Company Registration No. 08119161 (England and Wales)
HICKORY'S (ROS) LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2021
HICKORY'S (ROS) LTD
COMPANY INFORMATION
Directors
Mr N E McDonnell
Mr J W Welsh
Mr R A Bacon
Mr J C Bligh
Mr M D Powell
Secretary
Mrs M McDonnell
Company number
08119161
Registered office
Suites G & H, Ground Floor
Steam Mill
Steam Mill Street
Chester
Cheshire
CH3 5AN
Auditor
McLintocks (NW) Limited
2 Hilliards Court
Chester Business Park
Chester
Cheshire
CH4 9PX
HICKORY'S (ROS) LTD
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Profit and loss account
8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 23
HICKORY'S (ROS) LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2021
- 1 -
The directors present the strategic report
for the year ended 30 April 2021. The results reflect 52 weeks of
trade
to 2 May 2021. The prior period financial statements reflected 53 weeks of trade to 3 May 2020.
Review of Business
The directors are satisfied with the results for the year. The results for the year ended 30 April 2021 include periods of closure, periods of disruption along with periods when all our restaurants were extremely busy. All our restaurants exceeded our expectations when they reopened in the summer of 2020 and we're proud of the way our team coped with the difficulties they faced and continue to face.
As a result of the COVID-19 global pandemic, the UK Government enforced the temporary closure of entertainment and hospitality premises on 20 March 2020. All of the Hickory's Smokehouse restaurants were closed at the beginning of the financial year. At the date of this report the company has re-opened all of its restaurants again after a busy summer.
The company made use of the Government’s Job Retention Scheme to protect the vast majority of jobs throughout the company. The losses incurred during closure along with the significant working capital impact on the company’s liquidity led the company to borrow further funds, through its parent company, from the group’s banker Thincats, under the CBILS scheme. Further funds were also raised from shareholders and at the date of this report the directors are satisfied with the company’s financial outlook.
The directors are confident of growth in future years and since the end of the financial year have opened two further restaurant
s
in Wilmslow and Nottingham. A further lease has been signed in Horbury near Wakefield and the directors expect this to open in early 2022.
The company’s key financial indicators during the year were as follows:
Turnover
£18,352k
(2020 - £24,046k)
EBITDA
£4,750k
(2020 - £3,481k)
Net assets
£11,905k
(2020 - £8,925k)
The company and the Johoco 2029 Group remains well placed to grow the estate even further as the company actively seeks new locations for Hickory’s Smokehouse.
HICKORY'S (ROS) LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2021
- 2 -
Principle Risks and Uncertainties
Management continually monitors the key risks facing the company together with assessing the controls used for managing these risks. The board of directors formally reviews and documents the principal risks facing the business at least annually.
The principal risks and uncertainties facing the company are as follows:
Economic downturn leading to a reduced level of consumer spending –
Sales trends are constantly reviewed to enable early action to be taken in the event of sales declining. The overheads of the business are carefully managed and monitored.
Competitor pressure –
The market in which the company operates is considered to be relatively competitive, and therefore competitor pressure could result in losing revenue to competitors. The company manages the risk by providing quality venues and products, and maintaining strong relationships with its key customers.
Loss of Key Personnel –
This would present significant operational difficulties for the company. Management seek to ensure that the key personnel are appropriately remunerated and incentivised to ensure that good performance is recognised and rewarded.
COVID-19 –
The company has had to adapt to health and safety requirements for both customers and staff members. The company has introduced various measures to ensure these requirements are upheld and are stated in our safety pledge. Such measures include: sanitiser stations, team ‘health checks’, increased outdoor seating, single use menus, facemask requirements and table-only service.
Further enforced national lockdowns which will cease all in-store trade and have an adverse impact on our cash position. Management are constantly monitoring the status of permitted hospitality operations and are monitoring performance closely. The company has diversified over the last twelve months and now operates a Hickory’s At Home option which has run throughout national lockdowns and currently holds a very healthy cash balance.
Mr M D Powell
Director
15 December 2021
HICKORY'S (ROS) LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2021
- 3 -
The directors present their annual report and financial statements for the year ended 30 April 2021. The results reflect 52 weeks of trade to 2 May 2021. The prior period financial statements reflected 53 weeks of trade to 3 May 2020.
