Registration number:
Blades Restaurants Ltd
for the Year Ended 31 December 2025
Blades Restaurants Ltd
Contents
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Company Information |
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Strategic Report |
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Director's Report |
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Statement of Director's Responsibilities |
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Independent Auditor's Report |
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Income Statement |
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Statement of Financial Position |
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Statement of Changes in Equity |
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Statement of Cash Flows |
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Notes to the Financial Statements |
Blades Restaurants Ltd
Company Information
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Director |
J D Nicholls |
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Company secretary |
T Nicholls |
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Registered office |
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Accountants |
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Auditors |
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Blades Restaurants Ltd
Strategic Report for the Year Ended 31 December 2025
The director presents his strategic report for the year ended 31 December 2025.
Principal activity
The principal activity of the company is an operator of a group of McDonald's restaurants.
Fair review of the business
The results for the year and the financial position at the end of the year are shown in the annexed financial statements. The director aims to present a fair review of the development and performance of the company during the year under review and of its position at the end of the year.
The principal activity of the company during the year continued to be a franchise operator of a group of McDonald’s restaurants.
During the year digital sales via McDelivery, mobile apps and self-order kiosks have continued to increase as the company seeks to make the food ordering process ever more customer friendly. The company has continued to invest in the business and in the development and training of its employees, as well as continued investment in IT and store equipment.
As an operator of a group of McDonald's restaurants the director considers the company's key performance indicators to be turnover and gross profit. Turnover for the year decreased by 10%, in part due to the sale of one of the company's stores. The company also recorded a decrease in gross profit of 8.6%, due mainly to increases in food, labour and utility costs. Net profit for the year before taxation amounted to £432,671, compared to £533,544 in the previous year.
The director believes that the trading environment in which the company operates will continue to be challenging but remain optimistic regarding future trading and is committed to increasing both future turnover and profitability and to continuing the company’s reinvestment program.
Principal risks and uncertainties
The company operates in a highly competitive market with high levels of price sensitivity. Consumer behaviour can impact the company's turnover and profitability. The company continually assesses these risks and mitigates them by adopting a policy of constantly assessing its pricing strategy with ongoing market research.
The company remains exposed to periods of food cost inflation together with the variability of commodity prices both of which impact on profitability. The company continually assesses any risks identified, with the aim of mitigating the threats these may have on the company's operations and profitability. The company's supply chain is closely maintained by McDonald's, who endeavour to negotiate effectively on behalf of all franchisees to ensure better purchasing terms. This helps as much as possible to protect the company from risks associated with fluctuating food costs.
The company is also inherently exposed to pressures within the labour market and to wage cost inflation. The company mitigates this risk by a policy of adopting remuneration and benefits packages designed to be competitive within the market as well as ensuring full compliance with labour market regulations, with employment policies to allow fulfilling career opportunities for all employees.
By its very nature, the Q.S.R. market is extremely competitive, with large numbers of companies operating in the sector. In order to remain at the forefront of this industry, McDonald’s have dedicated teams whose focus is on ensuring they remain the leading brand in the market.
Blades Restaurants Ltd
Strategic Report for the Year Ended 31 December 2025
Section 172(1) statement
The success of the Company is the driving factor behind all decisions made by the Director. Decision making processes are structured to enable the Director to evaluate the merit of proposed business activities and the likely consequences of decisions taken over the short, medium and long term. The director remains mindful that any strategic decisions taken can have long term implications for the business and its stakeholders, and these implications are carefully assessed. An example of this is in decisions taken relating to capital investment in terms of possible new store acquisitions and equipment upgrades.
Our people are key to our success. That is why we endeavour to create jobs and opportunities for all our people, regardless of gender, age, or life stage that enhance their work experience. Understanding how our employees feel about McDonald’s is vital. The director takes active steps to ensure that the suggestions, views and interests of the workforce are incorporated and considered as part of any decision-making process, helping to ensure that our employees are given the right support to help achieve their potential. We have developed various employee communication channels such as OurLounge, MyStuff and the McDonald’s UK Intranet, which provide weekly operations updates, employee assistance programs and a means for employees to share ideas and feedback. We also conduct regular surveys into our employee’s job satisfaction and how they feel about their role in the company. We encourage and provide access to online learning and development, as well as providing our people with a mobile friendly platform to manage their own data, holidays, time off and access to view their wage slips.
