Company registration number:
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COMPANY INFORMATION
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CONTENTS
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STRATEGIC REPORT
FOR THE PERIOD ENDED 26 APRIL 2020
The Directors present their Strategic Report and audited financial statements for the 52 week period ended 26 April 2020.
The Company operates a group of Antipodean cafes, bars and restaurants in London. During the period the company opened one new site, Barbie Green in the City of London.
During the final two months of the period the business was significantly impacted by COVID-19 with all sites forced to close from 17th of March 2020 for the first lockdown. The Company worked quickly to prepare the business for the pandemic period, pausing critical service contracts, utilising government grants, rates and VAT relief schemes as well as the furlough scheme to retain key employees. The business positioned itself to be able to operate on a very flexible basis by site and offering (take away, delivery, direct to consumer) to ensure brand continuity and profitability as the economy reopened. The company opened two new sites in the 52 week period to 25 April 2021.
The business and hospitality sector as a whole are susceptible to consumer confidence. As the economic outlook continues to be uncertain due to COVID-19 and Brexit, and eating out for most people is discretionary, there may be further pressure on confidence and demand.
A key operational risk for the business is its ability to attract and retain talent, both back and front of house. The Company invests heavily in people, technology and training to mitigate these risks. There is limited credit risk as the vast majority of customers pay by credit card at the point of sale. There is limited exchange rate risk as the majority of purchases are made within the UK. Stringent liquidity management is critical to the business and the Directors believe that maintaining a healthy cash balance is a prudent approach for the current market conditions. The impact of COVID-19 on key costs is not yet clear. Short term savings on rates, VAT, rents, paused service contracts are currently being offset by increased costs of safety and compliance, fixed costs, labour and cost inflation. There is risk that some increased costs will endure post COVID-19 however the Director’s believe that these will be offset by other savings achieved. The Directors have taken steps to reduce costs wherever possible and fully utilise the various government grants and schemes available, including obtaining a CBILS loan post year end to support COVID-19 working capital requirements.
The Company's strategy is to continue to invest in new sites in the UK whilst investing in the required teams, infrastructure and processes to support this growth. Additionally to maintain, improve and grow 'like for like' performances in existing sites as well as grow its direct to consumer businesses (coffee, lamingtons, lifestyle).
The Company opened two new sites in the 52 week period to 25 April 2021 and expects to open one or two sites per year moving forward as well as continue to grow shareholder value through the expansion of its direct to consumer business.
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STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 26 APRIL 2020
This report was approved by the board
and signed on its behalf.
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DIRECTORS' REPORT
FOR THE PERIOD ENDED 26 APRIL 2020
The directors present their report and the financial statements for the period ended 26 April 2020.
The directors who served during the period were:
The directors are responsible for preparing the Strategic report, the 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently;
∙
make judgments 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 directors have a reasonable expectation that the company has adequate resources to continue operational existence for the foreseeable future despite the COVID-19 pandemic. For this reason, the directors continue to adopt the ongoing concern basis of accounting in preparing the annual financial statements. Please see note 2.3 for detail.
The loss for the period, after taxation, amounted to £
21,243
(2019 -
loss
£
313,078
)
.
In accordance with Section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 the Strategic Report preceding the Directors' Report includes information that would formerly have been included in the business review and the principal risk and uncertainties sections of the Directors' Report.
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DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 26 APRIL 2020
There have been no significant events affecting the Company since the year end.
The auditor, Menzies 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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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DAISY GREEN FOOD LIMITED
We have audited the financial statements of Daisy Green Food Limited (the 'Company') for the period ended 28 April 2020, which comprise the Statement of income and retained earnings, the Statement of financial position, the Statement of cash flows, the Statement of changes in equity
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.
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.
The directors are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Auditors' report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DAISY GREEN FOOD LIMITED (CONTINUED)
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.
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.
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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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DAISY GREEN FOOD 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
Chartered Accountants
Statutory Auditor
1st Floor
Midas House
62 Goldsworth Road
Surrey
GU21 6LQ
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STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE PERIOD ENDED 26 APRIL 2020
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STATEMENT OF FINANCIAL POSITION
AS AT
26 APRIL 2020
The financial statements were approved and authorised for issue by the board and were signed on its behalf by
:
The notes on pages 13 to 25 form part of these financial statements.
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STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED
26 APRIL 2020
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STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 26 APRIL 2020
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ANALYSIS OF NET DEBT
FOR THE PERIOD ENDED 26 APRIL 2020
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 26 APRIL 2020
Daisy Green Food Limited is a private company, limited by shares, registered in England and Wales. The registered office and principal place of business can be found on the company information page.
