M G B Restaurants Ltd 31/12/2021 iXBRL

M G B Restaurants Ltd 31/12/2021 iXBRL

MGB RESTAURANTS LTD - Company Information

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Company registration number: 04582325
M G B Restaurants Ltd
Trading as McDonald's
Unaudited filleted financial statements
31 December 2021
M G B Restaurants Ltd
Contents
Directors and other information
Statement of financial position
Notes to the financial statements
M G B Restaurants Ltd
Directors and other information
Director Mr G M Braham
Secretary Mrs E Braham
Company number 04582325
Registered office 109 Coventry Road
Small Heath
Birmingham
B10 0RJ
Business address 109 Coventry Road
Small Heath
Birmingham
West Midlands
B10 0RJ
Accountants Windsors Rybridge Ltd
9 Castle Court (2)
Castlegate Way
Dudley
West Midlands
DY1 4RH
M G B Restaurants Ltd
Statement of financial position
31 December 2021
2021 2020
Note £ £ £ £
Fixed assets
Intangible assets 5 32,330 43,383
Tangible assets 6 2,158,806 1,917,929
Investments 7 3,750 3,750
_______ _______
2,194,886 1,965,062
Current assets
Stocks 8 52,336 53,493
Debtors 9 105,645 144,177
Cash at bank and in hand 844,666 504,858
_______ _______
1,002,647 702,528
Creditors: amounts falling due
within one year 10 ( 1,670,827) ( 1,326,558)
_______ _______
Net current liabilities ( 668,180) ( 624,030)
_______ _______
Total assets less current liabilities 1,526,706 1,341,032
Creditors: amounts falling due
after more than one year 11 ( 1,239,207) ( 1,251,542)
Provisions for liabilities ( 124,943) ( 83,007)
_______ _______
Net assets 162,556 6,483
_______ _______
Capital and reserves
Called up share capital 100 100
Profit and loss account 162,456 6,383
_______ _______
Shareholders funds 162,556 6,483
_______ _______
For the year ending 31 December 2021 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Director's responsibilities:
- The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476;
- The director acknowledges their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
In accordance with section 444 of the Companies Act 2006, the statement of income and retained earnings has not been delivered.
These financial statements were approved by the board of directors and authorised for issue on 13 June 2022 , and are signed on behalf of the board by:
Mr G M Braham
Director
Company registration number: 04582325
M G B Restaurants Ltd
Notes to the financial statements
Year ended 31 December 2021
1. General information
The company is a private company limited by shares, registered in UK. The address of the registered office is 109 Coventry Road, Small Heath, Birmingham, B10 0RJ.
2. Statement of compliance
These financial statements have been prepared in compliance with the provisions of FRS 102, Section 1A, 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Turnover
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.
Taxation
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in the statement of comprehensive income, except to the extent that it relates to items recognised in other comprehensive income or directly in capital and reserves. In this case, tax is recognised in other comprehensive income or directly in capital and reserves, 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 a revalued amount, 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.
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 - Between 5.38% and 5.53% straight line
Licence fees - Between 5% and 5.53% 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.
Tangible assets
tangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated depreciation and impairment losses.
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:
Short leasehold property - 10 % straight line
Plant and machinery - Between 5% and 33.33% straight line
Fittings fixtures and equipment - 33.33 % straight line
Motor vehicles - 33.33 % straight line
If there is an indication that there has been a significant change in depreciation rate, useful life or residual value of tangible assets, the depreciation is revised prospectively to reflect the new estimates.
Fixed asset investments
Unlisted fixed asset investments are recorded at cost.
Impairment
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. 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 are 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 stocks to their present location and condition.
Government grants
