Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2021
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BRASSERIE ZEDEL LIMITED
COMPANY INFORMATION
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BRASSERIE ZEDEL LIMITED
CONTENTS
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BRASSERIE ZEDEL LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021
The directors present their report and the financial statements for the year ended 31 December 2021.
As was the case in the previous financial year, the Covid-19 pandemic continued to have a materially adverse impact to operations from January 2021 through to mid-April 2021. During this period of time, the restaurant was unable to open due to the Government enforced closure of restaurants.
Year on year, Zedel revenue increased by 53.2% to £6.42m. The company made a profit at an EBITDA level of £361k despite the challenging trading environment. The directors are grateful for the support of loyal customers and proud of hard working colleagues in what has been a challenging year. The Company is part of a wider group and benefits from sharing a number of core central services including areas such as personnel, procurement, and training and development. The EBITDA for the year is shown below.
The loss for the year, after taxation, amounted to £
842,011
(2020 -
loss
£
358,494
)
.
The directors who served during the year were:
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BRASSERIE ZEDEL LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
The Company continues to strive to deliver hospitality from the heart, creating places where people feel they belong. In an uncertain economic climate, we will focus on the things we can influence, namely the experience we create for our customers and the culture we foster for our staff.
The Company considers its workforce to be its most important asset and abides by the following principles:
Equal opportunities - it is committed to offering equal opportunities to all people in their recruitment, training and career development, having regard to their particular aptitudes and abilities. Full and fair consideration is given to applicants with disabilities and every effort is made to give employees who become disabled whilst employed by the Company an opportunity for retraining. Health and safety - health and safety is considered equal in importance to any other function of the Company. Harassment - a zero tolerance policy exists towards sexual, physical or mental harassment in the workplace. It is expected that incidents of harassment are reported to the appropriate personnel manager. Communication - all employees are briefed on all relevant matters on a regular basis. Security - the security of all staff and customers is paramount and the Company takes the necessary steps to minimise risks to their safety.
Section 172 Statement
In accordance with Section 172 of the Companies Act 2006, the directors’ act in a way that they consider, in good faith, that most likely promotes the success of the Company for the benefit of its key stakeholders. The directors have regard for, amongst other matters, the: • Likely consequences of any decision in the long term • Interests of the company’s employees • Need to foster the company’s relationships with customers and suppliers • Impact of the company’s operations on the environment • Company maintaining a reputation for high standards of business conduct • Future Developments The Company continues to strive to deliver hospitality from the heart, creating places where people feel they belong. In an uncertain economic climate, we will focus on the things we can influence, namely the experience we create for our customers and the culture we foster for our staff. In the coming year we will continue to invest in the environment we create, in the hospitality we provide, and in our people.
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BRASSERIE ZEDEL LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
The Company's financial risk management policy seeks to ensure that adequate financial resources are retained to enable it to meet its day to day obligations as they fall due whilst managing its liquidity and credit risks.
Credit risk: The Company receives the majority of its turnover in the form of cash or credit card payments and considers this risk to be effectively mitigated. Cash flow risk: The Company monitors cash flow as part of its day to day activities allowing for the effective management of the Company's cash flows.
The auditors, Haysmacintyre 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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BRASSERIE ZEDEL LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2021
The directors are responsible for preparing 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.
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BRASSERIE ZEDEL LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BRASSERIE ZEDEL LIMITED
We have audited the financial statements of Brasserie Zedel Limited (the 'Company') for the year ended 31 December 2021, which comprise the Statement of Comprehensive Income, the Balance Sheet, 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.
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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BRASSERIE ZEDEL LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BRASSERIE ZEDEL LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
In our opinion, based on the work undertaken in the course of the audit:
∙
the information given in the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙
the Directors' Report has 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 Directors' Report.
