1.
General Information
Black Country Traditional Inns Limited
is a private company, limited by shares, incorporated in England & Wales, registered number
07110351
. The registered office is Sovereign House, 12 Warwick Street, Coventry, West Midlands, CV5 6ET.
The company's head office is located at 69 Third Avenue, Pensnett Trading Estate, Kingswinford, West Midlands, DY6 7FD.
The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £.
The significant accounting policies applied in the preparation of these financial statements are set out below.
These policies have been consistently applied to all years presented unless otherwise stated.
2.
Accounting Policies
2.1.
Basis of Preparation of Financial Statements
The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.
2.2.
Financial Reporting Standard 102 - Reduced Disclosure Exemptions
The company has taken advantage of the following disclosure exemptions 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 and Section 3 Financial Statement Presentation paragraph 3.17 (d).
2.3.
Going Concern Disclosure
The directors have not identified any material uncertainties related to events or conditions that may cast significant doubt about the company's ability to continue as a going concern.
2.4.
Significant judgements and estimations
Many of the amounts included in the financial statements involve the use of judgement and/or estimation. These judgements and estimates are based on management's best knowledge of the relevant facts and circumstances, having regard to prior experience, but actual results may differ from the amounts included in the financial statements. Information about such judgements and estimation is contained in these accounting policies and/or the notes to the financial statements and the key areas are summarised below:
Judgements in applying accounting policies
There are no judgements (apart from those involving estimates) that have been made in the process of applying these accounting policies that have had a significant effect on amounts recognised in the financial statements.
Sources of estimation uncertainty
Depreciation rates are based on estimates of the useful lives and residual values of the assets involved (see the Tangible fixed assets accounting policy).
2.5.
Turnover
Turnover from the sale of bar purchases is recognised when significant risks and rewards of ownership of the goods have transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transaction can be measured reliably. This is usually on point of sale.
Income from accommodation sales is recognised at the same time as the customers' stay.
2.6.
Intangible Fixed Assets and Amortisation - Intellectual Property
Intellectual property assets are trade marks to protect the Black Country Ales name. It is amortised to the profit and loss account over its estimated economic life of 10 years.
Black Country Traditional Inns Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 December 2025
2.7.
Tangible Fixed Assets and Depreciation
The company initially recognises fixed assets at cost.
The company is not responsible for the property improvements on the properties it leases from it's parent company. These improvement costs, if initially suffered by the company, are subsequently recharged to the parent company at cost. The company is, however, responsible for property improvement costs on properties it leases from other third parties outside the group.
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life:
|
Improvements to property
|
straight line over 5 years for minor refurbishments, straight line over 7 years for major refurbishments or over the lease term if shorter
|
|
Leasehold
|
Over the lease term
|
|
Plant & Machinery
|
25% on reducing balance
|
|
Motor Vehicles
|
25% on reducing balance
|
|
Fixtures & Fittings
|
25% on reducing balance
|
|
Computer Equipment
|
25% on reducing balance
|
2.8.
Leasing and Hire Purchase Contracts
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.
2.9.
Stocks and Work in Progress
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.
2.10.
Cash and Cash Equivalents
Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks, other short-term highly liquid investments that mature in no more than three months from the date of acquisition and are readily convertible to a known amount of cash with insignificant risk of change in value, and bank overdrafts.
2.11.
Taxation
Income tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.
Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and assets reflect the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Current and deferred tax are recognised in profit or loss for the year, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case current and deferred tax are recognised in other comprehensive income or directly in equity respectively.
2.12.
Employee Benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.
Black Country Traditional Inns Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 December 2025
3.
Turnover
Analysis of turnover by geographical market is as follows:
| 2025 | 2024 | ||
|---|---|---|---|
| £ | £ | ||
| United Kingdom |
|
|
|
| 24,785,819 | 22,322,714 | ||
4.
Operating Profit
The operating profit is stated after charging:
| 2025 | 2024 | ||
|---|---|---|---|
| £ | £ | ||
| Operating lease rentals |
|
|
|
| Depreciation of tangible fixed assets |
|
|
|
5.
Auditor's Remuneration
Remuneration received by the company's auditors and their associates during the year was as follows:
| 2025 | 2024 | ||
|---|---|---|---|
| £ | £ | ||
| Audit Services | |||
| Audit of the company's financial statements |
|
|
|
6.
