Scotco One Five Five Limited Company accounts

SCOTCO ONE FIVE FIVE LIMITED - Company Information

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COMPANY REGISTRATION NUMBER: 10916356

Scotco One Five Five Limited

Financial Statements

29 December 2019

Scotco One Five Five Limited

Financial Statements

Period from 24 December 2018 to 29 December 2019

Contents	Page

Officers and professional advisers	1

Strategic report	2

Directors' report	4

Independent auditor's report to the members	6

Statement of income and retained earnings	9

Statement of financial position	10

Notes to the financial statements	11

Scotco One Five Five Limited

Officers and Professional Advisers

The board of directors	Mr M A Herbert
	Mr L E Herbert
	Mr J Carlisle

Registered office	c/o DWF LLP, 1 Scott Place, 2, Hardman Street
	Manchester
	M3 3AA

Auditor	Maneely Mc Cann
	Chartered Accountants & Statutory Auditors
	Aisling House
	50 Stranmillis Embankment
	Belfast
	BT9 5FL

Bankers	HSBC Bank UK PLC
	25-29 Royal Avenue
	Belfast
	BT1 1FB

Solicitors	DWF (Northern Ireland) LLP
	Jefferson House
	42 Queen Street
	Belfast
	BT1 6HL

Scotco One Five Five Limited

Strategic Report

Period from 24 December 2018 to 29 December 2019

PRINCIPAL ACTIVITY AND BUSINESS REVIEW The principal activity of the company is the provision of fast food services under franchise with Kentucky Fried Chicken (Great Britain) Limited. The company's revenues are generated by fast food sales. The company operates throughout England. The company recognised a gross profit for the period of £4,339,655 (2018: £2,968,472), achieving a gross profit margin of 42% (2018: 40%). Profit on ordinary activities before taxation was £206,291 (2018: loss of £208,423). The net liabilities of the company at the period end were £102,204 (2018: £208,423). Overall the directors are satisfied with the company's results for the period. The KFC franchise business continues to trade strongly. The key performance indicators that management monitored on a monthly basis during the year were as follows: - store by store growth compared to prior period - food costs as a percentage of sales - labour costs as a percentage of sales - labour hours used on a weekly, store by store basis compared to sales achieved and same week prior year. The company is well placed to deal with uncertainties that may arise due to the current economic downturn and in response to this the directors are involved in prudent business planning and working close with the company's key stakeholders. FUTURE DEVELOPMENTS The directors continue to seek opportunities for retail fast food operations that fit with the group's strategic objectives. PRINCIPAL RISKS AND UNCERTAINTIES The KFC business is sensitive to consumer spending habits, inflation and increased costs which include wages, energy costs and direct costs. The directors, however, focus strongly on managing and mitigating these risks as well as exploring new opportunities for business. The company's operations expose it to a variety of financial risks that include liquidity risk and interest rate risk. Credit risk is negligible as the company does not make any credit sales. Given the size of the company, the directors have not delegated the responsibility of monitoring financial risk management to a sub committee. The policies are set and reviewed by the directors, and are implemented by the group's finance team. The main risks are summarised below: Liquidity Risk The company actively maintains a mixture of long-term and short-term finance to ensure sufficient liquidity available for operations and any planned expansions. Interest rate risk The company finances its operations through a combination of bank overdrafts and loans from related parties, and has a policy of maintaining debt at competitive rates to ensure a reasonable degree of certainty over future interest cash flows. The director will revisit the appropriateness of this policy should the group's operations change in size or nature.

This report was approved by the board of directors on 27 February 2020 and signed on behalf of the board by:

Mr M A Herbert	Mr J Carlisle
Director	Director

Registered office:

c/o DWF LLP, 1 Scott Place, 2, Hardman Street

Manchester

M3 3AA

Scotco One Five Five Limited

Directors' Report

Period from 24 December 2018 to 29 December 2019

The directors present their report and the financial statements of the company for the period ended 29 December 2019 .

Directors

The directors who served the company during the period were as follows:

Mr M A Herbert
Mr L E Herbert
Mr J Carlisle

Dividends

The directors do not recommend the payment of a dividend.

Employment of disabled persons

The company gives full consideration to applications for employment from disabled persons where the requirements of the job can be adequately fulfilled by a handicapped or disabled person. Where existing employees become disabled, it is the company's policy wherever practicable to provide continuing employment under normal terms and conditions and to provide training and career development and promotion to disabled employees wherever appropriate.

Employee involvement

It is the policy of the company to provide employees with information on matters of concern to them through the normal management channels. The involvement of the employees in the company's performance is encouraged by the provision of relevant information aimed at achieving employee awareness of the various factors affecting the company.