The trading results are for the Hickory's Smokehouse sites at Chester, West Kirby, Rhos-on-Sea, Wall Heath, Burton Green, Castle Bromwich, Southport, Worcester, Gresty Green, Poynton and Shrewsbury.
Results and dividends
The results for the year are set out on page 8.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr N E McDonnell
Mr J W Welsh
Mr R A Bacon
Mr J C Bligh
Mr M D Powell
Disabled persons
Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.
Employee involvement
The company's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.
Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.
There is no employee share scheme at present, but the directors are considering the introduction of such a scheme as a means of further encouraging the involvement of employees in the company's performance.
Auditor
In accordance with the company's articles, a resolution proposing that McLintocks (NW) Limited be reappointed as auditor of the company will be put at a General Meeting.
HICKORY'S (ROS) LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2021
- 4 -
Statement of directors' responsibilities
The directors are responsible for preparing the annual 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 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.
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
that would normally
be contained in the directors' report. It has done so in respect of
financial performance, risk, post balance sheet events and future developments.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s
auditor
is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s
auditor
is aware of that information.
On behalf of the board
Mr M D Powell
Director
15 December 2021
HICKORY'S (ROS) LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF HICKORY'S (ROS) LTD
- 5 -
Opinion
We have audited the financial statements of Hickory's (ROS) Ltd (the 'company') for the year ended 30 April 2021 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including 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 30 April 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.
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
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.
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 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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit
:
-
the information given in the strategic report and the directors'
r
eport 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 have been prepared in accordance with applicable legal requirements.
HICKORY'S (ROS) LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF HICKORY'S (ROS) LTD
- 6 -
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 identifie
d
material misstatements in the strategic report and the directors'
r
eport
.
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
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'
r
esponsibilities
s
tatement, 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
.
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
.
Enquiries of management and those charged with governance were held in order to identify any laws and regulations that could be expected to have a material impact on the financial statements. Throughout the audit, the team were updated with the outcomes of these enquiries including consideration as to where and how fraud may occur in the company.
The audit procedures undertaken to address any potential risk in relating to irregularities (which include fraud and non-compliance with laws and regulations) included: enquiries of management and those charged with governance on how the company complies with relevant laws, regulations and any cases actual or potential litigation or claims; examination of appropriate legal correspondence; testing of journal entries for appropriateness; and analytical procedures on account balances to identify variances against expectation which may show indications of fraud.
No instances of material non-compliance were identified, although the prospect of detecting irregularities, including fraud, is inherently difficult. This is due to; difficulty in detecting irregularities; limits imposed by the effectiveness of the entity’s controls; and the nature, timing and extent of the audit procedures performed. Irregularities as a result of fraud are inherently more difficult to detect than those that resulting from error. Despite the audit has being planned and performed in accordance with ISAs (UK), there is an unavoidable risk that material misstatements may not be detected
.
HICKORY'S (ROS) LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF HICKORY'S (ROS) LTD
- 7 -
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company's member 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 member those matters we are required to state to the member in an auditor's 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 member for our audit work, for this report, or for the opinions we have formed.
Michael Caputo FCA (Senior Statutory Auditor)
For and on behalf of McLintocks (NW) Limited
15 December 2021
Chartered Accountants
Statutory Auditor
2 Hilliards Court
Chester Business Park
Chester
Cheshire
CH4 9PX
HICKORY'S (ROS) LTD
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 APRIL 2021
- 8 -
2021
2020
Notes
£
£
Turnover
3
18,352,349
24,045,922
Cost of sales
(5,466,298)
(7,964,610)
Gross profit
12,886,051
16,081,312
Administrative expenses
(14,279,923)
(14,807,568)
Other operating income
4,837,163
1,036,219
Operating profit
4
3,443,291
2,309,963
Interest receivable and similar income
7
2,061
Interest payable and similar expenses
8
(12,030)
(308)
Profit before taxation
3,431,261
2,311,716
Tax on profit
9
(452,194)
37,445
Profit for the financial year
2,979,067
2,349,161
The profit and loss account has been prepared on the basis that all operations are continuing operations.
