Paul Connan Limited 31/12/2019 iXBRL

PAUL CONNAN LIMITED - Company Information

299 31/12/2019 2019-12-31 false false false false true false false false false false false false false true false false true false false true false false false false No description of principal activities is disclosed 2019-01-01 Sage Accounts Production 20.0 - FRS102_2019 xbrli:pure xbrli:shares iso4217:GBP NI043593 2019-01-01 2019-12-31 NI043593 2019-12-31 NI043593 2018-12-31 NI043593 2018-01-01 2018-12-31 NI043593 2018-12-31 NI043593 core:NetGoodwill 2019-01-01 2019-12-31 NI043593 core:PlantMachinery 2019-01-01 2019-12-31 NI043593 bus:RegisteredOffice 2019-01-01 2019-12-31 NI043593 bus:OrdinaryShareClass1 2019-01-01 2019-12-31 NI043593 bus:LeadAgentIfApplicable 2019-01-01 2019-12-31 NI043593 bus:Director1 2019-01-01 2019-12-31 NI043593 bus:Director2 2019-01-01 2019-12-31 NI043593 bus:CompanySecretary1 2019-01-01 2019-12-31 NI043593 core:WithinOneYear 2019-12-31 NI043593 core:WithinOneYear 2018-12-31 NI043593 core:NetGoodwill 2019-12-31 NI043593 core:LandBuildings core:OwnedOrFreeholdAssets 2018-12-31 NI043593 core:PlantMachinery 2018-12-31 NI043593 core:LandBuildings core:OwnedOrFreeholdAssets 2019-12-31 NI043593 core:PlantMachinery 2019-12-31 NI043593 core:UKTax 2019-01-01 2019-12-31 NI043593 core:UKTax 2018-01-01 2018-12-31 NI043593 bus:AllOrdinaryShares 2019-01-01 2019-12-31 NI043593 bus:AllOrdinaryShares 2018-01-01 2018-12-31 NI043593 core:RetainedEarningsAccumulatedLosses 2018-12-31 NI043593 core:RetainedEarningsAccumulatedLosses 2017-12-31 NI043593 core:RetainedEarningsAccumulatedLosses 2019-12-31 NI043593 core:RetainedEarningsAccumulatedLosses 2018-12-31 NI043593 core:ShareCapital 2019-12-31 NI043593 core:ShareCapital 2018-12-31 NI043593 bus:OrdinaryShareClass1 core:ShareCapital 2019-12-31 NI043593 bus:OrdinaryShareClass1 core:ShareCapital 2018-12-31 NI043593 core:FinancialLiabilitiesAmortisedCost 2019-12-31 NI043593 core:FinancialLiabilitiesAmortisedCost 2018-12-31 NI043593 1 2019-01-01 2019-12-31 NI043593 1 2018-01-01 2018-12-31 NI043593 core:BetweenOneFiveYears 2019-12-31 NI043593 core:BetweenOneFiveYears 2018-12-31 NI043593 core:MoreThanFiveYears 2019-12-31 NI043593 core:MoreThanFiveYears 2018-12-31 NI043593 core:DeferredTaxation 2019-01-01 2019-12-31 NI043593 core:NetGoodwill 2018-12-31 NI043593 core:CostValuation core:Non-currentFinancialInstruments 2019-12-31 NI043593 core:Non-currentFinancialInstruments 2019-12-31 NI043593 core:Non-currentFinancialInstruments 2018-12-31 NI043593 core:AcceleratedTaxDepreciationDeferredTax 2019-12-31 NI043593 core:AcceleratedTaxDepreciationDeferredTax 2018-12-31 NI043593 core:LandBuildings core:OwnedOrFreeholdAssets 2018-12-31 NI043593 core:PlantMachinery 2018-12-31 NI043593 core:DeferredTaxation 2018-12-31 NI043593 core:DeferredTaxation 2019-12-31 NI043593 bus:Director1 2018-12-31 NI043593 bus:Director1 2019-12-31 NI043593 bus:Director1 2017-12-31 NI043593 bus:Director1 2018-12-31 NI043593 bus:Director1 2018-01-01 2018-12-31 NI043593 bus:FRS102 2019-01-01 2019-12-31 NI043593 bus:Audited 2019-01-01 2019-12-31 NI043593 bus:FullAccounts 2019-01-01 2019-12-31 NI043593 bus:LargeMedium-sizedCompaniesRegimeForAccounts 2019-01-01 2019-12-31 NI043593 bus:PrivateLimitedCompanyLtd 2019-01-01 2019-12-31 NI043593 core:Associate1 2019-01-01 2019-12-31 NI043593 core:Associate2 2019-01-01 2019-12-31 NI043593 core:Associate1 2019-12-31 NI043593 core:Associate1 2018-12-31 NI043593 core:AllAssociates 2019-01-01 2019-12-31

