REGISTERED NUMBER:
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AG RESTAURANTS LTD |
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Strategic Report, Report of the Director and |
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Financial Statements |
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for the Year Ended 31 December 2020 |
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REGISTERED NUMBER:
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AG RESTAURANTS LTD |
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Strategic Report, Report of the Director and |
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Financial Statements |
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for the Year Ended 31 December 2020 |
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AG RESTAURANTS LTD (REGISTERED NUMBER: SC287991)
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Contents of the Financial Statements
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for the year ended 31 December 2020
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Page
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Company Information
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1
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Strategic Report
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2
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to
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5
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Report of the Director
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6
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to
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10
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Report of the Independent Auditors
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11
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to
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14
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Income Statement
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15
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Other Comprehensive Income
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16
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Balance Sheet
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17
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Statement of Changes in Equity
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18
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Cash Flow Statement
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19
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Notes to the Cash Flow Statement
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20
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to
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21
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Notes to the Financial Statements
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22
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to
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32
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AG RESTAURANTS LTD
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Company Information
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for the year ended 31 December 2020
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DIRECTOR:
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SECRETARY:
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REGISTERED OFFICE:
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REGISTERED NUMBER:
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AUDITORS:
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First Floor
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Saggar House
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Princes Drive
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Worcester
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WR1 2PG
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AG RESTAURANTS LTD (REGISTERED NUMBER: SC287991)
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Strategic Report
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for the year ended 31 December 2020
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The director presents his strategic report for the year ended 31 December 2020.
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REVIEW OF BUSINESS
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The company runs twenty restaurants in central and greater Glasgow, employing over 2,000 people.
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The company has had a difficult year with both turnover and profits decreasing due to lockdowns with business being sustained
by a reliance on drive thru sales. Profits before tax have increased and amounted to just over £2.1 million. The financial position
is increasingly healthy with the balance sheet showing net assets of £7.49 million increased from £6.62 million in 2019.
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KEY PERFORMANCE INDICATORS
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We consider that our key financial performance indicators are those that communicate the financial performance and strength of
the company as a whole, these include turnover, gross profit and operating profit.
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The overall sales decrease was approximately 18.35% as a result of lockdowns and government restrictions on instore dining.
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Overheads have decreased in proportion to the decreased sales and costs have also reduced in areas such as wages and the
purchasing of food, the gross profit as a percentage of sales has very slightly increased by 1.31%. The business cash-flow is very
healthy and the company is able to meet loan repayments.
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FUTURE DEVELOPMENTS
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The company plans to acquire more restaurants should the opportunity arise.
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AG RESTAURANTS LTD (REGISTERED NUMBER: SC287991)
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Strategic Report
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for the year ended 31 December 2020
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PRINCIPAL RISKS AND UNCERTAINTIES
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The company operates in a highly competitive market. High street consumer behaviour impacts the company's turnover and the
variability of commodity prices impacts profitability.
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The company is continually assessing all risks with an aim to mitigate any future threats these may have on the business.
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Economic risk:
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Following some very challenging times, we are optimistic about the economic future. Customer confidence continues to rise and
unemployment rates are falling. A cautious approach is still required as real disposable income is declining over the longer term
as the cost of living continues to rise, despite interest rates remaining at an historical low. Principal risks are increasing
commodity prices, adding pressure to margins and significant upward movements in interest rates might also increase costs. The
first mentioned risk is controlled by McDonald's collective purchasing initiatives. The level of borrowing is such that interest rate
increases are manageable.
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Whilst the directors recognise the risks associated with Brexit, they believe that these risks will be mitigated by the strength of
the McDonald's brand and the company's strong balance sheet.
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Regulatory risks:
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The company's operations demand a high level of compliance within a wide range of regulatory requirements. In particular -
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* health and safety
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* hygiene procedures
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* employment laws
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* licensing
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The above, along with a number of other areas, are monitored in detail by McDonalds, as being in the fast food industry brings a
high level of regulatory concerns.
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Consumer taste:
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Any material change in the way the consumer views the fast food industry could have an adverse effect on the company.
However, this can also work in the opposite direction and could assist the company to achieve growth. As a result the company
focuses, in detail, on recognising demographic trends, ensuring innovation and ensuring that the company only use the freshest
and highest quality products through it stores. The company have strict policies to ensure that all stores are maintaining the
McDonalds ethos.
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Competitors:
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The fast food market is a very competitive market, with a high number of large competitors trading in the sector. In order to
remain as one of the main players, McDonalds have dedicated teams who focus on ensuring they remain to be the leading
company in the market. This will allow them to compete with other large fast food chains.
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With these risks and uncertainties in mind, we are aware that any plans for the future development of the business may be subject
to unforeseen future events outside our control, hence we are constantly assessing our plans in line with the current environment.
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COVID-19 Actions and Implications:
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COVID-19 is impacting the business and has resulted in both reduced turnover and profits. In considering our response to the
COVID-19 pandemic, first and foremost the health and safety of our employees and customers was, and remains, our most
important consideration. As a result, McDonald's UK in conjunction with their franchisees took the decision to close all UK
restaurants on 23 March 2020 following the implementation of the first National Lockdown. Our restaurants were closed for at
least 10 weeks and the majority reopened in June. Quarter two revenues were significantly impacted.
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When restrictions were eased, in collaboration with McDonald's, we began a phased reopening of restaurants always in accord
with our new COVID-19 secure operating processes. To prepare for reopening McDonald's undertook a full review of procedures
and operations to ensure all Government guidelines were met and implemented across all restaurants.
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AG RESTAURANTS LTD (REGISTERED NUMBER: SC287991)
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Strategic Report
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for the year ended 31 December 2020
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COVID-19 Actions and Implications - continued
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Upon reopening our restaurants we initially started with Drive Thru operations before adding delivery, and as restrictions
permitted a takeaway service. We were operating at around 80% of previous volumes by the end of August 2020. Our Drive Thru
operating system enables social distancing between customers in their vehicles and employees. Our McDelivery service also saw
demand rise rapidly.
