Olive Dining Limited 31/07/2021 iXBRL

Olive Dining Limited 31/07/2021 iXBRL

OLIVE DINING LTD - Company Information

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Company registration number: 08093774
Olive Dining Limited
Financial statements
31 July 2021
Olive Dining Limited
Contents
Directors and other information
Strategic report
Directors report
Independent auditor's report to the members
Statement of income and retained earnings
Statement of financial position
Statement of cash flows
Notes to the financial statements
Olive Dining Limited
Directors and other information
Directors Mrs. S Spratt
Mr. C Whitter (Appointed 30 April 2021)
Company number 08093774
Registered office Brooklands House
58 Marlborough Road
Lancing
West Sussex
BN15 8AF
Business address Lodges Wood Oast
Goodley Stock Road
Westerham
Kent
TN16 1TW
Auditor Gibson Appleby
1-3 Ship Street
Shoreham-by-Sea
West Sussex
BN43 5DH
Accountants Clarity Accounting Limited
Brooklands House
58 Marlborough Road
Lancing
West Sussex
BN15 8AF
Olive Dining Limited
Strategic report
Year ended 31 July 2021
Fair review of the business
The Directors of the business are delighted with the company results for the period and its financial position. The company provides catering services to Primary and Secondary Schools in the State Education sector.
Successfully navigating the business challenges and effects of the Covid-19 pandemic, the business still continued to grow and increased its turnover by 4.3%, this was achieved through a mixture of new contracts, retention of existing business and streamlining the services provided.
In 2021 the company increased its gross margin to 23.7% (after taking into account government furlough grants receivable in the year), a significant increase on the 14.2% gross margin in 2020. This was achieved by the strategic management of our Head Office function during the pandemic, reducing overheads not required during the period of closure and strong and detailed management of our cashflow.
Profit before taxation for the year also increased significantly to £1,342,813, quadrupling from £324,120 in 2020.
The start of the financial year saw company trading continue to be seriously impacted by the effects of the pandemic. The business experienced reduced and amended catering services and site closures during lockdown periods. The effect of these closures and changes were mitigated by working closely and transparently with our valued clients and we thank them for their support and understanding. The support of clients, taking advantage of the support measures put in place by Government, the VAT deferral scheme and employee furlough scheme means that the company is strongly positioned to navigate the continuing uncertainties of this crisis and quickly re-energise. Our cashflow management and forecasting shows that the company is well placed to manage any potential future instances of unpredictable trading, as we return to pre-pandemic levels in the next financial year.
The Directors are very grateful for the support shown by the company's clients and the tremendous commitment and dedication of its staff during this time.
Principal Risks and Uncertainties
The Directors consider the principal risks to the business to be the occurrence of any future lockdown measures of the Covid -19 pandemic, change in Government policy, the effect of current food inflation and the shortage of high calibre staff generally, in the hospitality sector.
Food inflation is being effectively managed by maintaining excellent supplier relationships, bulk buying produce when required to secure competitive pricing and availability and proactive management of menus to compensate for increased pricing or short supply.
To further minimise any future potential risks posed by the pandemic and any other unforeseen events the company continues to be prudent with the company finances and will further strengthen the balance sheet as opportunities arise.
It is expected that trading volumes will return to near normal early in the next financial year and the Directors do not anticipate any going concern issues for the company.
Engagement with employees.
Our employees are our most valued asset, we must ensure their wellbeing to deliver the continued success of the company. The company has re-engineered its recruitment policies and processes, to ensure that we are at the forefront as the employer of choice, with excellent rates of pay, supportive training and development programmes and excellent employee benefit and reward schemes.
Effective communication with our employees is paramount as we emerge from the pandemic. To ensure the well being our employees we have recruited a Well-being officer, this has helped to assist with staff sickness, depression and those staff who have suffered bereavement during the past months.
We have increased the level of communication with our staff though all communication mediums, reaching our staff from all demographics with monthly newsletters, Director video messaging, Social media, Direct mail and on-site team briefings.
Our messaging has focused primarily on the following.
Employee wellbeing - particularly mental health
Team recognition
Company news and business culture
How the business is performing - Covid recovery
Career Development & Training
We have recruited a new HR officer to oversee the development and training of our employees, we see this as an important strategy in mitigating the effect of the shortage of high calibre candidates in the hospitality industry. We are enhancing the development of our staff through the increased use of online learning and company funded training, both practical and managerial.
Employee safety
The ongoing health and safety of our employees and our customers is key to our success. We have focused on Health & Safety training and continued refresher training for our staff. The monitoring of Health & Safety is and managed at our Board meetings. We engage outside agencies to ensure that we are the most up to date and using the best training systems available.
