Consolidated statement of financial position

 

		At 2 January 2022	At 3 January 2021
	Note	£	£
Non-current assets
Right-of-use assets	12	24,939,614	25,324,841
Property, plant and equipment	13	9,264,167	9,112,143
Total non-current assets		34,203,781	34,436,984
Current assets
Inventories	14	326,108	239,782
Trade and other receivables	15	1,888,702	1,898,295
Cash and cash equivalents	16	9,653,172	10,086,759
Total current assets		11,867,982	12,224,836
Total assets		46,071,763	46,661,820
Current liabilities
Trade and other payables	17	6,729,865	4,909,704
Lease liabilities	12	5,830,987	7,176,104
Loans and borrowings	18	-	1,000,000
Corporation tax liability	10	900,690	-
Total current liabilities		13,461,542	13,085,808
Non-current liabilities
Lease liabilities	12	25,831,103	24,195,555
Loans and borrowings	18	2,911,941	11,426,235
Total non-current liabilities		28,743,044	35,621,790
Total liabilities		42,204,586	48,707,598
Net assets / (liabilities)		3,867,177	(2,045,778)
Equity attributable to equity holders of the company
Called up share capital	19	386,640	359,016
Share premium account	20	4,433,250	-
Merger reserve	20	4,793,170	4,793,170
Share based payment reserve	20	90,507	-
Retained earnings	20	(5,836,390)	(7,197,964)
Total equity		3,867,177	(2,045,778)

 

The accompanying notes within this announcement form an integral part of these Financial Statements. The financial statements of Tortilla Mexican Grill plc (registration number 13511888) were approved by the Board and authorised for issue on 11 April 2022. They were signed on its behalf by:

 

Andy Naylor

Chief Financial Officer

11 April 2022

 

 

 

 

 

 

 

 

 

Consolidated statement of changes in equity 

 

		Share capital	Share premium	Merger reserve	Share-based payment reserve	Retained earnings	Total
		£	£	£	£	£	£
Balance as at 29 December 2019		359,016	-	4,793,170	-	(5,504,732)	(352,546)
Loss for the period		-	-	-	-	(1,693,232)	(1,693,232)
Balance as at 3 January 2021		359,016	-	4,793,170	-	(7,197,964)	(2,045,778)
Profit for the period		-	-	-	-	1,361,574	1,361,574
Newly issued equity shares		27,624	4,972,376	-	-	-	5,000,000
Cost of issue of equity shares		-	(539,126)	-	-	-	(539,126)
Share-based payments		-	-	-	90,507	-	90,507
Balance as at 2 January 2022		386,640	4,433,250	4,793,170	90,507	(5,836,390)	3,867,177

 

 

The accompanying notes within this announcement form an integral part of these Financial Statements.

 

 

 

 

 

 

 

Consolidated statement of cash flows

 

		52 weeks ended	53 weeks ended
		2 January 2022	3 January 2021
	Note	£	£
Operating activities
Profit/(loss) after tax		1,361,574	(1,693,232)
Adjustments for:
Share based payments	8	90,507	-
Net finance expense	9	377,144	228,168
Finance cost on lease liabilities	9	994,747	995,789
Corporation tax charge	10	900,690	-
Depreciation of right to use assets	12	3,514,015	3,495,701
Impairment of right to use assets	12	99,868	(66,584)
Depreciation of property, plant and equipment	13	2,634,304	2,033,690
Impairment of property, plant and equipment	13	-	333,371
Loss on disposal of property, plant and equipment	13	6,852	-
Increase in inventories	14	(86,326)	(3,739)
Decrease in trade and other receivables	15	9,593	56,064
Increase/(decrease) in trade and other payables	17	1,820,161	(1,197,011)
Cash generated from operations		11,723,129	4,182,217
Investing activities
Interest received	9	613	1,964
Purchase of property, plant and equipment	13	(2,793,181)	(1,404,116)
Net cash used by investing activities		(2,792,568)	(1,402,152)
Financing activities
Proceeds from issue of shares		5,000,000	-
Cost of issue of shares		(539,126)	-
Payments made in respect of lease liabilities	12	(3,932,971)	(655,652)
Interest paid		(203,303)	(284,549)
New loans secured	18	2,907,306	3,846,600
Repayment of loans	18	(12,596,054)	(1,200,000)
Net cash (used by)/generated from financing activities		(9,364,148)	1,706,399
Net (decrease)/increase in cash and cash equivalents		(433,587)	4,486,464
Cash and cash equivalents at the beginning of period	16	10,086,759	5,600,295
Cash and cash equivalents at the end of period		9,653,172	10,086,759

 

 

 

 

 

 

Notes to the consolidated financial information

 

1.   General information

 

Tortilla Mexican Grill plc, the "Company" together with its subsidiaries, "the Group", is a public limited company whose shares are publicly traded on the Alternative Investment Market("AIM") and is incorporated and domiciled in the United Kingdom and registered in England and Wales.

 

The registered address of Tortilla Mexican Grill plc and all subsidiaries is 142-144 New Cavendish Street, London, W1W 6YF, United Kingdom. A list of the Company's subsidiaries is presented in note 22.

 

The Group's principal activity is the operation and management of restaurants trading under the Tortilla brand both within the United Kingdom and the Middle East.

 

2.   Accounting policies

 

2.1    Statement of Compliance

 

The consolidated financial statements have been prepared in accordance with International Account Standards in conformity with the requirements of the Companies Act 2006 and in accordance with International Financial Reporting Standards.

 

2.2    Basis of preparation

 

The consolidated financial information contained in this document includes the consolidated statement of comprehensive income, the consolidated statement of financial position, the consolidated statement of changes in equity, the consolidated statement of cash flows and related notes for the companies which comprise the Group.

 

2.3    New standards, amendments and interpretations adopted

 

In May 2020 the IASB issued COVID-Related Rent Concessions (Amendments to IFRS 16) that provided a practical expedient permitting lessees not to assess COVID-related rent concessions as a lease modification. The Group has opted not to apply this amendment.

 

Other amendments applied for the first time for the 52 weeks ending 2 January 2022 were:

·      Definition of material - amendments to IAS 1 and IAS 8;

·      Definition of a business - amendment to IFRS 3;

·      Revised conceptual framework for financial reporting; and

·      Interest rate benchmark reform - amendments to IFRS 9, IAS 39 and IFRS 7.

 

The application of these did not have a material impact on the Group's accounting treatment and has therefore not resulted in any material changes.

