A & A Pizza Company Ltd |
Notes to the Accounts |
for the year ended 31 July 2013 |
|
1 |
Accounting policies |
|
|
Basis of preparation |
|
The accounts have been prepared under the historical cost convention and in accordance with applicable United Kingdom Accounting Standards. |
|
|
Depreciation |
|
Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows: |
|
|
Freehold buildings |
over 50 years |
|
Goodwill |
Over 5 years |
|
Leasehold land and buildings |
over the lease term |
|
Plant and machinery |
15% on written down value |
|
Motor vehicles |
25% on written down value |
|
|
Deferred taxation |
|
Full provision is made for deferred taxation resulting from timing differences between the recognition of gains and losses in the accounts and their recognition for tax purposes. Deferred tax is calculated at the tax rates which are expected to apply in the periods when the timing differences will reverse. |
|
|
Leasing and hire purchase commitments |
|
Assets held under finance leases and hire purchase contracts, which are those where substantially all the risks and rewards of ownership of the asset have passed to the company, are capitalised in the balance sheet and depreciated over their useful lives. The corresponding lease or hire purchase obligation is treated in the balance sheet as a liability. The interest element of the rental obligations is charged to the profit and loss account over the period of the lease and represents a constant proportion of the balance of capital repayments outstanding. Rentals paid under operating leases are charged to income on a straight line basis over the lease term. |
|
|
2 |
Analysis of turnover |
2013 |
|
2012 |
£ |
£ |
|
By activity: |
|
|
Pizza Takeaway |
6,960,328 |
|
5,089,636 |
|
|
|
|
|
|
|
|
|
|
By geographical market: |
|
|
UK |
6,960,328 |
|
5,089,636 |
|
|
|
|
|
|
|
|
|
|
3 |
Operating profit |
2013 |
|
2012 |
£ |
£ |
|
This is stated after charging: |
|
|
Depreciation of owned fixed assets |
166,782 |
|
136,510 |
|
Depreciation of assets held under finance leases and hire purchase contracts |
|
15,437 |
|
2,688 |
|
Amortisation of goodwill |
3,000 |
|
2,250 |
|
Auditors' remuneration for audit services |
8,900 |
|
7,500 |
|
Auditors' remuneration for other services |
22,233 |
|
21,255 |
|
|
|
|
|
|
|
|
|
|
4 |
Exceptional items |
2013 |
|
2012 |
£ |
£ |
|
|
Profit on disposal of plant and machinery |
- |
|
6,958 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5 |
Directors' emoluments |
2013 |
|
2012 |
£ |
£ |
|
|
Emoluments |
29,120 |
|
27,426 |
|
|
|
|
|
|
|
|
|
|
6 |
Staff costs |
2013 |
|
2012 |
£ |
£ |
|
|
Wages and salaries |
2,087,301 |
|
1,591,115 |
|
Social security costs |
122,246 |
|
86,373 |
|
|
|
|
|
|
2,209,547 |
|
1,677,488 |
|
|
|
|
|
|
|
|
|
|
|
Average number of employees during the year |
Number |
Number |
|
|
Administration |
7 |
|
7 |
|
Marketing |
1 |
|
1 |
|
Sales |
224 |
|
218 |
|
|
|
|
|
|
232 |
|
226 |
|
|
|
|
|
|
|
|
|
|
7 |
Interest payable |
2013 |
|
2012 |
£ |
£ |
|
|
Bank loans and overdrafts |
102,173 |
|
89,482 |
|
Other loans |
1,149 |
|
- |
|
|
|
|
|
|
103,322 |
|
89,482 |
|
|
|
|
|
|
|
|
|
8 |
Taxation |
2013 |
|
2012 |
£ |
£ |
|