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Despite the introduction of a further national lockdown early in 2021, all of our restaurants have remained open, with strong
demand for McDelivery and in our Drive Thru restaurants.
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There will be a financial impact in 2021 with revenues predicted to remain around 20% lower than pre-pandemic levels. However
the business has a strong balance sheet and is well set to weather the challenging business and economic environment.
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While the company has both reserves and banking facilities sufficient to weather a lengthy downturn, it has never the less taken a
number of steps to minimise impact to the company. These include negotiating extended payment terms with its suppliers and the
bank reduction of staff hours. It has also received the active assistance of the franchisor.
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We are confident that customer demand will continue through 2021 and are well placed to deliver with our Drive Thru
restaurants and McDelivery offering, underpinned by McDonald's brand.
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Projections for 2021 and 2022 have been prudently revised to reflect a slowdown in revenue growth, the business rates holiday
ending in April 2021 and the VAT rate increasing to 12.5% during 2021. These projections indicate the business generates a
profit in 2021 and 2022.
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Given the uncertainty that COVID-19 presents, on-going assessment by management, and engagement and communications with
key stakeholders will continue. Due to this uncertainty it is not currently possible to estimate the overall impact the pandemic will
have on the business or future financial statements.
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Further information is contained in the going concern note in the Report of the Directors.
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AG RESTAURANTS LTD (REGISTERED NUMBER: SC287991)
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Strategic Report
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for the year ended 31 December 2020
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SECTION 172(1) STATEMENT
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Statement by the director in performance of his statutory duties in accordance with s172(1) Companies Act 2006:
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The director takes into account the likely consequences of long-term decisions; build relationships with stakeholders; understand
the importance of engaging with our employees; understand the impact of our operations on the communities within which we
operate; and attribute importance to behaving as a responsible business.
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The director considers, both individually and together, that they have acted in the way they consider, in good faith, would be most
likely to promote the success of the company for the benefit of its members as a whole (having regard to the stakeholders and
matters set out in s172(1)(a-f) of the Act) in the decisions taken during the year ended 31 December 2020. In particular by
reference to the approval of our business plan, which is updated on an annual basis. Our business plan was designed to have a
long-term beneficial impact on the company and to contribute to its success in delivering high quality quick-service food.
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Our employees are fundamental to the delivery of our plan. We aim to be a responsible employer in our approach the to pay and
benefits our employees receive. The health, safety and well-being of our employees is one of our primary considerations in the
way we do business.
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As the director, my intention is to behave responsibly and ensure that management operate the business in a responsible manner,
operating within the high standards of business conduct and good governance expected for a business such as ours, and in doing
so, will contribute to the delivery of our plan.
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ON BEHALF OF THE BOARD:
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AG RESTAURANTS LTD (REGISTERED NUMBER: SC287991)
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Report of the Director
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for the year ended 31 December 2020
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The director presents his report with the financial statements of the company for the year ended 31 December 2020.
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DIVIDENDS
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The following interim dividends were paid in the year:
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A Ordinary shares
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23 January 2020 - £1,200 per share
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06 April 2020 - £3,333 per share
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B Ordinary shares
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23 January 2020 - £3,600 per share
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06 April 2020 - £10,000 per share
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RESEARCH AND DEVELOPMENT
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The company does not carry out any independent research and development. However the franchisor, McDonald's Restaurants
Limited, carries out its own research and development on behalf of all franchisees. The company makes a contribution towards
this through its existing payments to the franchisor.
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DIRECTOR
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EVENTS SINCE THE END OF THE YEAR
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An additional store was purchased in March 2021 at a cost of £1.2m.
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GOING CONCERN
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The company is in a net current liabilities position at the balance sheet date, however this is a reflection of the nature of the fast
food industry and not a reflection of the strength of the business.
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The director has considered the application of the going concern basis of accounting in doing so they have considered the period
from the date of this report until 31 December 2022. The directors have assessed the expected future financial performance of the
entity and believe that the ability of the Company to continue to operate its sales through delivery, drive thru and take away
channels, will enable the Company to continue its operations and settle its obligations for this period in the normal course of
business.
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The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the
foreseeable future. Thus continue to adopt the going concern basis of accounting in preparing the annual financial statements.
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CORPORATE GOVERNANCE
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The company is owned and controlled by a single director. By reference to the Corporate Governance Guidance and Principles for
Unlisted Companies in the UK, published by the Institute of Directors, the director has established a framework of company
processes and attitudes that add value to the business, help build its reputation and ensure its long-term continuity and success.
This framework aligns with the business system and processes established by the franchisor and contributes to the continued
success of the company.
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EMPLOYMENT OF DISABLED PERSONS
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The company operates a policy of giving full & fair consideration to employment applications from disabled persons.
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AG RESTAURANTS LTD (REGISTERED NUMBER: SC287991)
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Report of the Director
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for the year ended 31 December 2020
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PROVISION OF INFORMATION TO EMPLOYEES
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The company has a system for providing employees with information of concern to them . It also consults employees on a regular
basis so that their views can be taken into account in making decisions affecting them. It regularly to explains to employees the
financial and economic factors affecting the performance of the company and makes them aware of the provision of training,
career development and employment of disabled employees.
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STREAMLINED ENERGY AND CARBON REPORTING
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In line with the government's streamlined energy and carbon reporting requirements we are required to report our organisation's
carbon emissions for the period 1st January 2020 to 31st December 2020.
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We have set this year as our baseline year and reported our total emissions using the financial control boundary. Our
methodology aligns with Defra's Environmental reporting guidelines (2019) and uses the government's greenhouse gas (GHG)
reporting conversion factors (2020) to quantify emissions.