Staff Costs
Staff costs, including directors' remuneration, were as follows:
| 2025 | 2024 | ||
|---|---|---|---|
| £ | £ | ||
| Wages and salaries |
|
|
|
| Social security costs |
|
|
|
| Other pension costs |
|
|
|
|
|
|
||
7.
Average Number of Employees
Average number of employees, including directors, during the year was as follows:
| 2025 | 2024 | ||
|---|---|---|---|
| Office and administration |
|
|
|
| Production |
|
|
|
| Directors |
|
|
|
| Management |
|
|
|
|
|
|
||
Black Country Traditional Inns Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 December 2025
8.
Director's remuneration
| 2025 | 2024 | ||
|---|---|---|---|
| £ | £ | ||
| Emoluments |
|
|
|
9.
Interest Receivable and Similar Income
| 2025 | 2024 | ||
|---|---|---|---|
| £ | £ | ||
| Bank interest receivable |
|
|
|
10.
Interest Payable and Similar Charges
| 2025 | 2024 | ||
|---|---|---|---|
| £ | £ | ||
| Bank loans and overdrafts |
|
|
|
| Other finance charges | - |
|
|
| 129,480 | 114,153 | ||
11.
Tax on Profit
The tax charge on the profit for the year was as follows:
| Tax Rate | 2025 | 2024 | |||
|---|---|---|---|---|---|
| 2025 | 2024 | £ | £ | ||
| Current tax | |||||
| UK Corporation Tax | 25.0% | 25.0% |
|
|
|
| Prior period adjustment |
( |
( |
|||
|
|
|
||||
| Deferred Tax | |||||
| Origination and reversal of timing differences |
|
|
|||
| Total tax charge for the period |
|
|
|||
The actual charge for the year can be reconciled to the expected charge for the year based on the profit and the standard rate of corporation tax as follows:
| 2025 | 2024 | ||||
|---|---|---|---|---|---|
| £ | £ | ||||
| Profit before tax | 4,963,404 | 4,099,508 | |||
| Tax on profit at 25% (UK standard rate) |
|
|
|||
| Expenses not deductible for tax purposes |
|
|
|||
| Short term timing differences |
|
|
|||
| Prior period adjustment |
( |
( |
|||
| Total tax charge for the period | 1,291,793 | 1,035,109 | |||
Black Country Traditional Inns Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 December 2025
The expectation is that the following deferred tax balances will reverse in the next financial year. For accelerated tax allowances this relates to the tax on depreciation that will be charged in excess of tax allowances to be claimed in the year to 31st December 2026 on the specific assets on the balance sheet at 31st December 2025 that are eligible for tax allowances. For pension payment timing differences, this relates to the tax deduction expected to be due following payment of pension accruals:
|
2026
|
|
|
£
|
|
|
Accelerated tax allowances - reduction to liability
|
290,017
|
|
Pension payment timing differences - reduction to asset
|
(18,334)
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|
|
Total - reduction in liability expected in 2026
|
271,683
![image](data:image/svg+xml;utf8,<svg xmlns="http://www.w3.org/2000/svg" viewBox="0 0 80 5" preserveAspectRatio="none"> <line x1="0" y1="1" x2="80" y2="1" stroke="black" shape-rendering="crispEdges"/> <line x1="0" y1="4" x2="80" y2="4" stroke="black" shape-rendering="crispEdges"/> </svg>){kind=small}
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12.
Intangible Assets
| Intellectual Property | |||
|---|---|---|---|
| £ | |||
| Cost | |||
| As at 1 January 2025 |
|
||
| Additions |
|
||
| As at 31 December 2025 |
|
||
| Net Book Value | |||
| As at 31 December 2025 |
|
||
| As at 1 January 2025 |
|
||
13.