Our customers are the reason for our existence and we therefore strive to provide high quality food with superior service in a clean and welcoming environment, all at an exceptional value. Long-term commitment to supply McDonald’s UK, has enabled our suppliers to grow with us and drive positive change within their own businesses.
The director carefully considers the impact of the business on communities and the environments in which the company operates. We arrange regular litter collections in the local area around our restaurants. Recycling units are installed around our restaurants and our paper cups are sent to specialist recycling centres in the UK. We endeavour to help our customers build communities, support charitable organisations, and use our size, scope and resources to help make local communities and the environment a better place.
In all our activities the director requires that employees and suppliers conduct business with the highest ethical and professional standards by adhering to our Standards of Business Conduct set by McDonald’s Corporation.
Approved and authorised by the
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Blades Restaurants Ltd
Director's Report for the Year Ended 31 December 2025
The director presents his report and the financial statements for the year ended 31 December 2025.
Director of the company
The director who held office during the year was as follows:
Results and dividends
The profit for the year, after taxation, amounted to £272,840 (2024 - profit £371,038).
During the year, dividends paid amounted to £495,000 (2024: £1,150,000). The directors do not recommend the payment of a final dividend.
Financial instruments
Objectives and policies
The company’s principle financial instruments comprise bank balances, trade creditors and bank loans. The main purpose of these instruments is to finance the company’s operations and to ensure the smooth running of the company’s operations.
Due to the nature of the financial instruments used by the company there is no exposure to price risk.
In respect of bank balances, the liquidity risk is managed by maintaining a balance to ensure the continuity of trading, through the use of detailed cash flow analysis, forecasts and projections which are regularly updated. In addition, the company has access to overdraft facilities from its bankers which are repayable on demand, should the business require them.
In respect of bank loans, these are provided by financial institutions. The interest rate on these loans is variable, although usually the monthly repayments are fixed. The company manages the liquidity risk by ensuring that there are sufficient funds to meet the payments through the constant review and updating of cashflow forecasts. The interest rate is managed through regular reviews of current and expected future interest rates.
Trade creditor liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.
Price risk, credit risk, liquidity risk and cash flow risk
The main risks arising from the company's financial instruments are interest risk and liquidity risk. The board reviews and agrees policies for managing each of these risks and they are summarised below.
Interest rate risk
The company's exposure to market risk for changes in interest rates is limited to bank loans. The additional requirement for medium to long term debt will be reviewed by the directors based on the company's forecast requirements.
Liquidity risk
The company's objective is to maintain a balance between continuity of funding and flexibility through the use of cash and bank loans.
Blades Restaurants Ltd
Director's Report for the Year Ended 31 December 2025
Employment of disabled persons
The company operates an equal opportunities policy in all areas of recruitment and seeks to offer suitable work and training wherever practicable to persons with disabilities. The policy of the company is to ensure that disabled applicants are given full and fair consideration having regards to their particular aptitudes and abilities. Existing disabled employees are given equal access to appropriate training, career development and promotion opportunities within the company. In the event of employees becoming disabled while in the employment of the company, all reasonable means are explored to achieve retention in employment in the same or an alternative capacity.
Employee involvement
The company aims to promote a working environment free from harassment, victimisation, bullying and discrimination. The company regards all employees as members of a team, where opinions are valued, and everyone is regarded as equal in status and treated with fairness and respect.
The company's recruitment procedures are intended to ensure that employees are selected, promoted, and treated according to their ability and that everyone has an equal opportunity to receive training and development.
The company communicates regularly with all employees on matters relating to its performance, with employees encouraged to contribute to the decision-making process through regular staff meetings and quarterly surveys. In addition, there are bulletin boards in each restaurant and Workplace by Meta is used to communicate memoranda relating to company policy. There is also an online portal known as MyStuff, which contains news and information for McDonald's employees.
Streamlined Energy and Carbon Reporting
Governance
Streamlined Energy and Carbon Reporting (SECR) is a mandatory regulatory requirement for all quoted, large unquoted and large Limited Liability Partnerships (LLPs), in the UK.
It covers financial reporting years starting on 1st of April 2019, or after this date.
Reporting obligations for unquoted largecompanies covers UK energy use and GHG emissions for:
• Electricity
• Gas
• Transport fuel
Other material Scope 1 and 2 emissions are also expected to be included.