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Scope of reporting
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Emissions source
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1st January 2020 - 31st
December 2020
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Direct Emissions from Stationary Combustion - Franchisee Natural Gas Consumption
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217.6
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Total Scope 1 (tCO2e)
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217.6
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Indirect Emissions from Franchisee Purchased Electricity
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1937.8
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Total Scope 2 (tCO2e)
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1937.8
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Fuel Consumed by Personal Vehicles used for Business Activities - Grey Fleet
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25.4
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Total Scope 3 (tCO2e)
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25.4
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Total Scope 1, 2 & 3 (tCO2e)
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2180.9
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Intensity Metric
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Annual Turnover (£M)
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57
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Emissions per unit of turnover (tCO2e/£M)
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38.13
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Energy Consumption by source (kWh)
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Electricity
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8311950
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Gas
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1183510
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Purchased Fuel
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Company Car
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Grey Fleet Vehicle
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102634
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Total
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9598053
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Greenhouse Gas (GHG) Reporting Methodology Statement
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Reporting Period
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Emissions are reported against accounting year covering the period 1st January to 31st December 2020.
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AG RESTAURANTS LTD (REGISTERED NUMBER: SC287991)
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Report of the Director
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for the year ended 31 December 2020
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Reporting Boundary
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Financial Control Approach - McDonalds reports any emissions from its operations for which it has the ability to directly
influence financial and operating policies to gain economic benefit. This is focussed predominantly on energy consumed in
buildings where MCoOp are the bill payer, this includes vacant units where they pay the bill until it is reoccupied or disposed of.
This is restricted to the UK where we have full financial control over our operations.
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Greenhouse Gases Reported
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All greenhouse gas emissions are reported in tonnes of carbon dioxide equivalent (TCO2e) to account for all six of the Kyoto
Protocol GHG's.
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Emissions Factors
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Government's Greenhouse gas reporting conversion factors for 2020.
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Baseline Year
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Covers the period 1st January 2020 to 31st December 2020, as this is the first year required to report emissions under the SECR
legislation.
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Intensity Ratio
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McDonalds uses its Average Cheque intensity factor (£) to normalise and compare its emissions over time, this is the total net
product sales divided by total guest count
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Exclusions
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McDonalds do not currently report fugitive emissions (refrigerant leakage) from refrigeration and air conditioning systems in
leased properties or fleet. This is due to the difficulty in obtaining centralised data on refrigerant top-ups and the fact a majority
of our buildings are out of scope as franchisees manage the HVAC systems. Given the size and types of emission sources listed by
McDonalds, fugitive emissions are expected to be a very small proportion of total emissions and are therefore considered
immaterial.
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Scope of Emissions
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Scope 1 - Direct Emissions
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Scope 2 - Indirect Emissions
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Scope 3 - Other Indirect Emissions
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On-site Fuel Combustion:
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Purchased Electricity:
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On-site Fuel Combustion:
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Gas and fuel directly purchased for heating
or generation across property managed by
McOpCo.
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Electricity directly purchased across
property managed by McOpCo.
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Gas and fuel directly purchased for
heating or generation across property
managed by Franchisees.
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Company Vehicles:
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Purchased Electricity:
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Fuel purchased for fleet vehicles managed
and owned by McOpCo.
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Electricity directly purchased across
property managed by Franchisees.
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Fugitive Emissions 1:
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Upstream Leased Assets:
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Refrigerant leaks from air-conditioning
(RAC) equipment in leased assets and fleet
vehicles managed and owned by McOpCo.
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Gas and electricity recharges across
leased property managed by the
Landlord.
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Company Vehicles:
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Fuel purchased for fleet vehicles managed and owned by Franchisees.
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Grey Fleet:
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Fuel purchased for staff personal vehicles used for business activities.
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Fugitive emissions are currently not reported as outlined in the exclusions statement.
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AG RESTAURANTS LTD (REGISTERED NUMBER: SC287991)
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Report of the Director
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for the year ended 31 December 2020
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Process
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McDonalds follow the reporting approach set out in the UK Government's Environmental Reporting Guidance (2019 version) to
ensure that reporting standards are robust and transparent.
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For most of its major emissions sources primary data from AMR meter readings, utility bills and expensed claims. Emissions data
is collated centrally by Mitie Energy's Sustainability team who have overall responsibility for ensuring the calculations and
methodology are correct.
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Data Sources
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Scope 1 and 2:
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Gas Consumption
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Utility bills are verified through Mitie's bureau service. Any
billing data is cross referenced against half hourly and meter
read data where available.
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Company Vehicles Fleet
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Fuel Card data records provide the amount of fuel purchased
for business purposes.
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Purchased Electricity
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Utility bills are verified through Mitie's bureau service. Any
billing data is cross referenced against half hourly and meter
read data where available.
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Scope 3:
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Grey Fleet
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Mileage claims are provided.
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Franchisee
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Utility bills are verified through Mitie's bureau service. Any
billing data is cross referenced against half hourly and meter
read data where available.
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Upstream Leased Assets
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Landlord statements are used where available. Where
unavailable landlord recharge data is estimated based on a
typical restaurants consumption profile.
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Estimations
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Where building utility data is unavailable, estimations are made based on an average restaurant types consumption, only those
sites with a 100% complete data are used to calculate the average for sites where invoice data is only available for a partial
period, the available data is apportioned using an average kWh/day figure.
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AG RESTAURANTS LTD (REGISTERED NUMBER: SC287991)
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Report of the Director
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for the year ended 31 December 2020
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STATEMENT OF DIRECTOR'S RESPONSIBILITIES
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The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in
accordance with applicable law and regulations.
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Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements
unless he is 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 director is required to:
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select suitable accounting policies and then apply them consistently;
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make judgements and accounting estimates that are reasonable and prudent;
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state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained
in the financial statements;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will
continue in business.