 

2.4    Standards issued not yet effective

 

Standard/Amendments	Applicable for financial periods beginning on/after
IAS 37 Onerous contracts - Cost of fulfilling a contract	1 January 2022
Annual improvements to IFRS standards 2018-2020	1 January 2022
IAS 16 Property, plant and equipment: proceeds before intended use	1 January 2022
IFRS 3 Reference to the conceptual framework	1 January 2022
IFRS 17 Insurance contracts	1 January 2023
IFRS 17 Amendments	1 January 2023
IAS 1 Classification of liabilities as current or non-current	1 January 2023
IAS 1 Disclosure of accounting policies	1 January 2023
IAS 8 Definition of accounting estimates	1 January 2023
IAS 12 Deferred tax related to assets and liabilities arising from a single transaction	1 January 2023

 

When applied, none of these amendments are expected to have a material impact on the Group.

 

2.5    Basis of consolidation

 

The consolidated financial information incorporates the financial statements of the Group and all of its subsidiary undertakings. The financial statements of all Group companies are adjusted, where necessary, to ensure the use of consistent accounting policies. Where the Group has power, either directly or indirectly, to govern the financial and operating policies of an entity to obtain benefits from its activities, it is classified as a subsidiary.

 

The consolidated financial information incorporates the results of a business combination using the predecessor method.  Specifically, this is the acquisition of Mexican Grill Ltd, which meets the definition of a common control business combination and is therefore outside the scope of IFRS 3.  In the consolidated statement of financial position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their carrying values at the acquisition date.

 

The comparative figures for share capital are restated as if the entities had been combined at the earliest reporting date presented. The consolidated share capital at 29 December 2019 and 3 January 2021 therefore represents the share capital of Mexican Grill Ltd adjusted for the share capital issued for the purposes of the business combination.

 

The consolidated statement of financial position as at 2 January 2022 incorporates the results of Tortilla Mexican Grill plc and its subsidiaries for all periods.

 

2.6    Going concern

 

In assessing the going concern position of the Group for the consolidated financial statements for the 52 weeks ended 2 January 2022, the Directors have considered the Group's cash flow, liquidity and business activities, as well as the ongoing uncertainty caused by the COVID-19 pandemic.

 

The hospitality sector has been particularly impacted by COVID-19 and the Group has taken a number of actions to improve liquidity to ensure it is well placed to operate through the pandemic and to achieve its strategic goals.

 

During 2021, the Group successfully listed on AIM which gave the Group access to additional capital and combined with the strong cash generation of the business, enabled the Group to reduce the borrowing facilities to a principal amount of £3.0m.  The Group has access to a further £7.0m of financing and this remained undrawn as at 2 January 2022. The Group had cash balances of £9.7m as at 2 January 2022 which translate to a net cash position of £6.7m.

 

The Group has prepared forecasts for the next twelve months, including a base case and a severe downside case.

 

The base case assumes that there are no further lockdowns or restrictions and assumes no further government financial support. In this forecast there are no loan drawdowns and the Group remains in compliance with its covenant obligations.

 

Under the severe downside case the following adjustments are made:

·      Sales reduced by 20 percent in the second quarter of 2022 to model a further prolonged lockdown;

·     Sales reduced by 10 percent in the third quarter and 5 percent for the remainder of the year to incorporate the impact of increased restrictions throughout 2022; and

·   No further government support, such as reduced VAT, the reintroduction of the Coronavirus Job Retention Scheme or business rates relief, has been assumed.

 

Whilst this scenario would reduce Adjusted EBITDA by 29 percent, the Group would still have sufficient liquidity and remain in a net cash position. Consequently, the Group would not need to make a further drawdown and would remain in compliance with its covenant obligations. The Directors have also performed reverse stress testing to assess the conditions that would lead to a covenant breach. The Directors are comfortable with the outcome of this exercise.

 

Upon consideration of this analysis and the principal risks faced by the Group, the Directors are satisfied that the Group has adequate resources to continue in operation for the foreseeable future, a period of at least twelve months from the date of this report. Accordingly, the Directors have concluded that it is appropriate to prepare these financial statements on a going concern basis.

 

2.7    Revenue recognition

 

Revenue represents the amount receivable from customers for goods and services, exclusive of VAT and discounts.

 

The Group has recognised revenue in accordance with IFRS 15. The standard requires revenue to be recognised when goods or services are transferred to customers and the entity has satisfied its performance obligations under the contract, and at an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services.

 

The Group's revenue comprises of:

 

·      Food and beverage sales at restaurants with one performance obligation that is satisfied when control is transferred to the customer at the point of sale, which is usually when payment is received, and no contract assets or contract liabilities are created. The Group also generates revenue with a third-party delivery partner, which is payable the week after the revenue was recorded. The delivery partner charges a commission on these sales, which are recognised within administrative expenses. Revenue comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the Group's activities. Revenue is shown net of sales/value added tax, returns and discounts; and

 

·     Franchise fees from the Group's role as franchisor in the UK and Middle East.  Revenue comprises ongoing royalties based on the sales results of the franchisee and up-front initial site fees. Royalty revenue is accrued in line with reported sales performance once revenue can be reliably measured. Upfront initial site fees are recognised on opening of the associated franchisee restaurant.

 

The Group operates a loyalty scheme for customers which entitles the customer to free products after a specified number of purchases.  IFRS 15 requires entities to recognise a liability for the provision of these products as the customer, in effect, pays the Group in advance for future goods.  The Group has not recognised this liability as the value is not material.

 

2.8    Alternative Performance Measures ("APM's")

 

The Group has identified certain measures that it believes will assist the understanding of the performance of the business. These APM's are not defined or specified under the requirements of IFRS. The Group believes that these APM's, which are not considered to be a substitute for, or superior to, IFRS measures, provide stakeholders with additional useful information on the underlying trends, performance and position of the Group and are consistent with how business performance is measured internally.

 

The Group's APM's are: like for like ("LFL") revenue growth/(decline), Adjusted EBITDA (Pre-IFRS), Operating cash flow and net cash/(debt).

 

The Directors use Adjusted EBITDA as a primary KPI in managing the business. This measure excludes exceptional items, share option expenses and site pre-opening costs and applies pre-IFRS 16 treatment of leases.  The Directors believe this measure gives a more relevant indication of the underlying trading performance of the Group and is also the measure used by the banks for the purposes of assessing covenant compliance.

