Chapeau Bermondsey Limited - Accounts to registrar (filleted) - small 22.3

REGISTERED NUMBER: 08144577 (England and Wales)

Chapeau Bermondsey Limited

Financial Statements

for the Period 1 August 2021 to 27 July 2022

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

Director:

R Marcelin-Horne

Registered office:

New Derwent House

69-73 Theobalds Road

London

WC1X 8TA

Registered number:

08144577 (England and Wales)

Auditors:

Haines Watts

Chartered Accountants and Statutory Auditor

New Derwent House

69-73 Theobalds Road

London

WC1X 8TA

Fixed assets

Intangible assets

4

87,609

-

Tangible assets

5

3,288,467

2,382,229

3,376,076

2,382,229

Current assets

Stocks

268,911

112,106

Debtors

6

516,719

160,245

Cash at bank

78,293

57,319

863,923

329,670

Creditors

Amounts falling due within one year

7

3,199,406

922,721

Net current liabilities

(2,335,483

)

(593,051

)

Total assets less current liabilities

1,040,593

1,789,178

Creditors

Amounts falling due after more than one year

8

770,127

77,273

Net assets

270,466

1,711,905

Capital and reserves

Called up share capital

10

2

2

Retained earnings

11

270,464

1,711,903

Shareholders' funds

270,466

1,711,905

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the director and authorised for issue on 22 March 2023 and were signed by:

R Marcelin-Horne - Director

1.	Statutory information

Chapeau Bermondsey Limited is a private company, limited by shares, registered in England and Wales. The Company's registered number and registered office address can be found on the Company Information page.

The financial statements are presented in Pound Sterling (£). Monetary amounts in these financial statements are rounded to the nearest £.

2.	Accounting policies

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Set out below is a summary of principal accounting policies, all of which have been consistently applied throughout the period and preceding year (except as otherwise stated).

Significant judgements and estimates

In applying the Company's accounting policies, the director is required to make judgements, estimates and assumptions in determining the carrying amounts of assets and liabilities. The director's judgements, estimates and assumptions are based on the best and most reliable evidence available at the time when the decisions are made, and are based on historical experience and other factors that are considered to be applicable. Due to the inherent subjectivity involved in making such judgements, estimates and assumptions, the actual results and outcomes may differ.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that year, or in the period of the revision and future periods, if the revision affects both current and future years.

Critical accounting judgements and key sources of estimation uncertainty

The critical judgements that the director has made in the process of applying the Company's accounting policies that have the most significant effect on the amounts recognised in the statutory financial statements are discussed below:

(i) Assessing indicators of impairment

In assessing whether there have been any indicators of impairment of assets, the director has considered both external and internal sources of information such as market conditions, counterparty credit ratings and experience of recoverability. There have been no indicators of impairments identified during the current financial period.

Key sources of estimation uncertainty

The key assumptions concerning the future, and other key sources of estimation uncertainty that have a significant risk of causing material adjustment to the carrying amounts of assets and liabilities within the next financial period are discussed below:

(ii) Recoverability of receivables

The Company establishes a provision for receivables that are estimated not to be recoverable. When assessing recoverability the director considers factors such as the aging of the receivables, and past experience of recoverability.

(i) Determining residual values and useful economic lives of tangible and intangible assets

The Company depreciates tangible assets and amortises intangible assets over their estimated useful lives. The estimation of the useful lives is based on historical performance as well as expectations about future use and therefore requires estimates and assumptions to be applied by management. The actual lives of these assets can vary depending on a variety of factors, including technological innovation, product life cycles and maintenance programmes. Judgement is applied by management when determining the residual values for tangible and intangible assets. When determining the residual value management aim to assess the amount that the Company would currently obtain for the disposal of the asset, if it were already of the condition expected at the end of its useful economic life. Where possible this is done with reference to external market prices.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Turnover represents amounts receivable for goods/services provided in the period and is stated net of VAT.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Website development costs are being amortised evenly over their estimated useful life of three years.

Tangible fixed assets

Tangible assets are initially measured at cost. After initial recognition, tangible assets are measured at cost less accumulated depreciation and any impairment losses.

