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 26 DECEMBER 2024
Page 26
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 26 DECEMBER 2024
HP liabilities and finance lease obligations are secured upon the assets to which they relate.
The Company received a bank loan of £3,000,000 under the Coronavirus Business Interruption Loan Scheme (CBILS). The loan is repayable in July 2030. The loan is charged at a floating interest rate of 1.94% plus the base rate. Under the terms of the CBILS loan the interest is payable by the UK Government for the first 12 months of the loan. The loan is secured by way of an unlimited debenture.
The Company received a bank loan of £3,000,000 under the Coronavirus Business Interruption Loan Scheme (CBILS). The loan is repayable in July 2030. The loan is charged at a floating interest rate of 1.94% plus the base rate. Under the terms of the CBILS loan the interest is payable by the UK Government for the first 12 months of the loan. The loan is secured by way of an unlimited debenture.
Page 27
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 26 DECEMBER 2024
Page 28
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 26 DECEMBER 2024
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Page 29
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 26 DECEMBER 2024
Share premium account
This reserve records the amount above the nominal value received for shares sold, less transaction costs.
Profit and loss account
This reserve records retained earnings and accumulated Profit/Losses.
This reserve records the amount above the nominal value received for shares sold, less transaction costs.
Profit and loss account
This reserve records retained earnings and accumulated Profit/Losses.
A prior year adjustment of £180,222 has been recorded to correct the depreciation expense, which was understated in previous periods.
The company operates a defined contribution pension scheme. The assets of the company 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 £103,280 (2023: £105,232).
The pension cost charge represents contributions payable by the company to the fund and amounted to £103,280 (2023: £105,232).
Page 30
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 26 DECEMBER 2024
Following the year end – and in-line with the Company’s strategy - three stores were closed. One of these was loss-making and the net book value of the fixed assets in this store was nil as it was fully impaired in a previous year. The other two stores had a NBV of £44,631 at the year end.
Page 31