This report summarizes Blades Restaurants Ltdenergy usage, their associated emissions, energy efficiency narrative, reporting and estimation methodology.
Blades Restaurants Ltdis a private limited company, focusing on operating quick service restaurants. As such, it is obliged to report its energy, emissions and energy efficiency actions on an annual basis, through SECR.
GHG emissions decreased by 24% from 1,342.66 tCO₂e in 2024 to 1,026.25 tCO₂e in 2025, mainly due to lower electricity, natural gas, and refrigerant emissions. Significant reductions across these key sources more than offset the relatively small contribution from transport and waste emissions, resulting in a substantial overall decrease compared with the previous year.
Blades Restaurants Ltd
Director's Report for the Year Ended 31 December 2025
Strategy
During the reporting period, the company continued to focus on improving energy efficiency and reducing carbon emissions
The company has implemented a range of energy efficiency measures, including LED lighting throughout the premises, energy-efficient kitchen equipment, programmable HVAC controls, preventative maintenance of refrigeration and HVAC systems, smart metering to monitor energy consumption and operational procedures to minimise unnecessary energy use. Where available, electricity is sourced from renewable energy tariffs, and the business continually reviews opportunities to improve energy efficiency and reduce carbon emissions.
Location-based emissions were calculated using energy consumption data obtained from utility suppliers. Market-based Scope 2 emissions reflect renewable electricity supported by REGOs supplied by Npower.
Transport emissions were calculated using mileage data provided for employee-owned diesel vehicles and vehicles with an unknown fuel type. Mileage data was reported on an annual basis, and emissions were calculated using the corresponding vehicle and fuel-type emission factors.
Refrigerant data is collected through a survey conducted twice a year. This biannual data collection provides the basis for calculating refrigerant emissions throughout the reporting year.
The methodology is consistent with the 2025 edition of the UK Government GHG Conversion Factors for Company Reporting.
Blades Restaurants Ltdis a private company. The company has no branches that operate outside of the UK. It is eligible to report under SECR based ontwoof the three qualifying conditions:
• Turnover is exceeding £36 million;
• Balance sheet total of £18 million or more;
• Employee numbers exceed 250.
The company is the only reporting entity, and owner of all disclosed energy and emissions. Reporting was done based on an operational boundary.
Blades Restaurants Ltd
Director's Report for the Year Ended 31 December 2025
Emissions and energy consumption
Summary of greenhouse gas emissions and energy consumption for the year ended 31 December 2025:
|
Emissions source |
2024 |
2025 |
% share |
% change |
|
Electricity |
1053 |
828 |
81% |
-21% |
|
Natural Gas |
114 |
83 |
8% |
-27% |
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Refrigerants |
79 |
27 |
3% |
-67% |
|
Transportation - direct |
4 |
0 |
0% |
-100% |
|
Transportation - indirect |
93 |
88 |
8% |
-5% |
|
Total Emissions (tCO2e) |
1,343 |
1,026 |
100% |
-24% |
|
Turnover (£'000) |
40,535 |
38,562 |
-5% |
|
|
Intensity (tCO2e per £'000) |
0.0331 |
0.0266 |
-20% |
|
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Energy consumption (kWh) |
||||
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Electricity |
5,086,887 |
4,680,379 |
91% |
-8% |
|
Natural Gas |
620,775 |
454,089 |
9% |
-27% |
|
Transportation |
15,847 |
5,966 |
0.1% |
-62% |
|
Total |
5,723,509 |
5,140,434 |
100% |
-10% |
|
Intensity (kWh per £'000) |
141 |
133 |
-6% |
|
Disclosure of information to the auditors
The director has taken steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. The director confirms that there is no relevant information that he knows of and of which he knows the auditors are unaware.
Reappointment of auditors
The auditors Manex Accountants Ltd are deemed to be reappointed under section 487(2) of the Companies Act 2006.
Approved and authorised by the
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Blades Restaurants Ltd
Statement of Director's Responsibilities
The director acknowledges his responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the director is required to:
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select suitable accounting policies and apply them consistently; |
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• |
make judgements and accounting estimates that are reasonable and prudent; |
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• |
state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable him to ensure that the financial statements comply with the Companies Act 2006 and in accordance with FRS 102. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Blades Restaurants Ltd
Independent Auditor's Report to the Members of Blades Restaurants Ltd
Opinion
We have audited the financial statements of Blades Restaurants Ltd (the 'company') for the year ended 31 December 2025, which comprise the Income Statement, Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
• | give a true and fair view of the state of the company's affairs as at 31 December 2025 and of its profit for the year then ended; |
• | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.