 

 

2.9    Employee benefits

 

i.    Short-term benefits

 

Salaries, wages, paid annual leave and sick leave, bonuses and non-monetary benefits are accrued in the period in which the associated services are provided by employees of the Group.

 

ii.   Defined contribution plan

 

Contributions to defined contribution schemes are charged to the consolidated statement of comprehensive income in the financial period to which they relate.

 

2.10   Leased assets

 

At the commencement date of the lease, the Group recognises lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include lease payments less any lease incentives receivable. In calculating the present value of lease payments, the Group uses its incremental borrowing rate at the lease commencement date because the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, for example a rent review or a change in the lease term.

 

2.11   Property, plant and equipment

 

Items of property, plant and equipment are initially recognised at cost. As well as the purchase price, cost includes directly attributable costs.

 

Depreciation is provided on all items of property, plant and equipment so as to write off their carrying value over the expected useful economic lives. It is provided at the following rates:

 

Short term leasehold property         -               over the lease term

Plant and machinery                           -               over 5 years

Fixtures and fittings                             -               over 3 years

Office equipment                                 -               over 3 years

Computer equipment                         -               over 3 years

 

2.12   Impairment

 

For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets (cash-generating units).

 

Other assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount.

 

2.13   Inventories

 

Inventories are initially recognised at cost, and subsequently at the lower of the cost and net realisable value. Cost comprises all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition.

 

 

 

2.14   Cash and cash equivalents

 

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value. Payments taken from customers on debit and credit cards are recognised as cash.

 

2.15   Deferred taxation

 

Deferred tax assets and liabilities are recognised where the carrying amount of an asset or liability in the consolidated statement of financial position differs from its tax base, except for differences arising on:

 

·     the initial recognition of an asset or liability in a transaction which is not a business combination and at the time of the transaction affects neither accounting or taxable profit; and

·     investments in subsidiaries and jointly controlled entities where the Group is able to control the timing of the reversal of the difference and it is probable that the difference will not reverse in the foreseeable future.

 

Recognition of deferred tax assets is restricted to those instances where it is probable that taxable profit will be available against which the difference can be utilised.

 

The amount of the asset or liability is determined using tax rates that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the deferred tax liabilities or assets are settled or recovered. Deferred tax balances are not discounted.

 

Deferred tax assets and liabilities are offset when the Group has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority on either:

 

·      the same taxable group company; or

·    different company entities which intend either to settle current tax assets and liabilities on a net basis, or to realise the assets and settle the liabilities simultaneously, in each future period in which significant amounts of deferred tax assets and liabilities are expected to be settled or recovered.

 

2.16   Operating segments

 

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision-Maker (CODM). The CODM has been identified as the Management team including the Chief Executive Officer, Chief Operating Officer and Chief Financial Officer.

 

The Directors have taken a judgement that individual sites meet the aggregation criteria in IFRS 8, constituting one operating and one reporting segment and hence have concluded that the Group only has a single reporting segment, as discussed in note 4.

 

2.17   Financial assets

 

Financial assets held at amortised cost are trade and other receivables and cash.

 

Trade receivables are all due for settlement within one year. Due to their short-term nature, the Directors consider the carrying amount of trade and other receivables to equal their fair value.

 

Fees paid on the establishment of loan facilities are recognised as transactional costs of the loan and the fee is netted against the loan balance and amortised on a straight line basis over the period of the facility to which it relates.

 

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting year for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the consolidated statement of comprehensive income.

 

2.18   Financial liabilities

 

Financial liabilities held at amortised cost include trade and other payables, lease liabilities and borrowings.

 

There are no material differences between the carrying values of financial assets and liabilities held at amortised cost and their fair values.

 

Financial assets and liabilities are offset and the net amount reported in the consolidated statement of financial position when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

 

2.19   Financial risk

 

The Group's activities expose it to a variety of financial instrument risks. The risk management policies employed by the Group to manage these risks are detailed below. The primary objectives of the financial instrument risk management function are to establish risk limits and then ensure exposure to risks remains within these limits.

 

i.    Interest rate risk

 

The Group is exposed to interest rate risk as the Group's borrowings have an interest rate of SONIA plus a margin.  Given the quantum of the borrowings and the current low interest environment, the risk is not considered material and therefore the Directors have accepted this risk with the position being regularly re-assessed based on wider macro-economic conditions.

 

ii.   Commodity price risk

 

The Group is exposed to movements in wholesale prices of food and drinks. The Group sources the majority of its products in the UK, however there is the risk of disruption to supply caused by COVID-19 or Brexit. The Group always benchmarks any cost changes and typically fixes prices for periods of between three and six months.

 

iii.  Liquidity risk

 

Liquidity risk is the risk that the Group may encounter difficulties in meeting its financial obligations as they fall due. They may arise from the Group's management of working capital, finance charges and principal repayments on its debt.

 

The Directors regularly review cash flow forecasts to determine whether the Group has sufficient reserves to meet obligations and take advantage of opportunities.

 

iv.  Capital risk

 

The Group manages the capital structure to ensure it will be able to operate as a going concern, whilst maximising the return to shareholders. The Directors look to optimise the debt-to-equity balance and may adjust the capital structure by paying dividends to shareholders, returning capital to shareholders, issue new shares or sell assets to reduce debt.  The Directors intend to maintain low net leverage levels as the Group's operating cash flows are sufficient to fund the addition of new restaurants to the portfolio.

 

v.   Credit risk

 

The Group's credit risk is attributable to trade and other receivables and cash with the carrying amount best representing the maximum exposure to credit risk. The Group places its cash only with banks with high-quality credit standings. Trade and other receivables relate to day-to-day activities which are entered into with creditworthy counterparties.

 

vi.  Liquidity risk

 

Liquidity risk arises from the Group's management of working capital and the finance charges and principal repayments on its debt instruments. It is the risk that the Group will encounter difficulty in meeting its financial obligations as they fall due.

 

Management review cash flow forecasts regularly to determine whether the Group has sufficient cash reserves to meet future working capital requirements.

 

Maturity analysis

The table below analyses the Group's contractual undiscounted cash flows for the Group's financial liabilities.