HICKORY'S (ROS) LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2021
- 9 -
2021
2020
£
£
Profit for the year
2,979,067
2,349,161
Other comprehensive income
-
-
Total comprehensive income for the year
2,979,067
2,349,161
HICKORY'S (ROS) LTD
BALANCE SHEET
AS AT
30 APRIL 2021
30 April 2021
- 10 -
2021
2020
Notes
£
£
£
£
Fixed assets
Tangible assets
10
14,833,040
14,452,299
Current assets
Stocks
11
319,065
176,800
Debtors
12
495,489
421,455
Cash at bank and in hand
3,819,890
747,378
4,634,444
1,345,633
Creditors: amounts falling due within one year
13
(6,466,485)
(6,228,194)
Net current liabilities
(1,832,041)
(4,882,561)
Total assets less current liabilities
13,000,999
9,569,738
Provisions for liabilities
Deferred tax liability
15
1,096,497
644,303
(1,096,497)
(644,303)
Net assets
11,904,502
8,925,435
Capital and reserves
Called up share capital
17
100
100
Profit and loss reserves
11,904,402
8,925,335
Total equity
11,904,502
8,925,435
The financial statements were approved by the board of directors and authorised for issue on 15 December 2021 and are signed on its behalf by:
Mr M D Powell
Director
Company Registration No. 08119161
HICKORY'S (ROS) LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2021
- 11 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 May 2019
100
6,576,174
6,576,274
Year ended 30 April 2020:
Profit and total comprehensive income for the year
-
2,349,161
2,349,161
Balance at 30 April 2020
100
8,925,335
8,925,435
Year ended 30 April 2021:
Profit and total comprehensive income for the year
-
2,979,067
2,979,067
Balance at 30 April 2021
100
11,904,402
11,904,502
HICKORY'S (ROS) LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2021
- 12 -
1
Accounting policies
Company information
Hickory's (ROS) Ltd is a
private
company
limited by shares
incorporated in
England and Wales
.
The registered office is
Suites G & H, Ground Floor, Steam Mill, Steam Mill Street, Chester, Cheshire, CH3 5AN.
1.1
Accounting convention
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.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
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.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares
publicly available consolidated financial statements
, including this company,
which are
intended to give a true and fair view of the assets, liabilities,
financial position and profit or loss
of the group
.
T
he company has
therefore
taken advantage of
e
xemptions from the following disclosure requirements:
-
Section 4 ‘Statement of Financial Position’: Reconciliation of the opening and closing number of shares;
-
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
-
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’
:
Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument;
basis
of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income
;
-
Section 33 ‘Related Party Disclosures’
:
Compensation for key management personnel
.
The financial statements of the company are consolidated in the financial statements of
Johoco 2029 Limited
. These consolidated financial statements are available from its registered office
,
Suites G & H Ground Floor Steam Mill, Steam Mill Street, Chester, Cheshire, CH3 5AN
.
1.2
Going concern
A
true
t the time of approving the financial statements
,
t
he directors have a reasonable expectation that the
company
has adequate resources to continue in operational existence for the foreseeable future
, despite the ongoing COVID-19 restrictions
. Thus
t
he directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Reporting period
The accounts are presented for the year ended 30 April 2021. The results reflect 52 weeks of trade to 2 May 2021. The prior period financial statements reflected 53 weeks of trade to 3 May 2020. The financial statements are therefore not entirely comparable with the prior period.
1.4
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for
meals, drinks and cigarettes,
provided in the normal course of business
, and
is shown net of VAT and other sales related taxes
. All revenue is recognised at point of sale.
HICKORY'S (ROS) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2021
1
Accounting policies
(Continued)
- 13 -
1.5
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold improvements
Straight line over the life of the lease
Fit out costs
Straight line over the life of the lease or estimated useful life of the asset if longer
Equipment
Straight line over 15 years
Fixtures and fittings
12.5% on cost
Motor vehicles
20% on cost
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
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 complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.7
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ 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
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.
HICKORY'S (ROS) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2021
1
Accounting policies
(Continued)
- 14 -
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in
profit
or
loss
, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those
held
at
fair value through profit and loss
, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.
If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when
the company
transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
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
Basic financial liabilities, including
creditors
, bank loans, loans from
fellow group companies and preference shares that are classified as debt, 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
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts 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.
HICKORY'S (ROS) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2021
1
Accounting policies
(Continued)
- 15 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts,
are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are
s
ubsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in
profit
or
loss
in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as
being measured at
fair value th
r
ough profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations
expire or are discharged or cancelled.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the
profit and loss account
because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and 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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the
profit and loss account
, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the
company
has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.10
Employee benefits
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.