Analysis of charge in period |
|
Current tax: |
|
UK corporation tax on profits of the period |
37,979 |
|
144,821 |
|
|
|
|
|
|
|
|
|
|
Deferred tax: |
|
Origination and reversal of timing differences |
(2,741) |
|
71,253 |
|
|
|
|
|
|
|
|
|
|
|
Tax on profit on ordinary activities |
35,238 |
|
216,074 |
|
|
|
|
|
|
|
|
|
|
Factors affecting tax charge for period |
|
The differences between the tax assessed for the period and the standard rate of corporation tax are explained as follows: |
|
|
|
|
|
|
|
2013 |
|
2012 |
£ |
£ |
|
Profit on ordinary activities before tax |
201,470 |
|
545,684 |
|
|
|
|
|
|
|
|
|
|
Standard rate of corporation tax in the UK |
24% |
|
26% |
|
£ |
£ |
|
Profit on ordinary activities multiplied by the standard rate of corporation tax |
|
48,353 |
|
141,878 |
|
|
Effects of: |
|
Expenses not deductible for tax purposes |
(10,374) |
|
2,943 |
|
|
Current tax charge for period |
37,979 |
|
144,821 |
|
|
|
|
|
|
|
|
|
|
9 |
Intangible fixed assets |
£ |
|
Goodwill: |
|
|
Cost |
|
At 1 August 2012 |
244,110 |
|
At 31 July 2013 |
244,110 |
|
|
|
|
|
|
|
|
|
|
Amortisation |
|
At 1 August 2012 |
231,360 |
|
Provided during the year |
3,000 |
|
At 31 July 2013 |
234,360 |
|
|
|
|
|
|
|
|
|
|
Net book value |
|
At 31 July 2013 |
9,750 |
|
At 31 July 2012 |
12,750 |
|
|
|
|
|
|
|
|
|
|
Goodwill is being written off in equal annual instalments over its estimated economic life of 5 years. |
|
|
10 |
Tangible fixed assets |
|
|
Land and buildings |
|
Motor vehicle |
|
Fixtures, fittings, tools and equipment |
|
Total |
£ |
£ |
£ |
£ |
|
Cost |
|
At 1 August 2012 |
388,104 |
|
196,491 |
|
1,713,061 |
|
2,297,656 |
|
Additions |
- |
|
900 |
|
144,006 |
|
144,906 |
|
At 31 July 2013 |
388,104 |
|
197,391 |
|
1,857,067 |
|
2,442,562 |
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
At 1 August 2012 |
83,773 |
|
151,140 |
|
838,621 |
|
1,073,534 |
|
Charge for the year |
17,890 |
|
11,563 |
|
152,767 |
|
182,220 |
|
At 31 July 2013 |
101,663 |
|
162,703 |
|
991,388 |
|
1,255,754 |
|
|
|
|
|
|
|
|
|
|
Net book value |
|
At 31 July 2013 |
286,441 |
|
34,688 |
|
865,679 |
|
1,186,808 |
|
At 31 July 2012 |
304,331 |
|
45,351 |
|
874,440 |
|
1,224,122 |
|
|
|
|
|
|
|
|
|
|
11 |
Investments |
Investments in |
subsidiary |
undertakings |
£ |
|
Cost |
|
At 1 August 2012 |
3,298,249 |
|
Additions |
(184,000) |
|
|
At 31 July 2013 |
3,114,249 |
|
|
|
|
|
|
|
|
|
|
The company holds 20% or more of the share capital of the following companies: |
|
Capital and |
Profit (loss) |
|
Company |
Shares held |
reserves |
for the year |
|
|
Class |
% |
£ |
£ |
|
A & B Investments (London) Ltd |
Ordinary |
100 |
|
A & H Pizza Company Ltd |
Ordinary |
100 |
|
TAG (London) Ltd |
Ordinary |
100 |
|
|
|
The Company holds the above companies by virtue of its ownership of 100% share capital of |
|
Kpmbilagi Ltd which is the holding company of the above companies. |
|
|
12 |
Stocks |
2013 |
|
2012 |
£ |
£ |
|
|
Raw materials and consumables |
45,157 |
|
38,860 |
|
|
|
|
|
|
|
|
|
|
The difference between purchase price or production cost of stocks and their replacement cost is not material. |
|
13 |
Debtors |
2013 |
|
2012 |
£ |
£ |
|
|