Other information
The director are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
Blades Restaurants Ltd
Independent Auditor's Report to the Members of Blades Restaurants Ltd
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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• |
the information given in the Strategic Report and Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
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• |
the Strategic Report and Director's Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our 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 and the Director's Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the financial statements are not in agreement with the accounting records and returns; or |
• | certain disclosures of director's remuneration specified by law are not made; or |
• | we have not received all the information and explanations we require for our audit. |
Responsibilities of the director
As explained more fully in the Statement of Director's Responsibilities [set out on page 8], the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the director is responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Blades Restaurants Ltd
Independent Auditor's Report to the Members of Blades Restaurants Ltd
Auditor 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 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.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We obtained an understanding of the legal and regulatory frameworks applicable to the company and the industry in which it operates. We determined that the following laws and regulations were most significant: The Companies Act 2006/FRS 102, Employment Law and Waste, Health and Safety. We enquired of management and those responsible for legal and compliance procedures to obtain an understanding of how the company is complying with those legal and regulatory frameworks and whether they had any knowledge of actual or suspected fraud. We corroborated the results of our enquiries through our discussions with the directors and management. We did not identify any matters relating to non-compliance with laws and regulations or matters in relation to fraud.
In assessing the potential risks of material misstatements, we obtained an understanding of the company’s operations, including its objectives and strategies to understand the expected financial statement disclosures and business risks that may result in risks of material misstatement;
In assessing the appropriateness of the collective competence and capabilities of the engagement team the engagement partner considered the engagement team’s :
Understanding of, and practical experience with, audit engagements of a similar nature and complexity through appropriate training and participation,
The specialist skills required and
Knowledge of the industry in which the client operates.
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:
Assessing the design effectiveness of controls management has in place to prevent and detect fraud;
Challenging assumptions and judgements made by management in its significant accounting estimates;
Identifying and testing journal entries, in particular manual journal entries made at year end for financial statement preparation; and
Assessing the extent of compliance with the relevant laws and regulations as part of our procedures on the related financial statement item.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Blades Restaurants Ltd
Independent Auditor's Report to the Members of Blades Restaurants Ltd
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 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.
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For and on behalf of
Castlegate Way
Dudley
West Midlands
DY1 4RD
Blades Restaurants Ltd
Income Statement for the Year Ended 31 December 2025
|
Note |
2025 |
2024 |
|
|
Turnover |
|
|
|
|
Cost of sales |
( |
( |
|
|
Gross profit |
|
|
|
|
Administrative expenses |
( |
( |
|
|
Other operating income |
|
|
|
|
Operating profit |
|
|
|
|
Other interest receivable and similar income |
|
|
|
|
Interest payable and similar expenses |
( |
( |
|
|
(6,838) |
(19,376) |
||
|
Profit before tax |
|
|
|
|
Taxation |
( |
( |
|
|
Profit for the financial year |
|
|
The above results were derived from continuing operations.
The company has no recognised gains or losses for the year other than the results above.
