AMH Family Enterprise Limited - Limited company accounts 23.2

REGISTERED NUMBER: 08178566 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS

FOR THE PERIOD 1 JULY 2022 TO 31 MARCH 2023

FOR

AMH FAMILY ENTERPRISE LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Income Statement

9

Balance Sheet

10

Statement of Changes in Equity

11

Cash Flow Statement

12

Notes to the Financial Statements

13

DIRECTORS:

M El Hajj

A El Hajj

REGISTERED OFFICE:

736 High Road

North Finchley

London

N12 9QD

REGISTERED NUMBER:

08178566 (England and Wales)

SENIOR STATUTORY AUDITOR:

Andrew Green LLB FCA

AUDITORS:

THP Limited

Chartered Accountants

and Statutory Auditors

34-40 High Street

Wanstead

London

E11 2RJ

The directors present their strategic report for the period 1 July 2022 to 31 March 2023.

REVIEW OF BUSINESS

The Directors report that despite an improvement in turnover for a 9 month period, significant costs pressures have lead to a fall in margins and a decline in the operating result.

During the year the company added 1 new restaurant to its portfolio, taking the total to 4 sites.

The Company's key performance indicators are as follows:

9 months ended31 March 2023

12 months ended30 June 2022

£

£

Turnover

10,144,029

11,395,691

Gross profit

6,534,719

7,892,329

Gross profit %

64.4%

69.3%

Operating profit

21,719

582,612

The net assets of the Company were £422,190 (2022: £695,549) at the balance sheet date, reflecting the solid position of the company from a solvency and liquidity point of view, and this strong balance sheet is the foundation on which it can continue to grow and prosper.

PRINCIPAL RISKS AND UNCERTAINTIES

The management of the business and the nature of the company's strategy are subject to a number of risks.

The Directors have set out below the principal risks facing the business.

The Directors are of the opinion that a thorough risk management process is adopted which involves a formal review of all risks identified below. Where possible, processes are in place to mitigate such risks.

Economic downturn

The success of the business is reliant on consumer spending.

In response to this continuous risk, senior management aim to keep abreast of economic conditions. In cases of severe economic downturn, marketing and pricing strategies will be modified to reflect the new market conditions.

Inflation and the cost of living crisis

Global inflationary pressures that have arisen following the outbreak of the war in Ukraine continue to represent the largest risk to the business. These pressures are seen most clearly in relation to:

Food cost inflation

The Company is continually assessing all risks that food cost inflation may bring with the aim to mitigate future threats this may have on the business.

Wage cost inflation

The Company is continually affected by wage cost inflation and pressures within the labour market. The Company monitors the market to ensure complete compliance with labour market regulations, and maintains employment policies, remuneration and benefits packages that are designed to be competitive with other companies, as well as providing employees with fulfilling career opportunities.

Utilities costs

Increasing volatility, uncertainty, cost pressures and general environmental awareness in the UK market has resulted in increased pressure on the company in recent times. To manage and help mitigate the risk associated with these pressures, the company is party to a number of Power Purchase Agreements (PPAs) for the provision of cost-effective clean energy from environmentally friendly energy sources.

Competition

The market in which the Company operates is highly competitive. As a result, the Company is subject to a high level of price sensitivities in its consumer-led market. Policies of constantly assessing our pricing strategy and ongoing market research are in place to mitigate such risks.

Liquidity risk

As a result of the positive cash flows from operating activities achieved in the year and expected in future periods, the Directors do not consider liquidity or cashflow risk to be an issue. The Company makes use of bank facilities in order to finance long term capital and refurbishment expenditure. The Directors also continually monitor cash flow forecasts in order to further manage liquidity risk.

Interest rate risk

Considering the debt profile of the Company, increases in interest rates presents a risk. The continued policy of regular rate monitoring and ongoing dialogue with our lenders are in place to help mitigate this risk.

Brexit

The areas where Brexit has impacted our business include the access and cost of both labour and food and we continue to work with our business partners to mitigate this.

With these risks and uncertainties in mind, we are aware that any plans for the future development of the business may be subject to unforeseen future events outside of our control; hence, we are constantly assessing our plans in line with the current environment.