Development and performance
The aftermath of the pandemic already presents opportunities for the company to strategically grow and take advantage of both organic growth and potential growth by acquisition opportunities as they present themselves. In addition to maintaining our focus on existing contract retention.
The Directors equally intend to vigorously pursue new contracts in the State Education sector.
We continue to work hand in hand with our clients where the focus is on providing students what is likely to be, in many cases, their only substantial meal of the day. We continue to produce freshly prepared, high-quality meals, made from nutritious fresh ingredients, created by staff of a high calibre and enjoyed in a welcoming dining ambience. This remains the shared priority of the company and of our clients.
The effect of lockdown and home schooling has already highlighted that this is more important to our clients then ever, as we navigate our way through the post pandemic world. We are convinced that our company model provides the solution to the requirements of our existing and new clients as we emerge from the effects of Covid - 19.
Key performance indicators
The Directors consider the key performance indicators to be the company's gross profit margin, profit before tax, cash flow position and total net asset value.
The company has a detailed company account management system which continues to be developed in the following financial year.
An online finance package will shortly be introduced to link the site-based information to our central company accounting system. This will provide real time information and allow for immediate detailed interrogation of financial information.
The company continues to manage its business through the use of weekly cashflow and dashboard reports, weekly site trading reports, and monthly management accounts which form part of our monthly Board review
This report was approved by the board of directors on 28 April 2022 and signed on behalf of the board by:
Mrs. S Spratt
Director
Olive Dining Limited
Directors report
Year ended 31 July 2021
The directors present their report and the financial statements of the company for the year ended 31 July 2021.
Directors
The directors who served the company during the year were as follows:
Mrs. S Spratt
Mr. C Whitter (Appointed 30 April 2021)
Dividends
Particulars of recommended dividends are detailed in note 12 to the financial statements.
Future developments
Further information regarding the business, its principal risks and uncertainties, financial instruments and future developments have been included within the strategic report.
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 year. 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), including FRS102 The Financial Reporting Standard applicable in the UK and Republic of Ireland. 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; and
- 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.
The auditor is deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006.
This report was approved by the board of directors on 28 April 2022 and signed on behalf of the board by:
Mrs. S Spratt
Director
Olive Dining Limited
Independent auditor's report to the members of
Olive Dining Limited
Year ended 31 July 2021
Qualified opinion
We have audited the financial statements of Olive Dining Limited (the 'company') for the year ended 31 July 2021 which comprise the statement of income and retained earnings, statement of financial position, statement of cash flows and notes to the financial statements, 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). In our opinion, except for the effects of the matter described in the basis for qualified opinion section of our report, the financial statements: - give a true and fair view of the state of the company's affairs as at 31 July 2021 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for qualified opinion
We were not appointed as auditor of the company until after 31 July 2020 and thus did not observe the counting of physical inventories at the end of that year. We were unable to satisfy ourselves by alternative means concerning the inventory quantities of £244,811 held at 31 July 2020 by using other audit procedures. Consequently, we were unable to determine whether there was any consequential effect on the cost of sales for the year ended 31 July 2021.
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 qualified 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.
Key audit matters
Except for the matter described in the basis for qualified opinion section, we have determined that there are no key audit matters to be communicated in our 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. 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 year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the directors' report has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
Except for the matter described in the basis for qualified opinion section of our report, 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. Arising solely from the limitation on the scope of our work relating to inventory, referred to above: we have not obtained all the information and explanation that we considered necessary for the purpose of our audit; and we were unable to determine whether adequate accounting records have been kept. We have nothing to report in respect of the following matters where 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 the 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 set out on page 5, 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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We gained an understanding of the legal and regulatory framework applicable to the company and the environment in which it operates, from our own knowledge and through discussion with a director and key management. We assessed the risk of fraud and error and designed our audit procedures accordingly. We focused on laws and regulations which could give rise to material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation.Our tests included agreeing the figures and disclosures in the financial statements to underlying supporting documentation and enquiries with management. We did not identify any key audit matters relating to irregularities, including fraud. We also addressed the risk of management override of internal controls, including reviewing journals and evaluating whether there was evidence of bias by the directors that represented a risk of fraud.Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.A further description of our responsibilities for the audit of the financial statements is located 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 auditors 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.
