Company registration number 12250363 (England and Wales)
PRODUCTION PARK HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
PRODUCTION PARK HOLDINGS LIMITED
COMPANY INFORMATION
Directors
A Brooks
B H Brooks
L R Brooks
M R Tucknott
Company number
12250363
Registered office
Unit 53 Lidgate Crescent
Langthwaite Business Park
South Kirkby
Pontefract
West Yorkshire
WF9 3NR
Auditor
BHP LLP
New Chartford House
Centurion Way
Cleckheaton
Bradford
West Yorkshire
BD19 3QB
PRODUCTION PARK HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Group statement of comprehensive income
7
Group balance sheet
8
Company balance sheet
9
Group statement of changes in equity
10
Company statement of changes in equity
11
Group statement of cash flows
12
Notes to the financial statements
13 - 36
PRODUCTION PARK HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 1 -

The directors present the strategic report for the year ended 31 December 2022.

Review of the business

We are pleased that the Group has recovered well from the impact Covid 19 had on the Live Events sector, with 2022 our busiest ever year to date for studio bookings whilst we continue to have a waiting list of additional tenants who want to move onto the park as soon as additional space is available.

 

In order to facilitate this demand, the directors have continued to focus on the development of its campus as the premier European site for Live Events Production with the opening of a new flagship production rehearsal studio. It has also concentrated on the development of its education business, the Academy of Live Technology Ltd (formerly Backstage Academy (Training) Ltd) including its research and innovation division, XPLOR which also boasts a state of the art Virtual Production Facility.

Principal risks and uncertainties

The directors approve expenditure on a daily basis and various reports are produced on a regular basis to monitor the performance of the group. Management accounts are produced promptly each month and circulated to all board members. The board considers cash flow and balances on both a weekly and monthly basis. The target of the board is to improve the financial position of the group compared to the previous year and to maintain a significant level of net assets.

Financial key performance indicators

The directors consider turnover, gross profit margin, profit before tax and net assets to be key performance indicators. The directors are satisfied with the performance and position of the group based upon these metrics at the year end.

Other performance indicators

The directors consider client retention and client satisfaction key performance indicators.

On behalf of the board

L R Brooks
Director
30 September 2023
PRODUCTION PARK HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 2 -

The directors present their annual report and financial statements for the year ended 31 December 2022.

Principal activities

The principal activity of the company and group is that of providing a complete service to customers involved in the live events industry. This incorporates; design and construction of staging, provision of rehearsal studios, rental of assets and provision of educational facilities to the live events industry.

Results and dividends

The results for the year are set out on page 7.

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

No preference dividends were paid. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

A Brooks
B H Brooks
L R Brooks
M R Tucknott
Qualifying third party indemnity provisions

The group has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.

Research and development

The group engages in research and development activities in relation to product development used by the music industry in staging assets.

Auditor

BHP LLP were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

On behalf of the board
L R Brooks
Director
30 September 2023
PRODUCTION PARK HOLDINGS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 3 -

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

PRODUCTION PARK HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PRODUCTION PARK HOLDINGS LIMITED
- 4 -
Opinion

We have audited the financial statements of Production Park Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2022 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

PRODUCTION PARK HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PRODUCTION PARK HOLDINGS LIMITED
- 5 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

 

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

 

We focused on laws and regulations, relevant to the company, which could give rise to a material misstatement in the financial statements. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management and a review of legal expenses. There are inherent limitations in the audit procedures described and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.

 

As part of our audit, we addressed the risk of management override of internal controls, including testing of journals and review of nominal ledger. We evaluated whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