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BRASSERIE ZEDEL LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BRASSERIE ZEDEL LIMITED (CONTINUED)
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BRASSERIE ZEDEL LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BRASSERIE ZEDEL LIMITED (CONTINUED)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Based on our understanding of the Company and industry, we identified that the principal risks of non-compliance with laws and regulations related to food hygiene and health and safety requirements and compliance with national minimum living wage legislation. We considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, income tax, payroll tax, and sales tax. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to recognition of revenue, the posting of incorrect or inappropriate journal entries, bias in accounting estimates and disclosure of related party transactions. Procedures performed by the engagement team included: • Reconciliation of revenue to bank statement receipts recorded in the year; • Testing of the validity of bank transaction and revenue data used in the above work; • Evaluating the adequacy of systems and controls, including those designed to prevent and detect irregularities; • Use of data analytics to identify and investigate irregular or unexplained journal postings; • Challenging assumptions and judgements made by management in their critical accounting estimates; • Discussion of potential related party transactions with management and review of accounting records for related party activity; • Assessment of staff salaries and review of hourly pay against minimum wage legislation and consideration of requirements such as uniforms; • Corresponding with restaurant managers regarding hygiene and safety standards, and review of inspection reports; and • Review of correspondence with HMRC and regulators.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at:
www.frc.org.uk/auditorsresponsibilities
. This description forms part of our Auditors' Report.
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BRASSERIE ZEDEL LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BRASSERIE ZEDEL LIMITED (CONTINUED)
This report is made solely to the Company's members, as a body,
in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Statutory Auditors
10 Queen Street Place
EC4R 1AG
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BRASSERIE ZEDEL LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2021
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BRASSERIE ZEDEL LIMITED
REGISTERED NUMBER:
08042113
BALANCE SHEET
AS AT
31 DECEMBER 2021
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 20 form part of these financial statements.
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BRASSERIE ZEDEL LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED
31 DECEMBER 2021
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BRASSERIE ZEDEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
Brasserie Zedel Limited (the 'Company') is a private company limited by shares and incorporated and domiciled in England and in the UK. The address of the Company's registered office is 157-160 Piccadilly, London, United Kingdom, W1J 9EB.
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 judgment in applying the Company's accounting policies (see note 3).
The presentation currency of these financial statements is sterling. All amounts in the financial statements have been rounded to the nearest £1.
The following principal accounting policies have been applied:
The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙
the requirements of Section 7 Statement of Cash Flows;
∙
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
∙
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
∙
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
∙
the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of Corbin & King Holdings Limited as at 31 December 2021 and these financial statements may be obtained from 157-160 Piccadilly, London, United Kingdom, W1J 9EB.
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BRASSERIE ZEDEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
2.
Accounting policies (continued)
Notwithstanding net current liabilities of £1,261,009 (2020: net current liabilities of £418,998), the financial statements have been prepared on a going concern basis which the directors consider to be appropriate.
The Company is a subsidiary of Corbin & King Holdings Limited. Corbin & King Holdings Limited and its subsidiaries (the Group) meet its day to day working capital requirements through cash generated by operations and the utilisation of a group loan facility. The directors have prepared cash flow forecasts for the Group for a period of 12 months from the date of approval of these financial statements which indicate that, taking into account market conditions as well as sensitivity analysis, the Group will have sufficient funds to meet its liabilities as they fall due for that period. On 1 April 2022, Minor International PCL was successful in acquiring 100% of the share capital in Corbin & King Holdings Limited. The only loan within the Group is payable to Minor Hotel Group MEA DMCC, a subsidiary of the ultimate parent of the Group, Minor International PCL. This loan has a maturity date of March 2028. The Group is in advanced discussions with a financial institution to refinance an element of the loan noted above as well as securing capex facilities to help fund the expansion of the Group. The directors are optimistic for the future of the Group and look to build on the success of the existing estate. Turnover excludes staff discretionary service charges which are independently collected and distributed by a Tronc committee. Grants of a revenue nature are recognised in the Statement of Comprehensive Income in the same period as the related expenditure.
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BRASSERIE ZEDEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
2.
Accounting policies (continued)
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BRASSERIE ZEDEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
The whole of the turnover is attributable to the principal activity. All turnover arose within the United Kingdom.
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BRASSERIE ZEDEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
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BRASSERIE ZEDEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
10.
Taxation (continued)
There were no factors that may affect future tax charges.
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BRASSERIE ZEDEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
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BRASSERIE ZEDEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £38,188 (2020 - £51,660).
The Company is a subsidiary of Corbin and King Holdings Limited. The ultimate parent company is Minor International PCL.
The largest group in which the results of the Company and its group are consolidated is that headed by Minor International PCL, registered on the Stock Exchange of Thailand. The smallest group in which they are consolidated is that headed by Corbin & King Holdings Limited, with the registered offices at 157-160 Piccadilly, London, United Kingdom, W1J 9EB.
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