Sarah Johnson ACA (Senior Statutory Auditor)
For and on behalf of
Gibson Appleby
Chartered Accountants and Statutory Auditors
1-3 Ship Street
Shoreham-by-Sea
West Sussex
BN43 5DH
29 April 2022
Olive Dining Limited
Statement of income and retained earnings
Year ended 31 July 2021
2021 2020
Note £ £
Turnover 4 12,350,849 11,844,573
Cost of sales ( 11,035,469) ( 10,160,082)
_______ _______
Gross profit 1,315,380 1,684,491
Administrative expenses ( 1,528,274) ( 1,321,566)
Other operating income 5 1,612,287 -
_______ _______
Operating profit 6 1,399,393 362,925
Other interest receivable and similar income 9 50 26
Interest payable and similar expenses 10 ( 56,630) ( 38,831)
_______ _______
Profit before taxation 1,342,813 324,120
Tax on profit 11 ( 256,383) ( 60,692)
_______ _______
Profit for the financial year and total comprehensive income 1,086,430 263,428
_______ _______
Dividends declared and paid or payable during the year 12 ( 570,000) ( 235,000)
Retained earnings at the start of the year 156,780 128,352
_______ _______
Retained earnings at the end of the year 673,210 156,780
_______ _______
All the activities of the company are from continuing operations.
Olive Dining Limited
Statement of financial position
31 July 2021
2021 2020
Note £ £ £ £
Fixed assets
Tangible assets 13 402,857 400,508
_______ _______
402,857 400,508
Current assets
Stocks 14 215,144 244,811
Debtors 15 2,191,166 1,849,435
Investments 16 5,380 5,380
Cash at bank and in hand 1,316,239 592,723
_______ _______
3,727,929 2,692,349
Creditors: amounts falling due
within one year 18 ( 2,568,286) ( 1,798,068)
_______ _______
Net current assets 1,159,643 894,281
_______ _______
Total assets less current liabilities 1,562,500 1,294,789
Creditors: amounts falling due
after more than one year 19 ( 812,667) ( 1,061,833)
Provisions for liabilities 20 ( 76,543) ( 76,096)
_______ _______
Net assets 673,290 156,860
_______ _______
Capital and reserves
Called up share capital 24 80 80
Profit and loss account 25 673,210 156,780
_______ _______
Shareholders funds 673,290 156,860
_______ _______
These financial statements were approved by the board of directors and authorised for issue on 28 April 2022 , and are signed on behalf of the board by:
Mrs. S Spratt
Director
Company registration number: 08093774
Olive Dining Limited
Statement of cash flows
Year ended 31 July 2021
2021 2020
Note £ £
Cash flows from operating activities
Profit for the financial year 1,086,430 263,428
Adjustments for:
Depreciation of tangible assets 289,313 256,850
Government grant income ( 1,612,287) -
Other interest receivable and similar income ( 50) ( 26)
Interest payable and similar expenses 56,630 38,831
Tax on profit 256,383 60,692
Accrued expenses/(income) 128,492 5,404
Changes in:
Stocks 29,667 ( 127,067)
Trade and other debtors ( 341,731) ( 549,727)
Trade and other creditors ( 18,441) ( 109,091)
_______ _______
Cash generated from operations ( 125,594) ( 160,706)
Interest paid ( 56,630) ( 38,831)
Interest received 50 26
Tax paid ( 70,900) ( 3,926)
_______ _______
Net cash used in operating activities ( 253,074) ( 203,437)
_______ _______
Cash flows from investing activities
Purchase of tangible assets ( 291,662) ( 321,036)
_______ _______
Net cash used in investing activities ( 291,662) ( 321,036)
_______ _______
Cash flows from financing activities
Proceeds from borrowings 10,549 1,170,164
Government grant income 1,612,287 -
Equity dividends paid ( 570,000) ( 235,000)
_______ _______
Net cash from financing activities 1,052,836 935,164
_______ _______
Net increase/(decrease) in cash and cash equivalents 508,100 410,691
Cash and cash equivalents at beginning of year 17 592,723 182,032
_______ _______
Cash and cash equivalents at end of year 17 1,100,823 592,723
_______ _______
Olive Dining Limited
Notes to the financial statements
Year ended 31 July 2021
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Brooklands House, 58 Marlborough Road, Lancing, West Sussex, BN15 8AF.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, '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 services rendered, net of discounts and Value Added Tax.
When the outcome of a transaction involving the rendering of services can be reliably estimated, revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period.
When the outcome of a transaction involving the rendering of services cannot be reliably estimated, revenue is recognised only to the extent that it is probable the expenses recognised will be recovered.
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.
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 - 20 % straight line
Plant and machinery - Straight line over 3 or 4 years
Fittings fixtures and equipment - Straight line over 4 or 5 years
Motor vehicles - Straight line over 3 years
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.
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.
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.
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.
