Jurassic Coast Coffee Limited - Accounts to registrar (filleted) - small 18.2
Jurassic Coast Coffee Limited - Accounts to registrar (filleted) - small 18.2
REGISTERED NUMBER: |
Financial Statements for the Year Ended 31 December 2019 |
for |
Jurassic Coast Coffee Limited |
Jurassic Coast Coffee Limited (Registered number: 07265089) |
Contents of the Financial Statements |
for the Year Ended 31 December 2019 |
Page |
Company Information | 1 |
Balance Sheet | 2 |
Notes to the Financial Statements | 3 |
Jurassic Coast Coffee Limited |
Company Information |
for the Year Ended 31 December 2019 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants and Business Advisors |
Statutory Auditor |
Regency House |
33 Wood Street |
Barnet |
Hertfordshire |
EN5 4BE |
SOLICITORS: |
6 Market Square |
Bishop's Stortford |
Hertfordshire |
CM23 3UZ |
Jurassic Coast Coffee Limited (Registered number: 07265089) |
Balance Sheet |
31 December 2019 |
31/12/19 | 31/12/18 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 5 |
Tangible assets | 6 |
CURRENT ASSETS |
Stocks |
Debtors | 7 |
Prepayments and accrued income |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 8 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 10 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital |
Retained earnings |
In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered. |
The financial statements were approved by the Board of Directors and authorised for issue on |
Jurassic Coast Coffee Limited (Registered number: 07265089) |
Notes to the Financial Statements |
for the Year Ended 31 December 2019 |
1. | STATUTORY INFORMATION |
Jurassic Coast Coffee Limited is a |
2. | STATEMENT OF COMPLIANCE |
3. | ACCOUNTING POLICIES |
Basis of preparing the 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. |
Goodwill |
Intangible assets |
Franchise fees are stated at cost less accumulated amortisation and impairment losses. |
Franchise fees are amortised over their useful economic lives, being the original lease period of the store to which the franchise fees relate. |
Amortisation is charged to administrative expenses in the income statement. |
Tangible fixed assets |
Short leasehold | - |
Improvements to property | - |
Plant and machinery | - |
Fixtures and fittings | - |
Computer equipment | - |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Jurassic Coast Coffee Limited (Registered number: 07265089) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2019 |
3. | ACCOUNTING POLICIES - continued |
Financial instruments |
Financial assets |
Basic financial assets, including trade and other debtors and cash and bank balances are initially recognised at the transaction value. |
They are then subsequently carried at amortised cost using the effective interest rate method. |
At the end of each reporting period financial assets are assessed for impairment. If an impairment exists the impairment loss is recognised in the income statement. |
Financial assets are derecognised when: |
- the contractual right to cash flows from the asset are settled or expire, |
- substantially all the risk and rewards of the ownership of the asset are transferred to another party or |
- despite retaining some significant risks and rewards, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset without additional restrictions. |
Financial liabilities |
Basic financial liabilities, including trade and other creditors are initially recognised at the transaction value. |
They are then subsequently carried at amortised cost using the effective interest rate method. |
Financial liabilities are derecognised when the liability is discharged, cancelled or expires. |
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 |
Operating leases |
Leases that do not transfer all the risks and rewards of ownership are classified as operating leases. Payments under operating leases are charged to the income statement t on a straight line bass over the period of the lease. |
Incentives received to enter into an operating lease are credited to the income statement, to reduce the lease expense, 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. |
Jurassic Coast Coffee Limited (Registered number: 07265089) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2019 |
3. | ACCOUNTING POLICIES - continued |
Going concern |
At the balance sheet date current liabilities exceeded current assets by £554,832 (2018: £803,329). Included in net current liabilities was a sum of £1,026,031 (2018: £433,026) owed to fellow group undertakings. The directors have confirmed that the repayment of these debts will not be sought for the foreseeable future. Combined with the net assets reported on the balance sheet of £705,142 (2018: £693,367) the directors consider it appropriate to prepare these financial statements on a going concern basis. |
The COVID-19 pandemic has developed rapidly in 2020. The resulting impact of the virus on the operations and measures taken by the UK Government to contain the virus have negatively affected the company's results in the reporting period. The currently known impacts of COVID-19 on the company are: |
- | a decline in revenues for the first 11 months of 2020 compared with the same period in 2019 of 43%; |
- | the closure of the company's sales locations for 3 months in April to June 2020, and restricted opening at various times since then, depending upon measures taken by the UK government |
These developments have resulted in an operating loss of £0.25m for the company in the 11 months to November 2020. |
Whilst there have been leverage breaches on the secured group facility agreement in 2020, the bank have confirmed that no action will be taken pursuant to these breaches. |
Despite the challenges faced management has implemented various plans and measures including: |
- | we temporarily closed stores in order to manage our available cash reserves; |
- | we have obtained from our lenders a waiver of the breaches of our covenants; |
- | we negotiated an average rent free period of 2 ½ months across our portfolio of property leases; |
- | during the shutdown period specifically, we were able to negotiate with our key fixed cost suppliers a zero cost or a significantly reduced cost. In relation to the Franchisor, Costa Coffee, we negotiated deferred payment terms and substantially reduced Royalty charges; |
- | in order to help partially mitigate our lost sales due to social distancing, the Franchisor introduced new digital delivery platforms and these have had the effect of creating additional sales of circa 10%; |
- | we utilised the available UK Governments Coronavirus Job Retention Scheme to the extent that it was available to us; and |
- | we utilised the available UK Governments Grants to the extent that it was available to us |
