Company registration number 09295530 (England and Wales)
LIBERTY CHEESESTEAK COMPANY LTD
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2021
PAGES FOR FILING WITH REGISTRAR
LIBERTY CHEESESTEAK COMPANY LTD
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 9
LIBERTY CHEESESTEAK COMPANY LTD
BALANCE SHEET
AS AT
30 NOVEMBER 2021
30 November 2021
- 1 -
2021
2020
Notes
£
£
£
£
Fixed assets
Intangible assets
3
7,480
8,580
Tangible assets
4
465,467
581,573
472,947
590,153
Current assets
Stocks
10,367
8,800
Debtors
5
271,685
291,790
Cash at bank and in hand
426,058
483,884
708,110
784,474
Creditors: amounts falling due within one year
6
(685,457)
(630,080)
Net current assets
22,653
154,394
Total assets less current liabilities
495,600
744,547
Creditors: amounts falling due after more than one year
7
(176,250)
(221,250)
Net assets
319,350
523,297
Capital and reserves
Called up share capital
9
129
129
Share premium account
650,881
650,881
Profit and loss reserves
(331,660)
(127,713)
Total equity
319,350
523,297
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.
true
For the financial year ended 30 November 2021 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
T
he 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.
LIBERTY CHEESESTEAK COMPANY LTD
BALANCE SHEET (CONTINUED)
AS AT
30 NOVEMBER 2021
30 November 2021
- 2 -
The financial statements were approved and signed by the director and authorised for issue on 31 August 2022
Mr J P Teti
Director
Company Registration No. 09295530
LIBERTY CHEESESTEAK COMPANY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2021
- 3 -
1
Accounting policies
Company information
Liberty Cheesesteak Company Ltd is a
private
company
limited by shares
incorporated in
England and Wales
.
The registered office is
24 Bective Road, London, United Kingdom, SW15 2QA.
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 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 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.
1.2
Going concern
A
t 30 November 2021 the company h
as net current
liabilities
of
£22,653 (2020 - net current assets of
£
154,394) and had net assets of £319,350 (2020 - £523,297).
The company continues to rely on the support of its shareholders
. T
he director
is
not aware of any circumstances arising which would lead to their support being withdrawn. The director ha
s
also indicated
his
willingness to continue to support the company for the foreseeable future.
A
t the time of approving the financial statements
, the director has also considered the impact that COVID-19 has had on the company and believes he has taken the necessary steps to mitigate the impact. The company was subject to restrictions on trade which resulted in the temporary closure of the premises to the public in line with government guidance to control the coronavirus pandemic. The company has made use of various government schemes as necessary.
The director is confident that the company can continue to meet its obligations as they fall due and therefore consider it appropriate to apply the going concern basis for preparing the financial statements. However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the company's ability to continue as a going concern.
1.3
Turnover
Turnover, excluding value added tax, represents net sales of food, drink and rental income from entertainment zones. Turnover from food and drink is recognised on a point of sales basis and rental income is recognised at the point the service is provided.
LIBERTY CHEESESTEAK COMPANY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2021
1
Accounting policies
(Continued)
- 4 -
1.4
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated
amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 15 years from the year of acquisition in 2014.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
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 land and buildings
- 15 years and 5 years
Plant and equipment
- 20% on cost
Fixtures and fittings
- 20% on cost
Computer equipment
- 33.33% on cost
Motor vehicles
- 4 years
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
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
and intangible 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 recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in
profit
or
loss
, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
LIBERTY CHEESESTEAK COMPANY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2021
1
Accounting policies
(Continued)
- 5 -
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit)
in
prior years. A reversal of an impairment loss is recognised immediately in
profit
or
loss
, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.7
Stocks
Stocks are valued at the lower of cost and net selling price, after making due provision for wastage and slow moving items.
1.8
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.
1.9
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.
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.
LIBERTY CHEESESTEAK COMPANY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2021
1
Accounting policies
(Continued)
- 6 -
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
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.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Leases
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.
1.14
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.
Government grants relating to turnover are recognised as income over the periods when the related costs are incurred
. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
Total
52
36
LIBERTY CHEESESTEAK COMPANY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2021
- 7 -
3
Intangible fixed assets
Goodwill
£
Cost
At 1 December 2020 and 30 November 2021
16,500
Amortisation and impairment
At 1 December 2020
7,920
Amortisation charged for the year
1,100
At 30 November 2021
9,020
Carrying amount
At 30 November 2021
7,480
At 30 November 2020
8,580
4
Tangible fixed assets
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Computer equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 December 2020
666,515
91,664
69,299
2,624
465
830,567
Additions
3,982
1,112
5,094
At 30 November 2021
666,515
95,646
69,299
3,736
465
835,661
Depreciation and impairment
At 1 December 2020
154,764
51,570
41,517
1,085
58
248,994
Depreciation charged in the year
87,740
20,141
12,049
863
407
121,200
At 30 November 2021
242,504
71,711
53,566
1,948
465
370,194
Carrying amount
At 30 November 2021
424,011
23,935
15,733
1,788
465,467
At 30 November 2020
511,751
40,094
27,782
1,539
407
581,573
LIBERTY CHEESESTEAK COMPANY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2021
- 8 -
5
Debtors
2021
2020
Amounts falling due within one year:
£
£
Trade debtors
1,098
Amounts owed by group undertakings
105,403
Other debtors
58,517
185,123
165,018
185,123
2021
2020
Amounts falling due after more than one year:
£
£
Other debtors
106,667
106,667
Total debtors
271,685
291,790
6
Creditors: amounts falling due within one year
2021
2020
£
£
Bank loans
48,750
3,750
Trade creditors
220,257
340,421
Taxation and social security
118,850
145,014
Other creditors
297,600
140,895
685,457
630,080
7
Creditors: amounts falling due after more than one year
2021
2020
£
£
Bank loans and overdrafts
176,250
221,250
Creditors which fall due after five years are as follows:
2021
2020
£
£
Payable by instalments
-
41,250
LIBERTY CHEESESTEAK COMPANY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2021
- 9 -
8
Loans and overdrafts
2021
2020
£
£
Bank loans
225,000
225,000
Payable within one year
48,750
3,750
Payable after one year
176,250
221,250
In the prior year the company took a loan from the Bounce Back Loan Scheme (BBLS). The loan repayments are government guaranteed with no capital repayments in the first twelve months. Interest in the first twelve months of this loan is paid by the government.
The bank loan is secured by a fixed and floating charge over all assets in favour of Santander UK Plc.
9
Called up share capital
2021
2020
2021
2020
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A Ordinary shares of 1p each
12,864
12,864
129
129
10
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2021
2020
£
£
753,125
788,125
11
Related party transactions
At the
balance sheet
date
the company owed
the director
£49,772
(20
20
- £
49,743
). This
balance
is included within other creditors
, is accruing interest at a rate of 5% and is repayable on demand.
12
Parent company
The immediate and ultimate parent company is Liberty Cheesesteak Holdings Limited, a company incorporated in England and Wales. Its registered office is 24 Bective Road, London, United Kingdom, SW15 2QA.