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. Turnover
Turnover arises from:
2021 2020
£ £
Rendering of services 12,259,875 11,844,573
_______ _______
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
5. Other operating income
2021 2020
£ £
Government grant income 1,612,287 -
_______ _______
6. Operating profit
Operating profit is stated after charging/(crediting):
2021 2020
£ £
Depreciation of tangible assets 289,313 256,850
Bad debt provision 28,058 -
Operating lease rentals 197,025 152,752
Fees payable for the audit of the financial statements 13,000 -
_______ _______
7. Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
2021 2020
Direct 552 492
Administrative & Support 38 31
_______ _______
590 523
_______ _______
The aggregate payroll costs incurred during the year were:
2021 2020
£ £
Wages and salaries 6,934,359 6,081,018
Social security costs 77,509 55,751
Other pension costs 341,239 352,338
_______ _______
7,353,107 6,489,107
_______ _______
8. Directors remuneration
The directors aggregate remuneration in respect of qualifying services was:
2021 2020
£ £
Remuneration 37,370 9,890
Company contributions to pension schemes in respect of qualifying services 5,423 5,539
_______ _______
42,793 15,429
_______ _______
The number of directors who accrued benefits under company pension plans was as follows:
2021 2020
Number Number
Defined contribution plans 2 1
_______ _______
9. Other interest receivable and similar income
2021 2020
£ £
Bank deposits 50 26
_______ _______
10. Interest payable and similar expenses
2021 2020
£ £
Bank loans and overdrafts 23,559 17,381
Other interest payable and similar expenses 33,071 21,450
_______ _______
56,630 38,831
_______ _______
11. Tax on profit
Major components of tax expense
2021 2020
£ £
Current tax:
UK current tax expense 255,936 51,795
Adjustments in respect of previous periods - ( 3,298)
_______ _______
Deferred tax:
Origination and reversal of timing differences 447 12,195
_______ _______
Tax on profit 256,383 60,692
_______ _______
Reconciliation of tax expense
The tax assessed on the profit for the year is higher than (2020: lower than) the standard rate of corporation tax in the UK of 19.00 % (2020: 19.00%).
2021 2020
£ £
Profit before taxation 1,342,813 324,120
_______ _______
Profit multiplied by rate of tax 255,134 61,583
Adjustments in respect of prior periods - ( 3,298)
Effect of expenses not deductible for tax purposes 56,218 51,209
Effect of capital allowances and depreciation ( 55,416) ( 60,997)
Deferred tax 447 12,195
_______ _______
Tax on profit 256,383 60,692
_______ _______
12. Dividends
Equity dividends
2021 2020
£ £
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year) 570,000 235,000
Dividends proposed after the year end and not recognised as a liability 200,000 -
_______ _______
13. Tangible assets
Short leasehold property Plant and machinery Fixtures, fittings and equipment Motor vehicles Total
£ £ £ £ £
Cost
At 1 August 2020 17,335 999,653 62,339 - 1,079,327
Additions - 270,834 12,028 8,800 291,662
_______ _______ _______ _______ _______
At 31 July 2021 17,335 1,270,487 74,367 8,800 1,370,989
_______ _______ _______ _______ _______
Depreciation
At 1 August 2020 8,984 629,853 39,982 - 678,819
Charge for the year 3,467 269,556 13,846 2,444 289,313
_______ _______ _______ _______ _______
At 31 July 2021 12,451 899,409 53,828 2,444 968,132
_______ _______ _______ _______ _______
Carrying amount
At 31 July 2021 4,884 371,078 20,539 6,356 402,857
_______ _______ _______ _______ _______
At 31 July 2020 8,351 369,800 22,357 - 400,508
_______ _______ _______ _______ _______
14. Stocks
2021 2020
£ £
Finished goods and goods for resale 215,144 244,811
_______ _______
15. Debtors
2021 2020
£ £
Trade debtors 1,848,903 1,243,153
Prepayments and accrued income 77,090 150,063
Other debtors 265,173 456,219
_______ _______
2,191,166 1,849,435
_______ _______
16. Investments
2021 2020
£ £
Other investments 5,380 5,380
_______ _______
17. Cash and cash equivalents
2021 2020
£ £
Cash at bank and in hand 1,316,239 592,723
Bank overdrafts ( 215,416) -
_______ _______
1,100,823 592,723
_______ _______
18. Creditors: amounts falling due within one year
2021 2020
£ £
Bank loans and overdrafts 581,583 111,002
Trade creditors 700,605 168,902
Accruals and deferred income 181,117 52,625
Corporation tax 236,138 51,102
Social security and other taxes 555,354 603,741
Director loan accounts 4,550 -
Other creditors 308,939 810,696
_______ _______
2,568,286 1,798,068
_______ _______
The bank loan totalling £216,167 (2020 - £111,002) is secured on the assets of the company by way of a fixed and floating charge. The bank loan is subject to interest at Bank of England base rate + 3.99%.