Blades Restaurants Ltd
(Registration number: 04201937)
Statement of Financial Position as at 31 December 2025
|
Note |
2025 |
2024 |
|
|
Fixed assets |
|||
|
Intangible assets |
|
|
|
|
Tangible assets |
|
|
|
|
Other financial assets |
11,250 |
11,250 |
|
|
|
|
||
|
Current assets |
|||
|
Inventories |
|
|
|
|
Debtors |
|
|
|
|
Cash at bank and in hand |
|
|
|
|
|
|
||
|
Creditors: Amounts falling due within one year |
( |
( |
|
|
Net current assets |
|
|
|
|
Total assets less current liabilities |
|
|
|
|
Creditors: Amounts falling due after more than one year |
- |
( |
|
|
Provisions for liabilities |
( |
( |
|
|
Net assets |
|
|
|
|
Capital and reserves |
|||
|
Called up share capital |
100 |
100 |
|
|
Retained earnings |
1,922,673 |
2,144,833 |
|
|
Shareholders' funds |
1,922,773 |
2,144,933 |
Approved and authorised by the
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Blades Restaurants Ltd
Statement of Changes in Equity for the Year Ended 31 December 2025
|
Share capital |
Retained earnings |
Total |
|
|
At 1 January 2025 |
|
|
|
|
Profit for the year |
- |
|
|
|
Dividends |
- |
( |
( |
|
At 31 December 2025 |
|
|
|
|
Share capital |
Retained earnings |
Total |
|
|
At 1 January 2024 |
|
|
|
|
Profit for the year |
- |
|
|
|
Dividends |
- |
( |
( |
|
At 31 December 2024 |
100 |
2,144,833 |
2,144,933 |
Blades Restaurants Ltd
Statement of Cash Flows for the Year Ended 31 December 2025
|
Note |
2025 |
2024 |
|
|
Cash flows from operating activities |
|||
|
Profit for the year |
|
|
|
|
Adjustments to cash flows from non-cash items |
|||
|
Depreciation and amortisation |
|
|
|
|
Loss/(profit) on disposal of tangible assets |
|
( |
|
|
Profit on disposal of intangible assets |
- |
( |
|
|
Finance income |
( |
( |
|
|
Finance costs |
|
|
|
|
Income tax expense |
|
|
|
|
|
|
||
|
Working capital adjustments |
|||
|
Decrease in inventories |
|
|
|
|
Decrease/(increase) in receivables |
|
( |
|
|
Increase/(decrease) in payables |
|
( |
|
|
Cash generated from operations |
|
|
|
|
Income taxes paid |
( |
( |
|
|
Net cash flow from operating activities |
|
|
|
|
Cash flows from investing activities |
|||
|
Interest received |
|
|
|
|
Acquisitions of tangible assets |
( |
( |
|
|
Proceeds from sale of tangible assets |
- |
|
|
|
Proceeds from sale of intangible assets |
- |
|
|
|
FA investment - unlisted other shares disposals |
- |
1,250 |
|
|
Net cash flows from investing activities |
( |
|
|
|
Cash flows from financing activities |
|||
|
Interest paid |
( |
( |
|
|
Proceeds from other borrowing draw downs |
664,612 |
(427,361) |
|
|
Repayment of bank borrowing |
(212,218) |
(397,693) |
|
|
Dividends paid |
( |
( |
|
|
Net cash flows from financing activities |
( |
( |
|
|
Net increase/(decrease) in cash and cash equivalents |
|
( |
|
|
Cash and cash equivalents at 1 January |
|
|
|
|
Cash and cash equivalents at 31 December |
3,922,762 |
2,696,703 |
|
Blades Restaurants Ltd
Notes to the Financial Statements for the Year Ended 31 December 2025
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General information |
The company is a private company limited by share capital, incorporated in England.
The address of its registered office is:
These financial statements were authorised for issue by the
|
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
Going concern
At the time of approving the financial statements, the director has a reasonable expectation that the company has
adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to
adopt the going concern basis of accounting in preparing the financial statements.
Blades Restaurants Ltd
Notes to the Financial Statements for the Year Ended 31 December 2025
Judgements
In the application of the company's accounting policies, which are described in note 2, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. |
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period of the revision and future periods if the revision affects both current and future periods. |
The following are the critical judgements and key sources of estimation uncertainty that the directors have made in the process of applying the company's accounting policies and that have the most significant effect on the amounts recognised in the financial statements. |
Income taxes |
The company is subject to the corporation tax laws of the United Kingdom. These laws are complex and subject to different interpretations by taxpayers and tax authorities. When establishing corporation tax provisions, the directors make a number of judgments and interpretations about the application and interaction of these laws. Changes in these tax laws or in their interpretation could affect the company's effective tax rate and the results of operations in a given period. |
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.
The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.
Blades Restaurants Ltd
Notes to the Financial Statements for the Year Ended 31 December 2025
Tangible assets
Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
|
Asset class |
Depreciation method and rate |
|
Plant and equipment |
between 3 and 15 years straight line |
|
Office equipment |
3 years straight line |
Goodwill
Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the
company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity
recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently
measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the
currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is
amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be
made.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
|
Asset class |
Amortisation method and rate |
|
Franchise rights |
Straight line over the franchise term |
|
Licence fees |
Straight line over the franchise term |
|
Stamp duty |
Straight line over the franchise term |
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Receivables
Receivables are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Receivables are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of receivables is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
Blades Restaurants Ltd
Notes to the Financial Statements for the Year Ended 31 December 2025
Inventories
Stocks are stated at the lower of average cost and net realisable value. Net realisable value is based on estimated selling price less further costs expected to be incurred prior to completion and disposal.