Tangible Assets
| Land & Property | ||||
|---|---|---|---|---|
| Improvements to property | Leasehold | Plant & Machinery | Motor Vehicles | |
| £ | £ | £ | £ | |
| Cost | ||||
| As at 1 January 2025 |
|
|
|
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| Additions |
|
|
|
|
| Disposals |
( |
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( |
|
| As at 31 December 2025 |
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| Depreciation | ||||
| As at 1 January 2025 |
|
|
|
|
| Provided during the period |
|
|
|
|
| Disposals |
( |
|
( |
|
| As at 31 December 2025 |
|
|
|
|
| Net Book Value | ||||
| As at 31 December 2025 |
|
|
|
|
| As at 1 January 2025 |
|
|
|
|
Black Country Traditional Inns Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 December 2025
| Fixtures & Fittings | Computer Equipment | Total | |
|---|---|---|---|
| £ | £ | £ | |
| Cost | |||
| As at 1 January 2025 |
|
|
|
| Additions |
|
|
|
| Disposals |
( |
( |
( |
| As at 31 December 2025 |
|
|
|
| Depreciation | |||
| As at 1 January 2025 |
|
|
|
| Provided during the period |
|
|
|
| Disposals |
( |
( |
( |
| As at 31 December 2025 |
|
|
|
| Net Book Value | |||
| As at 31 December 2025 |
|
|
|
| As at 1 January 2025 |
|
|
|
14.
Stocks
| 2025 | 2024 | ||
|---|---|---|---|
| £ | £ | ||
| Stock |
|
|
|
The replacement cost of stocks is not materially different from the value stated above.
15.
Debtors
| 2025 | 2024 | ||
|---|---|---|---|
| £ | £ | ||
| Due within one year | |||
| Trade debtors |
|
|
|
| Prepayments and accrued income |
|
|
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| Other debtors |
|
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| Assets under construction |
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16.
Creditors: Amounts Falling Due Within One Year
| 2025 | 2024 | ||
|---|---|---|---|
| £ | £ | ||
| Trade creditors |
|
|
|
| Amounts owed to group undertakings |
|
|
|
| Other creditors | 116,164 | 72,387 | |
| Corporation tax |
|
|
|
| Taxation and social security | 583,681 | 444,513 | |
| Accruals and deferred income | 275,070 | 328,511 | |
|
|
|
||
Black Country Traditional Inns Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 December 2025
In addition to the cross guarantees in the Other committments note, Natwest bank still hold a debenture over all the assets of this company.
17.
Deferred Taxation
The provision for deferred tax is made up as follows:
| 2025 | 2024 | ||
|---|---|---|---|
| £ | £ | ||
| Accelerated capital allowances |
|
|
|
| Other timing differences | (18,334) | (10,000) | |
|
|
|
||
18.
Provisions for Liabilities
| Deferred Tax | Total | |
|---|---|---|
| £ | £ | |
| As at 1 January 2025 |
|
571,938 |
| Origination and reversal of timing differences |
|
|
| Balance at 31 December 2025 |
|
723,473 |
20.
Contingent Liabilities
A group VAT registration is in place with parent company BCTI Holdings Limited, therefore both companies are jointly responsible for the VAT liabilties.
21.
Other Commitments
The total of future minimum lease payments under non-cancellable operating leases are as following:
| 2025 | 2024 | ||
|---|---|---|---|
| £ | £ | ||
| Not later than one year |
|
|
|
| Later than one year and not later than five years |
|
|
|
| Later than five years |
|
|
|
|
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|
||
The company has also provided Natwest bank with a cross-guarantee on the borrowings of BCTI Holdings Limited. Whilst the total of these guarantees is £11,876,000, the loans outstanding in BCTI Holdings Limited at 31st December 2025 totalled only £2,594.
22.
Pension Commitments
The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund.
During the year the charge to the profit and loss account in respect of defined contribution schemes was £113,078 (2024: £103,968).
At the balance sheet date contributions of £73,334 (2024: £40,000) were due to the fund and are included in creditors.
Black Country Traditional Inns Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 December 2025
23.
Dividends
| 2025 | 2024 | ||
|---|---|---|---|
| £ | £ | ||
| On equity shares: | |||
| Interim dividend paid |
|
|
|
24.
Related Party Disclosures
The company has taken advantage of exemption, under 33.1A of the Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland", not to disclose transactions with wholly owned subsidiaries within the group.
25.
Controlling Parties
The company's parent undertaking is
BCTI Holdings Limited
.
Its registered office is
Sovereign House, 12 Warwick Street, Coventry, CV5 6ET
.
Copies of the group accounts may be obtained from the company's registered office.
The company's controlling party is
Mr A McMeeking
by virtue of their interest in the share capital of the group.