Guys Eating Establishments Limited - Limited company accounts 20.1

REGISTERED NUMBER: 01534394 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JULY 2021

FOR

GUYS EATING ESTABLISHMENTS LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Income Statement

9

Other Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Notes to the Financial Statements

13

DIRECTORS:

S A Wilkinson

K A Wilkinson

SECRETARY:

K A Wilkinson

REGISTERED OFFICE:

Chandler House

7 Ferry Road Office Park

Riversway

Preston

Lancashire

PR2 2YH

REGISTERED NUMBER:

01534394 (England and Wales)

AUDITORS:

Wallwork Nelson & Johnson

Chartered Accountants & Statutory Auditors

Chandler House

7 Ferry Road Office Park

Riversway

Preston

Lancashire

PR2 2YH

BANKERS:

NatWest Bank plc

35 Fishergate

Preston

Lancashire

PR1 2AD

The Directors present their strategic report for the year to 30 July 2021.

REVIEW OF BUSINESS

The principal activities of the Company are that of restaurateurs and hoteliers.

2020/21 - 12 Months

19/20 - 18 Months

£

£

Turnover

3,818,577

5,927,108

Gross Profit

2,868,194

4,016,711

Gross Profit %

75.11%

67.77%

Operating profit/(loss)

553,136

(152,590

)

The Coronavirus pandemic has once again had a negative impact on trade. England was put into lock down on 4 November 2020 causing the hospitality sector to close its doors once again. Outdoor service was permitted from 12 April 2021 with indoor service following on 17 May 2021.

During the periods where trade was permitted, the company showed pleasing results.

The year began with the Government's Eat Out to Help Out scheme. This encouraged new customers to the site on Monday to Thursday, which would otherwise see fewer visitors. The Company benefitted from the reduced VAT applicable on food and non alcoholic beverages to increase profit margins. August saw sales of £649,602 compared with £428,904 in August 2019. The improved trade contributed positively to the Company's cashflow.

Restrictions started to impact the business once again in September 2020 with the introduction of the 'Rule of Six' and the 10pm curfew. October 2020 saw the Wyre area being placed into to Tier 2 with alcohol only to be served with a substantial meal. Sales in these two months totalled £664,974 compared to the same two months in 2019 of £810,204. Margin remained high at 70.28% for September (2019: 65.6%) and 71.69 for October (2019: 57.32).

England was placed into a lockdown on 4 November 2020 forcing hospitality to close its doors again.

The Directors utilized the Coronavirus Job Retention Scheme and received discretionary grants from Wyre Borough Council.

On 12 April 2021, outdoor service resumed. In preparation for the reopening, the Company extended the outdoor seating area, giving a competitive advantage over other hospitality venues in the area. This extended the customer base and helped retain and attract new staff.

On 17 May 2021 indoor service resumed. This together with the extended outdoor space increased serving capacity.

Sales in the period May to July 2021 were £1,615,385 compared to £1,161,408 for the same months in 2019.

The good post lockdown trading and the higher margin improved the Company's cashflow position. The increased trend for UK holiday bookings increased occupancy rates and average rates achieved.

Given the external difficulties the Directors consider the results to be outstanding.

PRINCIPAL RISKS AND UNCERTAINTIES

Maintaining high standards of corporate governance is vital to support the Company's financial performance. The Directors regularly review the business risks and uncertainties facing the company and take the appropriate action. Set out below are the principal risk factors and the procedures to mitigate those risks and uncertainties.

The Directors consider that they have managed the cashflow risk that has been exaggerated during the pandemic. The Directors have taken advantage of government assistance in the form of the Coronavirus Job Retention Scheme, deferred tax payments under government schemes and have renegotiated banking facilities at competitive rates.

The Company operates a site incorporating a restaurant, a pub and a hotel in a rural location and would normally benefit from visitors from the local population and tourists to the area. Whilst there is competition risk due to the variety of places for customers to choose in the hospitality sector, the site benefits from having a large outdoor area and a scenic setting, This has been expanded by the Directors towards the end of the previous period, to allow greater outdoor capacity. This has given the company a competitive advantage over other establishments in the sector that do not benefit from this additional capacity and space.

The Company operates in a sector where health and safety and hygiene are crucial as well as Licensing Regulations. The company recognises its obligations and the risk to its reputation of any incident affecting its customers. The Directors are mindful of their responsibilities and comply with all relevant regulations.