Company registration number: NI043593

Paul Connan Limited

Trading as McDonald's Restaurant

Financial statements

31 December 2019

Paul Connan Limited

Contents

Directors and other information

Strategic report

Directors report

Independent auditor's report to the members

Statement of income and retained earnings

Statement of financial position

Statement of cash flows

Notes to the financial statements

Paul Connan Limited

Directors and other information


	Directors	Mr Paul Connan
		Mrs Angela Connan


	Secretary	Angela Connan


	Company number	NI043593


	Registered office	2-4 Donegall Place
		28-30 Castle Place
		Belfast
		BT1 5BA


	Business address	2-4 Donegall Place
		28-30 Castle Place
		Belfast
		BT1 5BA


	Auditor	David McQuillan & Company
		Glendinning House
		6 Murray Street
		Belfast
		BT1 6DN




	Bankers	HSBC UK
		Harvester House
		4-8 Adelaide Street
		Belfast
		BT2 8GA


	Solicitors	Conn & Fenton
		39 Bow Street
		Lisburn
		BT28 1BJ

Paul Connan Limited

Strategic report

Year ended 31 December 2019

Introduction

The directors present their srategic report for the year ended 31 December 2019.

Principal activity and review of the business

The principal activity of the company is the operation of McDonald's franchise restaurants.

The directors are pleased with both the results for the year and the financial position at the year end.

Financial key performanace indicators

Sales increased by 20% from £8,409,906 in 2018 to £10,101,121 in 2019. The gross profit percentage remained steady at 67% and profit before taxation increased from £521,869 to £794,999.

Principal risks and uncertainties

The principal risk to the business is the effect of Covid-19 with closures of restaurants and the need for social distancing. The primary focus of the directors has been the health, safety and wellbeing of our staff and customers, thereafter, we have sought to keep the business operating efficiently and to ensure ongoing stability.

Another risk facing the company remains the uncertainty surrounding the impact of Brexit.

The company uses various financial instruments including bank loans and overdrafts, cash and various items, such as trade creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the company's operations.

The main risks arising from the company's financial instruments are liquidity risk and interest rate risk.

The directors review and agree policies for the prudent management of these risks as follows: -

Liquidity and cash flow risk

The company seeks to manage financial risk by ensuring sufficient liquidity is available to meet forseeable needs.

Interest rate risk

The company finances its operations through a mixture of retained profits and bank borroings. The company's exposure to interest rate fluctuations on its borrowings is managed through annual review of its borrowing requirements and, where appropriate, through the use of fixed or floating interest arrangements.

Future developments

The company continues to invest in its staff and premises.

This report was approved by the board of directors on 17 September 2020 and signed on behalf of the board by:

Mr Paul Connan

Director

Paul Connan Limited

Directors report

Year ended 31 December 2019

The directors present their report and the financial statements of the company for the year ended 31 December 2019.

Directors

The directors who served the company during the year were as follows:

Mr Paul Connan

Mrs Angela Connan

Dividends

Particulars of recommended dividends are detailed in note 12 to the financial statements.

Future developments

Details of future developments are addressed in the Strategic Report.

Employment of disabled persons

It is the policy of the Company to give full and fair consideration to applications for employment made by disabled persons, to continue where possible the employment of those who become disabled and to provide equal opportunities for the training and career development of disabled employees.

Employee involvement

The Company communicates regularly with employees on matters relating to its performance. Employees are encouraged to contribute to the decision making process through regular staff meetings. In addition there is a bulletin board in each restaurant where memoranda relating to Company policies are displayed. There is also an online portal known as Our Lounge, which contains news and information for our employees.

Financial instruments

Details of financial instruments are addressed in the Strategic Report.

Disclosure of information in the strategic report.

