Company Registration No. 11605892 (England and Wales)
LEON GROCERY LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE 52 WEEK PERIOD ENDED
25 DECEMBER 2022
25 December 2022
PM+M Solutions for Business LLP
Chartered Accountants
New Century House
Greenbank Technology Park
Challenge Way
Blackburn
Lancashire
BB1 5QB
LEON GROCERY LIMITED
COMPANY INFORMATION
Directors
Mr M Issa
Mr Z Issa
Secretary
Mr I M Patel
Company number
11605892
Registered office
Waterside Head Office
Haslingden Road
Guide
Blackburn
Lancashire
United Kingdom
BB1 2FA
Auditor
PM+M Solutions for Business LLP
New Century House
Greenbank Technology Park
Challenge Way
Blackburn
Lancashire
BB1 5QB
LEON GROCERY LIMITED
CONTENTS
Page
Directors' report
1 - 2
Independent auditor's report
3 - 6
Profit and loss account
7
Balance sheet
8
Statement of changes in equity
9
Notes to the financial statements
10 - 17
LEON GROCERY LIMITED
DIRECTORS' REPORT
FOR THE 52 WEEK PERIOD ENDED 25 DECEMBER 2022
- 1 -
The directors present their annual report and financial statements for the 52 week period ended 25 December 2022.
This report has been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006.
Principal activities
The sole purpose of this entity is to develop a range of LEON branded grocery products to be sold to supermarkets. The company commenced trading in October 2019 under an exclusive supply agreement with Sainsbury’s Supermarkets Ltd. During the year, the exclusivity with Sainsbury's Supermarkets came to an end. As a result of this, the company expanded retailer distribution, agreeing new listings with Asda and Ocado.
A number of successful launches occurred during the year including secondary flavour in waffle fries, based on our famous Aioli flavour profile and new range of side salads and stew pots. Furthermore, to support the retailer roll-out, the company set up new frozen and ambient consolidators.
Results and dividends
The results for the period are set out on page 6.
The directors do not recommend payment of a dividend.
Directors
The directors who held office during the 52 week period and up to the date of signature of the financial statements were as follows:
Mr M Issa
Mr Z Issa
Future developments
The company will continue to develop and expand the product range.
Auditor
PM+M Solutions for Business LLP were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
LEON GROCERY LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE 52 WEEK PERIOD ENDED 25 DECEMBER 2022
- 2 -
Statement of directors' responsibilities
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 period. Under that law they have elected to prepare the financial statements in accordance with UK accounting standards and applicable law (UK Generally Accepted Accounting Practice), including FRS 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 and then apply them consistently;
• make judgements and estimates that are reasonable and prudent;
• state whether applicable UK accounting standards have been followed, subject to any material departures
disclosed and explained in the financial statements;
• assess the company’s ability to continue as a going concern, disclosing, as applicable, matters related to going
concern; and
• use the going concern basis of accounting unless they either intend to liquidate the company or to cease
operations or have no realistic alternative but to do so.
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 responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the company and to prevent and detect fraud and other irregularities.
Statement of disclosure to auditor
The directors who held office at the date of approval of this directors’ report confirm that, so far as they are each aware, there is no relevant audit information of which the company’s auditor is unaware; and each director has taken all the steps that they ought to have taken as a director to make themself aware of any relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
Mr Z Issa
Director
26 September 2023
LEON GROCERY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LEON GROCERY LIMITED
- 3 -
Opinion
We have audited the financial statements of Leon Grocery Limited (the 'company') for the 52 week period ended 25 December 2022 which comprise the profit and loss account, 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 Financial Reporting Standard 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 25 December 2022 and of its profit for the 52 week period 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 directors' report for the financial 52 week period 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.
LEON GROCERY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LEON GROCERY LIMITED
- 4 -
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 identified material misstatements in the directors' report. We have nothing to report in respect of the following matters in relation to which 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; or
the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the directors' report and from the requirement to prepare a strategic report.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, 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.
Extent to which the audit was considered capable of detecting irregularities, including fraud
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.
We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.
LEON GROCERY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LEON GROCERY LIMITED
- 5 -
Identifying and assessing potential risks related to irregularities
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we have considered the following:
the nature of the industry and sector, control environment and business performance including the design of the company's remuneration policies, key drivers for directors’ remuneration, bonus levels and performance targets;
results of our enquiries of management about their own identification and assessment of the risks of irregularities;
the matters discussed among the audit engagement team and relevant specialists regarding how and where fraud might occur in the financial statements and any potential indicators of fraud;
any matters we identified having obtained and reviewed the company's documentation of their policies and procedures relating to:
identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;
detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;
the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations.
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: timing of recognition of commercial income, posting of unusual journals and complex transactions; and manipulating the company's performance profit measures and other key performance indicators to meet remuneration targets and externally communicated targets. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.
We also obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included UK companies Act, employment law, health and safety regulations, pensions legislation and tax legislation.