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The director is 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 him to ensure
that the financial statements comply with the Companies Act 2006. He is 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.
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STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
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So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
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AUDITORS
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Haines Watts Worcester Audit Limited were appointed during the year and are deemed re-appointed under Section 487(2) of the
Companies Act 2006
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ON BEHALF OF THE BOARD:
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Report of the Independent Auditors to the Members of
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AG Restaurants Ltd
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Opinion
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We have audited the financial statements of AG Restaurants Ltd (the 'company') for the year ended 31 December 2020 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of 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). |
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In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 31 December 2020 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. |
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Basis for opinion
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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 opinion.
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Report of the Independent Auditors to the Members of
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AG Restaurants Ltd
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Conclusions relating to going concern
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In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the
preparation of the financial statements is appropriate. Our evaluation of the director's assessment of the company's ability to
continue to adopt the going concern basis of accounting included the following work:
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- obtained management's forecast for a period of 24 months from the anticipated date of approval of the financial statements,
together with supporting evidence for all key trading, working capital and cash flow assumptions;
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- robustly challenged the process that management has undertaken to conclude on the appropriateness of the going concern basis
of preparation, including challenging and applying sensitivities to the key assumptions made by management in preparing the
forecasts;
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- tested the robustness of forecasts prepared by comparison to forecasts made in prior periods, including assessing managements
historic ability to forecast, and in light of our understanding of the Company's operations;
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- considered the reasonableness of any further mitigating actions identified by management, which included an assessment of the
feasibility and quantification of such mitigative measures available to management; and
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- reviewed the disclosures made within the financial statements for consistency with management's assessment of going concern
and in line with the accounting standards.
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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.
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Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of
this report.
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However, not all future events or conditions can be predicted. The COVID-19 viral pandemic is one of the most significant
economic events for the UK with unprecedented levels of uncertainty of outcomes. It is therefore difficult to evaluate all of the
potential implications on the company's trade, customers, suppliers and wider economy. The Directors' view on the impact of
COVID-19 is disclosed in the accounting policies note.
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Other information
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The director is responsible for the other information. The other information comprises the information in the Strategic Report
and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon.
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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.
|
|
In connection with our audit of the financial statements, 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
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 the audit:
|
-
|
the information given in the Strategic Report and the Report of the Director for the financial year for which the financial
statements are prepared is consistent with the financial statements; and
|
-
|
the Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements.
|
Report of the Independent Auditors to the Members of
|
|
AG Restaurants Ltd
|
|
|
|
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 Strategic Report or the Report of the Director.
|
|
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 director's remuneration specified by law are not made; or
|
-
|
we have not received all the information and explanations we require for our audit.
|
|
Responsibilities of director
|
As explained more fully in the Statement of Director's Responsibilities set out on page ten, the director is 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 director determines 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 director is 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
director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.
|
|
Auditors' 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 a Report of the Auditors 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:
|
|
Based on our understanding of the industry, we identified that the principal risks of non-compliance related to breaches of health
and safety, including food hygiene. We considered the extent to which non-compliance might have a material affect on the
financial statements. We also considered those laws and regulations that have a direct impact on preparation of the financial
statements, such as the Companies Act 2006. We examined management's incentives and opportunities for fraudulent
manipulation of the financial statements (including the risk of overriding of controls) and determined that the principal risks
were relating to management bias in accounting estimates, in particular those of accrued liabilities and the useful life of tangible
assets. We also discussed with management the possibility of non-compliance with health and safety and food hygiene regulations
and reviewed the management controls in place to detect such irregularities. Audit procedures included challenging assumptions
made by management in their significant accounting estimates. There are inherent limitations in the Audit procedures described
above and the further removed non-compliance with laws and regulations is from the events and transactions described in the
financial statements, the less likely we would become aware of it. Also the risk of not detecting a material misstatement due to
fraud is higher than the risk of not detecting one due to error, as fraud may involve deliberate concealment by, for example,
forgery or intentional misrepresentations, or through collusion.
|
|
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting
Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.
|
Report of the Independent Auditors to the Members of
|
|
AG Restaurants Ltd
|
|
|
|
Use of our 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 a Report of the Auditors 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.
