MERAKI_RESTAURANTS_LIMITE - Accounts

For the financial year ended 31 December 2022 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

Meraki Restaurants Limited is a private company limited by shares incorporated in England and Wales. The registered office is 5 Market Yard Mews, 194-204 Bermondsey Street, London, United Kingdom, SE1 3TQ.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

At the time of approving the financial statements the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future based on the continued support of the shareholders.true Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Turnover represents the sales of food and drinks in the restaurant, net of VAT.

Tangible fixed assets are initially measured at cost and subsequently measured at cost net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss.

Stocks are stated at the lower of cost and estimated selling price.

Cash at bank and in hand are basic financial assets and include cash in hand, deposits held at call with banks, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

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

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

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.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including creditors, are initially 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. Financial liabilities classified as payable within one year are not amortised.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs.

The costs of short-term employee benefits are recognised as a liability and 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.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Rentals payable under operating leases, including any lease incentives received, are charged to expense on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease asset are consumed.

Government grants, which include amounts received from local authority grants, are recognised at the fair value of the grant received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received. The income is recognised in other income in the period in which the grant becomes receivable.

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

On 29 September 2022, interest free loans of £2,652,349 were made by the shareholders to the company. The loans are interest free and repayable on 29 September 2032. The shareholder loans are intitially recognised on a present value basis with the loan repayment discounted based on the company's estimated incremental cost of borrowing. The directors have determined that a discount rate of 4.14% per annum is appropriate to discount the loan repayment based on a 10 year govenrment gilt.

On 29 September 2022, the loan discount of £894,500 was recognised as a capital contribution by the shareholders within other reserves. At the year end, the present value of the loans was £1,776,074 (2021: £nil). During the year, an interest expense of £18,225 (2021: £nil) was recognised in the profit and loss account.

The average monthly number of persons (including directors) employed by the company during the year was:

Included within other creditors is amounts due to the directors and shareholders. Loans are interest free and unsecured.

On 29 September 2022, the company issued 2639 ordinary A shares of 1p each for consideration of £228.69 per share totalling £603,509.

A Ordinary shares and B Ordinary shares rank pari passu in all aspects apart from on a distribution of assets on a liquidation or a return of capital. Further details are available from Companies House.

The capital contribution reserve has arisen as a result of the discounting of interest free long-term loans provided to the company by the shareholders.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

At the year end, the company owed shareholders £2,652,349 (2021: £2,982,455) which included £1,172,598 (2021: £1,253,380) owing to directors of the company. The loans are interest free. At the year end, the net present value of the shareholder loans was £1,776,074 (2021: £2,982,455). During the year, a notional interest charge of £18,225 (2021: £nil) was recognised in the profit and loss account.

At the year end date, the company was owed £102,420 (2021: £88,238) by a company under the control of a director. During the year, the directors have recognised a bad debt provision against this debt of £92,509 (2021: £nil). The carrying value of this debt at the year end was £9,911 ( 2021: £88,238).