Consolidated statement of changes in equity

For the period ended 1 January 2023

 

	Notes	Share capital	Share premium	Other reserves	Retained losses	Total equity
		£	£	£	£	£
At 1 January 2021		1,226,667	10,050,313	97,286	(8,900,069)	2,474,197
Total comprehensive loss
Profit for the period		-	-	-	1,643,455	1,643,455
Transactions with owners
Share-based payments	21	-	-	32,436	-	32,436
At 2 January 2022		1,226,667	10,050,313	129,722	(7,256,614)	4,150,088
At 3 January 2022		1,226,667	10,050,313	129,722	(7,256,614)	4,150,088
Total comprehensive income
Profit for the period		-	-	-	588,304	588,304
Transactions with owners		-
Share-based payments	21		-	15,377	-	15,377
At 1 January 2023		1,226,667	10,050,313	145,099	(6,668,310)	4,753,769

 

 

 

 

 

 

	Notes	Period ended 1 January 2023	Period ended 2 January 2022
		£	£
Operating activities
Cash inflow from operations	22	4,368,949	4,675,786
Interest paid		(94,078)	(21,057)
Tax paid		-	30,292
Net cash from operating activities		4,274,871	4,685,021
Investing activities		(581,250)	(436,272)
Purchase of property, plant & equipment	10
Net cash used in investing activities		(581,250)	(436,272)
Financing activities		(3,031,097)	(2,014,626)
Payment of lease liabilities	26
Bank loan repayments	23	(600,000)	(200,000)
Net cash used in financing activities		(3,631,097)	(2,214,626)
Increase in cash and cash equivalents		62,524	2,034,123
Cash and cash equivalents at beginning of period		9,867,799	7,833,676
Cash and cash equivalents at end of period		9,930,323	9,867,799

 

 

Principal accounting policies for the consolidated financial statements

For the period ended 1 January 2023

 

Reporting entity

 

Comptoir Group PLC (the "Company") is a company incorporated and registered in England and Wales, with a company registration number of 07741283. The address of the Company's registered office is Unit 2, Plantain Place, Crosby Row, London Bridge, SE1 1YN. The consolidated financial statements comprise of the Company and its subsidiaries (together referred to as the "Group").

 

Statement of compliance

 

The consolidated financial statements have been prepared in accordance with UK-adopted International Financial Reporting Standards and its interpretations adopted by the International Accounting Standards Board (IASB). The Parent Company financial statements have been prepared using United Kingdom Accounting Standards including FRS 102 'The financial reporting standard applicable in the UK and Republic of Ireland' and are set out below.

 

Basis of preparation

 

These consolidated financial statements for the period ended 1 January 2023 are prepared in accordance with UK-adopted International Accounting Standards.

 

The accounting period for the Group runs to the closest Sunday to 31 December each year. The consolidated financial statements for the current period has been prepared to 1 January 2023 and the comparative period to 2 January 2022.

 

The financial statements are presented in Pound Sterling (£), which is both the functional and presentational currency of the Group and Company. All amounts are rounded to the nearest pound, except where otherwise indicated.

 

The Group and Parent Company financial statements have been prepared on the historical cost convention as modified for certain financial instruments, which are stated at fair value. Non-current assets are stated at the lower of carrying amount and fair value less costs to sell.

 

Use of non-GAAP profit and loss measures

 

The Group believes that along with operating profit, the 'Adjusted EBITDA' provides additional guidance to the statutory measures of the performance of the business during the financial year. Adjusted profit from operations is calculated by adding back depreciation, amortisation, impairment of assets, finance costs, preopening costs and certain non-recurring or non-cash items. Adjusted EBITDA is an internal measure used by management as they believe it better reflects the underlying performance of the Group beyond generally accepted accounting principles.

 

Going concern basis

 

In assessing the going concern position of the Group for the consolidated financial statements for the year ended the 1 January 2023, the Directors have considered the Group's cash flow, liquidity and business activities. The last couple of years have been uncertain following the Covid-19 pandemic, the war in Ukraine and now the cost of living crisis and this has been considered as part of the Group's adoption of the going concern basis. Although trading was impacted over this period, the Group's trading remained ahead of expectations. The Group was profitable during this period and had increased its cash reserves to £9.9m as at the start of the current accounting period.