Amounts owed by group undertakings and undertakings in which the company has a participating interest |
|
325,311 |
|
508,243 |
|
Other debtors |
122,465 |
|
123,191 |
|
Prepayments and accrued income |
104,959 |
|
104,825 |
|
|
|
|
|
|
552,735 |
|
736,259 |
|
|
|
|
|
|
|
|
|
|
14 |
Creditors: amounts falling due within one year |
2013 |
|
2012 |
£ |
£ |
|
|
Bank loans and overdrafts |
650,972 |
|
652,742 |
|
Obligations under finance lease and hire purchase contracts |
7,353 |
|
14,566 |
|
Trade creditors |
210,369 |
|
371,873 |
|
Amounts owed to group undertakings and undertakings in which the company has a participating interest |
|
622,167 |
|
325,491 |
|
Corporation tax |
37,979 |
|
243,396 |
|
Other taxes and social security costs |
264,128 |
|
307,764 |
|
Other creditors |
76,493 |
|
92,083 |
|
Accruals and deferred income |
114,884 |
|
132,817 |
|
Sundry |
2 |
|
- |
|
|
|
|
|
|
1,984,347 |
|
2,140,732 |
|
|
|
|
|
|
|
|
|
|
15 |
Creditors: amounts falling due after one year |
2013 |
|
2012 |
£ |
£ |
|
|
Bank loans |
2,099,373 |
|
2,749,616 |
|
Obligations under finance lease and hire purchase contracts |
- |
|
7,425 |
|
Loan from headoffice |
34,264 |
|
17,057 |
|
Accruals and deferred income |
60,463 |
|
- |
|
|
|
|
|
|
2,194,100 |
|
2,774,098 |
|
|
|
|
|
|
|
|
|
|
16 |
Loans |
2013 |
|
2012 |
£ |
£ |
|
Loans not wholly repayable within five years: |
|
Loan 1 |
542,881 |
|
732,867 |
|
Loan 2 |
2,203,270 |
|
2,663,927 |
|
|
|
|
|
|
2,746,151 |
|
3,396,794 |
|
|
|
|
|
|
|
|
|
|
|
17 |
Obligations under finance leases and hire purchase |
2013 |
|
2012 |
|
contracts |
£ |
£ |
|
|
Amounts payable: |
|
Within one year |
7,353 |
|
14,566 |
|
Within two to five years |
- |
|
7,425 |
|
|
|
|
|
|
7,353 |
|
21,991 |
|
|
|
|
|
|
|
|
|
|
18 |
Deferred taxation |
2013 |
|
2012 |
£ |
£ |
|
|
Accelerated capital allowances |
68,512 |
|
71,253 |
|
Undiscounted provision for deferred tax |
68,512 |
|
71,253 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2013 |
|
2012 |
£ |
£ |
|
|
At 1 August |
71,253 |
|
- |
|
Deferred tax charge in profit and loss account |
(2,741) |
|
71,253 |
|
|
At 31 July |
68,512 |
|
71,253 |
|
|
|
|
|
|
|
|
|
|
19 |
Share capital |
Nominal |
|
2013 |
|
2013 |
|
2012 |
value |
Number |
£ |
£ |
|
Allotted, called up and fully paid: |
|
Ordinary shares |
£1 each |
|
2 |
|
2 |
|
2 |
|
|
|
|
|
|
|
|
|
|
20 |
Profit and loss account |
2013 |
£ |
|
|
At 1 August 2012 |
680,479 |
|
Profit for the financial year |
166,232 |
|
|
At 31 July 2013 |
846,711 |
|
|
|
|
|
|
|
|
21 |
Reconciliation of movement in shareholders' funds |
2013 |
|
2012 |
£ |
£ |
|
|
At 1 August |
680,481 |
|
350,871 |
|
Profit for the financial year |
166,232 |
|
329,610 |
|
|
At 31 July |
846,713 |
|
680,481 |
|
|
|
|
|
|
|
|
|
|
22 |
Gross cash flows |
2013 |
|
2012 |
£ |
£ |
|
Returns on investments and servicing of finance |
|
Interest received |
57 |
|
155 |
|
Interest paid |
(103,322) |
|
(92,138) |
|
|
|
|
|
|
(103,265) |
|
(91,983) |
|
|
|
|
|
|
|
|
|
|
Capital expenditure |
|
Payments to acquire tangible fixed assets |
(144,906) |
|
(35,013) |
|
Payments to acquire investments |
184,000 |
|
(3,900,000) |
|
|
|
|
|
|
39,094 |
|
(3,935,013) |
|
|
|
|
|