ON BEHALF OF THE BOARD:

A El Hajj - Director

15 December 2023

The directors present their report with the financial statements of the company for the period 1 July 2022 to 31 March 2023.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of operating quick service restaurants.

The comparative profit and loss figures represent the 9 month period ended 30 June 2022 and so are not

comparable.

GOING CONCERN

The Company continued to generate significant operating cash flows and continued to increase operations year-on-year. Despite this, the balance sheet as at 31 March 2023 shows a net liability position of £637,363 (2022: £14,759).

The Company continues to meet its day to day working capital requirements through operating cash flows and finances all significant refurbishments via a combination of bank finance and working capital.

Having considered all the relevant facts the Directors consider it is appropriate to prepare the financial statements on a going concern basis.

DIVIDENDS

Interim dividends of £170,246 (2022: £199,247) were paid during the year. The Directors do not recommend payment of a final dividend.

FUTURE DEVELOPMENTS

The company continues to substantially invest in its restaurants as part of programme to upgrade the looks and feel of its restaurants with new and enhanced equipment and thereby improve its customers' and employees' experience. This forms part of its strategy to grow market share and profitability.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 July 2022 to the date of this report.

M El Hajj

A El Hajj

ENGAGEMENT WITH EMPLOYEES

The company does not discriminate between employees or potential employees on grounds of colour, race, ethnic or national origin, sex, disability, age, marital status or religious beliefs. Full consideration is given to applications for employment from disabled persons who are able to demonstrate that they have the necessary abilities.

The importance of staff training, equal opportunity, health and safety, environmental matters and the avoidance of sexual harassment is recognised at all levels and is monitored on a regular basis by committees chaired by a director or senior manager reporting directly to the Board.

The company gives full and fair consideration to applications for employment by disabled persons. In the event of employees becoming disabled whilst in service of the company, every effort is made to continue their employment by transfer to alternative duties, if required and by provision of such retraining as is appropriate.

DISCLOSURE IN THE STRATEGIC REPORT

The company has chosen to make disclosures in relation to financial risk management and other matters considered to be of strategic importance which would otherwise be in the Directors report within the Strategic Report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors 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). 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 accounting estimates that are reasonable and prudent;

-	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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, THP Limited, will be proposed for re-appointment.

ON BEHALF OF THE BOARD:

A El Hajj - Director

15 December 2023

Opinion

We have audited the financial statements of AMH Family Enterprise Limited (the 'company') for the period ended 31 March 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement 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 Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and 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 March 2023 and of its loss for the period 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 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 Auditors' 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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 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.

The prior year financial statements were not audited.

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 Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors 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 Report of the Directors.

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 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 Statement of Directors' Responsibilities set out on pages four and five, 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 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.

Auditors' 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 a Report of the Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

- we identified the laws and regulations applicable to the company through discussions with the directors and other management, and from our commercial knowledge and experience of the sector in which the company operates;

- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental, food hygiene, franchise conditions and health and safety legislation;

- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

- performed analytical procedures to identify any unusual or unexpected relationships;

- tested journal entries to identify unusual transactions;

- assessed whether judgements and assumptions made in determining the accounting estimates set out in note 3 were indicative of potential bias; and

- investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- agreeing financial statement disclosures to underlying supporting documentation;

- enquiring of management as to actual and potential litigation and claims; and

- reviewing correspondence with HMRC and any other relevant regulators as required.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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 Report of the Auditors.

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 a Report of the Auditors 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.

Andrew Green LLB FCA (Senior Statutory Auditor)

for and on behalf of THP Limited

Chartered Accountants

and Statutory Auditors

34-40 High Street

Wanstead

London

E11 2RJ

15 December 2023

TURNOVER

10,144,029

11,395,691

Cost of sales

3,609,310

3,503,362

GROSS PROFIT

6,534,719

7,892,329

Administrative expenses

6,513,000

7,374,795

21,719

517,534

Other operating income

-

65,078

OPERATING PROFIT

4

21,719

582,612

Interest payable and similar expenses

5

27,649

9,345

(LOSS)/PROFIT BEFORE TAXATION

(5,930

)

573,267

Tax on (loss)/profit

6

97,183

143,943

(LOSS)/PROFIT FOR THE FINANCIAL PERIOD

(103,113

)