FINANCIAL KEY PERFORMANCE INDICATORS

The Directors review a number of key financial indicators on a monthly basis, these include sales versus budget and comparisons of food and drink margins and employment costs. the directors monitor the cash position regularly to ensure any lending conditions are met.

FUTURE DEVELOPMENTS

The Directors are pleased with the cash position of the Company and has built up a reserve that will enable the business to cope with some quiet times.

The Government are reluctant to place the country in another lockdown and are committed to keeping business open. The vaccination programme has provided a period of continuity and normality.

Whilst there is some uncertainty with regard to future variants of the virus and restrictions that may be imposed to deal with it, the business has shown its adaptability in working within the restrictions.

The Directors aim to continue to grow the business with new, upmarket menus, planned events and concentrating on margins.

.

ON BEHALF OF THE BOARD:

K A Wilkinson - Secretary

18 July 2022

The directors present their report with the financial statements of the company for the year ended 30 July 2021.

PRINCIPAL ACTIVITY

The principal activities of the company are that of restaurateurs and hoteliers.

DIVIDENDS

The total distribution of dividends for the year ended 30 July 2021 will be £ 165,600 .

DIRECTORS

The directors shown below have held office during the whole of the period from 31 July 2020 to the date of this report.

S A Wilkinson

K A Wilkinson

AUDITOR

The auditor, Wallwork Nelson & Johnson, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

STRATEGIC REPORT

The company has chosen in accordance with Companies Act 2006, s 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has been done in respect of :

-Future developments

-Financial risk management objectives and policies

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors 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 of 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 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 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the 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.

ON BEHALF OF THE BOARD:

K A Wilkinson - Secretary

18 July 2022

Opinion

We have audited the financial statements of Guys Eating Establishments Limited (the 'company') for the year ended 30 July 2021 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity 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 30 July 2021 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 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 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 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.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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 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.

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 Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have 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 Report of the Directors.

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 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 Statement of Directors' Responsibilities set out on page four, 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 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.

Auditors' 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 a Report of the Auditors 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:

- Enquiry of management around actual and potential litigation and claims.

- Enquiry of management and entity staff to identify any instances of non compliance with laws and regulations.

- Reviewing financial statement disclosures and testing to support documentation to assess compliance with applicable laws and regulations.

- Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness and evaluating the business rationale of significant transactions outside the normal course of business.

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 Report of the Auditors.

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 a Report of the Auditors 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.

Michael Barker FCCA (Senior Statutory Auditor)

for and on behalf of Wallwork Nelson & Johnson

Chartered Accountants & Statutory Auditors

Chandler House

7 Ferry Road Office Park

Riversway

Preston

Lancashire

PR2 2YH

18 July 2022

TURNOVER

3,818,577

5,927,108

Cost of sales

950,383

1,910,397

GROSS PROFIT

2,868,194

4,016,711

Administrative expenses

2,934,325

4,533,415

(66,131

)

(516,704

)

Other operating income

3

619,267

364,114

OPERATING PROFIT/(LOSS)

5

553,136

(152,590

)

Interest receivable and similar income

377

-

553,513

(152,590

)

Interest payable and similar expenses

6

46,510

49,124

PROFIT/(LOSS) BEFORE TAXATION

507,003

(201,714

)

Tax on profit/(loss)

7

95,373

(34,197

)

PROFIT/(LOSS) FOR THE FINANCIAL YEAR

411,630

(167,517

)

PROFIT/(LOSS) FOR THE YEAR

411,630

(167,517

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

411,630

(167,517

)

FIXED ASSETS

Tangible assets

9

5,268,055

5,283,472

CURRENT ASSETS

Stocks

10

111,004

95,506

Debtors

11

1,128,192

1,077,711

Cash at bank and in hand

12

736,245

266,142

1,975,441

1,439,359

CREDITORS

Amounts falling due within one year

13

1,366,526

1,006,342

NET CURRENT ASSETS

608,915

433,017

TOTAL ASSETS LESS CURRENT LIABILITIES

5,876,970

5,716,489

CREDITORS

Amounts falling due after more than one year

14

(1,489,964

)

(1,574,539

)

PROVISIONS FOR LIABILITIES

18

(10,430

)

