Kismet Kebabs Ltd - Accounts

Registered number

06582953

Kismet Kebabs Ltd

Report and Financial Statements

31 May 2022

Kismet Kebabs Ltd
Report and accounts
Contents
Page
Company information	1
Directors' report	2
Strategic report	3
Independent auditor's report	4 - 5
Income statement	6
Statement of comprehensive income	7
Statement of financial position	8
Statement of changes in equity	9
Statement of cash flows	10
Notes to the financial statements	11 - 20

Kismet Kebabs Ltd

Company Information

Directors

Djemal Enver

Panayiotis Michael

Husein Enver

Auditors

G C Forest & Co

190 Billet Road

London

E17 5DX

Bankers

Santander Corporate Banking

90 High Street

Chelmsford

Essex

CM1 1DY

Barclays Bank Plc

Leicestershire

LE87 2BB

Registered office

190 Billet Road

London

E17 5DX

Registered number

06582953

Kismet Kebabs Ltd
Registered number:				06582953
Directors' Report
The directors present their report and financial statements for the year ended 31 May 2022.
Principal activities
The company's principal activity during the year continued to be that of doner kebab makers.
Directors
The following persons served as directors during the year:
	Djemal Enver
	Panayiotis Michael
	Huseyin Enver
Directors' responsibilities

The directors are responsible for preparing the report and financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (Financial Reporting Standard 102 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 of 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 judgements and estimates that are reasonable and prudent;
●	state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
●	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.

Disclosure of information to auditors

Each person who was a director at the time this report was approved confirms that:
●	so far as he is aware, there is no relevant audit information of which the company's auditor is 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 auditor is aware of that information.

This report was approved by the board on 29 June 2022 and signed on its behalf.

Huseyin Enver

Director

Kismet Kebabs Ltd

Strategic Report

Review of the business

The Company was incorporated in 2008 to trade as a wholesaler and retailer of doner kebabs. The business has grown steadily over the years into a profitable venture especially over the last five years. The main reason for this being that the company sells Quality goods and provide a Great Customer Service. The directors are pleased to report that Kismet Kebabs Ltd has maintained its profitability and its positive progression in the manufacturing and retail of doner kebabs. The company maintained it's gross profit margin during the year, this was primarily due to the fact that the company bought raw material in bulk at a competetive rate prior to the sharp increase in raw materials.

Principal risks and uncertainties

The management and the nature of the business are subject to risks that are considered insignificant. The director is of the opinion that a thorough risk management process is adopted which involves the formal review of all the risks identified below. Where possible , processes are in place to monitor and mitigate such risks.

Competition

The market in which the business operates is highly competitive, however because of the purchasing power Kismet Kebabs Ltd maintained their margins. Policies of constant price monitoring and ongoing market research are in place to mitigate any further risks, together with a continuing effort to differentiate the business's offer from that of its competitors.

Product obsolescence

In common with many other retailers and wholesalers, the directors are committed to the ongoing monitoring of products and implementation of new products and are confident that the business is able to react effectively to developments within the market.

Liquidity risk

Kismet Kebabs Ltd seeks to manage financial risk to ensure sufficient liquidity is available to meet

its needs for the forseeable future.

Currency risk

The company is exposed to transaction foreign exchange risk. Such risk is assessed and managed

by the company.

This report was approved by the board on 29 June 2022 and signed on its behalf.

Huseyin Enver

Director

Kismet Kebabs Ltd

Independent auditor's report

to the members of Kismet Kebabs Ltd

Opinion

We have audited the financial statements of Kismet Kebabs Ltd (the 'company') for the year ended 31 May 2022 which comprise the Income Statement, the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity, the Statement of Cash Flows and notes to the financial statements, including 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 the Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
●	give a true and fair view of the state of the company's affairs as at 31 May 2022 and of its profit for the year 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.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
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.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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 contained within the annual report. 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. 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 course of 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 directors’ report for the financial year 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.

A further description of our responsibilities for the audit of the financial statements is available on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

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 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.
George Christodoulou
(Senior Statutory Auditor)		190 Billet Road
for and on behalf of
G C Forest & Co		London
Statutory Auditor
29 June 2022		E17 5DX

Kismet Kebabs Ltd
Income Statement
for the year ended 31 May 2022
Notes						2022		2021
£							£
Turnover				2		14,442,796		12,511,912
Cost of sales						(9,723,922)		(8,397,939)
Gross profit						4,718,874		4,113,973
Administrative expenses						(3,984,474)		(3,358,586)
Other operating income						5,137		192,006
Operating profit				3		739,537		947,393
Interest receivable						174		9,687
Interest payable				6		(5,896)		(3,846)
Profit on ordinary activities before taxation						733,815		953,234
Tax on profit on ordinary activities				7		330,401		155,094
Profit for the financial year						1,064,216		1,108,328