Directors' responsibilities statement

The directors are responsible for preparing the strategic report, directors' report and the financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial period. Under that law the directors have 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 directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: - select suitable accounting policies and then apply them consistently; - make judgments and accounting estimates that are reasonable and prudent; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are 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. Auditor

Each of the persons who is a director at the date of approval of this report confirms that:

- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.

This report was approved by the board of directors on 27 February 2020 and signed on behalf of the board by:

Mr M A Herbert	Mr J Carlisle
Director	Director

Registered office:

c/o DWF LLP, 1 Scott Place, 2, Hardman Street

Manchester

M3 3AA

Scotco One Five Five Limited

Independent Auditor's Report to the Members of Scotco One Five Five Limited

Period from 24 December 2018 to 29 December 2019

Opinion

We have audited the financial statements of Scotco One Five Five Limited (the 'company') for the period ended 29 December 2019 which comprise the statement of income and retained earnings, statement of financial position and the related notes, 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 FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). This report is made solely to the company's members, as a body, in accordance with chapter 3 of part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. In our opinion the financial statements: - give a true and fair view of the state of the company's affairs as at 29 December 2019 and of its profit for the period then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Material uncertainty related to going concern

We draw attention to note 3 in the financial statements, which indicates that the accounts have been prepared on a going concern basis, the validity of which depends on the continued support of the other group companies and the group's bankers. The financial statements do not include any adjustments which would result if this continued support was not secured. As stated in note 3, these events or conditions, along with the other matters as set forth in note 3, indicate that a material uncertainty exists that may cast significant doubt on the company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information. 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 directors' report for the financial period for which the financial statements are prepared is consistent with the financial statements; and

- the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

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 directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of directors' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Cathal Maneely

(Senior Statutory Auditor)

For and on behalf of

Maneely Mc Cann

Chartered Accountants & Statutory Auditors

Aisling House

50 Stranmillis Embankment

Belfast

BT9 5FL

27 February 2020

Scotco One Five Five Limited

Statement of Income and Retained Earnings

Period from 24 December 2018 to 29 December 2019

		Period from	Period from
		24 Dec 18 to	20 Mar 18 to
		29 Dec 19	23 Dec 18
Note		£	£
Turnover	4	10,329,365	7,362,231

Cost of sales	5,989,710	4,393,759
	-------------	------------
Gross profit	4,339,655	2,968,472

Administrative expenses		4,268,249	3,176,895
Other operating income	5	134,885	–
		------------	------------
Operating profit/(loss)	6	206,291	( 208,423)

	------------	------------
Profit/(loss) before taxation	206,291	( 208,423)

Tax on profit/(loss)	9	100,073	–
		---------	---------
Profit/(loss) for the financial period and total comprehensive income		106,218	( 208,423)
		---------	---------

Retained losses at the start of the period	( 208,423)	–
	---------	---------
Retained losses at the end of the period	( 102,205)	( 208,423)
	---------	---------

All the activities of the company are from continuing operations.

Scotco One Five Five Limited

Statement of Financial Position

29 December 2019

	29 Dec 19	23 Dec 18
Note	£	£

Fixed assets

Intangible assets	10	5,758,706	6,147,044
Tangible assets	11	2,162,526	2,508,870
		------------	------------
		7,921,232	8,655,914

Current assets

Stocks	12	80,961	77,200
Debtors	13	141,890	259,384
Cash at bank and in hand		259,418	432,668
		---------	---------
		482,269	769,252

Creditors: amounts falling due within one year	14	8,479,213	1,192,109
		------------	------------
Net current liabilities		7,996,944	422,857
		------------	------------
Total assets less current liabilities		( 75,712)	8,233,057

Creditors: amounts falling due after more than one year	15	–	8,441,479

Provisions	16	26,492	–
		---------	------------
Net liabilities		( 102,204)	( 208,422)
		---------	------------

Capital and reserves

Called up share capital	20	1	1
Profit and loss account		( 102,205)	( 208,423)
		---------	---------
Shareholders deficit		( 102,204)	( 208,422)
		---------	---------

These financial statements were approved by the board of directors and authorised for issue on 27 February 2020 , and are signed on behalf of the board by:

Mr M A Herbert	Mr J Carlisle
Director	Director

Company registration number: 10916356

Scotco One Five Five Limited

Notes to the Financial Statements

Period from 24 December 2018 to 29 December 2019

1. General information

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is c/o DWF LLP, 1 Scott Place, 2, Hardman Street, Manchester, M3 3AA.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Going concern

The financial statements have been prepared on the going concern basis, notwithstanding the fact that the company had a net shareholders deficit of £102,204 at the period end. The company has the necessary cash cover and secured lender and other group companies' support to meet its total on-going unsecured creditor obligations and liabilities for the medium to long term. In light of the above, the directors consider it appropriate to prepare the financial statements on a going concern basis.