Included in other Creditors above are amount totalling £86,092 (2020 - £659,529) which are balance secured by a charge of the trade debtors of the business.
19. Creditors: amounts falling due after more than one year
2021 2020
£ £
Bank loans and overdrafts 812,667 1,061,833
_______ _______
The bank loan totalling £812,667 (2020 - £1,061,833) is secured on the assets of the company by way of a fixed and floating charge. The bank loan is subject to interest at Bank of England base rate + 3. 99%.
20. Provisions
Deferred tax (note 21) Total
£ £
At 1 August 2020 76,096 76,096
Additions 447 447
_______ _______
At 31 July 2021 76,543 76,543
_______ _______
21. Deferred tax
The deferred tax included in the statement of financial position is as follows:
2021 2020
£ £
Included in provisions (note 20) 76,543 76,096
_______ _______
The deferred tax account consists of the tax effect of timing differences in respect of:
2021 2020
£ £
Accelerated capital allowances 76,543 76,096
_______ _______
22. Employee benefits
The amount recognised in profit or loss in relation to defined contribution plans was £ 341,239 (2020: £ 352,338 ).
In several cases, when the company takes over staff from a local authority via TUPE, it is required to continue making pension contributions to the relevant Local Authority pension scheme on behalf of each employee. It is generally the case that the administrators of each Local Authority pension scheme take several months, and sometimes over a year, to begin accepting payments from the company, despite being regularly contacted to request payment information. The company keeps a full record of all contriubtions due on behalf of all employees and keeps the funds in a reserve account in order to ensure that they are immediately available when payments are requested. At the year end date the total of pension contributions collected which have not yet been able to be paid over to the relevant pensions schemes amounted to £198,217 (2020 - £149,702). Now that Local Authorities are back working at full capapcity after the pandemic, this situation is expected to improve.
23. Government grants
The amounts recognised in the financial statements for government grants are as follows:
2021 2020
£ £
Recognised in other operating income:
Government grants recognised directly in income 1,612,287 -
_______ _______
24. Called up share capital
Issued, called up and fully paid
2021 2020
No £ No £
Ordinary shares shares of £ 1.00 each 80 80 80 80
_______ _______ _______ _______
25. Reserves
Profit and loss account - This reserve records retained earnings and accumulated losses.Called-up share capital – represents the nominal value of shares that have been issued.
26. Analysis of changes in net debt
At 1 August 2020 Cash flows At 31 July 2021
£ £ £
Cash and cash equivalents 592,723 723,516 1,316,239
Bank overdrafts - (215,416) (215,416)
Debt due within one year (111,002) (259,715) (370,717)
Debt due after one year (1,061,833) 249,166 (812,667)
Current asset investments 5,380 - 5,380
_______ _______ _______
( 574,732) 497,551 ( 77,181)
_______ _______ _______
27. Operating leases
The company as lessee
The total future minimum lease payments under non-cancellable operating leases are as follows:
£ £
Later than 1 year and not later than 5 years 447,575 418,742
_______ _______
28. Directors advances, credits and guarantees
During the year the directors entered into the following advances and credits with the company:
2021
Balance brought forward Advances /(credits) to the directors Balance o/standing
£ £ £
Mrs. S Spratt 59,998 87,628 147,626
Mr. C Whitter - ( 4,550) ( 4,550)
_______ _______ _______
59,998 83,078 143,076
_______ _______ _______
2020
Balance brought forward Advances /(credits) to the directors Balance o/standing
£ £ £
Mrs. S Spratt 49,234 10,764 59,998
Mr. C Whitter - - -
_______ _______ _______
The loan made to the director is interest free, unsecured and has no fixed terms of repayment. The loan was repaid in full within 9 month of the year end.
Mrs S Spratt, one of the company directors, has personally guaranteed an amount of £106,000 in relation to the companies CBIL loan.
29. Related party transactions
During the year the company entered into the following transactions with related parties:
Transaction value Balance owed by/(owed to)
2021 2020 2021 2020
£ £ £ £
Olive Dining Independent Ltd 196,394 - 115,856 -
_______ _______ _______ _______
The above company is considered to be related by virtue of the fact that it has the same controlling party.
30. Controlling Party
Mrs S Spratt exercises control over the company by virtue of her majority shareholding in the company.