Kismet Kebabs Ltd
Statement of Comprehensive Income
for the year ended 31 May 2022
Notes					2022		2021
£						£
Profit for the financial year					1,064,216		1,108,328
Other comprehensive income
Total comprehensive income for the year					1,064,216		1,108,328

Kismet Kebabs Ltd
Statement of Financial Position
as at 31 May 2022
Notes				2022			2021
£					£
Fixed assets
Tangible assets	8			1,960,088			1,138,971
Current assets
Stocks	9		715,520			356,426
Debtors	10		1,474,945			1,342,440
Cash at bank and in hand			164,259			169,765
			2,354,724			1,868,631
Creditors: amounts falling due within one year	11		(1,359,879)			(1,144,866)
Net current assets				994,845			723,765
Total assets less current liabilities				2,954,933			1,862,736
Creditors: amounts falling due after more than one year	12			(109,628)			-
Net assets				2,845,305			1,862,736
Capital and reserves
Called up share capital	14			100			100
Profit and loss account	15			2,845,205			1,862,636
Total equity				2,845,305			1,862,736
Huseyin Enver
Director
Approved by the board on 29 June 2022

Kismet Kebabs Ltd
Statement of Changes in Equity
for the year ended 31 May 2022
Share			Share		Other		Profit		Total
capital			premium		reserves		and loss
account
£			£		£		£		£
At 1 June 2020		100		-		-		796,308		796,408
Profit for the financial year								1,108,328		1,108,328
Dividends								(42,000)		(42,000)
At 31 May 2021		100		-		-		1,862,636		1,862,736
At 1 June 2021		100		-		-		1,862,636		1,862,736
Profit for the financial year								1,064,216		1,064,216
Dividends								(81,647)		(81,647)
At 31 May 2022		100		-		-		2,845,205		2,845,305

Kismet Kebabs Ltd
Statement of Cash Flows
for the year ended 31 May 2022
Notes			2022		2021
£				£
Operating activities
Profit for the financial year			1,064,216		1,108,328
Adjustments for:
Interest receivable			(174)		(9,687)
Interest payable			5,896		3,846
Tax on profit on ordinary activities			(330,401)		(155,094)
Depreciation			259,196		156,026
Increase in stocks			(359,094)		(57,733)
Increase in debtors			(132,505)		(72,193)
Increase/(decrease) in creditors			100,181		(211,133)
			607,315		762,360
Interest received			174		-
Interest paid			(5,710)		(3,846)
Interest element of finance lease payments			(186)		-
Corporation tax paid			330,401		(126,585)
Cash generated by operating activities			931,994		631,929
Investing activities
Payments to acquire tangible fixed assets			(1,080,313)		(876,302)
Cash used in investing activities			(1,080,313)		(876,302)
Financing activities
Equity dividends paid			(81,647)		(42,000)
Repayment of loans			163,502		-
Capital element of finance lease payments			60,958		-
Cash generated by/(used in) financing activities			142,813		(42,000)
Net cash used
Cash generated by operating activities			931,994		631,929
Cash used in investing activities			(1,080,313)		(876,302)
Cash generated by/(used in) financing activities			142,813		(42,000)
Net cash used			(5,506)		(286,373)
Cash and cash equivalents at 1 June			169,765		456,138
Cash and cash equivalents at 31 May			164,259		169,765
Cash and cash equivalents comprise:
Cash at bank			164,259		169,765

Kismet Kebabs Ltd
Notes to the Accounts
for the year ended 31 May 2022
1	Summary of significant accounting policies
	Basis of preparation
	The financial statements have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland.
	Turnover
	Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs.
	Intangible fixed assets
	Intangible fixed assets are measured at cost less accumulative amortisation and any accumulative impairment losses.
	Tangible fixed assets

	Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows:
	Improvements			No depreciation provided
	Plant and machinery			15% on written down value
	Motor vehicles			25% on written down value