|
|
|
|
|
|
for and on behalf of
|
First Floor
|
Saggar House
|
Princes Drive
|
Worcester
|
WR1 2PG
|
|
|
|
AG RESTAURANTS LTD (REGISTERED NUMBER: SC287991)
|
|
|
Income Statement
|
|
|
for the year ended 31 December 2020
|
|
|
|
2020
|
|
2019
|
|
Notes
|
£
|
£
|
|
|
TURNOVER
|
|
|
|
|
|
|
Cost of sales
|
(
|
)
|
(
|
)
|
|
GROSS PROFIT
|
|
|
|
|
|
|
Administrative expenses
|
(
|
)
|
(
|
)
|
|
(1,100,283
|
)
|
2,549,132
|
|
|
|
Other operating income
|
|
|
|
|
|
OPERATING PROFIT
|
4
|
|
|
|
|
|
|
|
Interest payable and similar expenses
|
5
|
(
|
)
|
(
|
)
|
|
PROFIT BEFORE TAXATION
|
|
|
|
|
|
|
Tax on profit
|
6
|
(
|
)
|
(
|
)
|
|
PROFIT FOR THE FINANCIAL YEAR
|
|
|
|
|
|
|
AG RESTAURANTS LTD (REGISTERED NUMBER: SC287991)
|
|
|
Other Comprehensive Income
|
|
|
for the year ended 31 December 2020
|
|
|
|
2020
|
|
2019
|
|
Notes
|
£
|
£
|
|
|
PROFIT FOR THE YEAR
|
|
|
|
|
|
|
|
OTHER COMPREHENSIVE INCOME
|
-
|
|
-
|
|
|
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR
|
|
|
|
|
|
|
AG RESTAURANTS LTD (REGISTERED NUMBER: SC287991)
|
|
|
Balance Sheet
|
|
31 December 2020
|
|
|
|
2020
|
|
2019
|
|
Notes
|
£
|
£
|
|
FIXED ASSETS
|
Intangible assets
|
9
|
|
|
|
|
|
Tangible assets
|
10
|
|
|
|
|
|
Investments
|
11
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT ASSETS
|
Stocks
|
12
|
|
|
|
|
|
Debtors
|
13
|
|
|
|
|
|
Cash at bank and in hand
|
|
|
|
|
|
|
|
|
|
|
CREDITORS
|
Amounts falling due within one year
|
14
|
(
|
)
|
(
|
)
|
|
NET CURRENT LIABILITIES
|
(
|
)
|
(
|
)
|
|
TOTAL ASSETS LESS CURRENT
LIABILITIES
|
|
|
|
|
|
|
CREDITORS
|
Amounts falling due after more than one year
|
15
|
(
|
)
|
(
|
)
|
|
|
PROVISIONS FOR LIABILITIES
|
19
|
(
|
)
|
(
|
)
|
|
NET ASSETS
|
|
|
|
|
|
|
CAPITAL AND RESERVES
|
Called up share capital
|
20
|
|
|
|
|
|
Retained earnings
|
21
|
|
|
|
|
|
SHAREHOLDERS' FUNDS
|
|
|
|
|
|
|
The financial statements were approved by the director and authorised for issue on
|
|
|
|
|
|
|
|
|
AG RESTAURANTS LTD (REGISTERED NUMBER: SC287991)
|
|
|
Statement of Changes in Equity
|
|
for the year ended 31 December 2020
|
|
|
|
Called up
|
|
|
share
|
|
Retained
|
|
Total
|
|
capital
|
|
earnings
|
|
equity
|
£
|
£
|
£
|
|
|
Balance at 1 January 2019
|
|
|
|
|
|
|
|
|
Changes in equity
|
Issue of share capital
|
|
|
-
|
|
|
|
|
Dividends
|
-
|
|
(
|
)
|
(
|
)
|
|
Total comprehensive income
|
-
|
|
|
|
|
|
|
Balance at 31 December 2019
|
|
|
|
|
|
|
|
|
Changes in equity
|
Dividends
|
-
|
|
(
|
)
|
(
|
)
|
|
Total comprehensive income
|
-
|
|
|
|
|
|
|
Balance at 31 December 2020
|
|
|
|
|
|
|
|
|
AG RESTAURANTS LTD (REGISTERED NUMBER: SC287991)
|
|
|
Cash Flow Statement
|
|
for the year ended 31 December 2020
|
|
|
|
2020
|
|
2019
|
|
Notes
|
£
|
£
|
|
Cash flows from operating activities
|
Cash generated from operations
|
1
|
|
|
|
|
|
Interest paid
|
(
|
)
|
(
|
)
|
|
Tax paid
|
(
|
)
|
(
|
)
|
|
Net cash from operating activities
|
|
|
|
|
|
|
Cash flows from investing activities
|
Purchase of tangible fixed assets
|
(
|
)
|
(
|
)
|
|
Net cash from investing activities
|
(
|
)
|
(
|
)
|
|
|
Cash flows from financing activities
|
New loans in year
|
|
|
|
|
|
Loan repayments in year
|
(
|
)
|
(
|
)
|
|
Amount introduced by directors
|
680,000
|
|
590,000
|
|
|
Amount withdrawn by directors
|
(625,414
|
)
|
(717,293
|
)
|
|
Share issue
|
|
|
|
|
|
Equity dividends paid
|
(
|
)
|
(
|
)
|
|
Net cash from financing activities
|
(
|
)
|
(
|
)
|
|
|
Increase in cash and cash equivalents
|
|
|
|
|
|
Cash and cash equivalents at beginning of
year
|
2
|
|
|
1,250,660
|
|
|
|
Cash and cash equivalents at end of year
|
2
|
7,118,078
|
|
4,160,543
|
|
|
|
AG RESTAURANTS LTD (REGISTERED NUMBER: SC287991)
|
|
|
Notes to the Cash Flow Statement
|
|
for the year ended 31 December 2020
|
|
|
|
1.
|
RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
|
|
2020
|
|
2019
|
£
|
£
|
|
|
Profit before taxation
|
|
|
|
|
|
|
Depreciation charges
|
|
|
|
|
|
|
Finance costs
|
153,248
|
|
212,214
|
|
|
5,864,577
|
|
6,306,409
|
|
|
|
(Increase)/decrease in stocks
|
(
|
)
|
|
|
|
|
Decrease in trade and other debtors
|
|
|
|
|
|
|
Increase/(decrease) in trade and other creditors
|
|
|
(
|
)
|
|
|
Cash generated from operations
|
|
|
|
|
|
|
2.
|
CASH AND CASH EQUIVALENTS
|
|
|
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these
Balance Sheet amounts:
|
|
|
Year ended 31 December 2020
|
|
31.12.20
|
|
1.1.20
|
£
|
£
|
|
|
Cash and cash equivalents
|
7,118,078
|
|
4,160,543
|
|
|
|
Year ended 31 December 2019
|
|
31.12.19
|
|
1.1.19
|
£
|
£
|
|
|
Cash and cash equivalents
|
4,160,543
|
|
1,486,884
|
|
|
|
Bank overdrafts
|
|
|
(
|
)
|
|
4,160,543
|
|
1,250,660
|
|
|
|
|
AG RESTAURANTS LTD (REGISTERED NUMBER: SC287991)
|
|
|
Notes to the Cash Flow Statement
|
|
for the year ended 31 December 2020
|
|
|
|
3.