The directors have chosen to include a business review, the key performance indicators, the principal risks and uncertainties and the future developments of the company in the strategic report.

Directors responsibilities statement

The directors are responsible for preparing the strategic report, directors report and the financial statements in accordance with applicable law and regulations.

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

In preparing these financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;

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

- 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 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.

Auditor

Each of the persons who is a director at the date of approval of this report confirms that:

- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.

The auditor is deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006.

This report was approved by the board of directors on 17 September 2020 and signed on behalf of the board by:

Mr Paul Connan

Director

Paul Connan Limited

Independent auditor's report to the members of

Paul Connan Limited

Year ended 31 December 2019

Opinion

We have audited the financial statements of Paul Connan Limited (the 'company') for the year ended 31 December 2019 which comprise the statement of income and retained earnings, statement of financial position, 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 FRS 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 2019 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’s 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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

- the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

- the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other Information

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. 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.

Opinions on other matters prescribed by the Companies Act 2006

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

- the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

- the strategic report and the directors' report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the 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. 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 the returns; or - certain disclosures of directors' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine 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 directors are 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 directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's 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. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. we also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

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 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.

David McQuillan (Senior Statutory Auditor)

For and on behalf of

David McQuillan & Company

Chartered Accountants and Statutory Auditor

Glendinning House

6 Murray Street

Belfast

BT1 6DN

17 September 2020

Paul Connan Limited

Statement of income and retained earnings

Year ended 31 December 2019

		2019	2018
	Note	£	£


Turnover	4	10,101,121	8,409,906
Cost of sales		( 3,324,620)	( 2,788,405)
		_________	_________
Gross profit		6,776,501	5,621,501

Administrative expenses		( 6,324,877)	( 5,406,784)
Other operating income	5	54,180	403,589
		_________	_________
Operating profit	6	505,804	618,306

Gain on financial assets at fair value through profit or loss		207,317	1,103
Other interest receivable and similar income	9	84,045	24,160
Interest payable and similar expenses	10	( 2,167)	( 121,700)
		_________	_________
Profit before taxation		794,999	521,869

Tax on profit	11	( 119,938)	( 128,219)
		_________	_________
Profit for the financial year and total comprehensive income		675,061	393,650
		_________	_________

Dividends declared and paid or payable during the year	12	( 282,000)	( 150,000)

Retained earnings at the start of the year		5,719,847	5,476,197
		_________	_________
Retained earnings at the end of the year		6,112,908	5,719,847
		_________	_________

All the activities of the company are from continuing operations.

Paul Connan Limited

Statement of financial position

31 December 2019

		2019		2018
	Note	£	£	£	£

Fixed assets
Intangible assets	13	-		-
Tangible assets	14	1,129,040		1,196,818
Investments	15	2,500		2,500
		_________		_________
			1,131,540		1,199,318

Current assets
Stocks	16	38,813		33,085
Debtors	17	821,830		250,333
Investments	18	3,167,163		2,900,042
Cash at bank and in hand		2,454,229		2,705,707
		_________		_________
		6,482,035		5,889,167
Creditors: amounts falling due
within one year	19	( 1,380,567)		( 1,238,538)
		_________		_________
Net current assets			5,101,468		4,650,629
			_________		_________
Total assets less current liabilities			6,233,008		5,849,947


Provisions for liabilities	20		( 120,000)		( 130,000)

			_________		_________
Net assets			6,113,008		5,719,947
			_________		_________

Capital and reserves
Called up share capital	24		100		100
Profit and loss account	25		6,112,908		5,719,847
			_________		_________
Shareholders funds			6,113,008		5,719,947
			_________		_________

These financial statements were approved by the board of directors and authorised for issue on 17 September 2020 , and are signed on behalf of the board by:

Mr Paul Connan

Director

Company registration number: NI043593

Paul Connan Limited

Statement of cash flows

Year ended 31 December 2019

	2019	2018
	£	£

Cash flows from operating activities
Profit for the financial year	675,061	393,650

Adjustments for:
Depreciation of tangible assets	137,674	125,338
Amortisation of intangible assets	-	3,234
Gain/(loss) on financial assets at fair value through profit or loss	(165,130)	-
Other interest receivable and similar income	( 84,045)	( 24,160)
Interest payable and similar expenses	2,167	121,700
Gain/(loss) on disposal of tangible assets	-	25,945
Gain/(loss) on disposal of Intangible assets	-	15,729
Tax on profit	119,938	128,219
Accrued expenses/(income)	101,136	( 41)

