Company Registration No. 09984893 (England and Wales)
MERAKI RESTAURANTS LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
PAGES FOR FILING WITH REGISTRAR
MERAKI RESTAURANTS LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 6
MERAKI RESTAURANTS LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2019
31 December 2019
- 1 -
2019
2018
Notes
£
£
£
£
Fixed assets
Tangible assets
3
2,595,848
2,764,860
Current assets
Stocks
60,466
43,254
Debtors
4
579,237
251,993
Cash at bank and in hand
181,071
12,629
820,774
307,876
Creditors: amounts falling due within one year
5
(3,803,844)
(3,664,945)
Net current liabilities
(2,983,070)
(3,357,069)
Total assets less current liabilities
(387,222)
(592,209)
Capital and reserves
Called up share capital
6
106
106
Share premium account
999,900
999,900
Profit and loss reserves
(1,387,228)
(1,592,215)
Total equity
(387,222)
(592,209)
For the financial year ended 31 December 2019 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
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.
The financial statements were approved by the board of directors and authorised for issue on 31 December 2020 and are signed on its behalf by:
T Tang
Director
Company Registration No. 09984893
MERAKI RESTAURANTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
- 2 -
1
Accounting policies
Company information
Meraki Restaurants Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
5 Market Yard Mews, 194-204 Bermondsey Street, London, SE1 3TQ, United Kingdom.
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
As stated in note 9, the directors have considered the effect of the Covid-19 pandemic. During 2020 the UK government announced as part of their emergency procedures that restaurants are no longer to serve food on the premises for various periods during the year. As a result the company’s restaurant has been closed during these periods of lockdown.
true
The directors have made use of the available schemes provided by the government to support the company and are actively managing the resources of the company, in communication with the bank, the landlord, suppliers or other parties. Based on this and the committed support of the strong shareholder base, they expect the company to have sufficient resources to meet its liabilities through the period of closure until it can trade again. Therefore, notwithstanding the uncertainty, the directors have continued to adopt the going concern basis in these financial statements.
1.3
Turnover
Turnover represents the sales of food and drinks in the restaurant, net of VAT.
1.4
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Leasehold improvements
Over the term of the lease
Plant and equipment
25% on cost
Fixtures and fittings
25% 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
.
1.5
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.
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price.
MERAKI RESTAURANTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 3 -
1.7
Cash at bank and in hand
Cash at bank and in hand
are basic financial assets
and
include cash in hand, deposits held at call with banks
,
and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
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
,
are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future receipts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. 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.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs.
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.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
MERAKI RESTAURANTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 4 -
1.12
Leases
Rentals payable under operating leases,
including
any lease incentives received, are charged to
expense
on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease asset are consumed.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 56
(2018 - 47).
3
Tangible fixed assets
Leasehold improvements
Plant and machinery
Fixtures and fittings
Total
£
£
£
£
Cost
At 1 January 2019
2,599,044
321,073
248,265
3,168,382
Additions
121,803
15,878
21,309
158,990
At 31 December 2019
2,720,847
336,951
269,574
3,327,372
Depreciation and impairment
At 1 January 2019
227,838
112,209
63,475
403,522
Depreciation charged in the year
179,179
82,170
66,653
328,002
At 31 December 2019
407,017
194,379
130,128
731,524
Carrying amount
At 31 December 2019
2,313,830
142,572
139,446
2,595,848
At 31 December 2018
2,371,206
208,864
184,790
2,764,860
4
Debtors
2019
2018
Amounts falling due within one year:
£
£
Trade debtors
48,867
36,553
Other debtors
454,671
129,968
Prepayments and accrued income
75,699
85,472
579,237
251,993
MERAKI RESTAURANTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 5 -
5
Creditors: amounts falling due within one year
2019
2018
£
£
Bank overdrafts
-
34,528
Trade creditors
418,511
377,390
Other taxation and social security
205,728
147,517
Other creditors
3,077,119
3,050,047
Accruals and deferred income
102,486
55,463
3,803,844
3,664,945
6
Called up share capital
2019
2018
£
£
Ordinary share capital
Issued and fully paid
9,500 A Ordinary shares of 1p each
95
95
1,056 B Ordinary shares of 1p each
11
11
106
106
A Ordinary shares and B Ordinary shares rank pari passu in all aspects apart from on a distribution of assets on a liquidation or a return of capital. Further details are available from Companies House.
7
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:
2019
2018
£
£
Within one year
160,890
160,890
Between two and five years
643,560
643,560
In over five years
1,287,120
1,448,010
2,091,570
2,252,460
8
Events after the reporting date
The directors have considered the effect of the Covid-19 pandemic, that has been spreading throughout the world in 2020, on the company’s activities. The company’s restaurant has been closed during 2020 during periods of lockdown enforced by the UK government. The pandemic is expected to continue to cause a significant disruption to the company’s business but at the date of approval of these financial statements, the extent and quantum of the disruption remains uncertain.
MERAKI RESTAURANTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 6 -
9
Related party transactions
At 31 December 201
9
, an amount of £2
,
982
,
455 (201
8
: £2
,
982
,
455) of loan capital was owed to shareholders of the company. Of this £398,908 was owed to M Waney, a director, in relation to loans provided on 21 September 2016, 19 June 2017 and 23 January 2018.