 

		Within 1 year	1 to 2 years	2 to 5 years	More than 5 years	Total
		£	£	£	£	£
2 January 2022
Trade and other payables		6,729,865	-	-	-	6,729,865
Lease liabilities		5,830,987	4,225,074	10,085,891	11,520,138	31,662,090
Borrowings		-	-	2,911,941	-	2,911,941
		12,560,852	4,225,074	12,997,832	11,520,138	41,303,896
3 January 2021
Trade and other payables		4,909,704	-	-	-	4,909,704
Lease liabilities		7,176,104	3,864,422	9,140,207	11,190,926	31,371,659
Borrowings		1,000,000	1,300,000	10,126,235	-	12,426,235
		13,085,808	5,164,422	19,266,442	11,190,926	48,707,598

 

2.20   Equity instruments

 

Financial instruments issued by the Group are treated as equity only to the extent that they do not meet the definition of a financial liability. The Group's ordinary shares are classified as equity instruments.

 

2.21   Government grants

 

Coronavirus job retention scheme grants (CJRS) and other government grants are recognised under the accruals model with any deferred element included in creditors as deferred income.  Grants of a revenue nature are recognised in the consolidated statement of comprehensive income in the same period as the related expenditure.

 

3.   Critical accounting estimates and judgements

 

The Group makes certain estimates and assumptions regarding the future. Estimates and judgements are continually evaluated based on historical experience and other factors, including the expectations of future events that are believed to be reasonable under the circumstances. In the future, actual experience may differ from these estimates and assumptions. The estimates and judgements that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

 

3.1    Determining the discount rate for IFRS 16

 

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. This is 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 weighted average discount rate applied to the Group's leases is 3.4 percent, there has been a judgement applied that the portfolio has the same discount rate.  For the lease liabilities at 2 January 2022 a 0.5 percent increase in the discount rate would reduce the total liabilities by £136,000, which is not considered material.

 

3.2    Impairment of right-of-use assets and property, plant and equipment

 

Right-of-use assets and property, plant and equipment are reviewed for impairment when there is an indication that the assets might be impaired by comparing the carrying value of the assets with their recoverable amounts. The recoverable amount of an asset or cash generating unit (CGU) is determined based on value-in-use calculations prepared on the basis of the Directors' estimates and assumptions. Individual sites are viewed as separate CGUs.

 

The main assumptions in the value-in-use calculations include the growth rates of revenue and expenses, together with the Group's weighted average cost of capital (WACC), which is used as a discount rate.

 

An independent external consultancy was engaged to calculate the Group's WACC and reasonable changes in the key assumptions were assessed, which did not lead to a material impairment.

 

3.3    Useful economic lives of property, plant and equipment

 

The depreciation charge is dependent upon the assumptions used regarding the useful economic lives of assets. A 10 percent increase in average useful economic lives would result in a £239,000 decrease in depreciation in 2021.

 

3.4    Share-based payments

 

The charge for share-based payments is calculated according to the methodology described in note 8. 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.

 

4.   Revenue

		52 weeks ended	53 weeks ended
		2 January 2022	3 January 2021
		£	£
Sale of goods		47,769,278	26,821,338
Franchise income		306,121	11,508
		48,075,399	26,832,846

 

IFRS 8 Operating Segments requires operating segments to be based on the Group's internal reporting to its Chief Operating Decision Maker (CODM). The CODM is regarded as the Management team of the Chief Executive Officer, the Chief Financial Officer and the Chief Operating Officer.

The Group has three segments:

·      UK sales from Group-operated restaurants

·      UK franchise sales from franchised restaurants

·      Middle East franchise sales from franchised restaurants

There are similar economic characteristics between these businesses with each following a similar sales and EBITDA trajectory. These have been reviewed by the Directors along with the non-financial criteria of IFRS 8. It is the Directors' judgement that despite some short-term variability, all segments have similar economic characteristics in the medium and long-term and meet the criteria for aggregation into a single reporting segment. Therefore, no segmental analysis is provided.

 

 

5.   Other operating income

		52 weeks ended	53 weeks ended
		2 January 2022	3 January 2021
		£	£
Eat Out to Help Out income		-	473,401
CJRS income1		491,825	3,015,761
Other government grants2		1,385,981	-
		1,877,806	3,489,162

¹ Coronavirus Job Retention scheme

² Includes Retail Leisure Hospitality Grant, Local Restriction Support Grants and Restart Grants

 

6.   Profit/(loss) from operations

 

Profit/(loss) from operations is stated after charging:

		52 weeks ended	53 weeks ended
		2 January 2022	3 January 2021
		£	£
Depreciation & amortisation		6,148,319	5,529,391
Impairment of ROU assets		99,868	(66,584)
Loss on disposal of fixed assets		6,852	-
Impairment of fixed assets		-	638,668
Reversal of impairment of fixed assets		-	(305,297)
variable lease payments		615,613	113,619
Inventories - amounts charged as an expense		9,797,235	6,054,932
Staff costs		14,333,277	11,268,458
Share option expense		90,507	-
Pre-opening costs		126,753	78,778
Exceptional items1		1,856,268	272,182
Quilvest monitoring fees2		70,185	38,089
Bank arrangement fee amortisation		174,454	22,011
Auditors' remuneration:
Audit fees		77,000	36,000
Tax compliance services		14,000	35,000
Other assurance services		95,000	-

 

¹ Exceptional items in 2021 includes £1,634,070 of costs incurred in relation to the sale by existing shareholders of their shares in the Group's IPO. A further £539,126 was incurred in relation to the issuing of new shares and this has been recorded as a deduction in share premium. This apportioning between exceptional items and share premium has been undertaken in accordance with IAS 32.

² Quilvest monitoring fees were payable prior to the Group's admission to AIM.

		52 weeks ended	53 weeks ended
		2 January 2022	3 January 2021
		£	£
Pre-opening costs		126,753	78,778
Number of site openings in period		7	4

 

The Group reports costs incurred prior to the opening of a site as a separate expense and excludes these from the calculation of adjusted EBITDA.  This approach is in line with the standard industry practice and the methodology used by the Group's bank for the purposes of assessing covenant compliance. The Directors view this as a better way to analyse the underlying performance of the Group since it excludes costs which are not trading related.

 

7.   Staff costs

 

The average monthly number of employees, including the Directors, during the period was as follows:

 

		52 weeks ended	53 weeks ended
		2 January 2022	3 January 2021
Operations staff`		749	644
Head office staff		36	31
		785	675

 

Staff costs, including Directors' remuneration, were as follows:

		52 weeks ended	53 weeks ended
		2 January 2022	3 January 2021
		£	£
Wages and salaries		13,315,004	10,527,999
Social security costs		779,134	611,249
Pension costs		148,632	129,210
Share based payments (note 8)		90,507	-
		14,333,277	11,268,458

 

Directors' remuneration, included in staff costs, was as follows:

		52 weeks ended	53 weeks ended
		2 January 2022	3 January 2021
		£	£
Short-term employee benefits		718,900	362,995
Post-employment benefits		3,300	2,679
		722,200	365,674

 

 

The highest paid Director received remuneration of £367,900 in the 52 weeks ended 2 January 2022 (3 January 2021: £182,512).