Changes in:
Stocks	( 5,728)	9,757
Trade and other debtors	( 571,497)	( 233,813)
Trade and other creditors	248,114	184,598
	_________	_________
Cash generated from operations	457,690	750,156

Interest paid	( 2,167)	( 5,795)
Interest received	84,045	24,160
Tax paid	( 111,435)	( 879,378)
	_________	_________
Net cash from/(used in) operating activities	428,133	( 110,857)
	_________	_________

Cash flows from investing activities
Purchase of tangible assets	( 69,896)	( 658,360)
Proceeds from sale of tangible assets	-	25,000
Purchase of other investments	( 101,991)	( 3,015,947)
Proceeds from sale of other investments	-	1,250
	_________	_________
Net cash used in investing activities	( 171,887)	( 3,648,057)
	_________	_________

Cash flows from financing activities
Proceeds from borrowings	( 225,724)	( 224,376)
Equity dividends paid	( 282,000)	( 150,000)
	_________	_________
Net cash used in financing activities	( 507,724)	( 374,376)
	_________	_________

Net increase/(decrease) in cash and cash equivalents	( 251,478)	( 4,133,290)
Cash and cash equivalents at beginning of year	2,705,707	6,838,997
	_________	_________
Cash and cash equivalents at end of year	2,454,229	2,705,707
	_________	_________

Paul Connan Limited

Notes to the financial statements

Year ended 31 December 2019

1. General information

The company is a private company limited by shares, registered in Northern Ireland. The address of the registered office is 2-4 Donegall Place, 28-30 Castle Place, Belfast, BT1 5BA.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. The Triennial review 2017 amendments to the standard have been early adopted.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.The directors have assessed that there are no material estimates and assumptions in applying the accounting policies.

Turnover

Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.

Taxation

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in the statement of comprehensive income, except to the extent that it relates to items recognised in other comprehensive income or directly in capital and reserves. In this case, tax is recognised in other comprehensive income or directly in capital and reserves, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that 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 that are expected to apply to the reversal of the timing difference.

Operating leases

Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.

Amortisation

Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:


Goodwill	-	10 %	straight line

If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.

Tangible assets

tangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in capital and reserves, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in capital and reserves in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in capital and reserves in respect of that asset, the excess shall be recognised in profit or loss.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:


Plant and machinery	-	12.5 %	straight line

If there is an indication that there has been a significant change in depreciation rate, useful life or residual value of tangible assets, the depreciation is revised prospectively to reflect the new estimates.

Investment property

Investment property is measured initially at cost, which includes purchase price and any directly attributable expenditure. Investment property is revalued to its fair value at each reporting date and any changes in fair value are recognised in profit or loss.

Fixed asset investments

Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses. Listed investments are measured at fair value with changes in fair value being recognised in profit or loss.

Impairment

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. When it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stocks to their present location and condition.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event; it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised in finance costs in profit or loss in the period it arises.

Financial instruments

A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets or either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised in finance costs in profit or loss in the period in which it arises.

4. Turnover

Turnover arises from:

	2019	2018
	£	£
Sale of goods	10,101,121	8,409,906
	_________	_________

The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.

5. Other operating income

	2019	2018
	£	£
Rental income	7,500	-
Other operating income	46,680	403,589
	_________	_________
	54,180	403,589
	_________	_________

6. Operating profit

Operating profit is stated after charging/(crediting):

	2019	2018
	£	£
Amortisation of intangible assets	-	3,234
Depreciation of tangible assets	137,674	125,338
(Gain)/loss on disposal of tangible assets	-	25,945
(Gain)/loss on disposal of intangible assets	-	15,729
Operating lease rentals	1,395,686	1,221,109
Fees payable for the audit of the financial statements	9,750	9,500
	_________	_________

7. Staff costs

The average number of persons employed by the company during the year, including the directors, amounted to:

	2019	2018
Operations	295	275
Administration	4	4
	_________	_________
	299	279
	_________	_________

The aggregate payroll costs incurred during the year were:

	2019	2018
	£	£
Wages and salaries	2,898,413	2,535,092
Other pension costs	60,718	20,629
	_________	_________
	2,959,131	2,555,721
	_________	_________

8. Directors remuneration

The directors aggregate remuneration in respect of qualifying services was:

	2019	2018
	£	£
Remuneration	13,231	10,227
Company contributions to pension schemes in respect of qualifying services	27,010	-
	_________	_________
	40,241	10,227
	_________	_________

The number of directors who accrued benefits under company pension plans was as follows:

	2019	2018
	Number	Number
Defined contribution plans	1	-
	_________	_________

9. Other interest receivable and similar income

	2019	2018
	£	£
Gain on fair value adjustment of financial assets at fair value through profit or loss	165,130	-
Other interest receivable and similar income	84,045	24,160
	_________	_________
	249,175	24,160
	_________	_________

10. Interest payable and similar expenses

	2019	2018
	£	£
Bank loans and overdrafts	2,167	5,795
Loss on fair value adjustment of financial assets at fair value through profit or loss	-	115,905
	_________	_________
	2,167	121,700
	_________	_________

11. Tax on profit

Major components of tax expense

	2019	2018
	£	£
Current tax:
UK current tax expense	146,723	128,219
Adjustments in respect of previous periods	( 16,785)	-
	_________	_________

Deferred tax:
Origination and reversal of timing differences	( 10,000)	-
	_________	_________
Tax on profit	119,938	128,219
	_________	_________

Reconciliation of tax expense

The tax assessed on the profit for the year is lower than (2018: higher than) the standard rate of corporation tax in the UK of 19.00 % (2018: 19.00%).

	2019	2018
	£	£
Profit before taxation	794,999	521,869
	_________	_________

Profit multiplied by rate of tax	151,050	99,155
Adjustments in respect of prior periods	( 16,785)	-
Effect of expenses not deductible for tax purposes	( 17,205)	22,458
Effect of capital allowances and depreciation	12,878	6,606
Deferred tax movement	( 10,000)	-
	_________	_________
Tax on profit	119,938	128,219
	_________	_________

12. Dividends

Equity dividends

	2019	2018
	£	£
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year)	282,000	150,000
	_________	_________

13. Intangible assets

	Goodwill	Total
	£	£
Cost
At 1 January 2019 and 31 December 2019	60,000	60,000
	_________	_________
Amortisation
At 1 January 2019 and 31 December 2019	60,000	60,000
	_________	_________
Carrying amount
At 31 December 2019	-	-
	_________	_________
At 31 December 2018	-	-
	_________	_________

14. Tangible assets

	Freehold property	Plant and machinery	Total
	£	£	£
Cost
At 1 January 2019	516,847	2,123,810	2,640,657
Additions	-	69,896	69,896
	_________	_________	_________
At 31 December 2019	516,847	2,193,706	2,710,553
	_________	_________	_________
Depreciation
At 1 January 2019	-	1,443,839	1,443,839
Charge for the year	-	137,674	137,674
	_________	_________	_________
At 31 December 2019	-	1,581,513	1,581,513
	_________	_________	_________
Carrying amount
At 31 December 2019	516,847	612,193	1,129,040
	_________	_________	_________
At 31 December 2018	516,847	679,971	1,196,818
	_________	_________	_________

Investment property

Included within the above is investment property measured at fair value as follows:

		£
	At 1 January 2019 and 31 December 2019	516,847
		_________

The investment property was purchased on 7 December 2018 and has not been independently revalued at 31 December 2019. The directors are satisfied that the value will not have changed during the year.

15. Investments

	Other investments other than loans	Total
	£	£
Cost
At 1 January 2019 and 31 December 2019	2,500	2,500
	_________	_________
Impairment
At 1 January 2019 and 31 December 2019	-	-
	_________	_________
Carrying amount
At 31 December 2019	2,500	2,500
	_________	_________
At 31 December 2018	2,500	2,500
	_________	_________

16. Stocks

	2019	2018
	£	£
Raw materials	38,813	33,085
	_________	_________

17. Debtors

	2019	2018
	£	£
Prepayments and accrued income	44,131	17,209
Other debtors	777,699	233,124
	_________	_________
	821,830	250,333
	_________	_________

18. Investments

	2019	2018
	£	£
Managed portfolio	3,167,163	2,900,042
	_________	_________

The managed portfolio is carried at market value.