 

The Directors have considered the current business model, strategies and principal risks and uncertainties. Based on the Group's cash flow forecasts and projections, the Board is satisfied that the Group will be able to operate for the foreseeable future. In making this assessment, the Directors have made a specific analysis of the impact of current inflationary pressures, Covid-19, Brexit and the current war impacting Ukraine.

 

The Group's current cash reserves remains at £9.9m, and the Board believes that the business has the ability to remain trading for a period of at least 12 months from the date of signing of these financial statements. These financial statements have therefore been prepared on the going concern basis.

 

Changes in accounting standards, amendments and interpretations

 

At the date of authorisation of the consolidated financial statements, the following amendments to Standards and Interpretations issued by the IASB that are effective for an annual period that begins on or after 1 January 2022. These have not had any material impact on the amounts reported for the current and prior periods.

 

Standard or Interpretation	Effective Date
Annual improvements to IFRS Standards 2018-2020	1 January 2022
IAS 37 - Onerous Contracts	1 January 2022
IAS 16 - Property, Plant and Equipment	1 January 2022
IFRS 3 - Reference to the Conceptual Framework	1 January 2022

 

New and revised Standards and Interpretations in issue but not yet effective

 

At the date of authorisation of these financial statements, the Group has not early adopted any of the following amendments to Standards and Interpretations that have been issued but are not yet effective:

Standard or Interpretation	Effective Date
IFRS 17 - Insurance Contracts	1 January 2023
IAS 8 - Definition of Accounting Estimates	1 January 2023
IAS 1 - Disclosure of Accounting Policies	1 January 2023
IAS 12 - Deferred Tax Arising from a Single Transaction	1 January 2023

 

As yet, none of these have been endorsed for use in the UK and will not be adopted until such time as endorsement is confirmed. The Directors do not expect any material impact as a result of adopting standards and amendments listed above in the financial year they become effective.

 

Significant accounting policies

 

The accounting policies set out below have been applied consistently to all periods presented in the historical consolidated financial statements, unless otherwise indicated.

 

(a) Basis of consolidation

 

These financial statements consolidate the financial statements of the Company and all of its subsidiary undertakings drawn up to 1 January 2023.

 

Subsidiaries are entities controlled by the Company. Control exists when the Company has the power, directly or indirectly, to govern the financial and operating policies of an entity so as to obtain benefits from its activities. In assessing control, potential voting rights that presently are exercisable or convertible are taken into account, regardless of management's intention to exercise that option or warrant. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date the control ceases.

 

The cost of an acquisition is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the acquisition. Identifiable assets acquired and liabilities and contingent liabilities assumed are measured initially at their fair values at the acquisition date, irrespective of the extent of any minority interest. The excess of the cost of acquisition over the fair value of the identifiable net assets acquired is recorded as goodwill.

 

All intra-group balances, transactions, income and expenses and profits and losses resulting from intra-group transactions are eliminated fully on consolidation. The gain or loss on disposal of a subsidiary company is the difference between net disposals proceeds and the Group's share of its net assets together with any goodwill and exchange differences.

 

(b) Foreign currency translation

 

Functional and presentational currency

 

Items included in the financial results of each of the Group entities are measured using the currency of the primary economic environment in which the entities operate (the functional currency). The consolidated financial statements are presented in Pounds Sterling ("£") which is the Company's functional and operational currency.

 

Transactions and balances

 

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year end exchange rates of monetary assets and financial liabilities denominated in foreign currencies are recognised in the Statement of Comprehensive Income.

 

(c) Financial instruments

 

Financial assets and financial liabilities are measured initially at fair value plus transactions costs. Financial assets and financial liabilities are measured subsequently as described below.

 

Financial assets

 

The Group classifies its financial assets as 'loans and receivables'. The Group assesses at each balance sheet date whether there is objective evidence that a financial asset or a group of financial assets is impaired.

 

Loans and receivables are non-derivative financial assets with fixed and determinable payments that are not quoted in an active market. They are included in current assets, except for maturities greater than 12 months after the statement of financial position date, which are classified as non-current assets. Receivables are classified as 'trade and other receivables' and loans are classified as 'borrowings' in the statement of financial position.

 

Trade and other receivables are recognized initially at fair value and subsequently measured at amortised cost using the effective interest method. The carrying value of trade and other receivables recorded at amortised cost are reduced by allowances for lifetime estimated credit losses. Estimated future credit losses are first recorded on the initial recognition of a receivable and are based on the ageing of the receivable balance, historical experience and forward looking considerations. Balances that are deemed not collectable will be recognised as a loss in the income statement. When a trade receivable is uncollectable, it is written off against the allowance account for trade receivables. Subsequent  recoveries of amounts previously written off are credited to the Statement of Comprehensive Income.

