The Dalston Nest Limited - Limited company accounts 16.3

REGISTERED NUMBER: 07252067 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 30 November 2016

for

The Dalston Nest Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

Statement of Comprehensive Income

5

Balance Sheet

6

Statement of Changes in Equity

8

Cash Flow Statement

9

Notes to the Cash Flow Statement

10

Notes to the Financial Statements

11

Reconciliation of Equity

16

Reconciliation of Profit

18

DIRECTORS:

S I Ball

R Shaikh

SECRETARY:

REGISTERED OFFICE:

BCL House

2 Pavilion Business Park

Royds Hall Road

LEEDS

West Yorkshire

LS12 6AJ

REGISTERED NUMBER:

07252067 (England and Wales)

AUDITORS:

BCL Accountants Ltd

BCL House

2 Pavilion Business Park

Royds Hall Road

LEEDS

LS12 6AJ

The directors present their strategic report for the year ended 30 November 2016.

REVIEW OF BUSINESS

The Dalston Nest has delivered a similar set of results in FY 2015 with the restaurant and bars sector defying the rest of

the economy. Sales were £1,425k, compared with £1,340k last year.Gross profit margin increase to 67.25% from 66%.

The director and senior executives regularly identify monitor and mange potential risks and currently access these to be

Market Risk: Pricing and market changes

External influences, such as changes in the general economic climate, rate rises , competitor activity and changes to the

licensing laws could have a detrimental effect on customers' spending patterns and therefore the Company's revenue,

profitability and consequently the value of its assets.

Market Risk: Consumer taste and brand management

Social and demographic changes are driving the long-term growth in eating-out while at the same time leading to a

steady decline in the sales of on-trade drinks without food. These changes, together with other developments in

consumer taste may reduce the appeal of the Columbo venues to its customers, especially if the Company fails to

anticipate and identify these changes and respond to them adequately and promptly

Operational Risk: Cost of goods price increases and wage increases

Increases in the price of goods for resale as a result of increases in global demand and uncertainty of supply in producing

nations can have a significant impact on the cost base consequently impacting margins. The national living wage came

into place in April 2016 and will increase in April 2017 to £7.50 per hour essentially increasing the pay by £624 per

annum for full time employees over 25 having an impact on the GP margins.

Operational Risk: Energy price increases

The Dalston Nest is a large commercial user of gas and electricity. There is a risk that costs increase because of global

increases in demand and uncertainty of supply in energy producing nations.

ON BEHALF OF THE BOARD:

S I Ball - Director

22 June 2017

The directors present their report with the financial statements of the company for the year ended 30 November 2016.

DIVIDENDS

The total distribution of dividends for the year ended 30 November 2016 will be £ 77,312 .

DIRECTORS

The directors shown below have held office during the whole of the period from 1 December 2015 to the date of this

report.

S I Ball

R Shaikh

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 ought to have taken

as a director in order to make himself aware of any relevant audit information and to establish that the company's

auditors are aware of that information.

AUDITORS

The auditors, BCL Accountants Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

S I Ball - Director

22 June 2017

We have audited the financial statements of The Dalston Nest Limited for the year ended 30 November 2016 on pages

five to eighteen. The financial reporting framework that has been applied in their preparation is applicable law and

United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial

Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

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.

Respective responsibilities of directors and auditors

As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors.

Scope of the audit of the financial statements

An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give

reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error.

This includes an assessment of: whether the accounting policies are appropriate to the company's circumstances and

have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by

the directors; and the overall presentation of the financial statements. In addition, we read all the financial and

non-financial information in the Strategic Report and the Report of the Directors to identify material inconsistencies with

the audited financial statements and to identify any information that is apparently materially incorrect based on, or

materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of

any apparent material misstatements or inconsistencies we consider the implications for our report.

Opinion on financial statements

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 30 November 2016 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.

Opinion on other matter prescribed by the Companies Act 2006

In our opinion 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.

Matters on which we are required to report by exception

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.

Mr Christopher John Nunn (Senior Statutory Auditor)

for and on behalf of BCL Accountants Ltd

BCL House

2 Pavilion Business Park

Royds Hall Road

LEEDS

LS12 6AJ

25 June 2017

TURNOVER

1,425,317

1,340,483

Cost of sales

461,852

456,890

GROSS PROFIT

963,465

883,593

Administrative expenses

842,800

788,998

120,665

94,595

Other operating income

23,039

23,650

OPERATING PROFIT

4

143,704

118,245

Interest receivable and similar income

1

-

143,705

118,245

Interest payable and similar expenses

5

123

377

PROFIT BEFORE TAXATION

143,582

117,868

Tax on profit

6

35,422

30,229

PROFIT FOR THE FINANCIAL YEAR

108,160

87,639

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

108,160

87,639

FIXED ASSETS

Tangible assets

8

331,885

376,442

CURRENT ASSETS

Stocks

9

12,085

7,127

Debtors

10

99,064

76,302

Cash at bank and in hand

28,168

31,078

139,317

114,507

CREDITORS

Amounts falling due within one year

11

187,838

237,309

NET CURRENT LIABILITIES

(48,521

)

(122,802

)

TOTAL ASSETS LESS CURRENT LIABILITIES

283,364

253,640

PROVISIONS FOR LIABILITIES

13

3,521

4,645

NET ASSETS

279,843

248,995

CAPITAL AND RESERVES

Called up share capital

14

100

100

Retained earnings

15

279,743

248,895

SHAREHOLDERS' FUNDS

279,843

248,995

The financial statements were approved by the Board of Directors on 22 June 2017 and were signed on its behalf by:

S I Ball - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 December 2014

100

179,212

179,312

Changes in equity

Dividends

-

(17,956

)