(11,404

)

NET ASSETS

4,376,576

4,130,546

CAPITAL AND RESERVES

Called up share capital

19

30,500

30,500

Capital redemption reserve

20

3,500

3,500

Other reserve

20

2,597,283

2,597,283

Retained earnings

20

1,745,293

1,499,263

SHAREHOLDERS' FUNDS

4,376,576

4,130,546

The financial statements were approved by the Board of Directors and authorised for issue on 18 July 2022 and were signed on its behalf by:

S A Wilkinson - Director

Called up

Capital

share

Retained

redemption

Other

Total

capital

earnings

reserve

reserve

equity

£

£

£

£

£

Balance at 1 February 2019

30,500

1,997,980

3,500

2,597,283

4,629,263

Changes in equity

Dividends

-

(331,200

)

-

-

(331,200

)

Total comprehensive income

-

(167,517

)

-

-

(167,517

)

Balance at 30 July 2020

30,500

1,499,263

3,500

2,597,283

4,130,546

Changes in equity

Dividends

-

(165,600

)

-

-

(165,600

)

Total comprehensive income

-

411,630

-

-

411,630

Balance at 30 July 2021

30,500

1,745,293

3,500

2,597,283

4,376,576

1.	STATUTORY INFORMATION

Guys Eating Establishments Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

The principal place of business is considered to be St. Michael's Road, Billborrow, Preston, PR3 0RS.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirement of paragraph 33.7.

The company is a wholly owned subsidiary of Thatched Hamlet Limited, a company incorporated in England and Wales. the results of Guys Eating Establishments Limited are included in the consolidated financial statements of Thatched Hamlet Limited which are available from Chandler House, 7 Ferry Road Office Park, Riversway, Preston, PR2 2YH.

Significant judgements and estimates

In the application of the company's accounting policies, management is required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily available from other sources. The estimates and underlying 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 in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both.

The key judgements and sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described below;

Estimated useful lives and residual values of fixed assets

Depreciation of tangible fixed assets and amortisation of intangible fixed assets have been based on estimated useful lives and residual values deemed appropriate by the directors. Estimated useful lives are reviewed annually and revised as appropriate. Revisions take into account estimated useful lives used by other companies operating in the sector and actual asset lives and residual values, as evidenced by disposals during current and prior accounting periods.

Impairment of tangible fixed assets

The company assesses at each reporting date whether there is an indication that the carrying amount of an asset may not be recoverable. If there is such an indication, then the company estimates the recoverable amount of the asset using the information available at that date. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use. If the recoverable amount is less than the carrying amount, the carrying amount of an asset is impaired and it is reduced to its recoverable value through an impairment in the statement of comprehensive income.

Turnover

Turnover is measured at the fair value of the consideration received and is mainly derived from bar and kitchen sales, hotel accommodation sales and the sale of tickets to special events held at various dates during the year, after deducting discounts and value added tax. Turnover is recognised at the point of sale.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold property

-

not provided

Plant and machinery

-

15% to 33% on cost

Fixtures and fittings

-

15% and 20% on cost

Motor vehicles

-

25% on cost

Tangible fixed assets are stated at cost less accumulated depreciation and any provision for impairment in value.

The non-depreciation of freehold property is a departure from the requirements of the Companies Act 2006 that all tangible fixed assets should be depreciated. The directors are of the opinion that this departure from the requirements of the Companies Act is necessary to show a true and fair view.

Freehold property is valued at the open market value at the date of transition to FRS 102 to establish the deemed cost.

At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If the estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in profit or loss.

If an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to sell is recognised as an impairment loss in profit and loss. Reversals of impairment losses are also recognised in profit and loss.

Financial instruments

The company has elected to apply the provisions of FRS 102 Section 11 'Basic Financial Instruments' to all of its financial instruments.

A basic financial instrument is a contract that gives rise to a financial asset in one entity and a financial liability or equity instrument of another entity.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Financial assets classified as receivable within one year are not amortised. Trade and other debtors and amounts owed to group undertakings are measured at the undiscounted amount of cash or other consideration expected to be received.

Financial assets are assessed for indicators of impairment at each reporting end date with any impairment loss being recognised in profit and loss.

Basic financial liabilities, including creditors, bank loans and loans to group companies or connected parties are recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.