2.
Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in
the UK and the Republic of Ireland and the Companies Act 2006
.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).
The presentation currency is GBP.
The following principal accounting policies have been applied:
The only active Company within the Group is Daisy Green Food Limited. As the only other subsidiary (Daisy Green Marble Arch Limited) was dormant for the period the directors have chosen not to prepare consolidated financial statements.
Whilst the pandemic period has presented the hospitality industry with unprecedented levels of operational uncertainty it has demonstrated that its offering remains resilient and in demand. Future pandemic associated business interruption continues to threaten, but the Company has taken appropriate measures to reasonably expect that it will have adequate resources to continue to trade for the next 12 months following the signing of the audit report. This includes the negotiation of an additional CBILS working capital facility, a demonstrated ability to conserve and grow cash balances, strong and supportive relationships with landlords and key suppliers.
At 26 April 2020, the Company had a net current liability balance, a significant portion of which related to an intercompany balance set to be cleared through the reciept of a dividend. The directors are confident that the Company will trade profitably and in a cash generating manner post year end, which will generate sufficient funds to cover the remaining net current liabilities as they fall due. Therefore it is appropriate to prepare the financial statements on a going concern basis. Revenue is recognised once the food and drink has been delivered to the customers and a sales transaction with the customer has been recognised using a tilling system. Grants of a revenue nature are recognised in the Statement of income and retained earnings in the same period as the related expenditure.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 26 APRIL 2020
2.
Accounting policies (continued)
Other operating income consists of 12.5% service charges on food and drink, which are collected and recognised upon point of sale. Subsequent payments are processed through payroll and are included within administrative expenses.
Also included in other operating income are capital contribution lease incentives, which are released to the Statement of income and retained earnings over the length of the lease to which they relate.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Artwork (held within fixtures, fittings and equipment) is not depreciated as the directors believe that the value of these items does not diminish and the residual value of the artwork will be at least that paid for it by the company.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 26 APRIL 2020
2.
Accounting policies (continued)
Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to the Statement of income and retained earnings on a straight line basis over the lease term.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 26 APRIL 2020
Judgements: a) Impairment of fixed assets 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. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss, if any. Where it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the amount of the cash generating unit to which the asset belongs. b) Onerous leases At each reporting date the Company considers whether any leases are considered to be onerous. Leases considered to be onerous would be recognised as a liability within the Statement of Financial Position. Sales, gross profitability and EBITDA are reviewed when management consider whether leases are onerous. c) Capitalisation of directors time The company capitalises time incurred by employees and directors with regard to getting tangible fixed assets into the state in which they can be used. This includes time incurred by directors which would otherwise have been incurred by third parties with respect to legal and architect's fees. The Directors record the time incurred in respect of these activities and consider that they are best reflected within tangible fixed assets, with the respective cost being depreciated over the time in which the costs will generate a benefit to the company. Remaining costs incurred relating to wages and salaries for Directors and other staff in relation to opening new stores and the general running of the business are expensed. Estimates: a) Dilapidations provision The Company includes a provision for dilapidations within the Statement of Financial Position. Dilapidation provisions are based on an estimate of the future expected cost of returning restaurant sites to their previous states, as required by the leases to which they relate. The estimated costs are discounted to their present value and unwound over the length of the respective leases. Depreciation of the tangible fixed asset component is released to the Statement of Income and Retained Earnings over the same period.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 26 APRIL 2020
Page 17
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 26 APRIL 2020
Page 18
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 26 APRIL 2020
There were no factors that may affect future tax charges.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 26 APRIL 2020
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 26 APRIL 2020
Page 22
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 26 APRIL 2020
17.
Deferred taxation (continued)
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 26 APRIL 2020
Share premium account
nominal value of the shares allotted, less any expenses directly related to such allotments.
Profit and loss account
A prior year adjustment has been included within the financial statements in relation to reclassifying rental deposits held. An amount of £232,287 was reclassified between debtors: amounts due within one year and debtors: amounts due in greater than one year. There is no profit impact of this adjustment.
A prior year adjustment has also been identified in relation to regonition of rent free accruals. The impact of this adjustment was to increase accurals by £46,384, decrease profit and loss brought forward as at 1 May 2018 by £33,481, there was a profit decreasing effect of this adjustment in the period to 28 April 2019, amounting to £12,903.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 26 APRIL 2020
At the year end, P E Freeman and T D Onions were equal shareholders of the company and ultimate controlling parties.
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