 

Financial assets are derecognised when the contractual rights to the cash flows from the financial asset expire, or when the financial asset and all substantial risks and rewards are transferred.

 

Financial liabilities

 

The Group's financial liabilities include trade and other payables. Trade payables are recognized initially at fair value less transaction costs and subsequently measured at amortised cost using the effective interest method ("EIR" method). Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included in finance costs in the Statement of Comprehensive Income. A financial liability is derecognised when it is extinguished, discharged, cancelled or expires.

 

(d) Property, plant and equipment

 

Items of property, plant and equipment are stated at cost less accumulated depreciation and impairment losses.

 

Depreciation

 

Depreciation is charged to the income statement on a reducing balance basis and on a straight-line basis over the estimated useful lives of corresponding items of property, plant and equipment:

 

Land & buildings leasehold	Over the length of the lease
Plant & machinery	15% on reducing balance
Fixture, fittings & equipment	10% on reducing balance

 

The carrying values of plant and equipment are reviewed at each reporting date to determine whether there are any indications of impairment. If any such indication exists, the assets are tested for impairment to estimate the assets' recoverable amounts. Any impairment losses are recognised in the Statement of Comprehensive Income.

 

The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at each statement of financial position date.

 

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised within the Statement of Comprehensive Income.

 

(e) Intangible assets - goodwill

 

All business combinations are accounted for by applying the acquisition method. Goodwill represents amounts arising on acquisition of subsidiaries, associates and joint ventures. Goodwill represents the difference between the cost of the acquisition and the fair value of the net identifiable assets acquired.

 

Goodwill is stated at cost less any accumulated impairment losses. Goodwill is allocated to cash generating units and is formally tested for impairment annually, thus is not amortised. Any excess of fair value of net assets over consideration on acquisition are recognised directly in the income statement.

 

(f) Inventories

 

Inventories are stated at the lower of costs and net realisable value. Cost comprises direct materials, and those direct overheads that have been incurred in bringing the inventories to their present location and condition. Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

 

(g) Cash and cash equivalents

 

Cash and cash equivalents comprise cash in hand, cash at bank, deposits held at call with banks and other short-term highly liquid investments with original maturities of three months or less. Bank overdrafts that are repayable on demand are included within borrowings in current liabilities on the balance sheet.

 

For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and cash equivalents as defined above, net of outstanding bank overdrafts.

 

(h) Share-based payments

 

The Group's share option programme allows Group employees to acquire shares of the Company and all options are equity-settled. The fair value of options granted is recognised as an employee expense with a corresponding increase in equity. The fair value is measured at grant date and spread over the period during which the employees become unconditionally entitled to the options. The fair value of the options granted is measured using the Black-Scholes model, taking into account the terms and conditions upon which the options were granted. The amount recognised as an expense is adjusted to reflect the actual number of share options that vest.

 

(i) Provisions for liabilities

 

A provision is recognised in the balance sheet when the Group has a present legal or constructive obligation as a result of a past event, and it is probable that an outflow of economic benefits will be required to settle the obligation. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value using a pre-tax discount rate. The unwinding of the discount is recognised as a finance cost in the income statement in the period it arises.

 

(j) Deferred tax and current tax

 

Current income tax assets and liabilities for the current period are measured at the amount expected to be recovered or paid to the taxation authorities. A provision is made for corporation tax for the reporting period using the tax rates that have been substantially enacted for the company at the reporting date.

 

Current income tax relating to items recognised directly in equity is recognised in equity and not in the Statement of Comprehensive Income.

 

Deferred income tax is provided in full on a non-discounted basis, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the statement of financial position date and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.

 

Deferred income tax assets are recognised to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised.

 

(k) Leases

 

Right-of-use assets

 

Right-of-use assets are recognised at the commencement date of the lease (i.e., the date the underlying asset is available for use). Initially, right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Subsequently, right-of-use assets are depreciated on a straight-line basis over the shorter of its estimated useful life and the lease term.

 

Lease liabilities

 

At the commencement date of the lease, the lease liabilities recognised are measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Group and payments of penalties for terminating a lease, if the lease term reflects the Group exercising the option to terminate. The variable lease payments that do not depend on an index or a rate are recognised as an expense in the period on which the event or condition that triggers the payment occurs. In calculating the present value of lease payments, the Group used the incremental borrowing rate at the lease commencement.