(17,956

)

Total comprehensive income

-

87,639

87,639

Balance at 30 November 2015

100

248,895

248,995

Changes in equity

Dividends

-

(77,312

)

(77,312

)

Total comprehensive income

-

108,160

108,160

Balance at 30 November 2016

100

279,743

279,843

Cash flows from operating activities

Cash generated from operations

1

216,018

118,537

Interest paid

(123

)

(377

)

Tax paid

(47,333

)

(76,037

)

Net cash from operating activities

168,562

42,123

Cash flows from investing activities

Purchase of tangible fixed assets

(1,450

)

(6,260

)

Interest received

1

-

Net cash from investing activities

(1,449

)

(6,260

)

Cash flows from financing activities

Loan repayments in year

-

(45,000

)

Parent Company Loan

(92,711

)

19,876

Equity dividends paid

(77,312

)

(17,956

)

Net cash from financing activities

(170,023

)

(43,080

)

Decrease in cash and cash equivalents

(2,910

)

(7,217

)

Cash and cash equivalents at beginning of year

2

31,078

38,295

Cash and cash equivalents at end of year

2

28,168

31,078

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

30.11.16

30.11.15

£

£

Profit before taxation

143,582

117,868

Depreciation charges

46,007

48,670

Finance costs

123

377

Finance income

(1

)

-

189,711

166,915

(Increase)/decrease in stocks

(4,958

)

399

Decrease in trade and other debtors

1,872

6,270

Increase/(decrease) in trade and other creditors

29,393

(55,047

)

Cash generated from operations

216,018

118,537

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these

Balance Sheet amounts:

Year ended 30 November 2016

30.11.16

1.12.15

£

£

Cash and cash equivalents

28,168

31,078

Year ended 30 November 2015

30.11.15

1.12.14

£

£

Cash and cash equivalents

31,078

38,295

1.	STATUTORY INFORMATION

The Dalston Nest 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

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.

Related party exemption

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.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding promotions, staff

discounts, wastage and value added tax.

Tangible fixed assets

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

Long leasehold

-

in accordance with the property

Improvements to property

-

in accordance with the property

Plant and machinery

-

20% on reducing balance

Fixtures and fittings

-

15% on reducing balance

Computer equipment

-

33.3333% on cost

Stocks

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

moving items.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance

sheet date.

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.

3.	EMPLOYEES AND DIRECTORS

30.11.16

30.11.15

£

£

Wages and salaries

321,811

309,401

Social security costs

9,024

8,952

Other pension costs

605

-

331,440

318,353

The average monthly number of employees during the year was as follows:

30.11.16

30.11.15

Staff

15

18

30.11.16

30.11.15

£

£

Directors' remuneration

-

-

4.	OPERATING PROFIT

The operating profit is stated after charging:

30.11.16

30.11.15

£

£

Depreciation - owned assets

46,007

48,670

Auditors' remuneration

5,100

5,100

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

30.11.16

30.11.15

£

£

Bank interest

22

13

Bank loan interest

-

23

Corporation Tax Interest

101

341

123

377

6.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

30.11.16

30.11.15

£

£

Current tax:

UK corporation tax

36,546

30,609

Deferred tax

(1,124

)

(380

)

Tax on profit

35,422

30,229

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is

explained below:

30.11.16

30.11.15

£

£

Profit before tax

143,582

117,868

Profit multiplied by the standard rate of corporation tax in the UK of 20% (2015 - 20.330%)

28,716

23,963

Effects of:

Expenses not deductible for tax purposes

1,235

1,090

Depreciation in excess of capital allowances

6,615

5,843

Utilisation of tax losses

(20

)

-

Marginal Relief

-

(287

)

Deferred Tax

(1,124

)

(380

)

Total tax charge

35,422

30,229

7.

DIVIDENDS

30.11.16

30.11.15

£

£

Interim

77,312

17,956

8.	TANGIBLE FIXED ASSETS

Improvements

Long

to

Plant and

leasehold

property

machinery

£

£

£

COST

At 1 December 2015

160,965

304,589

148,987

Additions

-

-

1,450

At 30 November 2016

160,965

304,589

150,437

DEPRECIATION

At 1 December 2015

57,232

103,594

90,364

Charge for year

10,731

20,306

11,825

At 30 November 2016

67,963

123,900

102,189

NET BOOK VALUE

At 30 November 2016

93,002

180,689

48,248

At 30 November 2015

103,733

200,995

58,623

Fixtures

and

Computer

fittings

equipment

Totals

£

£

£

COST

At 1 December 2015

22,747

16,400

653,688

Additions

-

-

1,450

At 30 November 2016

22,747

16,400

655,138

DEPRECIATION

At 1 December 2015

12,065

13,991

277,246

Charge for year

1,602

1,543

46,007

At 30 November 2016

13,667

15,534

323,253

NET BOOK VALUE

At 30 November 2016

9,080

866

331,885

At 30 November 2015

10,682

2,409

376,442

9.

STOCKS

30.11.16

30.11.15

£

£

Stocks

12,085

7,127

10.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

30.11.16

30.11.15

£

£

Trade debtors

4,929

2,400

Amounts owed by group undertakings

24,634

-

Other debtors

17,660

18,017

Sundry Debtors

20,538

32,135

Prepayments

31,303

23,750

99,064

76,302

11.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

30.11.16

30.11.15

£

£

Trade creditors

40,267

56,496

Amounts owed to group undertakings

-

68,075

Tax

36,546

47,333

Social security and other taxes

3,347

2,770

VAT

38,551

33,176

Other creditors

42,344

1,268

Sundry Creditors

10

2,701

Accrued expenses

26,773

25,490

187,838

237,309