Audit response to risks identified
Our procedures to respond to risks identified included the following:
reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
enquiring of management concerning actual and potential litigation and claims;
performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
reading minutes of meetings of those charged with governance and reviewing correspondence with HMRC; and
in addressing the identified risks of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
LEON GROCERY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LEON GROCERY LIMITED
- 6 -
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 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 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 members as a body, for our audit work, for this report, or for the opinions we have formed.
Miss Helen Louise Clayton BSc FCA
Senior Statutory Auditor
For and on behalf of PM+M Solutions for Business LLP
26 September 2023
Chartered Accountants
Statutory Auditor
New Century House
Greenbank Technology Park
Challenge Way
Blackburn
Lancashire
BB1 5QB
LEON GROCERY LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE 52 WEEK PERIOD ENDED 25 DECEMBER 2022
- 7 -
52 week period
52 week period
ended
ended
25 December
26 December
2022
2021
Notes
£
£
Turnover
3
3,901,788
5,058,846
Cost of sales
(3,101,761)
(4,016,285)
Gross profit
800,027
1,042,561
Administrative expenses
(636,010)
(604,182)
Profit before taxation
164,017
438,379
Tax on profit
9
(15,507)
Profit for the financial 52 week period
148,510
438,379
The profit and loss account has been prepared on the basis that all operations are continuing operations.
LEON GROCERY LIMITED
BALANCE SHEET
AS AT
25 DECEMBER 2022
25 December 2022
- 8 -
25 December 2022
26 December 2021
Notes
£
£
£
£
Fixed assets
Tangible assets
10
62,028
7,662
Current assets
Stocks
11
293,043
111,008
Debtors
12
323,983
307,405
Cash at bank and in hand
140,396
193,743
757,422
612,156
Creditors: amounts falling due within one year
13
(359,310)
(323,695)
Net current assets
398,112
288,461
Total assets less current liabilities
460,140
296,123
Provisions for liabilities
Deferred tax liability
14
15,507
(15,507)
-
Net assets
444,633
296,123
Capital and reserves
Called up share capital
15
100
100
Profit and loss reserves
444,533
296,023
Total equity
444,633
296,123
These financial statements have been prepared 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 26 September 2023 and are signed on its behalf by:
Mr Z Issa
Director
Company Registration No. 11605892
LEON GROCERY LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE 52 WEEK PERIOD ENDED 25 DECEMBER 2022
- 9 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 27 December 2020
100
(142,356)
(142,256)
Period ended 26 December 2021:
Profit and total comprehensive income for the period
-
438,379
438,379
Balance at 26 December 2021
100
296,023
296,123
Period ended 25 December 2022:
Profit and total comprehensive income for the period
-
148,510
148,510
Balance at 25 December 2022
100
444,533
444,633
LEON GROCERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEK PERIOD ENDED 25 DECEMBER 2022
- 10 -
1
Accounting policies
Company information
LEON Grocery Limited sole purpose is to develop and design a range of LEON branded grocery products to be sold to supermarkets, online and through Leon Restaurants.
The company is a private company limited by shares and is incorporated in United Kingdom and registered in England. The address of the registered office is Waterside Head Office, Haslingden Road, Guide, Blackburn, BB1 2FA. Company Registration No.11605892.
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 amounts in these financial statements are rounded to the nearest £.
These financial statements are prepared on a going concern basis, under the historical cost convention.
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. The company has therefore taken advantage of exemptions from the following disclosure requirements:
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: Interest income/expense and net gains/losses for financial instruments not measured at fair value; 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 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of EG Group Holdings Limited. These consolidated financial statements are available from its registered office.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover comprises invoiced supply of goods for the period (excluding Value Added Tax) in the United Kingdom. Sales are recognised at the point at which the company has fulfilled its contractual obligations and the risks and rewards attached to the product have been transferred to the customer, which is on delivery.
1.4
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.
LEON GROCERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE 52 WEEK PERIOD ENDED 25 DECEMBER 2022
1
Accounting policies
(Continued)
- 11 -
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:
Office Equipment
over 5 years
1.5
Stocks
Stocks are valued at the lower of cost and net releasable value after making allowance for obsolete and slow-moving stock.
1.6
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.
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled or (b)substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.
Basic financial liabilities
Basic financial liabilities, including trade and other payables and loans from fellow group companies 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.
Fees paid on the establishment of loan facilities are recognised as a transaction costs of the loan.
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payables are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.
1.7
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
LEON GROCERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE 52 WEEK PERIOD ENDED 25 DECEMBER 2022
1
Accounting policies
(Continued)
- 12 -
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.
1.8
Employee benefits
The company operates a defined contribution scheme for the benefit of its employees. Contributions payable
are charged to the profit and loss account in the 52 week period they are payable.
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.
There were no material judgements and estimates in the year.
3
Turnover
2022
2021
£
£
Turnover analysed by class of business
Sales of goods
3,901,788
5,058,846
2022
2021
£
£
Turnover analysed by geographical market
United Kingdom
3,901,788
5,058,846
LEON GROCERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE 52 WEEK PERIOD ENDED 25 DECEMBER 2022
- 13 -
4
Exceptional item
2022
2021
£
£
Expenditure
Exceptional item
-
73,542
For the period ended 26 December 2021, the exceptional administrative expenses incurred compromised of pre-formation costs of £73,542, all of which were one-off in nature.