Disclosure exemptions

The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. Its financial statements are consolidated into the financial statements of Herbert Corporate Holdings Limited, which can be obtained from Lesley House, 605 Lisburn Road, Belfast, BT9 7GS. As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102: (a) No cash flow statement has been presented for the company.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.

Income tax

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Operating leases

Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.

Goodwill

Goodwill arises on business acquisitions and represents the excess of the cost of the acquisition over the company's interest in the net amount of the identifiable assets, liabilities and contingent liabilities of the acquired business. Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. It is amortised on a straight-line basis over its useful life. Where a reliable estimate of the useful life of goodwill or intangible assets cannot be made, the life is presumed not to exceed ten years.

Intangible assets

Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses. Any intangible assets carried at revalued amounts, are recorded at the fair value at the date of revaluation, as determined by reference to an active market, less any subsequent accumulated amortisation and subsequent accumulated impairment losses. Intangible assets acquired as part of a business combination are recorded at the fair value at the acquisition date.

Amortisation

Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:

Goodwill	-	5% straight line
Franchise Licences	-	10% straight line

If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.

Research and development

Research expenditure is written off in the period in which it is incurred. Development expenditure incurred is capitalised as an intangible asset only when all of the following criteria are met: - It is technically feasible to complete the intangible asset so that it will be available for use or sale; - There is the intention to complete the intangible asset and use or sell it; - There is the ability to use or sell the intangible asset; - The use or sale of the intangible asset will generate probable future economic benefits; - There are adequate technical, financial and other resources available to complete the development and to use or sell the intangible asset; and - The expenditure attributable to the intangible asset during its development can be measured reliably. Expenditure that does not meet the above criteria is expensed as incurred.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

	Fixtures and fittings	-	Over 3, 4 and 10 years

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

Financial instruments

A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

4. Turnover

Turnover arises from:

	Period from	Period from
	24 Dec 18 to	20 Mar 18 to
	29 Dec 19	23 Dec 18
	£	£
Sale of goods	10,329,365	7,362,231
	-------------	------------

The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.

5. Other operating income

	Period from	Period from
	24 Dec 18 to	20 Mar 18 to
	29 Dec 19	23 Dec 18
	£	£
Other operating income	134,885	–
	---------	----

6. Operating profit

Operating profit or loss is stated after charging:

	Period from	Period from
	24 Dec 18 to	20 Mar 18 to
	29 Dec 19	23 Dec 18
	£	£
Amortisation of intangible assets	388,338	295,355
Depreciation of tangible assets	515,202	427,777
Operating lease rentals	573,500	398,479
	---------	---------

7. Auditor's remuneration

	Period from	Period from
	24 Dec 18 to	20 Mar 18 to
	29 Dec 19	23 Dec 18
	£	£
Fees payable for the audit of the financial statements	5,750	8,750
	-------	-------

8. Staff costs

The average number of persons employed by the company during the period, including the directors, amounted to:

	29 Dec 19	23 Dec 18
	No.	No.
Production staff	271	308
Management staff	21	–
	----	----
	292	308
	----	----

The aggregate payroll costs incurred during the period, relating to the above, were:

	Period from	Period from
	24 Dec 18 to	20 Mar 18 to
	29 Dec 19	23 Dec 18
	£	£
Wages and salaries	2,356,347	1,752,289
Social security costs	117,328	80,908
Other pension costs	30,539	19,586
	------------	------------
	2,504,214	1,852,783
	------------	------------

9. Tax on profit/(loss)

Major components of tax expense

	Period from	Period from
	24 Dec 18 to	20 Mar 18 to
	29 Dec 19	23 Dec 18
	£	£

Current tax:

UK current tax expense	73,581	–

Deferred tax:

Origination and reversal of timing differences	26,492	–
	---------	----
Tax on profit/(loss)	100,073	–
	---------	----

Reconciliation of tax expense

The tax assessed on the profit/(loss) on ordinary activities for the period is higher than (2018: higher than) the standard rate of corporation tax in the UK of 19 % (2018: 19 %).