|
ANALYSIS OF CHANGES IN NET DEBT
|
|
|
At 1.1.20
|
Cash flow
|
At 31.12.20
|
£
|
£
|
£
|
|
|
Net cash
|
|
|
Cash at bank and in hand
|
4,160,543
|
|
2,957,535
|
|
7,118,078
|
|
|
4,160,543
|
|
|
|
7,118,078
|
|
|
|
Debt
|
|
Debts falling due within 1 year
|
(1,604,972
|
)
|
(364,272
|
)
|
(1,969,244
|
)
|
|
|
Debts falling due after 1 year
|
(6,154,103
|
)
|
1,958,784
|
|
(4,195,319
|
)
|
|
(7,759,075
|
)
|
1,594,512
|
|
(6,164,563
|
)
|
|
|
Total
|
(3,598,532
|
)
|
4,552,047
|
|
953,515
|
|
|
|
AG RESTAURANTS LTD (REGISTERED NUMBER: SC287991)
|
|
|
Notes to the Financial Statements
|
|
for the year ended 31 December 2020
|
|
|
|
1.
|
STATUTORY INFORMATION
|
|
|
AG Restaurants Ltd is a
|
|
The presentation currency of the financial statements is the Pound Sterling (£). |
|
|
|
2.
|
ACCOUNTING POLICIES
|
|
|
Basis of preparing the financial statements
|
|
|
|
|
Going Concern
|
|
|
The company is in a net current liabilities position at the balance sheet date, however this is a reflection of the nature of
the fast food industry and not a reflection of the strength of the business.
|
|
|
The directors have considered the application of the going concern basis of accounting in doing so they have considered
the period from the date of this report until 31 December 2022. The directors have assessed the expected future financial
performance of the entity and believe that the ability of the Company to continue to operate its sales through delivery,
drive thru and take away channels, will enable the Company to continue its operations and settle its obligations for this
period in the normal course of business.
|
|
|
The directors have a reasonable expectation that the company has adequate resources to continue in operational existence
for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the annual
financial statements.
|
|
|
Turnover
|
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
|
|
Franchise rights & fees
|
Franchise rights & fees, being the amounts paid on acquisition of restaurants are being written off evenly over the terms of the franchise agreements. |
|
|
Tangible fixed assets
|
|
|
|
Plant and machinery
|
-
|
|
|
AG RESTAURANTS LTD (REGISTERED NUMBER: SC287991)
|
|
|
Notes to the Financial Statements - continued
|
|
for the year ended 31 December 2020
|
|
|
|
2.
|
ACCOUNTING POLICIES - continued
|
|
|
Government grants
|
Grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received. |
|
Grants are recognised using the accrual model. |
|
Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income and not deducted from the carrying amount of the asset. |
|
|
Stocks
|
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
|
|
Taxation
|
Taxation for the year 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 year 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. |
|
AG RESTAURANTS LTD (REGISTERED NUMBER: SC287991)
|
|
|
Notes to the Financial Statements - continued
|
|
for the year ended 31 December 2020
|
|
|
|
2.
|
ACCOUNTING POLICIES - continued
|
|
|
Impairment of fixed assets
|
|
At each reporting 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
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 each 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.
|
|
|
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.
|
|
|
Holiday pay accrual
|
|
A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the Balance Sheet date
and carried forward to future periods. This is measured at the undiscounted cost of the future holiday entitlement so
accrued at the Balance Sheet date.
|
|
AG RESTAURANTS LTD (REGISTERED NUMBER: SC287991)
|
|
|
Notes to the Financial Statements - continued
|
|
for the year ended 31 December 2020
|
|
|
|
2.
|
ACCOUNTING POLICIES - continued
|
|
|
Financial instruments
|
|
The Company only enters into basic financial instruments that result in the recognition of financial assets and liabilities
like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and
investments in non-puttable ordinary shares.
|
|
|
For financial assets measured at amortised cost, the impairment cost is measured at the difference between an asset's
carrying amount and the present value of estimated cash flows discounted at the assets effective interest rate. If the
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.
|
|
|
For assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's
carrying amount and best estimate, which is an approximation of the amount that the Company would receive for the
asset if it were to be sold at the balance sheet date.
|
|
|
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.
|
|
|
Finance costs
|
|
|
Finance costs are charged to the Profit and Loss Account over the term of the debt using the effective interest method so
that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in
the proceeds of the associated capital instrument.
|
|
|
Dividends
|
|
|
Equity dividends are recognised when they legally become payable. Interim equity dividends are recognised when paid.
Final equity dividends are recognised when approved by the shareholders at an annual general meeting.
|
|
|
Judgements in applying accounting policies and key sources of estimation uncertainty
|
|
|
In the process of applying the company's accounting policies, management are required to make certain estimates and
judgements. The key estimates and judgements are as follows:
|
|
|
Depreciation and residual values
|
|
|
The director has reviewed the asset lives and associated residual values of all fixed asset classes, and has concluded that
asset lives and residual values are appropriate.
|
|
AG RESTAURANTS LTD (REGISTERED NUMBER: SC287991)
|
|
|
Notes to the Financial Statements - continued
|
|
for the year ended 31 December 2020
|
|
|
|
3.
|
EMPLOYEES AND DIRECTORS
|
|
2020
|
|
2019
|
£
|
£
|
|
|
Wages and salaries
|
|
|
|
|
|
|
Social security costs
|
|
|
|
|
|
|
Other pension costs
|
|
|
|
|
|
|
|
|
|
|
|
|
The average number of employees during the year was as follows:
|
|
2020
|
|
2019
|
|
|
Production Staff
|
1,874
|
|
1,973
|
|
|
|
Management Staff
|
60
|
|
63
|
|
|
|
|
|
|
|
|
|
2020
|
|
2019
|
£
|
£
|
|
|
Director's remuneration
|
|
|
|
|
|
|
4.
