REGISTERED NUMBER: |
BURNS RETAIL AND HOSPITALITY LTD |
FINANCIAL STATEMENTS |
FOR THE PERIOD |
10 JUNE 2022 TO 31 JULY 2023 |
REGISTERED NUMBER: |
BURNS RETAIL AND HOSPITALITY LTD |
FINANCIAL STATEMENTS |
FOR THE PERIOD |
10 JUNE 2022 TO 31 JULY 2023 |
BURNS RETAIL AND HOSPITALITY LTD (REGISTERED NUMBER: 14163641) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE PERIOD 10 JUNE 2022 TO 31 JULY 2023 |
Page |
Company Information | 1 |
Balance Sheet | 2 |
Notes to the Financial Statements | 3 |
BURNS RETAIL AND HOSPITALITY LTD |
COMPANY INFORMATION |
FOR THE PERIOD 10 JUNE 2022 TO 31 JULY 2023 |
DIRECTOR: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: |
AUDITORS: |
Chartered Accountants |
And Statutory Auditors |
Ground Floor Cardigan House |
Castle Court |
Swansea Enterprise Park |
Swansea |
SA7 9LA |
BURNS RETAIL AND HOSPITALITY LTD (REGISTERED NUMBER: 14163641) |
BALANCE SHEET |
31 JULY 2023 |
Notes | £ | £ |
FIXED ASSETS |
Tangible assets | 4 |
Investments | 5 |
Investment property | 6 |
CURRENT ASSETS |
Stocks |
Debtors | 7 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 8 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 10 |
Retained earnings |
SHAREHOLDERS' FUNDS |
In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered. |
The financial statements were approved by the director and authorised for issue on |
BURNS RETAIL AND HOSPITALITY LTD (REGISTERED NUMBER: 14163641) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE PERIOD 10 JUNE 2022 TO 31 JULY 2023 |
1. | STATUTORY INFORMATION |
Burns Retail and Hospitality Ltd is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Presentational and Functional currency |
The presentational and functional currency is £ sterling. |
Going Concern |
After reviewing the company's forecasts and projections, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements. |
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Significant judgements and estimates |
The director is 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 reviewed if the revision affects only that period or in the period of revision and future periods if the revision affects both current and future periods. |
i) Useful economic lives of tangible assets |
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives of the assets. The useful economic lives are re-assessed and amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and physical condition of the assets. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Where the consideration receivable in cash or cash equivalents is deferred, and the arrangement constitutes a financing transaction, the fair value of the consideration is measured as the present value of all future receipts using the imputed rate of interest. |
Revenue is recognised on the company's primary operation of sale of goods in shops premises when (a) the significant risks and rewards of ownership have been transferred to the buyer, (b) the Company retains no involvement or control over the goods; (c) the amount of revenue can be measured reliably, (d) it is probable that future economic benefits will flow to the entity; and (e) when the specific criteria relating to each of the Company's sales channels have been met. |
BURNS RETAIL AND HOSPITALITY LTD (REGISTERED NUMBER: 14163641) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 10 JUNE 2022 TO 31 JULY 2023 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Land and buildings | - |
Plant and machinery etc | - |
The Company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when the cost is incurred, if the replacement part is expected to provide incremental future benefits to the Company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred. Depreciation is charged so as to allocate the costs of assets less their residual value over their estimated useful lives, using the straight-line method. |
Under construction fixed assets |
Depreciation of an asset begins when an asset is available for use, therefore no depreciation is charged whilst an asset is within the under construction phase. Once an asset is completed and is ready to use, the asset is transferred to the appropriate fixed asset category, and the asset depreciated based on the deprecation policy. |
Impairment of fixed assets |
The Company performs impairment testing where there are any indicators of impairment. Impairment is calculated as the difference between the carrying value and the recoverable value of the asset. Recoverable value is the higher of net realisable value and estimated value in use at the date the impairment loss is recognised. Value in use represents the present value of expected future discounted cash flows. If incurred, impairment is recognised immediately in the income statement. |
Where an impairment loss subsequently reverses, the carrying value of the asset is increased to the revised estimate of the recoverable amount, but so that the increased carrying value does not exceed the carrying value that would have been determined if no impairment loss had been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately as a credit to the income statement. |
Leased assets |
At inception the Company assesses agreements that transfer the right to use assets. The assessment considers whether the arrangement is, or contains, a lease based on the substance of the arrangement. |
(i) Finance leased assets |
Leases of assets that transfer substantially all the risks and regards incidental to ownership are classified as finance leases. |
Finance leases are capitlaised at commencement of the lease as assets at the fair value of the leased asset or, of lower, the present value of the minimum lease payments calculated using the interest rate implicit in the lease. Where the implicit rate cannot be determined the Company's incremental borrowing rate is used. Incremental direct costs, incurred in negotiating and arranging the lease, are included in the cost of the asset. |
Assets are depreciated over the shorter of the lease term and estimated useful life of the asset. Assets are assessed for impairment at each reporting date. |
The capital element of the lease obligations is recorded as a liability on inception of the arrangement. Lease payments are apportioned between capital repayment and finance charge, using the effective interest rate method to produce a constant rate of charge on the balance of the capital repayments outstanding. |
(ii) Operating leased assets |
Leases that do not benefit from all the risk and rewards of ownership are classified as operating leases. Payments under operating leases are charges to the statement of comprehensive income on a straight line basis over the period of the lease. |
Investments in associates |
Investments in associate undertakings are recognised at cost. |
Investment property |