The number of Directors receiving pension contributions was 4 in the 52 weeks ended 2 January 2022 (3 January 2021: 4).

The share based payment expense arising from the Directors participation in the Group's LTIP scheme in the 52 weeks ended 2 January 2022 was £60,246 (3 January 2021: £nil).

There are no Key Management Personnel other than the Directors. Further information about the remuneration of individual Directors is provided in the Remuneration report within the Group's 2021 Annual Report.

8.   Share based payments

 

A transaction is accounted for as a share-based payment when services are paid for in shares or similar equity instruments.

 

The Group issues equity-settled share-based payments to Directors and certain members of staff. Equity-settled share-based schemes are measured at fair value at the date of grant, using the Black Scholes valuation model. The expected life used in the model is adjusted, based on Management's best estimate, for the effects of non-transferability, exercise restrictions and behavioural considerations.

 

The fair value determined at the grant date of the equity-settled share-based payments is expensed on a straight-line basis over the period to exercise, based on the Group's estimate of shares that will eventually vest.

 

The Group is liable for employer's National Insurance on the difference between the market value at date of exercise and exercise price and therefore this expense is also calculated based on the intrinsic value at the balance sheet date.

 

The Tortilla Mexican Grill plc Long-Term Incentive Plan 2021 ("LTIP")

 

Under the LTIP, options were awarded to Directors and members of the senior Management team. 50 percent vests after three years and the remaining 50 percent vests after the fourth year.  The vesting is dependent on achievement of specific Adjusted EBITDA targets for the 2023 and 2024 financial years.

 

Awards are forfeited if the employee leaves the Group before the awards vest, except under circumstances where the employee is considered a 'Good Leaver'.

 

Details of the share awards outstanding are as follows:

 

			2 January 2022		3 January 2021
			Number of share options	Weighted average exercise price	Number of share options	Weighted average exercise price
			#	£	#	£
Outstanding at beginning of the period			-	-	-	-
Granted during the period			1,809,393	1.81	-	-
Exercised during the period			-	-	-	-
Forfeited during the period			-	-	-	-
Outstanding at the end of the period			1,809,393	1.81	-	-
Exercisable at the end of the period			-	1.81	-	-

 

The awards outstanding at the end of 2 January 2022 have a remaining weighted average contractual life of three years (3 January 2021: £nil) and an exercise price of £1.81 (3 January 2021: £nil).

 

The Group recognised total expenses related to the above equity-settled share-based payment transactions in the form of options during the 52 weeks ended 2 January 2022 of £90,507 (3 January 2021: £nil) and related employer National Insurance of £9,988 (3 January 2021: £nil).

 

The fair values were calculated using a Black Scholes model. The inputs used for fair valuing awards granted during the period was as follows:

 

		2 January 2022	3 January 2021
Weighted average share price (pence)		1.81	-
Exercise price (pence)		1.81	-
Expected volatility (%)		43%	-
Option life (years)		5.0	-
Risk free interest rate (%)		0.63%	-

 

In the absence of any historical volatility data for Tortilla Mexican Grill plc, the expected volatility was determined by reviewing the volatility of the share price of similar entities which are currently traded on AIM.

 

 

9.   Finance income and expenses

		52 weeks ended	53 weeks ended
		2 January 2022	3 January 2021
		£	£
Finance income
Bank interest income		613	111,791
Finance expense
Bank loan interest expense		(377,757)	(339,959)
Finance cost on lease liabilities		(994,747)	(995,789)
		(1,372,504)	(1,335,748)

 

On 14^th September 2020, the Group obtained a Coronavirus Business Interruption Loan Scheme ("CBILS") which carries zero interest costs for the first twelve months.  The loan was initially recognised at the present value of the future payments with the discount of £109,827 being recognised as finance income in the 53 weeks ended 3 January 2021. Subsequently, in October 2021, the loan was paid off in full, there was an unwinding of interest of £76,427 in the financial period.

 

10.          Taxation

		52 weeks ended	53 weeks ended
		2 January 2022	3 Jan 2021
		£	£
Current tax expense
Current tax on profits for the period		900,690	-
		900,690	-

 

The reasons for the difference between the actual tax charge for the financial period and the standard rate of corporation tax in the United Kingdom applied to profit for the financial period as follows:

		52 weeks ended	53 weeks ended
		2 January 2022	3 Jan 2021
		£	£
Profit/(loss) for the period		2,262,264	(1,693,232)
Expected tax charge based on corporation tax rate of 19% in 2021 (19% in 2020)		429,830	(321,714)
Effects of:
Expenses not deductible for tax purposes		344,578	96,217
Depreciation in excess of capital allowances		319,969	54,735
Movement in tax losses		(202,473)	(5,022)
Other timing differences, primarily arising from operating lease accounting		8,786	175,784
Other adjustments		-	-
Deferred tax		-	-
Total tax charge for the period		900,690	-

 

In the 53 weeks ended 3 January 2021, the Group had a brought forward tax loss of £1,065,646, which has been fully utilised in the 52 weeks ending 2 January 2022.

 

 

 

The Group has had unprovided deferred tax assets as shown below:

 

		52 weeks ended	53 weeks ended
		2 January 2022	3 Jan 2021
		£	£
Unprovided deferred tax asset		(535,863)	(415,628)

 

 

The deferred tax assets arise from tax losses, timing differences on fixed assets and timing differences arising from the differences in the deductions available under UK GAAP and IFRS in relation to leases. No asset has been recorded in the financial statements for these amounts on the grounds that the timing and extent of any recovery is subject to a number of uncertainties.

In March 2021, the government confirmed that the corporation tax main rate would increase to 25 percent from 1 April 2023. Accordingly, the rate used to calculate the deferred tax balances at 2 January 2022 has increased from 19 percent to 25 percent as the timing of the release of this asset is materially expected to be after this date.

 

11.          Earnings/(loss) per share

 

Basic earnings/(losses) per share is calculated by dividing the profit/(loss) attributable to equity shareholders by the weighted average number of shares outstanding during the period.