 

After the commencement date, the amount of lease liabilities is increased to account for interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the in-substance fixed lease payments or a change in the assessment to purchase the underlying asset.

 

The Group elected to apply the practical expedient in relation to amendments to IFRS 16: Covid-19 Related Rent Concessions. This allows a lessee to account for any changes to their lease payments due to the effects of Covid-19 in the Statement of Comprehensive Income rather than be treated as a lease modification.

 

The practical expedient was applied consistently to all lease contracts with similar characteristics and in similar circumstances. A resulting credit will be recognised as income in the profit and loss for the reporting period reflecting the changes in lease payments arising from the application of this practical expedient.

 

(l) Employee benefits

 

Short term employee benefits

 

Wages, salaries, paid annual leave, paid sick leave and bonuses are recognised as an expense in the period in which the associated services are rendered by employees.

 

The Group recognises an accrual for annual holiday pay accrued by employees as a result of services rendered in the current period, and which employees are entitled to carry forward and use within 12 months. The accrual is measured at the salary cost payable for the period of absence.

 

Pensions and other post-employment benefits

 

The Group pays monthly contributions to defined contribution pension plans. The legal or constructive obligation of the Group is limited to the amount that they agree to contribute to the plan. The contributions to the plan are charged to the Statement of Comprehensive Income in the period to which they relate.

 

Termination benefits are recognised immediately as an expense when the Group is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

 

(m) Revenue

 

Revenue represents amounts received and receivable for services and goods provided (excluding value added tax) and is recognised at the point of sale. Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured.

 

Franchise fees from the Group's role as franchisor in the UK, Europe and the Middle East. Revenue comprises ongoing royalties based on the sales results of the franchisee and up-front initial site fees.

 

(n) Expenses

 

Variable lease payments

 

Variable lease payments that do not depend on an index or rate and are not in-substance fixed payments, such as rental expenses payable based on the percentage of sales made in the period, are not included in the initial measurement of the lease liability. These payments are recognised in the income statement in the period in which the event or condition that triggers those payments occurs.

 

Opening expenses

 

Property rentals and related costs incurred up to the date of opening of a new restaurant are written off to the income statement in the period in which they are incurred. Promotional and training costs are written off to the income statement in the period in which they are incurred.

 

Financial expenses

 

Financial expenses comprise of interest payable on bank loans, hire purchase liabilities and other financial costs and charges. Interest payable is recognised on an accrual basis.

 

(o) Ordinary share capital

 

Ordinary shares are classified as equity. Costs directly attributable to the increase of new shares or options are shown in equity as a deduction from the proceeds.

 

(p) Dividend policy

 

In accordance with IAS 10 'Events after the Balance Sheet Date', dividends declared after the balance sheet date are not recognised as a liability at that balance sheet date and are recognised in the financial statements when they have received approval by shareholders. Unpaid dividends that are not approved are disclosed in the notes to the consolidated financial statements.

 

(q) Commercial discount policy

 

Commercial discounts represent a reduction in cost of goods and services in accordance with negotiated supplier contracts, the majority of which are based on purchase volumes. Commercial discounts are recognised in the period in which they are earned and to the extent that any variable targets have been achieved in that financial period. Costs associated with commercial discounts are recognised in the period in which they are incurred.

 

(r) Operating segments

 

An operating segment is a component of an entity that engages in business activities from which it may earn revenues and incur expenses (including revenue and expenses related to transactions with other components of the same entity), whose operating results are regularly reviewed by the entity's Chief Operating Decision Maker to make decisions about resources to be allocated to the segment and assess its performance, and for which discrete financial information is available. The Chief Operating Decision Maker has been identified as the Board of Executive Directors, at which level strategic decisions are made.

 

(s) Government grants

 

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable.

 

Critical accounting judgements and key sources of estimation uncertainty

 

The preparation of financial statements in conformity with UK-adopted IFRS requires management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. The resulting accounting estimates may differ from the related actual results.

 

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 period, or in the period of the revision and future periods if the revision affects both current and future periods.

 

In the process of applying the Group's accounting policies, management has made a number of judgments and estimations of which the following are the most significant. The estimates and assumptions that have a risk of causing material adjustment to the carrying amounts of assets and liabilities within the future financial years are as follows:

 

Depreciation, useful lives and residual values of property, plant & equipment

 

The Directors estimate the useful lives and residual values of property, plant & equipment in order to calculate the depreciation charges. Changes in these estimates could result in changes being required to the annual depreciation charges in the Statement of Comprehensive Incomes and the carrying values of the property, plant & equipment in the balance sheet.