Payables
Payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Payables are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the income statement over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Blades Restaurants Ltd
Notes to the Financial Statements for the Year Ended 31 December 2025
|
Turnover |
The analysis of the company's revenue for the year from continuing operations is as follows:
|
2025 |
2024 |
|
|
Sale of goods |
|
|
|
Other operating income |
The analysis of the company's other operating income for the year is as follows:
|
2025 |
2024 |
|
|
Miscellaneous other operating income |
|
|
|
Other gains and losses |
The analysis of the company's other gains and losses for the year is as follows:
|
2025 |
2024 |
|
|
(Loss)/gain on disposal of Tangible assets |
( |
|
|
Gain on disposal of intangible assets |
- |
|
|
(5,488) |
267,642 |
|
Operating profit |
Arrived at after charging/(crediting)
|
2025 |
2024 |
|
|
Depreciation expense |
|
|
|
Amortisation expense |
|
|
|
Operating lease expense - property |
|
|
|
Loss/(profit) on disposal of property, plant and equipment |
|
( |
|
Other interest receivable and similar income |
|
2025 |
2024 |
|
|
Other finance income |
|
|
Blades Restaurants Ltd
Notes to the Financial Statements for the Year Ended 31 December 2025
|
Interest payable and similar expenses |
|
2025 |
2024 |
|
|
Interest on bank overdrafts and borrowings |
|
|
|
Staff costs |
The aggregate payroll costs (including director's remuneration) were as follows:
|
2025 |
2024 |
|
|
Wages and salaries |
|
|
|
Social security costs |
|
|
|
Pension costs, defined contribution scheme |
|
|
|
Other employee expense |
|
|
|
|
|
The average number of persons employed by the company (including the director) during the year, analysed by category was as follows:
|
2025 |
2024 |
|
|
Crew labour |
|
|
|
Management labour |
|
|
|
|
|
|
Director's remuneration |
The director's remuneration for the year was as follows:
|
2025 |
2024 |
|
|
Remuneration |
|
|
|
Auditors' remuneration |
|
2025 |
2024 |
|
|
Audit of the financial statements |
|
|
Blades Restaurants Ltd
Notes to the Financial Statements for the Year Ended 31 December 2025
|
Taxation |
Tax charged/(credited) in the income statement
|
2025 |
2024 |
|
|
Current taxation |
||
|
UK corporation tax |
|
|
|
Deferred taxation |
||
|
Arising from origination and reversal of timing differences |
( |
( |
|
Tax expense in the income statement |
|
|
The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2024 - the same as the standard rate of corporation tax in the UK) of
The differences are reconciled below:
|
2025 |
2024 |
|
|
Profit before tax |
|
|
|
Corporation tax at standard rate |
|
|
|
Tax increase (decrease) from effect of capital allowances and depreciation |
|
( |
|
Tax increase (decrease) from effect of expenses not deductible in determining taxable profit or loss |
5,540 |
10,465 |
|
Total tax charge |
|
|
Deferred tax
Deferred tax assets and liabilities
|
2025 |
Asset |
Liability |
|
Accelerated capital allowances |
- |
|
|
- |
|
|
2024 |
Asset |
Liability |
|
Accelerated capital allowances |
- |
|
|
- |
|
Blades Restaurants Ltd
Notes to the Financial Statements for the Year Ended 31 December 2025
|
Intangible assets |
|
Goodwill |
Licence fees |
Stamp duty |
Total |
|
|
Cost or valuation |
||||
|
At 1 January 2025 |
|
|
|
|
|
Disposals |
- |
- |
( |
( |
|
At 31 December 2025 |
|
|
|
|
|
Amortisation |
||||
|
At 1 January 2025 |
|
|
|
|
|
Amortisation charge |
- |
|
|
|
|
Amortisation eliminated on disposals |
- |
- |
( |
( |
|
At 31 December 2025 |
|
|
|
|
|
Carrying amount |
||||
|
At 31 December 2025 |
- |
|
|
|
|
At 31 December 2024 |
- |
|
|
|
|