PRODUCTION PARK HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PRODUCTION PARK HOLDINGS LIMITED
- 6 -

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Jamie Williams (Senior Statutory Auditor)
For and on behalf of BHP LLP
30 September 2023
Chartered Accountants
Statutory Auditor
New Chartford House
Centurion Way
Cleckheaton
Bradford
West Yorkshire
BD19 3QB
PRODUCTION PARK HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2022
- 7 -
2022
2021
Notes
£
£
Turnover
3
14,058,978
4,112,380
Cost of sales
(5,388,180)
(562,583)
Gross profit
8,670,798
3,549,797
Distribution costs
(124,703)
(232,347)
Administrative expenses
(6,455,737)
(4,142,953)
Other operating income
455,315
488,027
Operating profit/(loss)
4
2,545,673
(337,476)
Share of results of associates
(24,698)
(24,698)
Interest receivable and similar income
8
21,457
1,697
Interest payable and similar expenses
9
(1,260,567)
(467,446)
Amounts written off investments
10
-
(6,900)
Fair value gains and losses on investment properties
14
468,542
615,766
Profit/(loss) before taxation
1,750,407
(219,057)
Tax on profit/(loss)
11
(1,691,898)
150,418
Profit/(loss) for the financial year
28
58,509
(68,639)
Profit/(loss) for the financial year is attributable to:
- Owners of the parent company
178,046
(54,109)
- Non-controlling interests
(119,537)
(14,530)
58,509
(68,639)
Total comprehensive income for the year is attributable to:
- Owners of the parent company
178,046
(54,109)
- Non-controlling interests
(119,537)
(14,530)
58,509
(68,639)
PRODUCTION PARK HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2022
31 December 2022
- 8 -
2022
2021
Notes
£
£
£
£
Fixed assets
Goodwill
12
3,595,834
685,435
Tangible assets
13
24,667,277
9,048,831
Investment property
14
16,447,673
15,111,313
Investments
15
6,002
6,002
44,716,786
24,851,581
Current assets
Stocks
18
32,641
22,930
Debtors
19
5,792,362
2,698,286
Cash at bank and in hand
4,624,189
3,504,875
10,449,192
6,226,091
Creditors: amounts falling due within one year
20
(9,995,565)
(2,814,894)
Net current assets
453,627
3,411,197
Total assets less current liabilities
45,170,413
28,262,778
Creditors: amounts falling due after more than one year
21
(35,109,913)
(22,134,754)
Provisions for liabilities
Deferred tax liability
24
2,108,445
651,056
(2,108,445)
(651,056)
Net assets
7,952,055
5,476,968
Capital and reserves
Called up share capital
27
4,953,890
4,953,890
Revaluation reserve
28
776,592
776,592
Profit and loss reserves
28
(35,120)
(213,166)
Equity attributable to owners of the parent company
5,695,362
5,517,316
Non-controlling interests
2,256,693
(40,348)
7,952,055
5,476,968
The financial statements were approved by the board of directors and authorised for issue on 30 September 2023 and are signed on its behalf by:
30 September 2023
L R Brooks
Director
Company registration number 12250363 (England and Wales)
PRODUCTION PARK HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2022
31 December 2022
- 9 -
2022
2021
Notes
£
£
£
£
Fixed assets
Investments
15
5,085,945
5,085,850
Current assets
Debtors falling due after more than one year
19
7,121,619
7,891,759
Debtors falling due within one year
19
5,270,507
5,350,508
12,392,126
13,242,267
Net current assets
12,392,126
13,242,267
Total assets less current liabilities
17,478,071
18,328,117
Creditors: amounts falling due after more than one year
21
(8,431,170)
(8,885,010)
Net assets
9,046,901
9,443,107
Capital and reserves
Called up share capital
27
4,953,890
4,953,890
Other reserves
28
4,998,410
4,998,410
Profit and loss reserves
28
(905,399)
(509,193)
Total equity
9,046,901
9,443,107

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £396,206 (2021 - £279,822 loss).