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.
HICKORY'S (ROS) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2021
1
Accounting policies
(Continued)
- 16 -
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair
value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases,
including
any lease incentives received, are charged to
profit or loss
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
s
asset are consumed.
1.13
Government grants
Government grants are recognised at the fair value of the asset receive
d
or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met
. Where a
grant does not specify performance conditions
it
is recognised in income when the proceeds are received or receivable
. A grant received before the recognition criteria are satisfied is recognised as a liability.
2
Judgements and key sources of estimation uncertainty
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.
3
Turnover and other revenue
2021
2020
£
£
Turnover analysed by class of business
Drink sales
5,043,618
7,650,184
Food sales
12,466,411
16,394,537
Tobacco sales
850
1,201
Eat out to help out - government funding
841,470
-
18,352,349
24,045,922
HICKORY'S (ROS) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2021
3
Turnover and other revenue
(Continued)
- 17 -
2021
2020
£
£
Other significant revenue
Interest income
-
2,061
COVID-19 support grants received
4,837,163
995,077
Insurance claims
-
41,142
All turnover arose within the United Kingdom.
Government support grants reflect Coronavirus job retention scheme grants of £4,538,449 (2020: £945,077) and local authority coronavirus support grants of £298,714 (2020: £50,000).
4
Operating profit
2021
2020
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
(4,837,163)
(995,077)
Depreciation of owned tangible fixed assets
1,306,976
1,167,962
Depreciation of tangible fixed assets held under finance leases
-
1,642
Operating lease charges
764,780
797,668
5
Auditor's remuneration
Auditor's remuneration is disclosed within the group accounts on a consolidated basis.
6
Employees
The average monthly number of persons employed by the company during the year was:
2021
2020
Number
Number
Front of house
522
453
Back of house
274
239
Total
796
692
HICKORY'S (ROS) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2021
6
Employees
(Continued)
- 18 -
Their aggregate remuneration comprised:
2021
2020
£
£
Wages and salaries
9,748,379
9,182,360
Social security costs
519,403
530,111
Pension costs
104,228
99,632
10,372,010
9,812,103
Aggregate remuneration for all employees reflects both the wages charged to the profit and loss account and those capitalised as part of leasehold improvements.
7
Interest receivable and similar income
2021
2020
£
£
Interest income
Interest on bank deposits
1,470
Other interest income
591
Total income
2,061
8
Interest payable and similar expenses
2021
2020
£
£
Interest on finance leases and hire purchase contracts
308
Other interest
12,030
12,030
308
9
Taxation
2021
2020
£
£
Current tax
Adjustments in respect of prior periods
(59,633)
Deferred tax
Origination and reversal of timing differences
452,194
(76,151)
Adjustment in respect of prior periods
98,339
Total deferred tax
452,194
22,188
Total tax charge/(credit)
452,194
(37,445)
HICKORY'S (ROS) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2021
9
Taxation
(Continued)
- 19 -
The actual charge/(credit) for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2021
2020
£
£
Profit before taxation
3,431,261
2,311,716
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2020: 19.00%)
651,940
439,226
Adjustments in respect of prior years
(51,634)
Group relief
(525,804)
(565,077)
Permanent capital allowances in excess of depreciation
(374,461)
(96,374)
Depreciation on assets not qualifying for tax allowances
248,325
222,225
Deferred tax adjustments in respect of prior years
271,284
98,340
Deferred tax timing difference - current year
180,910
(76,151)
Research and development credit - prior year
(8,000)
Taxation charge/(credit) for the year
452,194
(37,445)
Factors that may affect future tax
Changes to the UK corporation tax rates were substantively enacted as part of the Finance Bill 2021 (on 11 March 2021). These include increases to the main rate to increase the rate to 25% from 1 April 2022. Deferred taxes at the Balance Sheet date have been measured using the current corporation tax rate of 19% (20
20
: 19%).