Bank and other loans and hire purchase contracts are initially measured at the present value of future payments, discounted at a market rate of interest, and subsequently at amortised cost using the effective interest method. Trade creditors are measured at the undiscounted amount of cash or other consideration expected to be paid.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Employee benefits

The cost of short-term employee benefits is recognised as a liability and as an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Going concern

The company has been adversely affected by the effects of the COVID 19 pandemic. The hospitality sector was ordered to close once again when England was put into a further lockdown on 4 November 2020..

Outdoor service was permitted from 12 April 2021 with indoor service being allowed on 17 May 2021.

The company had been experiencing better than usual trade until the closure in November 2020.

The company benefitted greatly from the Government's Eat Out to Help Out scheme and the reduced VAT rate for the hospitality sector contributed to higher margins.

The Directors prepared for the opening of outside hospitality on 12 April 2021 by vastly expanding the outside provision of food and drink. In the first few weeks of opening, trade was in excess of forecasts and pre-covid levels. The larger capacity for outside provision gave the company a competitive advantage over other establishments in the sector that do not benefit from large outdoor spaces which showed in the results for the year.

The Government lifted restrictions to allow indoor hospitality on 17 May 2021, so from that date the overall capacity had been greatly increased from 2020.

The improved trade and capacity during the year, along with the reduced VAT and rates have lead to a cash surplus within the company.

Whilst there is some uncertainty about the effect of future variants of COVID, the vaccination programme and the government's policy to 'live with COVID' has provided some stability.

The Directors, therefore, consider the company to have sufficient funds and trade to continue in operation and that the company is considered to be a going concern.

Other income

Government grants receivable consists of funds received under the Coronavirus Job Retention Scheme implemented by the UK Government response to the COVID 19 pandemic as a contribution to employee costs and Coronavirus grants from Wyre BC.

3.	OTHER OPERATING INCOME

Period

1/2/19

Year Ended

to

30/7/21

30/7/20

£

£

Government grants

619,267

364,114

Government grants receivable consists of funds received under the Coronavirus Job Retention Scheme implemented by the UK Government response to the COVID 19 pandemic as a contribution to employee costs and Coronavirus grants from Wyre BC.

4.	EMPLOYEES AND DIRECTORS

Period

1/2/19

Year Ended

to

30/7/21

30/7/20

£

£

Wages and salaries

1,851,186

2,347,611

Social security costs

138,353

147,701

Other pension costs

25,406

68,795

2,014,945

2,564,107

The average number of employees during the year was as follows:

Period

1/2/19

Year Ended

to

30/7/21

30/7/20

Management and administration

17

16

Sales

86

89

103

105

Period

1/2/19

Year Ended

to

30/7/21

30/7/20

£

£

Directors' remuneration

223,677

144,674

Directors' pension contributions to money purchase schemes

-

27,000

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

2

2

Information regarding the highest paid director for the year ended 30 July 2021 is as follows:

Year Ended

30/7/21

£

Emoluments etc

111,904

5.	OPERATING PROFIT/(LOSS)

The operating profit (2020 - operating loss) is stated after charging:

Period

1/2/19

Year Ended

to

30/7/21

30/7/20

£

£

Hire of plant and machinery

41,641

115,047

Other operating leases

7,366

7,530

Depreciation - owned assets

40,070

62,802

Loss on disposal of fixed assets

6,996

-

Auditors' remuneration

16,500

18,500

Preparation of the monthly management accounts

9,675

15,150

Preparing the payroll for the monthly paid employees

440

1,000

Other non- audit services

1,302

14,751

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

Period

1/2/19

Year Ended

to

30/7/21

30/7/20

£

£

Bank interest

3,402

9,783

Bank loan interest

32,383

30,035

Other loan interest

6,896

9,306

Interest on overdue taxation

3,829

-

46,510

49,124

7.

TAXATION

Analysis of the tax charge/(credit)

The tax charge/(credit) on the profit for the year was as follows:

Period

1/2/19

Year Ended

to

30/7/21

30/7/20

£

£

Current tax:

UK corporation tax

96,443

(33,682

)

Prior year tax

underprovision/(overprovision)

(96

)

15

Total current tax

96,347

(33,667

)

Deferred tax

(974

)

(530

)

Tax on profit/(loss)

95,373

(34,197

)