 

Impairment of assets

 

The Group assesses at each reporting date whether there is an indication that an asset may be impaired. If any such indication exists, or when annual impairment testing for an asset is required, the Group makes an estimate of the asset's recoverable amount. An asset's recoverable amount is the higher of an asset's or cash-generating unit's fair value less costs to sell and its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets.

 

Where the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their present value of money and the risks specific to the asset. Impairment losses of continuing operations are recognised in the profit or loss in those expense categories consistent with the function of the impaired asset.

 

Leases

 

At the commencement date of property leases the lease liability is calculated by discounting the lease payments. The discount rate used should be the interest rate implicit in the lease. However, if that rate cannot be readily determined, which is generally the case for property leases, the lessee's incremental borrowing rate is used, being the rate that the individual lessee would have to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment with similar terms, security and conditions.

 

The discount rate originally applied to the Group's leases under the portfolio approach was 2.6%. Where there have been modifications to leases since the first application of IFRS 16 the discount rate has been updated in line with the incremental cost of borrowing and ranges between 4% to 6.75%.

 

Deferred tax assets

 

Historically, deferred tax assets had been recognised in respect of the total unutilised tax losses within the Group. A condition of recognising this amount depended on the extent that it was probable that future taxable profits will be available.

 

Share based payments

 

The charge for share-based payments is calculated according to the methodology described in note 21. The Black Scholes model requires subjective assumptions to be made including the volatility of the Company's share price, fair value of the shares and the risk-free interest rates.

 

Dilapidations

 

Provisions for leasehold property dilapidation repairs are recognised when the Group has a present obligation to carry out dilapidation work on the leasehold premises before the property is vacated. The amount recognised as a provision is the best estimate of the costs required to carry out the dilapidations work and is spread over the expected period of the tenancy.

 

Notes to the consolidated financial statements

For the period ended 1 January 2023

 

1. Segmental analysis

 

The Group has only one operating segment being: the operation of restaurants with Lebanese Offerings and one geographical segment being the United Kingdom. The Group's brands meet the aggregation criteria set out in paragraph 22 of IFRS 8 'Operating Segments' and as such the Group reports the business as one reportable segment.

 

None of the Group's guests individually contribute over 10% of the total revenues.

 

 

2. Revenue

 

	1 January 2023	2 January 2022
	£	£
Income for the year consists of the following:	31,046,546	20,711,257
Revenue from continuing operations
Other income not included within revenue in the income statement:
Insurance claims receivable	-	261,657
Local council support grants	120,888	894,686
Covid-19 related rent concessions	171,856	1,284,744
Coronavirus Job Retention Scheme income	-	1,644,856
Other income	-	4,271
	292,744	4,090,214
Total income for the year	31,339,290	24,801,471

 

 

3. Group operating profit

 

	1 January 2023	2 January 2022
	£	£
This is stated after charging/(crediting):
Variable lease charges* (see note 26)	444,327	613,531
Rent concessions (see note 26)	(171,856)	(1,284,744)
Lease modifications (see note 26)	-	(444,359)
Share-based payments expense (see note 21)	15,377	32,436
Restaurant opening costs	-	10,489
Depreciation of property, plant and equipment (see note 10)	3,252,841	3,659,196
Impairment of assets (see note 9 & 10)	78,266	336,356
Loss on disposal of fixed assets	8,188	38,098
Auditors' remuneration (see note 4)	75,000	44,500
Exceptional legal and professional fees**	1,002,054	-

*Variable lease charges relate to additional rental expenses payable based on selected restaurants achieving a certain level of turnover for the year.

**Exceptional legal and professional fees related to payments and associated fees in respect of C Hanna's resignation as Chief Executive Officer of the Group during the period.

