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Registered number:
FOR THE PERIOD ENDED 30 MARCH 2025
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ANGLIAN COUNTRY INNS LIMITED
COMPANY INFORMATION
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ANGLIAN COUNTRY INNS LIMITED
CONTENTS
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ANGLIAN COUNTRY INNS LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 30 MARCH 2025
The directors present their Strategic Report for the period ended 31 March 2025.
The year ending March 2025 saw Anglian Country Inns (ACI) increase sales by 8.4% to £22.3m (2024: £20.6m) which included the opening of a new site The White Horse, Holme in May 2024. It was an unusual year in which there was no Easter – a key trading period for the business – and one of the wettest years on record, and the directors were very happy to see strong sales increase given the circumstances. The business also saw an increase in the customer satisfaction score reflecting the focus on improving customer experience. A new loyalty system was launched in January 2025 which was very well received and helped drive footfall during the last two months of the year.
Food sales represented 57% of total turnover in the year and ACI were impacted proportionally by food inflation. The individual menus throughout the estate were quick to respond and managed to navigate the inflationary challenges through careful design and offset price increases to a minimum. Combined with a focus on improving procurement across the group whilst maintaining relationships with local suppliers led to an overall gross profit margin of the business increased 0.8% to 75.4% (2024: 74.7%). Despite an 11% increase in National Minimum Wage at the beginning of the year ACI was well prepared and saw a modest total increase in wage volume of 3.9% in the year for the existing sites. Despite this increase and drive in top line, the overall labour margin increased by 0.3% for the year. ACI worked hard through the central team to retain, develop and engage its workforce and saw a significant lift in the ENPS score, maintaining very high levels of retention all of which was cemented with the business winning Best Employer at The Publican Awards at the end of the year. Other administrative expenses to the business (excluding wages) reduced by 0.3% to 24.7% (2024: 25%) which was encouraging as this included a new energy contract in September 2024 which replaced a 3 year fixed deal and also a significant amount of cost associated with the start up of The White Horse, Holme. The site also received extra investment at the end of the year to develop a disused barn into a bakery which opened in April 2025. ACI continued to invest into both its teams and maintenance across the estate to protect the high standards of experience for the customers. Underlying site EBITDA was £4.0m (2024: £3.7m) an 8.1% increase on the previous year from the existing sites and the directors are very pleased with the performance of the business in what has been another challenging year for the sector. The directors continue to scrutinise all elements of the profit and loss across its portfolio of sites to mitigate the continued increase in costs faced by the industry but also understand that the most significant driving force to continued success is delivering exceptional experiences for customers. The business has had a robust start to the new financial year, including the opening of the bakery at The White Horse, Holme, and continues to out- perform the market with a strong sales increase of 15.3% in the first 5 months from April 2025. The business continues to seek opportunities to increase revenue and productivity across the estate by identifying internal development opportunities at existing sites and developing more resilient teams.
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ANGLIAN COUNTRY INNS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 30 MARCH 2025
One of the biggest risks to the ACI, and the wider hospitality industry, is the continual and disproportionately high tax regime levied on the sector, principally driving significant increases to the cost of labour and the cost of operating bricks and mortar sites. With more and more new taxes coming to light including the EPR tax, it is having a material impact on the bottom line. The risk could be exacerbated if the government decide to continue raising tax in the autumn budget.
To mitigate the inflationary risk to the business, part of the cost will have to be passed on to the customer which will in turn put pressure on foot fall as consumers will have to make decisions regarding spending on non-essential items. The business is well positioned with its premium food offering to continue to operate and sees potential for growth with the existing estate through delivering great customer experiences. Interest rates are expected to remain at a similar level which does not pose any challenges to the business as ACI is operating comfortably within the loan covenants. The directors are currently negotiating a new bank facility which will significantly reduce the cost of borrowing as well as open up access to finance to help grow the business.
ACI continues to develop better data around business performance and better communication of key information to the right people in the business.