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss. |
BURNS RETAIL AND HOSPITALITY LTD (REGISTERED NUMBER: 14163641) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 10 JUNE 2022 TO 31 JULY 2023 |
2. | ACCOUNTING POLICIES - continued |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Financial instruments |
The Company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and the other accounts receivable and payable, loans from banks and other third parties, loans to related parties and investments in no-puttable ordinary shares. |
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amoritsed cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade payables or receivables, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration, expected to be paid or received. However if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an outright short-term loan not at marker rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amoritised cost. |
Financial assets that are measured at cost and amortised costs are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income. |
For financial assets measured at amortised cost, the impairment loss is measured as the difference between the asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract. |
Financial assets and liabilities are offset and the net amount reported in the Balance sheet when there is an 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. |
Taxation |
Taxation for the period comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the period end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
BURNS RETAIL AND HOSPITALITY LTD (REGISTERED NUMBER: 14163641) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 10 JUNE 2022 TO 31 JULY 2023 |
2. | ACCOUNTING POLICIES - continued |
Debtors |
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment. |
Cash and cash equivalents |
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value. |
Creditors |
Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method. |
3. | EMPLOYEES AND DIRECTORS |
The average number of employees during the period was |
4. | TANGIBLE FIXED ASSETS |
Assets |
Freehold | Short | under |
property | leasehold | construction |
£ | £ | £ |
COST |
Additions |
Disposals | ( |
) | ( |
) |
Impairments | (218,900 | ) | - | (1,099,764 | ) |
Purchase from group company | 1,671,000 | 485,001 | 1,530,843 |
Reclassification/transfer | ( |
) |
At 31 July 2023 |
DEPRECIATION |
Charge for period |
Eliminated on disposal | ( |
) |
At 31 July 2023 |
NET BOOK VALUE |
At 31 July 2023 |
BURNS RETAIL AND HOSPITALITY LTD (REGISTERED NUMBER: 14163641) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 10 JUNE 2022 TO 31 JULY 2023 |
4. | TANGIBLE FIXED ASSETS - continued |
Fixtures |
Plant and | and | Motor |
Machinery | fittings | vehicles | Totals |
£ | £ | £ | £ |
COST |
Additions |
Disposals | ( |
) | ( |
) | ( |
) |
Impairments | - | - | - | (1,318,664 | ) |
Purchase from group company | 76,649 | 36,053 | 37,478 | 3,837,024 |
Reclassification/transfer | ( |
) |
At 31 July 2023 |
DEPRECIATION |
Charge for period |
Eliminated on disposal | ( |
) | ( |
) |
At 31 July 2023 |
NET BOOK VALUE |
At 31 July 2023 |
5. | FIXED ASSET INVESTMENTS |
Interest |
in |
associate |
£ |
COST |
Additions |
At 31 July 2023 |
NET BOOK VALUE |
At 31 July 2023 |
6. | INVESTMENT PROPERTY |
Total |
£ |
FAIR VALUE |
Additions |
Assets transferred to held for sale | (255,500 | ) |
Revaluations | 116,901 |
Purchase from group company |
Reclassification/transfer | 465,562 |
At 31 July 2023 |
NET BOOK VALUE |
At 31 July 2023 |
Included in fair value of investment property is freehold land of £ 285,000 which is not depreciated. |
BURNS RETAIL AND HOSPITALITY LTD (REGISTERED NUMBER: 14163641) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 10 JUNE 2022 TO 31 JULY 2023 |
6. | INVESTMENT PROPERTY - continued |
Fair value at 31 July 2023 is represented by: |
£ |
Valuation in 2023 | 141,401 |
Cost | 1,854,161 |
1,995,562 |
The investment property were valued in July 2023 by external valuer Sean Thomas B.S.c (Hons) MRICS of Astleys Chartered Surveyors. |
The valuation was prepared on the basis of market value as defined in the Royal Institution of Chartered Surveyors Valuation. |
7. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
£ |
Trade debtors |
Amounts owed by associates |
Assets held for sale | 255,500 |
Other debtors |
8. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
£ |
Trade creditors |
Amounts owed to group undertakings |
Taxation and social security |
Other creditors |
9. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
£ |
Within one year |
Between one and five years |
10. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal |
value: | £ |
Ordinary | £1 | 1 |
BURNS RETAIL AND HOSPITALITY LTD (REGISTERED NUMBER: 14163641) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 10 JUNE 2022 TO 31 JULY 2023 |
11. | DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006 |
The Report of the Auditors was qualified on the following basis: |
Basis for opinion |
We were unable to satisfy ourselves of the valuation of the stock held at 31 July 2023, due to the lack of audit trail in relation to the cost price. We were unable to satisfy ourselves by alternate means concerning the stock valuation, which is stated in the statement of financial position at £163,899. |
Consequently, we were unable to determine whether any adjustment to this amount was necessary in respect to the recorded value of stock and elements making up the profit and loss accounts and balance sheet. |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 qualified opinion. |
Matters required to report by exception |
Llinos Williams (Senior Statutory Auditor) |
for and on behalf of Bevan Buckland LLP |
12. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to a director subsisted during the period ended 31 July 2023: |
£ |
Balance outstanding at start of period |
Amounts advanced |
Amounts repaid | ( |
) |
Amounts written off | - |
Amounts waived | - |
Balance outstanding at end of period |
Included within other debtors is an amount owed from the director. This amount is repaid within 9 months of the year end. |
13. | RELATED PARTY DISCLOSURES |
Entities with control, joint control, or significant influence over the entity |
2023 |
£ |
Rental Income | 21,934 |
Sale of Equipment | 65,455 |
14. | ULTIMATE CONTROLLING PARTY |
The controlling party is JB Retail Midco Ltd. |
The ultimate controlling party is |
BRH Holdings Limited is regarded by the director as being the company's ultimate parent company. |
As of 2 November 2023, 100% of the issued share capital of JB Midco Limited was transferred to BRH Holdings Limited. |
J Burns remains the ultimate controlling party by virtue of his 100% share holding in the parent company. |