The London Cocktail Club Ltd - Period Ending 2018-06-30

The London Cocktail Club Ltd

Annual Report and Unaudited Financial Statements
Year Ended 30 June 2018

Registration number: 07438012

The London Cocktail Club Ltd

Contents

Company Information	1
Balance Sheet	2 to 3
Notes to the Financial Statements	4 to 11

The London Cocktail Club Ltd

Company Information

Directors

Mr R A Blanc Mr J J Goodman Mr J Hopkins Dr L S Moir Mrs S L Willingham-Toxvaerd

Company secretary

Mr A Roberts

Registered office

3rd Floor 33 Percy Street London W1T 2DF

Accountants

Francis Clark LLP Ground Floor Blackbrook Gate 1 Blackbrook Business Park Taunton Somerset TA1 2PX

Page 1

The London Cocktail Club Ltd

Balance Sheet

30 June 2018

	Note	2018 £	2017 £
Fixed assets
Tangible assets	4	1,690,866	1,126,347
Investments	5	248	248
		1,691,114	1,126,595
Current assets
Stocks	6	67,382	57,538
Debtors	7	810,170	525,361
Cash at bank and in hand		321,608	49,109
		1,199,160	632,008
Creditors: Amounts falling due within one year	8	(1,059,928)	(600,447)
Net current assets		139,232	31,561
Total assets less current liabilities		1,830,346	1,158,156
Creditors: Amounts falling due after more than one year	8	(643,942)	(290,606)
Deferred tax provision		(108,132)	-
Net assets		1,078,272	867,550
Capital and reserves
Called up share capital		10,248	10,248
Share premium reserve		45,000	45,000
Profit and loss account		1,023,024	812,302
Total equity		1,078,272	867,550

The notes on pages 4 to 11 form an integral part of these financial statements.

Page 2

The London Cocktail Club Ltd

Balance Sheet

30 June 2018

For the financial year ending 30 June 2018 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

•	The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and
•	The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared and delivered in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006 and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 15 March 2019 and signed on its behalf by:
 

......................................... Dr L S Moir Director

Company Registration Number: 07438012

The notes on pages 4 to 11 form an integral part of these financial statements.

Page 3

The London Cocktail Club Ltd

Notes to the Financial Statements

Year Ended 30 June 2018

1	General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
3rd Floor
33 Percy Street
London
W1T 2DF

These financial statements were authorised for issue by the Board on 15 March 2019.

2	Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 including Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention.

Group accounts not prepared

The company and its trading subsidiary form a small group. The company is therefore not required to produce consolidated financial statements and has not done so. These financial statements present information about the company as a single entity.

Page 4

The London Cocktail Club Ltd

Notes to the Financial Statements

Year Ended 30 June 2018

Key accounting judgements and sources of estimation uncertainty

In the application of the company's accounting policies management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

In the opinion of the directors, there are no key judgements that have a significant effect on the financial statements or key sources of estimation uncertainty as at 30 June 2018.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts.

Revenue is recognised as goods and services are provided to customers.

Tax

Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised on all timing differences at the balance sheet date unless indicated below. Timing differences are differences between taxable profits and the results as stated in the profit and loss account and other comprehensive income. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amounts of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and assets under construction over their estimated useful lives, as follows:

Page 5

The London Cocktail Club Ltd

Notes to the Financial Statements

Year Ended 30 June 2018

Asset class	Depreciation method and rate
Leasehold property	Straight line over the period of the lease
Furniture, fittings and equipment	20% reducing balance
Other property, plant and equipment	20% reducing balance

Investments

Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.

At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Page 6

The London Cocktail Club Ltd

Notes to the Financial Statements

Year Ended 30 June 2018

Financial instruments

Classification
The company holds the following financial instruments:

• Short term trade and other debtors and creditors;
• Bank loans; and
• Cash and bank balances.

All financial instruments are classified as basic.

 Recognition and measurement
The company has chosen to apply the recognition and measurement principles in FRS102.

Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company’s obligations are discharged, expire or are cancelled.

Except for bank loans, such instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.

Bank loans are initially measured at transaction price, including transaction costs, and are subsequently carried at amortised cost using the effective interest method.


 

3	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 69 (2017 - 60).