 

		52 weeks ended	53 weeks ended
		2 January 2022	3 January 2021
		£	£
Profit/(loss)
Profit/(loss) used in calculating basic and diluted profit		1,361,574	(1,693,232)
Number of shares
Weighted average number of shares for the purpose of basic and diluted earnings per share		38,664,031	359,016
Basic and diluted earnings/(loss) per share (p)		3.5	(471.6)

 

Due to the nature of the options granted under the long-term incentive plan, they are considered to be contingently issuable shares and therefore have no dilutive effect.

12.          Leases

 

The Group leases all properties with typical lease lengths of 10-15 years.  All leases are non-cancellable with various terms: payments of a fixed/variable nature, rent reviews and differing renewal terms.

 

Application of IFRS 16 requires that leases are recognised as a right-of-use asset and a corresponding liability at the date at which the leased asset is available for use by the Group. For adjustments recognised as a consequence of IFRS 16, please refer to note 27.

 

Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of fixed payments (including in-substance fixed payments), less any lease incentives receivable, and variable lease payment that are based on an index or a rate, initially measured using the index or rate as at the commencement date. It excludes variable lease payments that are turnover linked, which are outside the scope of IFRS 16 and are charged to the consolidated statement of comprehensive income as they are incurred.

 

At the commencement date of property leases the lease liability is calculated by discounting the lease payments. Lease payments to be made under reasonably certain extension options are also included in the measurement of the liability. The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, which is generally the case for leases in the Group, the lessee's incremental borrowing rate is used, being the rate that the Group 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 Directors carried out a review of the historic borrowing rates of the Group and historic bond rates together with an analysis of the lease terms. They concluded that the use of a single discount rate applied to all leases signed prior to 2 January 2022 is a reasonable approach. Based on this analysis a discount rate of 3.4 percent has been applied.

 

Right-of-use assets		£
At 30 December 2019		27,845,165
Additions		1,863,541
Depreciation		(3,495,701)
Impairment		66,584
Disposals		(954,748)
At 3 January 2021		25,324,841
Additions		4,385,093
Depreciation		(3,514,015)
Impairment		(99,868)
Disposals		(1,156,437)
At 2 January 2022		24,939,614

 

Lease liabilities		£
At 30 December 2019		(30,122,727)
Additions		(1,863,541)
Interest expense		(995,789)
Lease payments		655,652
Disposals		954,746
At 3 January 2021		(31,371,659)
Additions		(4,385,093)
Interest expense		(994,747)
Lease payments		3,932,971
Disposals		1,156,438
At 2 January 2022		(31,662,090)

 

Carrying amount by maturity of the Groups lease liabilities

		Less than 1 year	1 to 2 years	2 to 5 years	Over 5 years	More than 1 year	Total
2 Jan 2022		5,830,987	4,225,074	10,085,891	11,520,138	25,831,103	31,662,090
3 Jan 2021		7,176,104	3,864,422	9,140,207	11,190,926	24,195,555	31,371,659

 

 

 

 

13.          Property, plant and equipment

 

	Leasehold improvements	Plant and machinery	Furniture, fittings and equipment	Total
	£	£	£	£
Net book value
At 29 December 2019	7,896,056	1,474,005	705,027	10,075,088
Cost
At 29 December 2019	13,007,215	4,229,945	3,736,455	20,973,615
Additions	400,434	275,695	727,987	1,404,116
Disposals	2,303	(785,404)	(1,384,479)	(2,167,580)
At 3 January 2021	13,409,952	3,720,236	3,079,963	20,210,151
Accumulated Depreciation
At 29 December 2019	(5,111,159)	(2,755,940)	(3,031,428)	(10,898,527)
Charge for year	(859,053)	(720,817)	(453,820)	(2,033,690)
On disposals	(2,303)	785,404	1,384,479	2,167,580
Impairment charge	(638,668)	-	-	(638,668)
Impairment losses written back	305,297	-	-	305,297
At 3 January 2021	(6,305,886)	(2,691,353)	(2,100,769)	(11,098,008)
Net book value
At 3 January 2021	7,104,066	1,028,883	979,194	9,112,143
Cost
At 3 January 2021	13,409,951	3,720,236	3,079,963	20,210,150
Additions	886,575	463,522	1,443,084	2,793,181
Disposals	(1,097)	(562,202)	(851,467)	(1,414,766)
At 2 January 2022	14,295,429	3,621,556	3,671,580	21,588,565
Accumulated Depreciation
At 3 January 2021	(6,305,886)	(2,691,353)	(2,100,769)	(11,098,008)
Charge for year	(1,230,421)	(646,518)	(757,365)	(2,634,304)
On disposals	(157)	560,408	847,663	1,407,914
At 2 January 2022	(7,536,464)	(2,777,463)	(2,010,471)	(12,324,398)
Net book value
At 2 January 2022	6,758,965	844,093	1,661,109	9,264,167

 

 

 

 

14.          Inventories

		At	At
		2 January 2022	3 January 2021
		£	£
Food and beverages for resale		326,108	239,782
		326,108	239,782

 

 

There is no material difference between the replacement cost of inventories and the amounts stated above.

Total inventory recognised as an expense in the consolidated statement of comprehensive income during the period was £9,797,235 (53 weeks ended 3 January 2021: £6,054,932).

 

15.          Trade and other receivables

 

		At	At
		2 January 2022	3 January 2021
		£	£
Trade debtors		298,334	332,155
Other debtors		735,324	761,377
Prepayments and accrued income		855,044	804,763
		1,888,702	1,898,295

 

Trade debtors primarily relate to sales due from third party delivery providers and these are settled the week immediately following the week in which the sale was recorded. There are also amounts owed by the Group's franchise partners, which are due within 30 days of the end of the period.

 

Other debtors consists of deposits held by third parties, generally landlords, and amounts accrued but not yet invoiced to third parties. These amounts not invoiced are franchise income and produce from the Group's central kitchen which is sold and bought back to the Group's main food supplier, who provides the distribution across the Group's estate.

 

The Group held no collateral against these receivables at the balance sheet dates. The Directors consider that the carrying amount of receivables are recoverable in full and that any expected credit losses are immaterial.

 

16.          Cash and cash equivalents

		At	At
		2 January 2022	3 January 2021
		£	£
Cash at bank and in hand		9,653,172	10,086,759
		9,653,172	10,086,759

 

Cash and cash equivalents comprise cash at bank, in hand and cash in transit. Cash in transit comprises card payment receipts, which are received on the next working day. The fair value of cash and cash equivalents is the same as their carrying value.