Tangible assets |
|
Plant and equipment |
Office equipment |
Total |
|
|
Cost or valuation |
|||
|
At 1 January 2025 |
|
|
|
|
Additions |
|
- |
|
|
Disposals |
( |
- |
( |
|
At 31 December 2025 |
|
|
|
|
Depreciation |
|||
|
At 1 January 2025 |
|
|
|
|
Charge for the year |
|
|
|
|
Eliminated on disposal |
( |
- |
( |
|
At 31 December 2025 |
|
|
|
|
Carrying amount |
|||
|
At 31 December 2025 |
|
|
|
|
At 31 December 2024 |
|
|
|
Blades Restaurants Ltd
Notes to the Financial Statements for the Year Ended 31 December 2025
|
Other financial assets (current and non-current) |
|
2025 |
2024 |
|
|
Non-current financial assets |
||
|
Financial assets at cost |
|
|
|
Inventories |
|
2025 |
2024 |
|
|
Closing stocks of food, paper and non-products |
|
|
|
Debtors |
|
Current |
Note |
2025 |
2024 |
|
Receivables |
- |
|
|
|
Amounts owed by related parties |
- |
|
|
|
Other debtors |
|
|
|
|
Prepayments |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
2025 |
2024 |
|
|
Cash on hand |
|
|
|
Cash at bank |
|
|
|
|
|
Blades Restaurants Ltd
Notes to the Financial Statements for the Year Ended 31 December 2025
|
Creditors |
|
Note |
2025 |
2024 |
|
|
Due within one year |
|||
|
Loans and borrowings |
- |
|
|
|
Payables |
|
|
|
|
Amounts due to related parties |
|
- |
|
|
Social security and other taxes |
|
|
|
|
Outstanding defined contribution pension costs |
|
|
|
|
Other payables |
|
|
|
|
Accruals |
|
|
|
|
Income tax liability |
137,057 |
137,776 |
|
|
|
|
||
|
Due after one year |
|||
|
Loans and borrowings |
- |
|
|
Provisions for liabilities |
|
Deferred tax |
Total |
|
|
At 1 January 2025 |
|
|
|
Increase (decrease) in existing provisions |
( |
( |
|
At 31 December 2025 |
|
|
|
|
||
|
Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £
Contributions totalling £
Blades Restaurants Ltd
Notes to the Financial Statements for the Year Ended 31 December 2025
|
Share capital |
Allotted, called up and fully paid shares
|
2025 |
2024 |
|||
|
No. |
£ |
No. |
£ |
|
|
|
|
100 |
|
100 |
|
Loans and borrowings |
Non-current loans and borrowings
|
2025 |
2024 |
|
|
Bank borrowings |
- |
|
Current loans and borrowings
|
2025 |
2024 |
|
|
Bank borrowings |
- |
|
|
Obligations under leases and hire purchase contracts |
Operating leases
The total of future minimum lease payments is as follows:
|
2025 |
2024 |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
|
|
Later than five years |
|
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
Blades Restaurants Ltd
Notes to the Financial Statements for the Year Ended 31 December 2025
|
Dividends |
|
2025 |
2024 |
|
|
£ |
£ |
|
|
Interim dividend of £ |
495,000 |
1,150,000 |
|
Analysis of changes in net debt |
|
At 1 January 2025 |
Financing cash flows |
At 31 December 2025 |
|
|
Cash and cash equivalents |
|||
|
Cash |
25,000 |
(900) |
24,100 |
|
Cash equivalents |
2,671,703 |
1,226,959 |
3,898,662 |
|
2,696,703 |
1,226,059 |
3,922,762 |
|
|
Borrowings |
|||
|
Long term borrowings |
(3,709) |
3,709 |
- |
|
Short term borrowings |
(208,509) |
208,509 |
- |
|
Directors loan account |
382,821 |
(664,612) |
(281,791) |
|
170,603 |
(452,394) |
(281,791) |
|
|
|
|
|
|
|
|
|||
Blades Restaurants Ltd
Notes to the Financial Statements for the Year Ended 31 December 2025
|
Related party transactions |
|
Transactions with the director |
|
2025 |
At 1 January 2025 |
Repayments by director |
Other payments made to company by director |
At 31 December 2025 |
|
J D Nicholls |
||||
|
Directors loan account |
|
( |
(281,791) |
( |
|
2024 |
At 1 January 2024 |
Advances to director |
At 31 December 2024 |
|
J D Nicholls |
|||
|
Directors loan account |
( |
|
|
|
Ultimate controlling party |
The ultimate controlling party is