Government 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. Government grants are recognised using the accrual model and the performance model. Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable. 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. Under the performance model, where the grant does not impose specified future performance-related conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability.
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 in finance costs 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.
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 or 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.
4. Employee numbers
The average number of persons employed by the company during the year amounted to 297 (2020: 327 ).
5. Intangible assets
Goodwill Licence fees Total
£ £ £
Cost
At 1 January 2021 and 31 December 2021 115,273 90,000 205,273
_______ _______ _______
Amortisation
At 1 January 2021 91,561 70,329 161,890
Charge for the year 6,280 4,773 11,053
_______ _______ _______
At 31 December 2021 97,841 75,102 172,943
_______ _______ _______
Carrying amount
At 31 December 2021 17,432 14,898 32,330
_______ _______ _______
At 31 December 2020 23,712 19,671 43,383
_______ _______ _______
6. Tangible assets
Short leasehold property Plant and machinery Fixtures, fittings and equipment Stamp duty Total
£ £ £ £ £
Cost
At 1 January 2021 5,266 4,646,102 16,407 10,380 4,678,155
Additions - 628,650 417 - 629,067
_______ _______ _______ _______ _______
At 31 December 2021 5,266 5,274,752 16,824 10,380 5,307,222
_______ _______ _______ _______ _______
Depreciation
At 1 January 2021 5,266 2,731,203 16,234 7,523 2,760,226
Charge for the year - 387,452 196 542 388,190
_______ _______ _______ _______ _______
At 31 December 2021 5,266 3,118,655 16,430 8,065 3,148,416
_______ _______ _______ _______ _______
Carrying amount
At 31 December 2021 - 2,156,097 394 2,315 2,158,806
_______ _______ _______ _______ _______
At 31 December 2020 - 1,914,899 173 2,857 1,917,929
_______ _______ _______ _______ _______
7. Investments
Unlisted investments Total
£ £
Cost
At 1 January 2021 and 31 December 2021 3,750 3,750
_______ _______
Impairment
At 1 January 2021 and 31 December 2021 - -
_______ _______
Carrying amount
At 31 December 2021 3,750 3,750
_______ _______
At 31 December 2020 3,750 3,750
_______ _______
8. Stocks
2021 2020
£ £
Food, paper and non-product closing stocks 52,336 53,493
_______ _______
9. Debtors
2021 2020
£ £
Prepayments 36,268 15,186
Other debtors 69,377 128,991
_______ _______
105,645 144,177
_______ _______
10. Creditors: amounts falling due within one year
2021 2020
£ £
Bank loans 434,755 363,699
Trade creditors 739,163 357,673
Accruals 213,298 221,466
Corporation tax 76,064 58,877
Social security and other taxes 119,564 324,221
Other creditors 87,983 622
_______ _______
1,670,827 1,326,558
_______ _______
11. Creditors: amounts falling due after more than one year
2021 2020
£ £
Bank loans and overdrafts 1,239,207 1,251,542
_______ _______
Bank loans consist of unsecured loans with HSBC, which are repayable by instalments over 5-7 years, with interest charged between 1.40% and 2.50%.
12. Operating leases
The company as lessee
The total future minimum lease payments under non-cancellable operating leases are as follows:
£ £
Not later than 1 year 149,820 149,820
Later than 1 year and not later than 5 years 442,927 531,805
Later than 5 years 34,609 95,551
_______ _______
627,356 777,176
_______ _______
The company's restaurant premises are leased from McDonald's Restaurants Limited under non-cancellable operating leases, with expiry terms of more than five years. The lease charge for each store consists of a base rent and a percentage rent based on food and drink sales. As such it is not possible to quantify the total commitments due under the leases due to the variable basis of the rental payments; the costs shown above are therefore based only on the store base rents.
13. Directors advances, credits and guarantees
During the year the director entered into the following advances and credits with the company:
2021
Balance brought forward Advances /(credits) to the director Amounts repaid Balance o/standing
£ £ £ £
Mr G M Braham 82,307 132,897 ( 300,000) ( 84,796)
_______ _______ _______ _______
2020
Balance brought forward Advances /(credits) to the director Amounts repaid Balance o/standing
£ £ £ £
Mr G M Braham 52,359 149,948 ( 120,000) 82,307
_______ _______ _______ _______
14. Controlling party
Mr M Braham holds a controlling interest in MGB Restaurants Ltd, being sole director and majority shareholder.