 

For the initial trading period following the opening of a new restaurant, the performance of that restaurant will be lower than that achieved by other, similar mature restaurants. The difference in this performance, which is calculated by reference to gross profit margins amongst other key metrics is quantified and included within opening costs. The breakdown of opening costs, between pre-opening costs and certain post-opening costs for 3 months is shown below:

 

	1 January 2023	2 January 2022
	£	£
Pre-opening costs	-	10,489
	-	10,489

 

4. Auditors' remuneration

 

	1 January 2023	2 January 2022
	£	£
Auditors' remuneration:
Fees payable to Company's auditor for the audit of its annual accounts	20,500	19,500
Other fees to the Company's auditors
The audit of the Company's subsidiaries	49,500	20,000
Total audit fees	70,000	39,500
Review of the half-year accounts	5,000	5,000
Total non-audit fees	5,000	5,000
Total auditors' remuneration	75,000	44,500

 

 

 

 

 

 

 

5. Staff costs and numbers

 

	1 January 2023	2 January 2022
	£	£
(a) Staff costs (including Directors):
Wages and salaries:
Kitchen, floor and management wages	10,140,060	6,300,540
Apprentice Levy	39,202	26,788
Other costs:
Social security costs	844,542	624,327
Share-based payments (note 21)	15,377	32,436
Pension costs	159,281	140,908
Total staff costs	11,198,462	7,124,999
(b) Staff numbers (including Directors):	Number	Number
Kitchen and floor staff	461	371
Management staff	136	104
Total number of staff	597	475
(c) Directors' remuneration:
Emoluments	1,528,598	437,858
Money purchase (and other) pension contributions	27,366	33,950
Non-Executive Directors' fees	-	7,500
Total Directors' costs* *Includes redundancy pay.	1,555,964	479,307
Directors' remuneration disclosed above include the following amounts paid to the highest paid Director still in office at the end of the period:
Emoluments	336,672	158,203
Money purchase (and other) pension contributions	1,321	10,913
	1 January 2023	2 January 2022
	£	£
Current tax:	-	-
UK corporation tax on the profit/(loss) for the year
Adjustments in respect of previous years	(64,480)	(11,629)
Deferred tax:
Origination and reversal of temporary differences	7,235	220,343
Tax losses carried forward	371,391	(327,002)
Total tax charge/(credit) for the period	314,146	(118,288)

 Further details on Directors' emoluments and the executive pension schemes are given in the Directors' report.

 

6. Finance costs

 

	1 January 2023	2 January 2022
	£	£
Interest payable and similar charges:
Interest on bank loans and overdraft	94,078	21,057
Interest on lease liabilities	948,619	801,037
Total finance costs for the year	1,042,697	822,094

 

7. Taxation

The major components of income tax for the periods ended 1 January 2023 and 2 January 2022 are:

 

(a) Analysis of charge in the year:

 

 

Factors affecting the tax charge for the year:

The tax charged for the year varies from the standard rate of corporation tax in the UK due to the following factors:

 

	1 January 2023	2 January 2022
	£	£
Profit/(loss) before tax	902,450	1,525,167
Expected tax charge based on the standard rate of corporation tax in the UK of 19% (2022: 19%)	171,466	289,782
Effects of:
Depreciation on non-qualifying assets	7,638	223,735
Expenses not deductible for tax purposes	(19,573)	12,709
Adjustments in respect of previous tax years	(64,480)	(11,629)
Tax losses utilised/(carried forward)	(159,531)	(388,489)
Losses previously not recognised	-	(218,798)
Effect of change in corporation tax rate	-	(25,598)
Movements in respect of deferred tax	378,626	-
Total tax charge/(credit) for the period	314,146	(118,288)

 

The Group had a brought forward tax losses of £1,793,961 at 2 January 2022, of which £839,637 was utilised in the period ended 1 January 2023.

In March 2021 a change to the future corporation tax rate was substantively enacted to increase from 19% to 25% from 1 April 2023. Accordingly, the rate used to calculate the deferred tax balances at 1 January 2023 is 25% (2 January 2022: 25%) as the timing of the release of this asset is materially expected to be after this date.

 

8. Earnings per share

The basic and diluted loss per share figures are set out below:

 

	1 January 2023	2 January 2022
	£	£
Profit attributable to shareholders	588,304	1,643,455
Weighted average number of shares
For basic earnings per share	122,666,667	122,666,667
Adjustment for options outstanding	-	-
For diluted earnings per share	122,666,667	122,666,667

 

	Pence per share	Pence per share
Loss per share:
Basic (pence) From profit for the year	0.48	1.34
Diluted (pence) From profit for the year	0.48	1.34

 

Further details of the share options that could potentially dilute basic earnings per share in the future are provided in note 21.