5
Operating profit
2022
2021
Operating profit for the period is stated after charging:
£
£
Research and development costs
8,371
9,445
Depreciation of owned tangible fixed assets
2,334
1,584
6
Auditor's remuneration
2022
2021
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
15,000
16,000
The cost of the auditors' remuneration has been borne by the company's parent undertaking. The fee for the audit of the company's financial statements is £15,000 (2021: £16,000).
7
Employees
There were no employees during either period apart from the directors.
A number of employees of Leon Restaurants Limited also perform work for this entity and these costs are charged to this company.
2022
2021
Number
Number
2
2
LEON GROCERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE 52 WEEK PERIOD ENDED 25 DECEMBER 2022
- 14 -
8
Directors' remuneration
2022
2021
£
£
Remuneration for qualifying services
16,627
Company pension contributions to defined contribution schemes
14
16,641
Director’s remuneration is borne by another Group company with no element of the remuneration specifically identified as relating to services to this company.
9
Taxation
2022
2021
£
£
Deferred tax
Origination and reversal of timing differences
15,507
The actual charge for the 52 week period can be reconciled to the expected charge for the 52 week period based on the profit or loss and the standard rate of tax as follows:
2022
2021
£
£
Profit before taxation
164,017
438,379
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2021: 19.00%)
31,163
83,292
Utilisation of unrecognised deferred tax
1,456
(16,935)
Impact of group relief for nil consideration
(17,602)
(66,357)
Fixed asset differences
(3,232)
Remeasurement of deferred tax
3,722
Taxation charge for the period
15,507
-
LEON GROCERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE 52 WEEK PERIOD ENDED 25 DECEMBER 2022
- 15 -
10
Tangible fixed assets
Office Equipment
£
Cost
At 27 December 2021
9,768
Additions
56,700
At 25 December 2022
66,468
Depreciation and impairment
At 27 December 2021
2,106
Depreciation charged in the 52 week period
2,334
At 25 December 2022
4,440
Carrying amount
At 25 December 2022
62,028
At 26 December 2021
7,662
11
Stocks
2022
2021
£
£
Finished goods and goods for resale
293,043
111,008
12
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
198,751
304,572
Amounts owed by group undertakings
112,335
Other debtors
1,378
Prepayments and accrued income
12,897
1,455
323,983
307,405
Amounts owed by group undertakings are unsecured, interest free and repayable on demand.
LEON GROCERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE 52 WEEK PERIOD ENDED 25 DECEMBER 2022
- 16 -
13
Creditors: amounts falling due within one year
2022
2021
£
£
Trade creditors
214,739
231,046
Amounts owed to group undertakings
60,768
66,159
Accruals and deferred income
83,803
26,490
359,310
323,695
Amounts owed to group undertakings are unsecured, interest free and repayable on demand.
14
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2022
2021
Balances:
£
£
Accelerated capital allowances
15,507
-
2022
Movements in the 52 week period:
£
Liability at 27 December 2021
-
Charge to profit or loss
15,507
Liability at 25 December 2022
15,507
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.
15
Share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 10p each
1,000
1,000
100
100
The company has one class of ordinary shares, which carry no right to fixed income. The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at general meetings of the company.
LEON GROCERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE 52 WEEK PERIOD ENDED 25 DECEMBER 2022
- 17 -
16
Related party transactions
Transactions with related parties
During the 52 week period the company entered into the following transactions with related parties:
Sales
Sales
2022
2021
£
£
Entities with control, joint control or significant influence over the company
272,066
Until April 2021, the company was an 85% owned direct subsidiary of Leon Restaurants Limited. In April 2021, Leon Restaurants Limited acquired the 15% minority shareholding held by Sainsbury’s Supermarkets Ltd in the company. At the period end, the company was a 100% owned direct subsidiary of Leon Restaurants Limited.
The company has taken advantage of the exemption in FRS 102 (section 33) 'related party disclosure' not to disclose transactions with other wholly owned members of the group.
17
Ultimate controlling party
In the opinion of the Directors, the Company’s ultimate parent Company and ultimate controlling party is Optima Bidco (Jersey) Limited, a Company incorporated and registered in Jersey Channel Islands. The Company’s immediate parent undertaking and controlling party is Leon Restaurants Limited.
The parent undertaking of the largest group, which includes the Company and for which group accounts are prepared, is EG Group Holdings Limited, a Company incorporated in Great Britain, registered at Waterside Head Office, Haslingden Road, Guide, Blackburn, BB1 2FA, United Kingdom.
The parent undertaking of the smallest such group is EG Group Limited, a Company incorporated in Great Britain, registered at Waterside Head Office, Haslingden Road, Guide, Blackburn, BB1 2FA, United Kingdom. Copies of the group financial statements of EG Group Holdings Limited and EG Group Limited are available from Companies House, Crown Way, Maundy, Cardiff, CF14 3UZ.
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