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Short leasehold

-

Straight line over 3 to 10 years

Plant and machinery

-

Straight line over 7 years

Fixtures and fittings

-

Straight line over 3 to 10 years

Motor vehicles

-

Straight line over 4 years

Equipment

-

Straight line over 3 to 5 years

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Financial instruments

Financial assets and liabilities are recognised when the Company becomes party to the contractual provisions of the financial instrument. The Company holds financial instruments which comprise cash and cash equivalents, trade and other receivables, trade and other payables, loans and borrowings. The Company has chosen to apply the provisions of FRS102 Section 11 Basic Financial Instruments in full.

Financial assets and liabilities - classified as basic financial instruments

(i) Cash and cash equivalents

This includes cash in hand, deposits held with banks, and other short-term highly liquid investments with original maturities of three months or less.

(ii) Trade and other receivables

Trade and other receivables are initially recognised at the transaction price, including any transaction costs, and subsequently measured at amortised cost including the effective interest method, less any provision for impairment. Amounts that are receivable within one year are measured at the undiscounted amount of the cash expected to be received, net of any impairment.

At the end of each reporting period, the Company assesses whether there is objective evidence that a receivable amount may be impaired. A provision for impairment is established when there is objective evidence that the Company will not be able to collect all amounts due according to the original terms of the receivables. The amount of the provision is the difference between the asset's carrying amount and the present value of the estimated future cash flows, discounted at the effective interest rate. The amount of the provision is recognised immediately in the Income Statement.

(iii) Trade and other payables and loans and borrowings

Trade and other payables and loans and borrowings are initially measured at the transaction price, including any transaction costs, and subsequently measured at amortised cost using the effective interest method.

Taxation

Taxation for the period 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 period 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

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Where assets are financed by leasing agreements that give rights approximating to ownership (finance leases), the assets are treated as if they had been purchased outright. The amount capitalised is the present value of the minimum lease payments payable over the term of the lease. The corresponding leasing commitments are shown as amounts payable to the lessor. Depreciation on the relevant assets is charged to profit or loss over the shorter of estimated useful economic life and the term of the lease.

Finance lease payments are analysed between capital and interest components so that the interest element of the payment is charged to profit or loss over the term of the lease and is calculated so that it represents a constant proportion of the balance of capital repayments outstanding. The capital part reduces the amounts payable to the lessor.

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 the Income Statement in the period to which they relate. Employee's pension funds are maintained in a separately administered fund to the Company's own cash and cash equivalents.

Going concern

These financial statements have been prepared on a going concern basis.

The current economic conditions present increased risks for all businesses. In response to such conditions, the director has carefully considered these risks including an assessment of uncertainty of future trading projection and financing for a period of at least 12 months from the date of signing the financial statements, and the extent to which they might affect the preparation of the financial statements on a going concern basis.

Turnover for FY23 has like for like growth of 20.8% across 6 Houses, with the remaining 4 Houses continuing to outperform expectations. There has been at 9% year-on-year improvement on Company EBITDA to the end of December 2022 with each period reporting positive EBITDA (before pre-opening), and forecasting the year end to improve by a further 2.9%. Based on this assessment, budgets and forecasts prepared for the period to July 2026 and additional funding raised post year end, the Company has the appropriate level of support in place.

The WatchHouse group successfully raised £2.8m in September 2022 through a mixture of the online platform CrowdCube and direct investors. The funding will be used to develop and open 3 committed sites during the first half of 2023, with further agreements to open another site agreed in February 2023 and to expand into the US market to be fully funded by capital contributions from landlords. The director considers that the Company maintains an appropriate level of liquidity, sufficient to meet the demands of the business including any capital and servicing obligations.

In addition, the Company's assets are assessed for recoverability on a regular basis, and the director considers that the Company is not exposed to losses on these assets which would affect their decision to adopt the going concern basis.

The director has a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future and that there are no material uncertainties that lead to significant doubts upon the Company's ability to continue as a going concern. Thus the director has continued to adopt the going concern basis of accounting in preparing these financial statements.

3.	Employees and directors

The average number of employees during the period was 167 (2021 - 94 ) .