Diluted earnings per share is calculated by dividing the profit or loss attributable to ordinary shareholders by the weighted average number of shares and 'in the money' share options in issue. Share options are classified as 'in the money' if their exercise price is lower than the average share price for the period. As required by IAS 33 'Earnings Per Share', this calculation assumes that the proceeds receivable from the exercise of 'in the money' options would be used to purchase share options in the open market in order to reduce the number of new shares that would need

to be issued. As the shares were not 'in the money' as at 1 January 2023 and consequently would be antidilutive, no adjustment was made in respect of the share options outstanding to determine the diluted number of options.

 

9. Intangible assets

Group	Goodwill	Total
	£	£
Cost
At 1 January 2021	89,961	89,961
Additions	-	-
At 2 January 2022	89,961	89,961
Accumulated amortisation and impairment
At 1 January 2021	(34,694)	(34,694)
Impairments	-	-
At 2 January 2022	(34,694)	(34,694)
Net Book Value as at 31 December 2020	55,267	55,267
Net Book Value as at 2 January 2022	55,267	55,267
	Goodwill	Total
	£	£
Cost
At 1 January 2021	89,961	89,961
Additions	-	-
At 2 January 2022	89,961	89,961
Accumulated amortisation and impairment
At 1 January 2021	(34,694)	(34,694)
Impairments	(26,133)	(26,133)
At 2 January 2022	(60,827)	(60,827)
Net Book Value as at 2 January 2022	55,267	55,267
Net Book Value as at 1 January 2023	29,134	29,134

Goodwill arising on business combinations is not amortised but is subject to an impairment test annually which compares the goodwill's 'value in use' to its carrying value. During the year, an impairment of £26,133 (2022: £nil) was considered necessary in respect of goodwill.

 

10. Property, plant and equipment

 

 

 

 

 

Group	Right-of use assets	Leasehold land & buildings	Plant & machinery	Fixture, fittings, & equipment	Motor vehicles	Total
	£	£	£	£	£	£
Cost
At 1 January 2021	27,924,649	11,016,023	4,800,774	2,858,547	53,430	46,653,423
Additions	961,807	26,764	243,860	165,649	-	1,398,080
Disposals	-	(623,777)	(342,067)	(180,230)	(15,120)	(1,161,194)
Modifications	(241,519)	-	-	-	-	(241,519)
At 2 January 2022	28,644,937	10,419,010	4,702,567	2,843,966	38,310	46,648,790
Accumulated depreciation and impairment
At 1 January 2021	(10,327,905)	(5,878,170)	(2,926,080)	(1,441,993)	(8,935)	(20,583,083)
Depreciation during the period	(2,286,551)	(770,599)	(342,355)	(254,073)	(5,618)	(3,659,196)
Disposals during the period	-	620,673	320,586	172,390	9,445	1,123,094
Impairment during the period	(70,101)	(179,932)	(61,047)	(25,276)	-	(336,356)
At 2 January 2022	(12,684,557)	(6,208,028)	(3,008,896)	(1,548,952)	(5,108)	(23,455,541)
Cost
At 3 January 2022	28,644,937	10,419,010	4,702,567	2,843,966	38,310	46,648,790
Additions	-	15,741	417,524	147,985	-	581,250
Disposals	-	(63,577)	(26,785)	(704)	-	(91,066)
Modifications	(48,527)	-	-	-	-	(48,527)
At 1 January 2023	28,596,410	10,371,174	5,093,306	2,991,247	38,310	47,090,447
Accumulated depreciation and impairment
At 3 January 2022	(12,684,557)	(6,208,028)	(3,008,896)	(1,548,952)	(5,108)	(23,455,541)
Depreciation during the period	(2,166,098)	(619,284)	(298,010)	(163,320)	(6,129)	(3,252,841)
Disposals during the period	-	64,380	21,420	(2,922)	-	82,878
Impairment during the period	(41,328)	(1,602)	(7,220)	(1,983)	-	(52,133)
Transfers	-	(55,802)	55,802	-	-	-
At 1 January 2023	(14,891,983)	(6,820,336)	(3,236,904)	(1,717,177)	(11,237)	(26,677,637)
Net Book Value as at 3 January 2022	15,960,380	4,210,982	1,693,671	1,295,014	33,202	23,193,249
Net Book Value as at 1 January 2023	13,704,427	3,550,838	1,856,402	1,274,070	27,073	20,412,810

 

 

 

 

The right of use assets relates to one class of underlying assets, being the property leases entered into for various restaurants.

