Jurassic Coast Coffee Limited - Accounts to registrar (filleted) - small 18.1

REGISTERED NUMBER: 07265089 (England and Wales)

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30TH NOVEMBER 2017

FOR

JURASSIC COAST COFFEE LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

P R Arkle

A S Hirst

M A Arkle

L Hirst

REGISTERED OFFICE:

Fareham House

69 High Street

Fareham

Hampshire

PO16 7BB

REGISTERED NUMBER:

07265089 (England and Wales)

SENIOR STATUTORY AUDITOR:

Charles Cable BCom FCA

INDEPENDENT AUDITORS:

Rothmans Audit LLP

Statutory Auditors

Chartered Accountants

Fareham House

69 High Street

Fareham

Hampshire

PO16 7BB

FIXED ASSETS

Intangible assets

5

143,771

62,781

Tangible assets

6

1,780,680

963,176

1,924,451

1,025,957

CURRENT ASSETS

Stocks

7

19,500

12,000

Debtors

8

111,174

133,459

Cash at bank and in hand

163,128

174,300

293,802

319,759

CREDITORS

Amounts falling due within one year

9

1,454,412

542,490

NET CURRENT LIABILITIES

(1,160,610

)

(222,731

)

TOTAL ASSETS LESS CURRENT LIABILITIES

763,841

803,226

PROVISIONS FOR LIABILITIES

47,523

44,907

NET ASSETS

716,318

758,319

CAPITAL AND RESERVES

Called up share capital

100

100

Retained earnings

716,218

758,219

SHAREHOLDERS' FUNDS

716,318

758,319

The financial statements have been prepared and delivered in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

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

The financial statements were approved by the Board of Directors on 24th April 2018 and were signed on its behalf by:

P R Arkle - Director

1.	STATUTORY INFORMATION

Jurassic Coast Coffee 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 presentation currency of the financial statements is Pounds Sterling (£) and is rounded to the nearest pound

(£).

The principal activity of the company in the year under review was that of a Costa Coffee franchisee.

2.	STATEMENT OF COMPLIANCE

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

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention.

Changes in accounting estimates

During the year the company changed its depreciation policy on short leasehold from 20% on cost to over the

term of the lease of the premises to which the cost relates, which more accurately reflects the consumption of

the asset. This has in the year under review, decreased depreciation charged to the income statement by

£78,161.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates,

value added tax and other sales taxes.

Revenue recognition

The company recognises revenue when the amount of revenue can be measured reliably; it is probable that

future economic benefits will flow to the entity and when the specific criteria relating to each of company’s sales

channels have been met, as described below:

Coffee shop sales of goods are recognised on sale to the customer, which is considered the point of delivery.

Sales are by cash, debit card or credit card.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2017, is being amortised evenly over its estimated useful life of ten years.

Franchise fees

Franchise fees are stated at cost less accumulated amortisation and accumulated impairment losses.

Franchise fees are amortised over their estimated useful lives, being the original lease period of the store to

which the franchise fees relate.

Amortisation is charged to administrative expenses in the income statement.

Tangible fixed assets

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

Short leasehold

-

Over the term of the lease

Improvements to property

-

10% on cost

Plant and machinery

-

25% on reducing balance

Fixtures and fittings

-

25% on reducing balance

Computer equipment

-

33% on cost

Tangible assets are stated at cost less accumulated depreciation and accumulated impairment losses. Cost

includes the original purchase price, costs directly attributable to bringing the asset to its working condition for its

intended use.

The cost of replacing major components are capitalised.

Stocks

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

slow moving items.

Taxation

Taxation for the year 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 year 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

Short term benefits, including holiday pay and other similar non-monetary benefits, are recognised as an

expense in the period in which the service is received.

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension

plan under which the company pays fixed contributions into a separate entity. Once the contributions have been

paid the company has no further payment obligations. The contributions are recognised as an expense when

they are due. Amounts not paid are shown in accruals in the balance sheet. The assets of the plan are held

separately from the company in independently administered funds.

Operating leases

Leases that do not transfer all the risks and rewards of ownership are classified as operating leases. Payments

under operating leases are charged to the profit and loss account on a straight-line basis over the period of the

lease.

Incentives received to enter into an operating lease are credited to the profit and loss account, to reduce the

lease expense, on a straight-line basis over the period of the lease.

Financial instruments

Financial assets

Basic financial assets, including trade and other debtors and cash and bank balances are initially recognised at

the transaction value.

They are then subsequently carried at amortised cost using the effective interest rate method.

At the end of each reporting period financial assets are assessed for impairment. If an impairment exists the

impairment loss is recognised in the profit and loss.