19. Creditors: amounts falling due within one year

	2019	2018
	£	£
Bank loans and overdrafts	-	226,824
Trade creditors	179,913	148,428
Accruals and deferred income	513,584	412,448
Corporation tax	146,722	128,219
Social security and other taxes	535,956	319,327
Director loan accounts	4,392	3,292
	_________	_________
	1,380,567	1,238,538
	_________	_________

20. Provisions

	Deferred tax (note 21)	Total
	£	£
At 1 January 2019	130,000	130,000
Charges against provisions	( 10,000)	( 10,000)
	_________	_________
At 31 December 2019	120,000	120,000
	_________	_________

21. Deferred tax

The deferred tax included in the statement of financial position is as follows:

	2019	2018
	£	£
Included in provisions (note 20)	120,000	130,000
	_________	_________

The deferred tax account consists of the tax effect of timing differences in respect of:

	2019	2018
	£	£
Accelerated capital allowances	120,000	130,000
	_________	_________

22. Employee benefits

The amount recognised in profit or loss in relation to defined contribution plans was £ 60,718 (2018: £ 20,629 ).

23. Financial instruments

The carrying amount for each category of financial instrument is as follows:

	2019	2018
	£	£
Financial assets measured at fair value through profit or loss
Listed investments	3,167,163	2,900,042
	_________	_________

Financial assets that are debt instruments measured at amortised cost
Cash at bank and in hand	2,454,229	2,705,707
	_________	_________

Financial liabilities measured at amortised cost
Bank and other loans	(-)	(226,824)
Trade creditors	(179,913)	(148,428)
	_________	_________
	( 179,913)	( 375,252)
	_________	_________

24. Called up share capital

Issued, called up and fully paid

	2019		2018
	No	£	No	£
Ordinary shares of £ 1.00 each	100	100	100	100
	_________	_________	_________	_________

25. Reserves

The company's reserves are as follows: -Profit and loss account:This reserve records retained earnings and accumulated losses.

26. Analysis of changes in net debt

	At 1 January 2019	Cash flows	At 31 December 2019
	£	£	£
Cash and cash equivalents	2,705,707	(251,478)	2,454,229
Debt due within one year	(230,116)	225,724	(4,392)
Current asset investments	2,900,042	267,121	3,167,163
	_________	_________	_________
	5,375,633	241,367	5,617,000
	_________	_________	_________

27. Operating leases

The company as lessee

The total future minimum lease payments under non-cancellable operating leases are as follows:


	£	£

Not later than 1 year	371,184	371,184
Later than 1 year and not later than 5 years	1,184,736	1,334,736
Later than 5 years	2,211,840	2,433,024
	_________	_________
	3,767,760	4,138,944
	_________	_________

The Company leases restaurant premises under 20 year operating leases. The remaining minimum lease periods vary from 3 to 15 years .

28. Directors advances, credits and guarantees

	During the year the directors entered into the following advances and credits with the company:

2019
		Balance brought forward	Advances /(credits) to the directors	Amounts repaid	Balance o/standing
		£	£	£	£
	Mr Paul Connan	( 3,292)	-	( 1,100)	( 4,392)
		_________	_________	_________	_________

2018
		Balance brought forward	Advances /(credits) to the directors	Amounts repaid	Balance o/standing
		£	£	£	£
	Mr Paul Connan	( 4,492)	1,200	-	( 3,292)
		_________	_________	_________	_________

29. Related party transactions

During the year the company entered into the following transactions with related parties:

	Transaction value		Balance owed by/(owed to)
	2019	2018	2019	2018
	£	£	£	£
James Connan Limited	-	-	777,699	179,535
CHDP Limited	( 7,500)	-	-	-
	_________	_________	_________	_________

The company made a loan to James Connan Limited, a company with a common shareholder and director. In addition the company received rent from CHDP Limited, a subsidiary of James Connan Limited.

30. Key management personnel

Key management personnel include all persons that have authority and responsibility for planning, directing and controlling the activities of the company. The total compensation paid to key management personnel for services provided to the company was £ 40,241 (2018: £10,227).

31. Controlling party

The company is under the control of Mr Paul Connan by virtue of his shareholding.