 

 

 

17.          Trade and other payables

		At	At
		2 January 2022	3 January 2021
		£	£
Trade payables		2,331,636	2,346,463
Other taxation and social security		508,850	606,152
Other payables		456,830	343,327
Accruals and deferred income		3,432,549	1,613,762
		6,729,865	4,909,704

 

The carrying value of trade and other payables classified as financial liabilities measured at amortised, which the Directors consider equal to fair value.

 

18.          Borrowings

		At	At
		2 January 2022	3 January 2021
		£	£
Bank loans - falling due within one year		-	1,000,000
Bank loans - falling due after one year		3,000,000	11,596,054
Subtotal		3,000,000	12,596,054
Amortised issue costs		(88,059)	(169,819)
		2,911,941	12,426,235

 

Prior to the Group's IPO on 8 October 2021, the following facilities were held with Santander UK plc:

 

·     Term loan: repayable in instalments until 14 November 2025.  The balance on this loan at 3 January 2021 was £9,672,482 with £1,000,000 due within one year;

·     CBILS loan: repayable in full on 14 November 2025.  The total size of this facility was £4,000,000 with a drawn balance on this loan at 3 January 2021 of £3,000,000.  The additional £1,000,000 of undrawn funds were not utilised as the financial position of the business was strong enough to not require the additional support. This loan was subject to an initial one-year interest holiday was recognised at the present value of the future cash flows, being £2,923,572 at 3 January 2021; and

·      CBILS overdraft: this facility was not utilised by the Group.  The total quantum of undrawn funds was £1,000,000.

 

The term loan accrued interest at rates of 3.25% - 4.50% plus base rate and the CBILS loan attracted interest at a rate of 3.8% plus base rate, although was subject to an initial one-year interest holiday and hence was recognised at the present value of the future cash flows.  These loans were all secured by fixed and floating charges over the assets of the Group.

 

As part of the Group's IPO, the existing facilities were repaid and a new financing arrangement was signed, once more with Santander UK plc.  This is a £10m senior facility, repayable in full on 14 September 2026, with a drawn balance at 2 January 2022 of £3.0m.  The Group has allocated £2.5m of the remaining undrawn amount to an ancillary facility, an overdraft, which was not utilised at 2 January 2022.  Arrangement fees of £93,000 were incurred as part of the refinancing and this is being amortised to the Group consolidated statement of comprehensive income of the term of the facility.

 

The facility accrues interest at rates of 2.75% - 3.25% plus SONIA and the overdraft attracts interest at a rate of 2.75% plus SONIA when utilised. These loans are secured by a debenture over the assets of the Group and are presented net of capitalised amortised issue costs.

 

19.          Called up share capital

 

The consolidated share capital at 3 January 2021 has been restated as if the entities had been combined at the earliest reporting date presented and therefore represents the share capital of Mexican Grill Limited adjusted for the share capital issued for the purposes of the business combination.

 

The issued share capital of the Company on incorporation was one ordinary share of £0.01 (the "Subscriber Share").  There have been the following changes in the Company share capital since incorporation:

·    on 10 September 2021: (i) 6,462,600 ordinary shares of nominal value £0.01 each, (ii) 2,196,000 A ordinary shares of nominal value £0.01 each, (iii) 10,799,400 A preference shares of nominal value £0.01 each and (iv) 16,443,600 B preference shares of nominal value of £0.01 each were allotted;

·     also on 10 September 2021 simultaneously with the allotment of the shares referred to above, the Subscriber Share was cancelled. Immediately following this, the total statement of capital of the Company was 6,462,600 ordinary shares, 2,196,000 A ordinary shares, 10,799,400 A preference shares and 16,443,600 B preference shares with an aggregate nominal value of £359,016;

·     on 29 September 2021 the 2,196,000 A ordinary shares, 10,799,400 A preference shares and the 16,443,600 B preference shares were re-designated as 29,439,000 ordinary shares of nominal value £0.01 each, with the resulting total share capital being 35,901,600 ordinary shares with an aggregate nominal value of £359,016; and

·     on 8 October 2021 (immediately following admission to AIM), a further 2,762,431 shares were allotted, bringing the total number of ordinary shares to 38,664,031.

 

Ordinary shares entitle the holder to participate in dividends and the process on the winding up of the Company in proportion to the number of and amounts paid on the shares held.  The fully paid ordinary shares have a par value of £0.01 and the Company does not have a limited amount of authorised capital.

 

20.          Reserves

 

Share premium account

 

The share premium account records the amount above the nominal value received for shares sold.

 

Merger reserve

 

The merger reserve represents the excess over nominal value of the fair value consideration for the business combination of Tortilla Mexican Grill plc and Mexican Grill Ltd during the Group's IPO. This was satisfied by the issue of shares in accordance with Section 612 of the Companies Act 2006.

 

Share based payment reserve

 

The Group presents employee share options as an adjustment to own equity through this reserve until the point that the shares are awarded and cease to be conditional awards.

 

Retained earnings

 

The accumulated net profits and losses of the Group.

 

21.          Analysis of changes in net debt

 

The movements in net debt are presented below along with a reconciliation to the financing activities in the consolidated cash flow statement.

 

 

 

 

 

	Bank  loans	Lease liabilities	Total financing liabilities	Cash and cash equivalents	Net debt
	£	£	£	£	£
At 3 January 2021	12,426,235	31,371,657	43,797,894	(10,086,759)	33,711,135
Cash flow	(9,688,748)	(3,932,971)	(13,621,719)	433,587	(13,188,132)
Additions to lease liabilities	-	3,228,655	3,228,655	-	3,228,655
Finance expense	377,757	994,747	1,372,504	-	1,372,504
At 2 January 2022	2,911,941	31,662,090	34,574,031	(9,653,172)	24,920,859

 

 

22.          Investments in subsidiaries

 

The subsidiaries of the Tortilla Mexican Grill plc, all of which have been included in the consolidated financial information and comprise the Group, are as follows:

Name of subsidiary	Country of incorporation	Proportion of ownership interest and voting rights held by the Group	Principal activity
Mexican Grill Ltd	United Kingdom	100%	Operation of restaurants
Mexican Grill International Franchise Ltd	United Kingdom	100%	International franchising
California Grill Ltd	United Kingdom	100%	Holding leases

 

The registered address for all three subsidiaries is 1st Floor Evelyn House, 142 New Cavendish Street, London, United Kingdom, W1W 6YF.