 

At each reporting date the Group considers any indication of impairment to the carrying value of its property, plant and equipment. The assessment is based on expected future cash flows and Value-in-Use calculations are performed annually and at each reporting date and is carried out on each restaurant as these are separate 'cash generating units' (CGU). Value-in-use was calculated as the net present value of the projected risk-adjusted post-tax cash flows plus a terminal value of the CGU. A pre-tax discount rate was applied to calculate the net present value of pre-tax cash flows. The discount rate was calculated using a market participant weighted average cost of capital. A single rate has been used for all restaurants as management believe the risks to be the same for all restaurants.

 

The recoverable amount of each CGU has been calculated with reference to its value-in-use. The key assumptions of this calculation are shown below:

 

Sales growth	3%
Discount rate	5.5%
Number of years projected	over life of lease

 

The projected sales growth was based on the Group's latest forecasts at the time of review. The key assumptions in the cashflow pertain to revenue growth. Management have determined that growth based on industry average growth rates and actuals achieved historically are the best indication of growth going forward. The Directors are confident that the Group is largely immune from the effects of Brexit and forecasts have considered the impact of inflation and rising energy costs. Management has also performed sensitivity analysis on sales inputs to the model and noted no material sensitivities in the model.

 

Based on the review, an impairment charge of £52,133 (2022: £336,357) was recorded for the year.

 

11. Subsidiaries

 

The subsidiaries of Comptoir Group PLC, all of which have been included in these consolidated financial statements, are as follows:

Name	Country of incorporation and principal place of business	Proportion of ownership interest as at year end
		2023**	2022
Timerest Limited	England & Wales	100%	100%
Chabane Limited*	England & Wales	100%	100%
Comptoir Franchise Limited	England & Wales	100%	100%
Shawa Group Limited*	England & Wales	100%	100%
Shawa Bluewater Limited*	England & Wales	100%	100%
Shawa Limited	England & Wales	100%	100%
Shawa Westfield Limited	England & Wales	100%	100%
Shawa Rupert Street Limited*	England & Wales	100%	100%
Comptoir Stratford Limited*	England & Wales	100%	100%
Comptoir South Ken Limited*	England & Wales	100%	100%
Comptoir Soho Limited*	England & Wales	100%	100%
Comptoir Central Production Limited*	England & Wales	100%	100%
Comptoir Westfield London Limited*	England & Wales	100%	100%
Levant Restaurants Group Limited*	England & Wales	100%	100%
Comptoir Chelsea Limited*	England & Wales	100%	100%
Comptoir Bluewater Limited*	England & Wales	100%	100%
Comptoir Wigmore Limited*	England & Wales	100%	100%
Comptoir Kingston Limited*	England & Wales	100%	100%
Comptoir Broadgate Limited*	England & Wales	100%	100%
Comptoir Manchester Limited*	England & Wales	100%	100%
Comptoir Restaurants Limited	England & Wales	100%	100%
Comptoir Leeds Limited*	England & Wales	100%	100%
Comptoir Oxford Street Limited*	England & Wales	100%	100%
Comptoir I.P. Limited*	England & Wales	100%	100%
Comptoir Reading Limited*	England & Wales	100%	100%
Comptoir Bath Limited*	England & Wales	100%	100%
Comptoir Exeter Limited*	England & Wales	100%	100%
Yalla Yalla Restaurants Limited	England & Wales	100%	100%
Comptoir Haymarket Ltd*	England & Wales	100%	100%
Comptoir Oxford Limited*	England & Wales	100%	100%

 

*Dormant companies

**52 weeks ending 1 January 2023

The registered office address for all subsidiaries is Unit 2, Plantain Place, Crosby Row, London, England, SE1 1YN.

 

12. Inventories

 

	Group 1 January 2023	Group 2 January 2022
	£	£
Finished goods and goods for resale	474,655	465,890

 

13. Trade and other receivables

 

	Group 1 January 2023	Group 2 January 2022
	£	£
Trade receivables	256,841	51,389
Other receivables	318,018	323,687
Prepayments and accrued income	645,194	323,918
Total trade and other receivables	£1,220,053	698,994

 

14. Trade and other payables

 

	Group 1 January 2023	Group 2 January 2022
	£	£
Trade payables	2,307,855	2,027,821
Accruals	2,701,001	3,054,952
Other taxation and social security	1,309,913	996,938
Other payables	80,906	51,828
Total trade and other payables	6,399,675	6,131,539