|
OPERATING PROFIT
|
|
|
The operating profit is stated after charging:
|
|
|
2020
|
|
2019
|
£
|
£
|
|
|
Other operating leases
|
|
|
|
|
|
|
Depreciation - owned assets
|
|
|
|
|
|
|
Franchise Rights amortisation
|
|
|
|
|
|
|
Franchise Fees amortisation
|
|
|
|
|
|
|
Auditors' remuneration
|
|
|
|
|
|
|
Taxation compliance services
|
|
|
|
|
|
|
Other non- audit services
|
|
|
|
|
|
|
5.
|
INTEREST PAYABLE AND SIMILAR EXPENSES
|
|
|
2020
|
|
2019
|
£
|
£
|
|
|
Bank interest
|
|
|
|
|
|
|
AG RESTAURANTS LTD (REGISTERED NUMBER: SC287991)
|
|
|
Notes to the Financial Statements - continued
|
|
for the year ended 31 December 2020
|
|
|
|
6.
|
TAXATION
|
|
|
Analysis of the tax charge
|
|
The tax charge on the profit for the year was as follows:
|
|
2020
|
|
2019
|
£
|
£
|
|
|
Current tax:
|
|
UK corporation tax
|
|
|
|
|
|
|
|
Deferred tax
|
(
|
)
|
(
|
)
|
|
|
Tax on profit
|
|
|
|
|
|
|
|
UK corporation tax has been charged at
19
% (2019 -
19
%).
|
|
|
Reconciliation of total tax charge included in profit and loss
|
|
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained
below:
|
|
|
2020
|
|
2019
|
£
|
£
|
|
|
Profit before tax
|
|
|
|
|
|
|
Profit multiplied by the standard rate of corporation tax in the UK of
-
|
|
|
|
|
|
|
|
Effects of:
|
|
Expenses not deductible for tax purposes
|
|
|
|
|
|
|
Income not taxable for tax purposes
|
|
|
(
|
)
|
|
|
Depreciation in excess of capital allowances
|
|
|
|
|
|
|
Adjustments to tax charge in respect of previous periods
|
|
|
(
|
)
|
|
|
Deferred tax charge
|
(4,880
|
)
|
(173,572
|
)
|
|
|
Total tax charge
|
555,617
|
|
358,287
|
|
|
|
7.
|
DIVIDENDS
|
|
2020
|
|
2019
|
£
|
£
|
|
|
A Ordinary shares of 1 each
|
|
Interim - ordinary shares
|
|
|
|
|
|
|
B Ordinary shares of 1 each
|
|
Interim
|
|
|
|
|
|
|
|
|
|
|
|
AG RESTAURANTS LTD (REGISTERED NUMBER: SC287991)
|
|
|
Notes to the Financial Statements - continued
|
|
for the year ended 31 December 2020
|
|
|
|
8.
|
GOVERNMENT GRANTS
|
|
|
During the period the company received a total grant of £3,354,084 under the Coronavirus Job Retention Scheme. This is
shown in the profit and loss account under the heading other income.
|
|
9.
|
INTANGIBLE FIXED ASSETS
|
|
Franchise
|
|
Franchise
|
|
|
Rights
|
|
Fees
|
|
Totals
|
£
|
£
|
£
|
|
|
COST
|
|
At 1 January 2020
|
|
and 31 December 2020
|
|
|
|
|
|
|
|
|
AMORTISATION
|
|
At 1 January 2020
|
|
|
|
|
|
|
|
|
Amortisation for year
|
|
|
|
|
|
|
|
|
At 31 December 2020
|
|
|
|
|
|
|
|
|
NET BOOK VALUE
|
|
At 31 December 2020
|
|
|
|
|
|
|
|
|
At 31 December 2019
|
|
|
|
|
|
|
|
|
10.
|
TANGIBLE FIXED ASSETS
|
|
Short
|
|
Plant and
|
|
|
leasehold
|
|
machinery
|
|
Totals
|
£
|
£
|
£
|
|
|
COST
|
|
At 1 January 2020
|
|
|
|
|
|
|
|
|
Additions
|
|
|
|
|
|
|
|
|
At 31 December 2020
|
|
|
|
|
|
|
|
|
DEPRECIATION
|
|
At 1 January 2020
|
|
|
|
|
|
|
|
|
Charge for year
|
|
|
|
|
|
|
|
|
At 31 December 2020
|
|
|
|
|
|
|
|
|
NET BOOK VALUE
|
|
At 31 December 2020
|
|
|
|
|
|
|
|
|
At 31 December 2019
|
|
|
|
|
|
|
|
|
AG RESTAURANTS LTD (REGISTERED NUMBER: SC287991)
|
|
|
Notes to the Financial Statements - continued
|
|
for the year ended 31 December 2020
|
|
|
|
11.
|
FIXED ASSET INVESTMENTS
|
|
Unlisted
|
|
investments
|
£
|
|
|
COST
|
|
At 1 January 2020
|
|
and 31 December 2020
|
|
|
|
|
NET BOOK VALUE
|
|
At 31 December 2020
|
|
|
|
|
At 31 December 2019
|
|
|
|
|
|
Fixed asset investments consists of 25,000 (2019-25,000) ordinary shares of £1 each in Fries Holding Company Limited,
a company registered in Guernsey. The investments are included in the accounts at cost.
|
|
12.
|
STOCKS
|
2020
|
2019
|
|
£
|
£
|
|
|
Stocks
|
|
|
|
|
|
|
Analysis of stock | 31.12.20 | 31.12.19 |
£ | £ |
Food | 178,920 | 156,930 |
Paper | 45,840 | 44,150 |
Non-product | 21,437 | 13,750 |
246,197 | 214,830 |
|
Stock recognised in cost of sales during the year as an expense was £17,955,746 (2019: £22,906,337) |
|
An impairment loss of £nil 2019: £nil) was recognised in cost of sales against stock during the year due to slow moving and obsolete stock. |
|
13.