The primary financial KPIs for the business in 2025 were:
∙Revenue increased to £22.3m (2024: £20.6), an increase on 8.4% on a like-for-like basis.
∙Gross profit margin has increased to 75.4% (2024: 74.7%)
∙Administrative expenses have increased to £16.1m (2024: £14.6m) an increase of 10.7%
∙Other operating income has decreased to £0.12m (2024: £0.12m)
∙Company EBITDA was £1.6m (2024: £1.6m)
∙Company operating profit was £0.7m (2024: £0.9m)
In addition to the financial KPIs, the business closely monitors non-financial measures including staff engagement, staff retention and customer satisfaction to ensure all stakeholders of the business are happy.
This report was approved by the board and signed on its behalf.
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ANGLIAN COUNTRY INNS LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 30 MARCH 2025
The directors present their report and the financial statements for the period ended 30 March 2025.
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 profit for the period, after taxation, amounted to £169,614 (2024: £259,164).
The total distribution of dividends for the period was £151,648 (2024: £216,544).
The directors who served during the period were:
In accordance with s414C(11) of the Companies Act 2006, the information relating to future developments and financial risk management are included in the Strategic Report.
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ANGLIAN COUNTRY INNS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 30 MARCH 2025
The business continues to improve internal communication with employees using multiple channels. Information is also cascaded down through teams and communicated at team meetings and pre shift briefings. Key information and updates are shared regularly with the team and the business also seeks feedback across the board via staff surveys and engagement monitors and exit interviews to better understand and improve the employee value proposition.
At ACI, we are committed to fostering an inclusive and diverse environment where everyone is treated with respect, dignity, and fairness. The Company EDI policy outlines our commitment to promoting equality, diversity, and inclusion across all aspects of the business. We believe that embracing diversity and creating an inclusive workplace enhances our company culture, improves employee morale, and enhances the overall guest experience. This is closely aligned to our values; Family, Friends, Focus and Fun and our Company mission of making people happy. We are committed to providing equal opportunities for all individuals, regardless of their age, disability, race, ethnicity, religion, gender identity, sexual orientation, or any other protected characteristic as defined by local laws. We will ensure that recruitment, training, career development, and promotional opportunities are based solely on merit and job-related criteria.
The auditors, HaysMac LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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ANGLIAN COUNTRY INNS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ANGLIAN COUNTRY INNS LIMITED
We have audited the financial statements of Anglian Country Inns Limited (the 'Company') for the period ended 30 March 2025, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity, the Statement of Cash Flows, 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 conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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ANGLIAN COUNTRY INNS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ANGLIAN COUNTRY INNS LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.
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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ANGLIAN COUNTRY INNS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ANGLIAN COUNTRY INNS 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 Auditors' 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:
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud. Based on our understanding of the Company and industry, we identified that the principal risks of non-compliance with laws and regulations such as minimum wage legislation and alcohol licencing, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, income tax and sales tax. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to revenue and management bias in accounting estimates. Audit procedures performed by the engagement team included:
∙inspecting correspondence with regulators and tax authorities;
∙discussions with management including consideration of known or suspected instances of non-compliance with laws and regulation and fraud;
∙evaluating management’s controls designed to prevent and detect irregularities;
∙identifying and testing journals, in particular journal entries posted with unusual account combinations, postings by unusual users or with unusual descriptions; and
∙challenging assumptions and judgements made by management in their critical accounting estimates.
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 Auditors' Report.
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ANGLIAN COUNTRY INNS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ANGLIAN COUNTRY INNS LIMITED (CONTINUED)
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 Auditors' 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
Statutory Auditors
10 Queen Street Place
EC4R 1AG
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ANGLIAN COUNTRY INNS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 30 MARCH 2025
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ANGLIAN COUNTRY INNS LIMITED
REGISTERED NUMBER: 03214479
STATEMENT OF FINANCIAL POSITION
AS AT 30 MARCH 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 16 to 34 form part of these financial statements.
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ANGLIAN COUNTRY INNS LIMITED
REGISTERED NUMBER: 03214479
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 30 MARCH 2025
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