 

23.          Related party transactions

 

		At	At
		2 January 2022	3 January 2021
		£	£
Richard Morris		-	68,400
Andy Naylor		-	28,500
		-	96,900

 

During the 52 weeks ending 2 January 2022, loans owed by Directors Richard Morris and Andy Naylor were repaid in full. No interest was charged on this loan during this period.

 

Mexican Grill Ltd was charged monitoring fees of £35,000 for the 52 weeks ended 2 January 2022 (53 weeks ended 3 January 2021: £6,250) by QS Direct SI 2 S.à.r.l, in its capacity as General Partner of the Group's shareholder QS Direct SI 2 SCA SICAR. This is set at £30,000 for 2022 onwards.

 

24.          Ultimate controlling party

 

The Directors believe that there is no ultimate controlling party of the Group.

 

25.          Capital commitments: Group and Company

 

The Group had capital commitments of £65,050 at 2 January 2022 (3 January 2021: £nil).

 

 

26.          Post-balance sheet events: Group and Company

 

The Directors consider that there are no material post balance sheet effects affecting the Group or the Company that have occurred between the end of the period and the date of publication of this report.

 

27.          IFRS comparison to UK GAAP

 

The Group applied IFRS for the first time in the 52-week period ending 2 January 2022.  The Group applied IFRS 16 using the modified retrospective approach, with the date of initial application of 1 January 2018 and has restated its results for comparative period as if the Group had always applied the new standard.

		Pre-IFRS 16	IFRS 16	IFRS	Pre-IFRS 16	IFRS 16	IFRS
		52 weeks ended	adjustments	52 weeks ended	53 weeks ended	adjustments	53 weeks ended
		2 January 2022		2 January 2022	3 January 2021		3 January 2021
		£	£	£	£	£	£
Revenue		48,075,399	-	48,075,399	26,832,846	-	26,832,846
Cost of sales		(9,797,235)	-	(9,797,235)	(6,054,932)	-	(6,054,932)
Gross profit		38,278,164	-	38,278,164	20,777,914	-	20,777,914
Other Operating Income		1,877,806	-	1,877,806	3,489,162	-	3,489,162
Administrative expenses		(36,461,586)	(60,229)	(36,521,815)	(24,806,958)	70,607	(24,736,351)
Profit/(loss) from operations		3,694,384	(60,229)	3,634,155	(539,882)	70,607	(469,275)
Adjusted EBITDA		8,740,576	3,466,784	12,207,360	2,361,333	3,376,630	5,737,963
Pre-opening costs		(165,850)	39,097	(126,753)	(171,063)	92,285	(78,778)
Share based payments		(90,507)	-	(90,507)	-	-	-
Depreciation and amortisation		(2,688,928)	(3,566,110)	(6,255,038)	(2,397,870)	(3,398,308)	(5,796,178)
Exceptional items		(1,856,268)	-	(1,856,268)	(272,182)	-	(272,182)
Non-trading costs		(244,639)	-	(244,639)	(60,100)	-	(60,100)
		3,694,384	(60,229)	3,634,155	(539,882)	70,607	(469,275)
Finance income		613	-	613	111,791	-	111,791
Finance expense		(377,757)	(994,747)	(1,372,504)	(339,959)	(995,789)	(1,335,748)
Profit/(loss) before tax		3,317,240	(1,054,976)	2,262,264	(768,050)	(925,182)	(1,693,232)
Tax charge		(900,690)	-	(900,690)	-	-	-
Profit/(loss) for the period and comprehensive income attributable to equity holders of the parent company		2,416,550	(1,054,976)	1,361,574	(768,050)	(925,182)	(1,693,232)

 

 

 

			Pre-IFRS 16		IFRS 16	IFRS	Pre-IFRS 16		IFRS 16	IFRS
			52 weeks ended		adjustments	52 weeks ended	53 weeks ended		adjustments	53 weeks ended
			2 January 2022			2 January 2022	3 January 2021			3 January 2021
			£		£	£	£		£	£
Non-current assets
Right-of-use assets			-		24,939,614	24,939,614	-		25,324,841	25,324,841
Property, plant and equipment			8,719,167		545,000	9,264,167	9,189,916		(77,773)	9,112,143
Total non-current assets			8,719,167		25,484,614	34,203,781	9,189,916		25,247,068	34,436,984
Current assets
Inventories			326,108		-	326,108	239,782		-	239,782
Trade and other receivables			2,308,070		(419,368)	1,888,702	2,496,137		(597,842)	1,898,295
Cash and cash equivalents			9,653,172		-	9,653,172	10,086,759		-	10,086,759
Total current assets			12,287,350		(419,368)	11,867,982	12,822,678		(597,842)	12,224,836
Total assets			21,006,517		25,065,246	46,071,763	22,012,594		24,649,226	46,661,820
Current liabilities
Trade and other payables			9,220,394		(2,490,529)	6,729,865	8,580,798		(3,671,094)	4,909,704
Lease liabilities			-		5,830,987	5,830,987	-		7,176,104	7,176,104
Loans and borrowings			-		-	-	1,000,000		-	1,000,000
Corporation tax liability			900,690		-	900,690	-		-	-
Total current liabilities			10,121,084		3,340,458	13,461,542	9,580,798		3,505,010	13,085,808
Non-current liabilities
Lease liabilities			-		25,831,103	25,831,103	-		24,195,555	24,195,555
Loans and borrowings			2,911,941		-	2,911,941	11,426,235		-	11,426,235
Total non-current liabilities			2,911,941		25,831,103	28,743,044	11,426,235		24,195,555	35,621,790
Total liabilities			13,033,025		29,171,561	42,204,586	21,007,033		27,700,565	48,707,598
Net assets / (liabilities)			7,973,492		(4,106,315)	3,867,177	1,005,561		(3,051,339)	(2,045,778)
Equity attributable to equity holders of the company
Called up share capital			386,640		-	386,640	359,016		-	359,016
Share premium account			4,433,250		-	4,433,250	-		-	-
Share merger reserve			4,793,170		-	4,793,170	4,793,170		-	4,793,170
Share based payment reserve			90,507		-	90,507	-		-	-
Retained earnings			(1,730,075)		(4,106,315)	(5,836,390)	(4,146,625)		(3,051,339)	(7,197,964)
Total equity			7,973,492		(4,106,315)	3,867,177	1,005,561		(3,051,339)	(2,045,778)