|
|
|
|
|
Financing |
|
Loan repayments |
(650,643) |
|
2,795,276 |
|
Capital element of finance lease rental payments |
(14,638) |
|
- |
|
|
|
|
|
|
(665,281) |
|
2,795,276 |
|
|
|
|
|
|
|
|
|
|
23 |
Analysis of changes in net debt |
|
|
At 1 Aug 2012 |
|
Cash flows |
|
Non-cash changes |
|
At 31 Jul 2013 |
£ |
£ |
£ |
£ |
|
|
Cash at bank and in hand |
356,324 |
|
(171,351) |
|
|
|
184,973 |
|
Overdrafts |
(5,564) |
|
1,370 |
|
|
|
(4,194) |
|
|
|
|
(169,981) |
|
|
|
|
|
|
|
Debt due within 1 year |
(647,178) |
|
400 |
|
|
|
(646,778) |
|
Debt due after 1 year |
(2,749,616) |
|
650,243 |
|
|
|
(2,099,373) |
|
Finance leases |
(21,991) |
|
14,638 |
|
|
|
(7,353) |
|
|
|
|
665,281 |
|
|
|
|
|
|
|
|
|
|
|
|
Total |
(3,068,025) |
|
495,300 |
|
- |
|
(2,572,725) |
|
|
|
|
|
|
|
|
|
|
24 |
Other financial commitments |
|
|
At the year end the company had annual commitments under non-cancellable operating leases as set out below: |
|
|
|
Land and buildings |
|
Land and buildings |
Other |
Other |
|
|
2013 |
|
2012 |
|
2013 |
|
2012 |
£ |
£ |
£ |
£ |
|
Operating leases which expire: |
|
in over five years |
272,000 |
|
253,200 |
|
- |
|
- |
|
|
|
|
|
|
|
|
|
|
25 |
Loans to directors |
|
Description and conditions |
B/fwd |
Paid |
Repaid |
C/fwd |
£ |
£ |
£ |
£ |
|
Ajaz Mirza |
|
Interest free loan |
78,308 |
|
|
|
- |
|
78,308 |
|
|
|
78,308 |
|
- |
|
- |
|
78,308 |
|
|
|
|
|
|
|
|
|
|
26 |
Related party transactions |
2013 |
|
2012 |
£ |
£ |
|
A & B Investments (London) Ltd |
|
Subsiduary Company |
|
Intercompany Loan |
|
[Amount due from (to) the related party] |
(308,725) |
|
(220,051) |
|
|
A & H Pizza UK Ltd |
|
Subsiduary Company |
|
Intercompany Loan |
|
[Amount due from (to) the related party] |
148,058 |
|
235,218 |
|
|
City of London Express Ltd |
|
Holding Company |
|
Intercompany Loan |
|
[Amount due from (to) the related party] |
(101,083) |
|
48,917 |
|
|
Euston Pizza Ltd |
|
Associate Company |
|
Intercompany Loan |
|
[Amount due from (to) the related party] |
1,339 |
|
1,339 |
|
|
Pizza Castle Ltd |
|
Associate Company |
|
Intercompany Loan |
|
[Amount due from (to) the related party] |
(154,139) |
|
(154,139) |
|
|
Pizza Rainy Ltd |
|
Associate Company |
|
Intercompany Loan |
|
[Amount due from (to) the related party] |
(58,220) |
|
(218) |
|
|
TAG (London) Ltd |
|
Subsiduary Company |
|
Intercompany Loan |
|
[Amount due from (to) the related party] |
173,915 |
|
271,686 |
|
|
27 |
Directors loan account and interest |
|
|
As at the balance sheet date the amount outstanding by the company to the directors was |
|
as follows:- Mr Amir Zarinabad £35,533 (2012 £35,533) and Mr Ajaz Mirza,outstanding to the |
|
company, £78,308 (2012 outstanding to the company £78,308). |
|
|
28 |
Holding company |
|
|
The company is a 100% subsiduary of City of London Express Ltd which itself is a 100% |
|
subsiduary of ZAM Holdings (UK) Ltd. Therefore Zam Holdings (UK) Ltd is also the parent |
|
company of A & A Pizza Company Ltd. |
|
|
29 |
Group Accounts |
|
|
The company does not prepare the group accounts as the company is itself a subsidiary of Zam |
|
Holdings (UK) Ltd and is included in the group accounts of the holding company. |
|