429,324

FIXED ASSETS

Intangible assets

8

1,566,428

43,979

Tangible assets

9

1,543,642

662,579

Investments

10

5,000

3,750

3,115,070

710,308

CURRENT ASSETS

Stocks

11

99,530

42,464

Debtors

12

138,116

88,657

Cash at bank

774,527

836,453

1,012,173

967,574

CREDITORS

Amounts falling due within one year

13

1,649,536

982,333

NET CURRENT LIABILITIES

(637,363

)

(14,759

)

TOTAL ASSETS LESS CURRENT LIABILITIES

2,477,707

695,549

CREDITORS

Amounts falling due after more than one year

14

(1,958,334

)

-

PROVISIONS FOR LIABILITIES

17

(97,183

)

-

NET ASSETS

422,190

695,549

CAPITAL AND RESERVES

Called up share capital

18

100

100

Retained earnings

19

422,090

695,449

SHAREHOLDERS' FUNDS

422,190

695,549

The financial statements were approved by the Board of Directors and authorised for issue on 15 December 2023 and were signed on its behalf by:

A El Hajj - Director

M El Hajj - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 July 2021

100

465,372

465,472

Changes in equity

Dividends

-

(199,247

)

(199,247

)

Total comprehensive income

-

429,324

429,324

Balance at 30 June 2022

100

695,449

695,549

Changes in equity

Dividends

-

(170,246

)

(170,246

)

Total comprehensive income

-

(103,113

)

(103,113

)

Balance at 31 March 2023

100

422,090

422,190

Cash flows from operating activities

Cash generated from operations

22

691,532

969,970

Interest paid

(27,649

)

(9,345

)

Tax paid

(143,943

)

(145,115

)

Net cash from operating activities

519,940

815,510

Cash flows from investing activities

Purchase of intangible fixed assets

(1,554,905

)

-

Purchase of tangible fixed assets

(1,149,513

)

(56,978

)

Purchase of fixed asset investments

(1,250

)

-

Net cash from investing activities

(2,705,668

)

(56,978

)

Cash flows from financing activities

New loans in year

2,350,000

-

Loan repayments in year

(55,952

)

(486,523

)

Equity dividends paid

(170,246

)

(199,247

)

Net cash from financing activities

2,123,802

(685,770

)

(Decrease)/increase in cash and cash equivalents

(61,926

)

72,762

Cash and cash equivalents at beginning of period

23

836,453

763,691

Cash and cash equivalents at end of period

23

774,527

836,453

1.	STATUTORY INFORMATION

AMH Family Enterprise 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.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements and going concern

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" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The Company continued to generate significant operating cash flows and continued to increase operations year-on-year. Despite this, the balance sheet as at 31 March 2023 shows a net liability position of £637,363 (2022: £14,759).

The Company continues to meet its day to day working capital requirements through operating cash flows and finances all significant refurbishments via a combination of bank finance and working capital.

Having considered all the relevant facts the Director considers it is appropriate to prepare the financial statements on a going concern basis.

Significant judgements and estimates

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

a) Critical judgements in applying the entity's accounting policies

There are no specific judgements, apart from those involving estimates as detailed below, that management has made in the process of applying the entity's accounting policies that have a significant effect on the amounts recognised in the financial statements.

b) Critical accounting estimates and assumptions

(i) Useful economic lives of tangible assets

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates based on technological advancement, future investments, economic utilisation and the physical condition of the assets.

(ii) Useful economic live of intangible assets

Goodwill and intangible assets are amortised over their useful economic lives and are assessed annually for indications of impairment.

iii) Treatment of significant capital projects

The allocation of store refurbishment expenditure between capital and revenue is an area that requires judgement on the part of management. Costs are allocated in line with the asset recognition contained within FRS102 and on the basis of all available evidence as to their nature. The management uses professional advisors to assist them with this process.

Revenue recognition

Revenue is measured at the fair value of the consideration received or receivable and represents the amount receivable for goods supplied, net of returns, discounts and value added taxes.

Sales of goods are recognised on sale to the customer, which is considered to be the point of sale and when the significant risks and rewards of the goods have been passed to the customer.

Franchise rights and fees

Franchise rights purchased are recognised at amortised cost and are amortised over the period of the franchise agreement. Franchise fees are also amortised over the period of the franchise agreement.