The financial statements were approved by the board of directors and authorised for issue on 30 September 2023 and are signed on its behalf by:
30 September 2023
L R Brooks
Director
Company registration number 12250363 (England and Wales)
PRODUCTION PARK HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
- 10 -
Share capital
Revaluation reserve
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
£
Balance at 1 January 2021
1,590
1,053,126
(1,212,183)
(157,467)
(25,818)
(183,285)
Year ended 31 December 2021:
Loss and total comprehensive income
-
-
(54,109)
(54,109)
(14,530)
(68,639)
Issue of share capital
27
4,952,300
-
-
4,952,300
-
4,952,300
Transfers
-
(1,053,126)
1,053,126
-
-
-
Other movements
-
776,592
-
776,592
-
776,592
Balance at 31 December 2021
4,953,890
776,592
(213,166)
5,517,316
(40,348)
5,476,968
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
178,046
178,046
(119,537)
58,509
Arising on acquisition
-
-
-
-
2,416,578
2,416,578
Balance at 31 December 2022
4,953,890
776,592
(35,120)
5,695,362
2,256,693
7,952,055
PRODUCTION PARK HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
- 11 -
Share capital
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2021
1,590
4,998,410
(229,371)
4,770,629
Year ended 31 December 2021:
Loss and total comprehensive income for the year
-
-
(279,822)
(279,822)
Issue of share capital
27
4,952,300
-
-
4,952,300
Balance at 31 December 2021
4,953,890
4,998,410
(509,193)
9,443,107
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
(396,206)
(396,206)
Balance at 31 December 2022
4,953,890
4,998,410
(905,399)
9,046,901
PRODUCTION PARK HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 12 -
2022
2021
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
32
7,267,679
(4,588,135)
Interest received
21,457
1,697
Interest paid
(1,260,567)
(467,446)
Income taxes refunded
53,052
-
0
Net cash inflow/(outflow) from operating activities
6,081,621
(5,053,884)
Investing activities
Purchase of business
(7,229,192)
-
Purchase of tangible fixed assets
(5,965,243)
(2,921,412)
Proceeds from disposal of tangible fixed assets
87,900
-
Purchase of investment property
(867,817)
(11,833,875)
Proceeds from disposal of investment property
-
6,250,000
Purchase of subsidiaries, net of cash acquired
(3,915,333)
-
Proceeds from disposal of associates
-
(1,502)
Net cash used in investing activities
(17,889,685)
(8,506,789)
Financing activities
Proceeds from issue of shares
-
4,952,300
Proceeds from borrowings
14,035,900
12,000,000
Repayment of borrowings
(837,380)
-
Repayment of bank loans
(240,000)
(60,000)
Payment of finance leases obligations
(31,142)
(1,065)
Net cash generated from financing activities
12,927,378
16,891,235
Net increase in cash and cash equivalents
1,119,314
3,330,562
Cash and cash equivalents at beginning of year
3,504,875
174,313
Cash and cash equivalents at end of year
4,624,189
3,504,875
PRODUCTION PARK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 13 -
1
Accounting policies
Company information

Production Park Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Unit 53 Lidgate Crescent, Langthwaite Business Park, South Kirkby, Pontefract, West Yorkshire, WF9 3NR.

 

The group consists of Production Park Holdings Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

PRODUCTION PARK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 14 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Production Park Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 December 2022. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. The directors have prepared forecasts and cashflows to 31 December 2024 which show that the company is able to operate and pay its debts as they fall due in this period. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

PRODUCTION PARK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 15 -
1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.7
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings
not depreciated
Leasehold land and buildings
over the period of the lease
Plant and equipment
20 - 33.33% straight line
Fixtures and fittings
20 - 33.33% straight line
Computers
33.33% straight line
Motor vehicles
25% straight line
Other equipment
33.33% straight line
Office equipment
20% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

Individual freehold properties are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the financial year end date.

 

Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.

 

Although this accounting policy is in accordance with the applicable accounting standard, FRS102 "The Financial Reporting Standard", it is a departure from the general requirement of the Companies Act 2006 for all tangible fixed assets to be depreciated.

 

The accounting policy adopted is necessary for the financial statements to give a true and fair view. Depreciation or amortisation is only one of many factors reflected in the annual valuation and the amount of this which might otherwise have been charged cannot be separately identified or quantified.

1.8
Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

PRODUCTION PARK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 16 -
1.9
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.10
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

PRODUCTION PARK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 17 -

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.11
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.12
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.13
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally 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.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

PRODUCTION PARK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 18 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

PRODUCTION PARK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 19 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.14
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.15
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is 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.

1.16
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

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

1.17
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

PRODUCTION PARK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 20 -
1.18
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

1.19
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. A grant received before the recognition criteria are satisfied is recognised as a liability.

1.20
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Assessing indicators of impairment

In assessing whether there have been any indicators of impairment of assets, the directors have considered both external and internal sources of information such as market conditions, counterparty credit ratings and experience of recoverability and where applicable, the ability of the asset to be operated as planned.

PRODUCTION PARK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
2
Judgements and key sources of estimation uncertainty
(Continued)
- 21 -
Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Estimating value in use

Where an indication of impairment exists, the directors have carried out an impairment review to determine the recoverable amount of the asset, which is the higher of fair value less cost to sell and value in use. The value in use calculation has required the directors to estimate the future cash flows expected to arise from the asset or the cash generating unit and determine a suitable discount rate in order to calculate present value.

Determining useful economic lives of tangibles

The group depreciates tangible assets over their estimated useful lives. The estimation of the useful lives of tangible assets is based on historic performance as well as expectations about future use and therefore requires estimates and assumptions to be applied. The actual lives of these assets can vary depending on a variety of factors, including technological innovation, product life cycles and maintenance programmes.