However, if shops are required to close for a significant period without further Government support then it will be necessary to raise additional capital from investors or financing from lenders. We have started those discussions and we expect that this capital will be available if required. |
As a result of these measures, and despite the significant uncertainty that exists, we do not believe that there is a material uncertainty that may cast significant doubt upon the company's ability to continue as a going concern. The directors therefore believe that it is appropriate for these financial statements to be prepared on a going concern basis. |
4. | EMPLOYEES AND DIRECTORS |
The average number of employees during the year was |
Jurassic Coast Coffee Limited (Registered number: 07265089) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2019 |
5. | INTANGIBLE FIXED ASSETS |
Other |
intangible |
Goodwill | assets | Totals |
£ | £ | £ |
COST |
At 1 January 2019 |
and 31 December 2019 |
AMORTISATION |
At 1 January 2019 |
Charge for year |
At 31 December 2019 |
NET BOOK VALUE |
At 31 December 2019 |
At 31 December 2018 |
6. | TANGIBLE FIXED ASSETS |
Improvements |
Short | to | Plant and |
leasehold | property | machinery |
£ | £ | £ |
COST |
At 1 January 2019 |
Additions |
At 31 December 2019 |
DEPRECIATION |
At 1 January 2019 |
Charge for year |
At 31 December 2019 |
NET BOOK VALUE |
At 31 December 2019 |
At 31 December 2018 |
Jurassic Coast Coffee Limited (Registered number: 07265089) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2019 |
6. | TANGIBLE FIXED ASSETS - continued |
Fixtures |
and | Computer |
fittings | equipment | Totals |
£ | £ | £ |
COST |
At 1 January 2019 |
Additions |
At 31 December 2019 |
DEPRECIATION |
At 1 January 2019 |
Charge for year |
At 31 December 2019 |
NET BOOK VALUE |
At 31 December 2019 |
At 31 December 2018 |
7. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31/12/19 | 31/12/18 |
£ | £ |
Trade debtors |
Other debtors |
8. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31/12/19 | 31/12/18 |
£ | £ |
Trade creditors |
Amounts owed to group undertakings |
Taxation and social security |
Other creditors |
9. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
31/12/19 | 31/12/18 |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
Jurassic Coast Coffee Limited (Registered number: 07265089) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2019 |
10. | PROVISIONS FOR LIABILITIES |
31/12/19 | 31/12/18 |
£ | £ |
Deferred tax |
Accelerated capital allowances |
Deferred |
tax |
£ |
Balance at 1 January 2019 |
Credit to Income Statement during year | ( |
) |
Balance at 31 December 2019 |
11. | DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006 |
The Report of the Auditors was unqualified. |
for and on behalf of |
12. | CONTINGENT LIABILITIES |
Cross guarantee |
The company has provided a cross guarantee in favour of the bank to cover the liabilities owed by its |
parent undertaking. |
The guarantee is unlimited. At the year-end no monies are owed to the bank by a subsidiary undertaking and therefore no economic benefit is expected to flow from the company. Any amount met on behalf of the subsidiary will be reimbursed by the subsidiary in the future where possible. |
Dilapidations and decommissioning liabilities |
At the year end the best estimate of the value of the expenditure expected to be incurred by the company in order to satisfy its obligation to restore its leasehold premises to the condition required under the lease at the agreement at the end of the lease is estimated to be £24,000 per store. At the year end the company operated from 13 stores. There is not expected to be any reimbursement to the company for this. |
The leases are for varying period of time and are not all due to expire at once. |
The uncertainties relating to the timing of any outflow is due to the company not having a history of exiting any stores once established. The Landlord and Tenant Act 1954 provides that a commercial tenant has the right to renew its lease of the premises that it occupies for the purposes of its business. |
No security has been given for the contingent liability. |
13. | RELATED PARTY DISCLOSURES |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Jurassic Coast Coffee Limited (Registered number: 07265089) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2019 |
14. | POST BALANCE SHEET EVENTS |
Non-adjusting post balance sheet events - Covid 19 |
The COVID-19 pandemic has developed rapidly in 2020, with a significant number of cases. Measures taken by various governments to contain the virus have affected economic activity and the company's business in various material ways, including the reduction of economic activity and requirement to close our stores for a number of months which has resulted in a significant reduction in sales. |
As a result of these effects our cumulative revenue in the first 11 months of 2020 was approximately 43% lower than our 2019 revenues in the same period. The company's operating results have declined significantly in 2020, resulting in a net operating loss of £0.25m in the 11 months to November 2020. Whilst our liquidity and headroom has been negatively impacted, as a result of negotiations with our suppliers and landlords, we have not been required to obtain additional funding from our banks and have been able to operate within our current facilities. |
In the period since 31 December 2019 the group has not incurred any material losses due to impairments recognised on outstanding receivables or write down of inventories. |
The UK Governments also announced the implementation of government assistance measures which mitigated some of the impact of the COVID-19 pandemic on our results and liquidity. To the extent appropriate we have applied for such government assistance, in particular the Coronavirus Job Retention Scheme. The details of all of the arrangements that might be available to us and the period throughout which they will remain available are continuing to evolve and remain subject to uncertainty. We are continuing to assess the implications for our business when these arrangements are no longer available. In particular, the withdrawal of the assistance currently provided by the Coronavirus Job Retention Scheme, currently available until the end of April 2021 in would adversely affect the performance of our stores if they were not allowed to re-open for "sit-in" service. |
Depending on the duration of the COVID-19 crisis and continued negative impact on economic activity, the group might experience further negative results, and liquidity restraints and incur additional impairments on its assets in 2020 and 2021. The exact impact on our activities in the remainder of 2020 and in 2021 and thereafter cannot be predicted. We also refer to note 3 regarding going concern. |
15. | ULTIMATE CONTROLLING PARTY |
The controlling party is Scoffs Group Limited. |
The ultimate controlling party is |