Tangible fixed assets

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

Plant and machinery

-

Straight line over 7 - 10 years

Fixtures and fittings

-

Straight line over 4 years

Motor vehicles

-

Straight line over 4 years

Equipment

-

Straight line over 4 years

Stocks

Stocks are valued at the lower of cost and selling price, after making due allowance for impairment of obsolete or slow moving items. Stocks are recognised as an expense in the period in which the related revenue is recognised.

Cost is determined on the first-in, first-out (FIFO) method. Cost includes the purchase price, including taxes and duties, transport and handling directly attributable to bringing the stock to its present location and condition.

Financial instruments

The Company has chosen to adopt Sections 11 and 12 of FRS102 in respect of financial instruments. Basic

financial instruments are initially recognised at transaction value and subsequently carried at this value less any provision for impairment.

Cash and cash equivalents

Cash and cash equivalents in the balance sheet represent cash at bank and in hand.

Short-term debtors and creditors

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at

transaction price. Any losses arising from impairment are recognised in profit or loss under operating expenses.

The carrying value of all short-term financial assets and liabilities are measured at amortised cost.

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.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

(i) Holiday pay

Holiday pay entitlements (where material) are recognised as an expense in the period in which the service is received.

(ii) Pension Scheme

The company operates a defined contribution pension scheme for its employees. The contributions are recognised as an expense when they are due. Amounts not paid are shown as a creditor on the balance sheet. The assets of the scheme are held separately from the company in independently administered scheme.

Operating lease commitments

The company's restaurant premises are leased under a non-cancellable lease with an expiry term of more than five years. The rental payments are calculated on a monthly basis and are substantially based

on annual sales income generated.

3.	EMPLOYEES AND DIRECTORS

period

1.7.22

to

year ended

31.3.23

30.6.22

£

£

Wages and salaries

2,439,206

2,810,219

Social security costs

126,988

148,090

Other pension costs

36,671

34,696

2,602,865

2,993,005

The average number of employees during the period was as follows:

period

1.7.22

to

year ended

31.3.23

30.6.22

Crew

278

244

Management

12

11

290

255

period

1.7.22

to

year ended

31.3.23

30.6.22

£

£

Directors' remuneration

31,500

42,000

The Directors are considered to be the key management for the purposes of disclosure under FRS.

4.	OPERATING PROFIT

The operating profit is stated after charging:

period

1.7.22

to

year ended

31.3.23

30.6.22

£

£

Depreciation - owned assets

268,450

299,470

Franchise rights amortisation

30,206

2,169

Franchise fees amortisation

2,250

10,000

Auditors' remuneration

6,000

-

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

period

1.7.22

to

year ended

31.3.23

30.6.22

£

£

Bank interest

27,649

9,345

6.

TAXATION

Analysis of the tax charge

The tax charge on the loss for the period was as follows:

period

1.7.22

to

year ended

31.3.23

30.6.22

£

£

Current tax:

UK corporation tax

-

143,943

Deferred tax

97,183

-

Tax on (loss)/profit

97,183

143,943

UK corporation tax has been charged at 19% (2022 - 19%).

Reconciliation of total tax charge included in profit and loss

The tax assessed for the period is higher than the standard rate of corporation tax in the UK. The difference is explained below:

period

1.7.22

to

year ended

31.3.23

30.6.22

£

£

(Loss)/profit before tax

(5,930

)

573,267

(Loss)/profit multiplied by the standard rate of corporation tax in the UK of 19% (2022 - 19%)

(1,127

)

108,921

Effects of:

Expenses not deductible for tax purposes

3,224

-

Capital allowances in excess of depreciation

(154,043

)

-

Depreciation in excess of capital allowances

-

35,022

Utilisation of tax losses

151,946

-

Deferred tax

97,183

-

Total tax charge

97,183

143,943

The company has corporation tax losses of £799,714 (2022:£nil) to carry forward against future trading profits.

Deferred taxation has been provided at a rate of 25%.

7.

DIVIDENDS

period

1.7.22

to

year ended

31.3.23

30.6.22

£

£

A Ordinary shares of £1 each

Interim

85,123

99,623

B Ordinary shares of £1 each

Interim

85,123

99,624

170,246

199,247