	Investment property
	Investment property is initially recognised at cost and then subsequently measured at fair value. Changes in value are recognised in profit or loss.
	Investments
	Investments in subsidiaries, associates and joint ventures are measured at cost less any accumulated impairment losses. Listed investments are measured at fair value. Unlisted investments are measured at fair value unless the value cannot be measured reliably, in which case they are measured at cost less any accumulated impairment losses. Changes in fair value are included in the profit and loss account.
	Stocks
	Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method. The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised.
	Debtors
	Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.
	Creditors
	Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.
	Taxation
	A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.
	Provisions
	Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably.
	Foreign currency translation
	Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss.
	Leased assets
	A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. Operating lease payments are recognised as an expense on a straight line basis over the lease term.
	Pensions
	Contributions to defined contribution plans are expensed in the period to which they relate.
2	Analysis of turnover					2022		2021
£							£
	Sale of goods					14,442,796		12,511,912
	By geographical market:
	UK					14,296,301		12,093,972
	Europe					146,495		417,940
						14,442,796		12,511,912
3	Operating profit					2022		2021
£							£
	This is stated after charging:
	Depreciation of owned fixed assets					225,462		156,026
	Depreciation of assets held under finance leases and hire purchase contracts					33,734		-
	Auditors' remuneration for audit services					4,800		-
	Carrying amount of stock sold					8,603,490		7,511,042
4	Directors' emoluments					2022		2021
£							£
	Emoluments					257,459		271,449
	Highest paid director:
	Emoluments					95,641		90,983
5	Staff costs					2022		2021
£							£
	Wages and salaries					1,760,491		1,517,192
	Social security costs					140,192		90,209
	Other pension costs					17,131		11,211
						1,917,814		1,618,612
	Average number of employees during the year					Number	Number
	Administration					9		9
	Manufacturing					59		41
	Marketing					1		1
	Sales					6		6
						75		57
6	Interest payable					2022		2021
£							£
	Bank loans and overdrafts					2,869		-
	Other loans					2,841		2,788
	Finance charges payable under finance leases and hire purchase contracts					186		1,058
						5,896		3,846
7	Taxation					2022		2021
£							£
	Analysis of charge in period
	Current tax:
	UK corporation tax on profits of the period					(146,829)		(25,386)
	Adjustments in respect of previous periods					(183,572)		(129,708)
						(330,401)		(155,094)
	Tax on loss on ordinary activities					(330,401)		(155,094)
	Factors affecting tax charge for period
	The differences between the tax assessed for the period and the standard rate of corporation tax are explained as follows:
						2022		2021
£							£
	Profit on ordinary activities before tax					733,815		953,234
	Standard rate of corporation tax in the UK					19%		19%
£							£
	Profit on ordinary activities multiplied by the standard rate of corporation tax					139,425		181,114
	Effects of:
	Expenses not deductible for tax purposes					(286,254)		(206,500)
	Adjustments to tax charge in respect of previous periods					(183,572)		(129,708)
	Current tax charge for period					(330,401)		(155,094)
	Factors that may affect future tax charges
8	Tangible fixed assets
		Land and buildings		Motor vehicles		Fixtures, fittings, tools and equipment		Total
		At cost		At cost		At cost
£			£		£		£
	Cost or valuation
	At 1 June 2021	1,135,552		237,665		1,034,421		2,407,638
	Additions	279,235		134,935		666,143		1,080,313
	At 31 May 2022	1,414,787		372,600		1,700,564		3,487,951
	Depreciation
	At 1 June 2021	749,213		111,207		408,247		1,268,667
	Charge for the year	-		65,349		193,847		259,196
	At 31 May 2022	749,213		176,556		602,094		1,527,863
	Carrying amount
	At 31 May 2022	665,574		196,044		1,098,470		1,960,088
	At 31 May 2021	386,339		126,458		626,174		1,138,971
9	Stocks					2022		2021
£							£
	Finished goods and goods for resale					715,520		356,426
10	Debtors					2022		2021
£							£
	Trade debtors					751,592		848,938
	Other debtors					722,584		492,718
	Prepayments and accrued income					769		784
						1,474,945		1,342,440
11	Creditors: amounts falling due within one year					2022		2021
£							£
	Bank loans					93,932		-
	Obligations under finance lease and hire purchase contracts					20,900		-
	Trade creditors					869,108		967,348
	Other taxes and social security costs					56,989		27,400
	Other creditors					283,631		125,782
	Accruals and deferred income					35,319		24,336
						1,359,879		1,144,866
12	Creditors: amounts falling due after one year					2022		2021
£							£
	Bank loans					69,570		-
	Obligations under finance lease and hire purchase contracts					40,058		-
						109,628		-
13	Obligations under finance leases and hire purchase					2022		2021
	contracts					£	£
	Amounts payable:
	Within one year					20,900		-
	Within two to five years					40,058		-
						60,958		-
14	Share capital	Nominal		2022		2022		2021
value			Number		£		£
	Allotted, called up and fully paid:
	Ordinary shares	£1 each		100		100		100
15	Profit and loss account					2022		2021
£							£
	At 1 June					1,862,636		796,308
	Profit for the financial year					1,064,216		1,108,328
	Dividends					(81,647)		(42,000)
	At 31 May					2,845,205		1,862,636
16	Dividends					2022		2021
£							£
	Dividends on ordinary shares (note 15)					81,647		42,000
17	Presentation currency
	The financial statements are presented in Sterling.
18	Legal form of entity and country of incorporation
	Kismet Kebabs Ltd is a private company limited by shares and incorporated in England.
19	Principal place of business
	The address of the company's principal place of business and registered office is:
	190 Billet Road, London, E17 5DX
20	Reconciliations on adoption of FRS 102
	Profit and loss for the year ended 31 May 2021					£
	Profit under former UK GAAP					1,108,328
	Profit under FRS 102					1,108,328
	Balance sheet at 31 May 2021					£
	Equity under former UK GAAP					1,862,736
	Equity under FRS 102					1,862,736
	Balance sheet at 1 June 2020					£
	Equity under former UK GAAP					-
	Equity under FRS 102					-