Page 7

The London Cocktail Club Ltd

Notes to the Financial Statements

Year Ended 30 June 2018

4	Tangible assets

	Leasehold property £	Furniture, fittings and equipment  £	Other property, plant and equipment  £	Total £
Cost or valuation
At 1 July 2017	768,415	64,969	662,885	1,496,269
Additions	225,888	92,953	482,369	801,210
At 30 June 2018	994,303	157,922	1,145,254	2,297,479
Depreciation
At 1 July 2017	84,938	23,765	261,219	369,922
Charge for the year	87,567	16,738	132,386	236,691
At 30 June 2018	172,505	40,503	393,605	606,613
Carrying amount
At 30 June 2018	821,798	117,419	751,649	1,690,866
At 30 June 2017	683,477	41,204	401,666	1,126,347

5	Investments

	2018 £	2017 £
Investments in subsidiaries	248	248

Subsidiaries	£
Cost or valuation
At 1 July 2017	248
Carrying amount
At 30 June 2018	248
At 30 June 2017	248

6

Stocks

	2018 £	2017 £
Goods for resale	67,382	57,538

Page 8

The London Cocktail Club Ltd

Notes to the Financial Statements

Year Ended 30 June 2018

7

Debtors

	2018  £	2017  £
Trade debtors	71,241	57,280
Amounts due from group undertakings	276,476	160,180
Other debtors	172,543	210,142
Prepayments	289,910	97,759
	810,170	525,361

8

Creditors

Creditors: amounts falling due within one year

	Note	2018  £	2017  £
Due within one year
Loans and borrowings	9	230,884	72,529
Trade creditors		303,244	192,801
Corporation tax		39,578	-
Social security and other taxes		147,895	135,865
Outstanding defined contribution pension costs		6,022	-
Other creditors		85,408	10,626
Accrued expenses		246,897	188,626
		1,059,928	600,447

Creditors include bank loans which are secured of £234,884 (2017 - £72,529). The loans have been secured by way of a floating charge over the assets of the company and are stated above net of the current element of the loan arrangement fees.

Creditors: amounts falling due after more than one year

	Note	2018 £	2017 £
Due after one year
Loans and borrowings	9	643,942	290,606

Creditors include bank loans which are secured of £655,678 (2017 - £290,606). The loans have been secured by way of a floating charge over the assets of the company and are stated above net of the non-current element of the loan arrangement fees.

Page 9

The London Cocktail Club Ltd

Notes to the Financial Statements

Year Ended 30 June 2018

9	Loans and borrowings

	2018 £	2017 £
Loans and borrowings due after one year
Bank borrowings	643,942	290,606

	2018 £	2017 £
Current loans and borrowings
Bank borrowings	230,884	72,529

Loans and borrowings as at 30 June 2018 totalling £890,561 are stated net of £15,735 of loan arrangement fees.

10	Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

	2018  £	2017  £
Not later than one year	477,496	399,249
Later than one year and not later than five years	1,909,984	1,574,000
Later than five years	2,696,145	2,608,214
	5,083,625	4,581,463

11	Share capital

Allotted, called up and fully paid shares

	2018		2017
	No.	£	No.	£
A Ordinary shares of £0.001 each	10,247,990	10,247.99	10,247,990	10,247.99

Page 10

The London Cocktail Club Ltd

Notes to the Financial Statements

Year Ended 30 June 2018

12	Share based payments

The London Cocktail Club Ltd EMI Share Option Plan

The company has a share option scheme in which one employee participates -The London Cocktail Club Ltd EMI Share Option Plan (EMI scheme) set up in January 2016. Under the EMI scheme, the company has granted an EMI option over Ordinary A shares in the company. The option vests upon certain criteria in respect of the sale of the company or its assets, or the company being listed on a recognised stock exchange, being met. The directors have granted options over 300,000 shares to one employee each with an exercise price of £0.17 and an expiry date of January 2026.

The London Cocktail Club Ltd Unapproved Option Agreement

The company has a share option scheme in which one individual participates -The London Cocktail Club Ltd Unapproved Option Agreement (Option agreement) set up in November 2017. Under the Option agreement, the company has granted an option over Ordinary A shares in the company. The option vests upon certain criteria in respect of the sale of the company or its assets, or the company being listed on a recognised stock exchange, being met or on the tenth anniversary of the agreement. The directors have granted options over 105,480 shares to one individual each with an exercise price of £0.76.

The directors have assessed the fair value of the share options at 30 June 2018 in accordance with the requirements of FRS 102 and the underlying terms of the options. The value of the options is not material and, therefore, has not been included in the accounts of the company.

13	Related party transactions

Other transactions with directors

During the year interim dividends of £23,528 (2017: £14,285) were paid to the directors.

Page 11