HICKORY'S (ROS) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2021
- 20 -
10
Tangible fixed assets
Leasehold improvements
Fit out costs
Equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 May 2020
4,508,574
6,407,126
4,392,316
3,014,005
1,650
18,323,671
Additions
304,400
433,573
469,633
480,111
1,687,717
At 30 April 2021
4,812,974
6,840,699
4,861,949
3,494,116
1,650
20,011,388
Depreciation and impairment
At 1 May 2020
794,438
779,551
1,220,282
1,075,451
1,650
3,871,372
Depreciation charged in the year
286,861
349,926
286,512
383,677
1,306,976
At 30 April 2021
1,081,299
1,129,477
1,506,794
1,459,128
1,650
5,178,348
Carrying amount
At 30 April 2021
3,731,675
5,711,222
3,355,155
2,034,988
14,833,040
At 30 April 2020
3,714,136
5,627,575
3,172,034
1,938,554
14,452,299
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts. All hire purchase contracts have now come to an end.
2021
2020
£
£
Fixtures and fittings
7,254
11
Stocks
2021
2020
£
£
Stocks
319,065
176,800
12
Debtors
2021
2020
Amounts falling due within one year:
£
£
Trade debtors
11,004
3,459
Corporation tax recoverable
8,000
Other debtors
332,739
266,516
Prepayments and accrued income
151,746
143,480
495,489
421,455
HICKORY'S (ROS) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2021
- 21 -
13
Creditors: amounts falling due within one year
2021
2020
Notes
£
£
Obligations under finance leases
14
2,753
Trade creditors
1,713,984
2,086,668
Amounts owed to group undertakings
1,886,757
1,628,129
Taxation and social security
651,916
422,961
Other creditors
550,585
331,676
Accruals and deferred income
1,663,243
1,756,007
6,466,485
6,228,194
14
Finance lease obligations
2021
2020
Future minimum lease payments due under finance leases:
£
£
Within one year
2,753
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments. The hire purchase liabilities are secured against the assets to which they relate.
All finance lease agreements have now ended.
15
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2021
2020
Balances:
£
£
Accelerated capital allowances
1,096,497
644,303
2021
Movements in the year:
£
Liability at 1 May 2020
644,303
Charge to profit or loss
452,194
Liability at 30 April 2021
1,096,497
The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.
HICKORY'S (ROS) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2021
- 22 -
16
Retirement benefit schemes
2021
2020
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
104,228
99,632
The company operates a defined contribution pension scheme for all qualifying employees.
The assets of the scheme are held separately from those of the company in an independently administered fund.
17
Share capital
2021
2020
2021
2020
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
100
100
100
100
18
Financial commitments, guarantees and contingent liabilities
The long term loans in the accounts of Johoco 2029 Limited (parent company) dated 29 November 2019,
18 June 2020 and 28 May 2021 (post year end), are provided by Thincats Loans.
The loans are secured with fixed and floating charges, with an inter-company guarantee against all assets of the Johoco 2029 Limited group and all assets of the entities that comprise it (including Hickory's (ROS) Limited).
19
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2021
2020
£
£
Within one year
1,112,385
985,954
Between two and five years
4,468,272
3,863,580
In over five years
8,873,681
7,971,087
14,454,338
12,820,621
20
Events after the reporting date
Post year end the company entered into a lease for a new site - Hickory's Horbury. This will be a cost of £79,200 per annum for 20 years.
HICKORY'S (ROS) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2021
- 23 -
21
Related party transactions
Hickory's (ROS) Ltd was charged a commercial rent and insurance for one of its restaurants of £88,000 (2020: £92,001) by a company owned and controlled by a director. At the year end £nil (2020: £nil) was owed to the landlord.
At the year end Hickory's (ROS) Ltd had the following amounts due from/(owing to) group companies:
2021
2020
£
£
Johoco 2029 Limited
700,013
929,775
Bar Lounge Limited
(1,439,816)
(1,410,950)
Hickory's Smokehouse Limited
(942,832)
(942,832)
Hickory's (West Kirby) Ltd
(204,122)
(204,122)
22
Ultimate controlling party
The parent company of Hickory's (ROS) Limited is Johoco 2029 Limited, a company incorporated in England & Wales. Its registered office is Suites G & H Ground Floor Steam Mill, Steam Mill Street, Chester, Cheshire, CH3 5AN
The ultimate controlling parties of Johoco 2029 Limited are Piper Nominee IV Limited and Mr N E McDonnell by virtue of their voting rights.
2021-04-30
2020-05-01
false
CCH Software
CCH Accounts Production 2021.300
No description of principal activity
Mr N E McDonnell
Mr J W Welsh
Mr R A Bacon
Mr J C Bligh
Mr M D Powell
Mrs M McDonnell
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