|
DEBTORS
|
2020
|
2019
|
|
£
|
£
|
|
|
Amounts falling due within one year:
|
|
Trade debtors
|
|
|
|
|
|
|
Other debtors
|
|
|
|
|
|
|
Prepayments
|
|
|
|
|
|
|
|
|
|
|
|
AG RESTAURANTS LTD (REGISTERED NUMBER: SC287991)
|
|
|
Notes to the Financial Statements - continued
|
|
for the year ended 31 December 2020
|
|
|
|
13.
|
DEBTORS - continued
|
2020
|
2019
|
|
£
|
£
|
|
|
Amounts falling due after more than one year:
|
|
Prepayments and accrued income
|
|
|
|
|
|
|
|
Aggregate amounts
|
|
|
|
|
|
|
14.
|
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
|
|
2020
|
2019
|
|
£
|
£
|
|
|
Bank loans and overdrafts (see note 16)
|
|
|
|
|
|
|
Trade creditors
|
|
|
|
|
|
|
Tax
|
|
|
|
|
|
|
Social security and other taxes
|
|
|
|
|
|
|
VAT
|
749,674
|
|
1,712,981
|
|
|
|
Other creditors
|
|
|
|
|
|
|
Directors' current accounts
|
177,335
|
|
122,749
|
|
|
|
Accruals and deferred income
|
|
|
|
|
|
|
Accrued expenses
|
|
|
|
|
|
|
|
|
|
|
|
15.
|
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
|
|
2020
|
2019
|
|
£
|
£
|
|
|
Bank loans (see note 16)
|
|
|
|
|
|
|
Accruals and deferred income
|
|
|
|
|
|
|
|
|
|
|
|
16.
|
LOANS
|
|
|
An analysis of the maturity of loans is given below:
|
|
2020
|
2019
|
|
£
|
£
|
|
|
Amounts falling due within one year or on demand:
|
|
Bank loans
|
|
|
|
|
|
|
|
Amounts falling due between one and two years:
|
|
Bank loans - 1-2 years
|
|
|
|
|
|
|
AG RESTAURANTS LTD (REGISTERED NUMBER: SC287991)
|
|
|
Notes to the Financial Statements - continued
|
|
for the year ended 31 December 2020
|
|
|
|
16.
|
LOANS - continued
|
2020
|
2019
|
|
£
|
£
|
|
|
Amounts falling due between two and five years:
|
|
Bank loans - 2-5 years
|
|
|
|
|
|
|
|
Amounts falling due in more than five years:
|
|
|
Repayable by instalments
|
|
Bank loans more 5 yr by instal
|
55,534
|
|
1,065,689
|
|
|
|
Bank loans are repayable over periods ranging from one to seven years. The interest rates applied to the loans are based on Base rate plus a margin varying from 1.4% to 1.7%. |
|
17.
|
LEASING AGREEMENTS
|
|
|
Minimum lease payments under non-cancellable operating leases fall due as follows:
|
2020
|
2019
|
|
£
|
£
|
|
|
Within one year
|
|
|
|
|
|
|
Between one and five years
|
|
|
|
|
|
|
In more than five years
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease payments recognised as an expense in the year totalled £6,743,199 (2019: £8,837,204).
|
|
|
The Company's restaurant premises are leased from McDonalds Restaurants Limited under non-cancellable operating
leases with expiry terms of more than five years. Rent is calculated as a percentage of sales above base, the above
operating lease commitment only relates to base rent. Each restaurant pays its own unique base rent based on its
circumstances, with the remainder of the rent being based on the performance of the restaurant.
|
|
18.
|
FINANCIAL INSTRUMENTS
|
|
|
Financial Assets
|
|
31.12.20
|
|
31.12.19
|
|
|
|
|
£
|
|
£
|
|
|
|
Financial assets as an equity instrument
|
|
25,000
|
|
25,000
|
|
|
|
Financial assets that are debt instruments measured at amortised cost
|
|
7,118,075
|
|
4,177,001
|
|
|
|
|
7,143,075
|
|
4,202,001
|
|
|
|
|
|
Financial Liabilities
|
|
15,551,942
|
|
15,586,278
|
|
|
|
15,551,942
|
|
15,586,278
|
|
|
AG RESTAURANTS LTD (REGISTERED NUMBER: SC287991)
|
|
|
Notes to the Financial Statements - continued
|
|
for the year ended 31 December 2020
|
|
|
|
19.
|
PROVISIONS FOR LIABILITIES
|
2020
|
2019
|
|
£
|
£
|
|
|
Deferred tax
|
341,205
|
|
346,085
|
|
|
|
|
Deferred
|
|
|
tax
|
|
£
|
|
|
Balance at 1 January 2020
|
|
|
|
|
Credit to Income Statement during year
|
(
|
)
|
|
|
Balance at 31 December 2020
|
|
|
|
|
20.
|
CALLED UP SHARE CAPITAL
|
|
|
|
|
Allotted, issued and fully paid:
|
|
Number:
|
Class:
|
Nominal
|
2020
|
2019
|
|
|
value:
|
£
|
£
|
|
|
|
A Ordinary
|
1
|
75
|
|
75
|
|
|
|
|
B Ordinary
|
1
|
25
|
|
25
|
|
|
100
|
|
100
|
|
|
|
21.
|
RESERVES
|
|
Retained
|
|
earnings
|
£
|
|
|
|
At 1 January 2020
|
|
|
|
|
Profit for the year
|
|
|
|
|
Dividends
|
(
|
)
|
|
|
At 31 December 2020
|
|
|
|
|
22.
|
RELATED PARTY DISCLOSURES
|
|
|
During the year, total dividends of £340,000 were paid to the director
.
|