4.	Intangible fixed assets

Website

development

£

Cost

Additions

87,609

At 27 July 2022

87,609

Net book value

At 27 July 2022

87,609

Website development reflect costs incurred in the development of a new website upon which the Company will operate its e-commerce platform. The website remains in development, hence no amortisation has been charged in the year.

5.	Tangible fixed assets

Fixtures

Short

Plant and

and

leasehold

machinery

fittings

£

£

£

Cost

At 1 August 2021

1,122,487

334,576

840,778

Additions

621,133

65,377

678,301

Disposals

(43,865

)

-

(14,267

)

Grants

(110,000

)

-

-

At 27 July 2022

1,589,755

399,953

1,504,812

Depreciation

At 1 August 2021

158,256

47,797

230,557

Charge for period

141,242

57,136

124,276

Eliminated on disposal

(3,300

)

-

-

At 27 July 2022

296,198

104,933

354,833

Net book value

At 27 July 2022

1,293,557

295,020

1,149,979

At 31 July 2021

964,231

286,779

610,221

Motor

vehicles

Equipment

Totals

£

£

£

Cost

At 1 August 2021

19,808

698,182

3,015,831

Additions

-

226,026

1,590,837

Disposals

-

-

(58,132

)

Grants

-

-

(110,000

)

At 27 July 2022

19,808

924,208

4,438,536

Depreciation

At 1 August 2021

12,101

184,891

633,602

Charge for period

1,927

195,186

519,767

Eliminated on disposal

-

-

(3,300

)

At 27 July 2022

14,028

380,077

1,150,069

Net book value

At 27 July 2022

5,780

544,131

3,288,467

At 31 July 2021

7,707

513,291

2,382,229

6.

Debtors: amounts falling due within one year

2022

2021

£

£

Trade debtors

6,551

-

Amounts owed by group undertakings

112,305

-

Other debtors

63,058

46,065

Directors' current accounts

3,126

65,263

Tax

-

21,210

VAT

-

19,665

Prepayments and accrued income

331,679

8,042

516,719

160,245

7.

Creditors: amounts falling due within one year

2022

2021

£

£

Bank loans and overdrafts

18,182

18,182

Finance leases (see note 9)

211,073

-

Trade creditors

1,026,788

578,908

Amounts owed to group undertakings

790,435

-

Tax

-

21,210

Social security and other taxes

143,730

60,341

VAT

304,391

-

Other creditors

513,564

165,882

Accruals and deferred income

191,243

78,198

3,199,406

922,721

8.

Creditors: amounts falling due after more than one year

2022

2021

£

£

Bank loans - 1-2 years

18,182

18,182

Bank loans - 2-5 years

40,909

54,545

Bank loans more 5 yr by instal

-

4,546

Finance leases (see note 9)

711,036

-

770,127

77,273

Amounts falling due in more than five years:

Repayable by instalments

Bank loans more 5 yr by instal

-

4,546

9.	Leasing agreements

Minimum lease payments fall due as follows:

Finance leases

2022

2021

£

£

Net obligations repayable:

Within one year

211,073

-

Between one and five years

711,036

-

922,109

-

Non-cancellable

operating leases

2022

2021

£

£

Within one year

8,580

8,580

Between one and five years

34,320

34,320

In more than five years

1,430

10,010

44,330

52,910

10.	Called up share capital

Allotted, issued and fully paid:

Number:

Class:

Nominal

2022

2021

value:

£

£

2

Ordinary

£1

2

2

11.

Reserves

Retained

earnings

£

At 1 August 2021

1,711,903

Deficit for the period

(1,441,439

)

At 27 July 2022

270,464

12.	Disclosure under Section 444(5B) of the Companies Act 2006

The Auditors' Report was unqualified.

Andy Jepson FCCA (Senior Statutory Auditor)

for and on behalf of Haines Watts

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.

During the year, the Company paid consultancy fees of £70,000 (2021: £Nil) to Verum Domus Ltd, a company related by virtue of a common director.

14.	Ultimate controlling party

The immediate parent of the Company is Watchhouse Coffee Holdings Limited, a company incorporated in England and Wales.

The ultimate controlling party is Roland Marcelin-Horne.