Financial assets are derecognised when:

- the contractual right to cash flows from the asset are settled or expire,

- substantially all the risk and rewards of the ownership of the asset are transferred to another party or

- despite retaining some significant risks and rewards, control of the asset has been transferred to another party

who has the practical ability to unilaterally sell the asset without additional restrictions.

Financial liabilities

Basic financial liabilities, including trade and other creditors are initially recognised at the transaction value.

They are then subsequently carried at amortised cost using the effective interest rate method.

Financial liabilities are derecognised when the liability is discharged, cancelled or expires.

4.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 111 (2016 - 71 ) .

5.	INTANGIBLE FIXED ASSETS

Franchise

Goodwill

fees

Totals

£

£

£

COST

At 1st December 2016

-

114,500

114,500

Additions

83,500

31,000

114,500

At 30th November 2017

83,500

145,500

229,000

AMORTISATION

At 1st December 2016

-

51,719

51,719

Amortisation for year

6,245

27,265

33,510

At 30th November 2017

6,245

78,984

85,229

NET BOOK VALUE

At 30th November 2017

77,255

66,516

143,771

At 30th November 2016

-

62,781

62,781

6.	TANGIBLE FIXED ASSETS

Improvements

Short

to

Plant and

leasehold

property

machinery

£

£

£

COST

At 1st December 2016

705,047

239,033

524,364

Additions

60,268

469,742

337,683

At 30th November 2017

765,315

708,775

862,047

DEPRECIATION

At 1st December 2016

379,420

13,434

249,544

Charge for year

65,074

56,296

131,577

At 30th November 2017

444,494

69,730

381,121

NET BOOK VALUE

At 30th November 2017

320,821

639,045

480,926

At 30th November 2016

325,627

225,599

274,820

Fixtures

and

Computer

fittings

equipment

Totals

£

£

£

COST

At 1st December 2016

156,627

6,080

1,631,151

Additions

283,483

4,822

1,155,998

At 30th November 2017

440,110

10,902

2,787,149

DEPRECIATION

At 1st December 2016

24,299

1,278

667,975

Charge for year

82,787

2,760

338,494

At 30th November 2017

107,086

4,038

1,006,469

NET BOOK VALUE

At 30th November 2017

333,024

6,864

1,780,680

At 30th November 2016

132,328

4,802

963,176

7.

STOCKS

2017

2016

£

£

Stocks

19,500

12,000

8.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2017

2016

£

£

Trade debtors

28,441

19,324

Other debtors

82,733

114,135

111,174

133,459

9.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2017

2016

£

£

Trade creditors

244,027

129,875

Amounts owed to group undertakings

686,289

81,793

Taxation and social security

150,494

130,113

Other creditors

373,602

200,709

1,454,412

542,490

10.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

2017

2016

£

£

Within one year

332,243

214,458

Between one and five years

1,211,349

827,192

In more than five years

987,554

712,414

2,531,146

1,754,064

11.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Charles Cable BCom FCA (Senior Statutory Auditor)

for and on behalf of Rothmans Audit LLP

12.	CONTINGENT LIABILITIES

Cross guarantee

The company has provided a guarantee in favour of the bank to cover the liabilities owed by its parent company.

The guarantee is unlimited. At the year end monies are owed to the bank by the parent totalled £1,458,841.

However the parent company has not defaulted and therefore no economic benefit is expected to flow from the

company. Any amount met on behalf of the parent will be reimbursed by the parent in the future, where

possible.

Dilapidations and decommissioning liabilities

At the year end the best estimate of the value of the expenditure expected to be incurred by the company in

order to satisfy its obligation to restore its leasehold premises to the condition required under the lease at the

agreement at the end of the lease is estimated to be £24,000 per store. At the year end the company operated

from 12 stores. There is not expected to be any reimbursement to the company for this.

The leases are for varying periods of time and are not all due to expire at once.

The uncertainties relating to the the timing of any outflow is due to the company not having a history of exiting

any stores once established. The Landlord and Tenant Act 1954 provides that a commercial tenant has the right

to renew its lease of the premises that it occupies for the purposes of its business.

No security has been given for the contingent liability.

13.	CAPITAL COMMITMENTS

2017

2016

£

£

Contracted but not provided for in the

financial statements

-

140,000

14.	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.

15.	ULTIMATE CONTROLLING PARTY

Premiere Coffee Limited is the smallest group to consolidate the results of the company.

The registered office of Premiere Coffee Limited is the same as the company.

16.	ULTIMATE PARENT COMPANY

Premiere Coffee Limited is the smallest group to consolidate the results of the company and is also considered

by the company to be the ultimate parent company.

The registered office of Premiere Coffee Limited is the same as the company.