	Period from	Period from
	24 Dec 18 to	20 Mar 18 to
	29 Dec 19	23 Dec 18
	£	£
Profit/(loss) on ordinary activities before taxation	206,291	( 208,423)
	---------	---------
Profit/(loss) on ordinary activities by rate of tax	39,195	( 39,600)
Effect of expenses not deductible for tax purposes	97,674	( 40,852)
Effect of capital allowances and depreciation	( 63,288)	80,452
Origination and reversal of timing differences	26,492	–
	---------	---------
Tax on profit/(loss)	100,073	–
	---------	---------

10. Intangible assets

	Goodwill	Franchise Licences	Total
	£	£	£
Cost
At 24 December 2018 and 29 December 2019	6,162,391	280,008	6,442,399
	------------	---------	------------
Amortisation
At 24 December 2018	275,428	19,927	295,355
Charge for the period	360,330	28,008	388,338
	------------	---------	------------
At 29 December 2019	635,758	47,935	683,693
	------------	---------	------------
Carrying amount
At 29 December 2019	5,526,633	232,073	5,758,706
	------------	---------	------------
At 23 December 2018	5,886,963	260,081	6,147,044
	------------	---------	------------

11. Tangible assets

	Fixtures and fittings
	£
Cost
At 24 December 2018	2,936,647
Additions	168,858
	------------
At 29 December 2019	3,105,505
	------------
Depreciation
At 24 December 2018	427,777
Charge for the period	515,202
	------------
At 29 December 2019	942,979
	------------
Carrying amount
At 29 December 2019	2,162,526
	------------
At 23 December 2018	2,508,870
	------------

12. Stocks

	29 Dec 19	23 Dec 18
	£	£
Finished goods and goods for resale	80,961	77,200
	--------	--------

13. Debtors

	29 Dec 19	23 Dec 18
	£	£
Prepayments and accrued income	10,223	11,579
Other debtors	131,667	247,805
	---------	---------
	141,890	259,384
	---------	---------

14. Creditors: amounts falling due within one year

	29 Dec 19	23 Dec 18
	£	£
Trade creditors	328,087	588,085
Amounts owed to group undertakings	7,725,601	–
Accruals and deferred income	68,667	175,182
Corporation tax	73,581	–
Social security and other taxes	112,684	153,078
Other creditors	170,593	275,764
	------------	------------
	8,479,213	1,192,109
	------------	------------

15. Creditors: amounts falling due after more than one year

	29 Dec 19	23 Dec 18
	£	£
Amounts owed to group undertakings	–	8,441,479
	----	------------

Bank loans and overdrafts of the group are secured by way of fixed and floating charges on the company's and group's assets and by charges over property leases between group companies.

16. Provisions

	Deferred tax (note 17)
	£
At 24 December 2018	–
Additions	26,492
	--------
At 29 December 2019	26,492
	--------

17. Deferred tax

The deferred tax included in the statement of financial position is as follows:

	29 Dec 19	23 Dec 18
	£	£
Included in provisions (note 16)	26,492	–
	--------	----

The deferred tax account consists of the tax effect of timing differences in respect of:

	29 Dec 19	23 Dec 18
	£	£
Accelerated capital allowances	26,492	–
	--------	----

18. Employee benefits

Defined contribution plans

The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 30,539 (2018: £ 19,586 ).

19. Financial instruments

The carrying amount for each category of financial instrument is as follows:

	29 Dec 19	23 Dec 18
	£	£

Financial assets that are debt instruments measured at amortised cost

Financial assets that are debt instruments measured at amortised cost	391,085	680,473
	---------	---------

Financial liabilities measured at amortised cost

Financial liabilities measured at amortised cost	8,410,546	9,458,406
	------------	------------

20. Called up share capital

Issued, called up and fully paid

	29 Dec 19		23 Dec 18
	No.	£	No.	£
Ordinary shares of £ 1 each	1	1	1	1
	----	----	----	----

21. Operating leases

The total future minimum lease payments under non-cancellable operating leases are as follows:

	29 Dec 19	23 Dec 18
	£	£
Not later than 1 year	477,002	471,555
Later than 1 year and not later than 5 years	1,776,751	1,810,171
Later than 5 years	4,375,600	4,752,139
	------------	------------
	6,629,353	7,033,865
	------------	------------

22. Related party transactions

Control The company is a wholly owned subsidiary of Scotco (Northern) Limited, a company incorporated in England & Wales, which is a wholly owed subsidiary of Scotco (Eastern) Limited, a company incorporated in Scotland. Scotco (Eastern) Limited is a wholly owned subsidiary of Banner Dell Limited, a company incorporated in England and Wales, which is a wholly owned subsidiary of Herbert Corporate Holdings Limited, a company incorporated in Northern Ireland. Mrs L E Herbert is the shareholder of Herbert Corporate Holdings Limited and as such is considered to be the company's ultimate controlling party. Transactions The company has taken advantage of the exemption from disclosing related party transactions with group companies, in accordance with Financial Reporting Standard No 102 Section 1A Appendix C, Related Party Disclosures.

23. Controlling party

Herbert Corporate Holdings Limited is the company's ultimate parent company. Copies of consolidated financial statements may be obtained from Lesley House, 605 Lisburn Road, Belfast, Northern Ireland, BT9 7GS .