 

Judgement is also applied, when determining the residual values for fixed assets. When determining the residual value, the directors have assessed the amount that the company would currently obtain for the disposal of the asset, if it were already of the condition expected at the end of its useful life. Where possible this is done with reference to external market prices.

Determining useful economic lives of intangibles

Intangible assets have arisen due to historic acquisitions of subsidiary companies. The directors separately identified the intangible assets acquired on the acquisition. The directors have had to apply judgement as to how long they estimate the useful life to be. The factors involved in making the decision will vary for each type of intangible asset. The directors consider the useful lives on an annual basis and make adjustments as they consider appropriate.

Fair value of investment and freehold property

Production Park Limited (entity) holds investment property which is rented to other group companies. The property in question is held at fair value, the fair value is determined where possible by a current market valuation and adjusted for any significant changes in market conditions. The latest valuation was undertaken during December 2021 and is incorporated in these accounts.

3
Turnover and other revenue
2022
2021
£
£
Turnover analysed by class of business
Rental of assets
11,371,274
1,699,075
Education
2,423,087
2,193,173
Product sales
264,617
220,132
14,058,978
4,112,380
PRODUCTION PARK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
3
Turnover and other revenue
(Continued)
- 22 -
2022
2021
£
£
Turnover analysed by geographical market
United Kingdom
14,058,978
3,829,380
Rest of World
-
283,000
14,058,978
4,112,380
2022
2021
£
£
Other revenue
Interest income
21,457
1,697
Grants received
283,541
402,831
4
Operating profit/(loss)
2022
2021
£
£
Operating profit/(loss) for the year is stated after charging/(crediting):
Exchange (gains)/losses
(88,239)
50,866
Government grants
(283,541)
(402,831)
Depreciation of owned tangible fixed assets
1,752,661
286,453
(Profit)/loss on disposal of tangible fixed assets
-
38,703
Amortisation of intangible assets
245,286
87,502
Operating lease charges
79,917
-
5
Auditor's remuneration
2022
2021
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
1,800
1,600
Audit of the financial statements of the company's subsidiaries
37,600
19,295
39,400
20,895
For other services
Taxation compliance services
4,000
3,450
All other non-audit services
4,500
3,675
8,500
7,125
PRODUCTION PARK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 23 -
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2022
2021
2022
2021
Number
Number
Number
Number
79
51
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2022
2021
2022
2021
£
£
£
£
Wages and salaries
2,689,935
1,741,536
-
0
-
0
Social security costs
282,378
178,221
-
-
Pension costs
83,392
68,065
-
0
-
0
3,055,705
1,987,822
-
0
-
0
7
Directors' remuneration
2022
2021
£
£
Remuneration for qualifying services
252,537
251,776
Company pension contributions to defined contribution schemes
21,000
16,450
273,537
268,226
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2022
2021
£
£
Remuneration for qualifying services
99,267
96,188
Company pension contributions to defined contribution schemes
10,500
8,225
8
Interest receivable and similar income
2022
2021
£
£
Interest income
Interest on bank deposits
554
-
0
Other interest income
20,903
1,697
Total income
21,457
1,697
PRODUCTION PARK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 24 -
9
Interest payable and similar expenses
2022
2021
£
£
Interest on bank overdrafts and loans
947,948
192,094
Interest on finance leases and hire purchase contracts
3,539
929
Other interest
309,080
274,423
Total finance costs
1,260,567
467,446
10
Amounts written off investments
2022
2021
£
£
Other gains and losses
-
(6,900)
11
Taxation
2022
2021
£
£
Current tax
UK corporation tax on profits for the current period
1,146,245
-
0
Adjustments in respect of prior periods
6,418
(27,500)
Total current tax
1,152,663
(27,500)
Deferred tax
Origination and reversal of timing differences
539,235
(122,918)
Total tax charge/(credit)
1,691,898
(150,418)
PRODUCTION PARK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
11
Taxation
(Continued)
- 25 -

The actual charge/(credit) for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:

2022
2021
£
£
Profit/(loss) before taxation
1,750,407
(219,057)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 19.00% (2021: 19.00%)
332,577
(41,621)
Tax effect of expenses that are not deductible in determining taxable profit
29,279
15,764
Tax effect of income not taxable in determining taxable profit
(117,135)
(233,991)
Gains not taxable
(89,023)
(430,263)
Change in unrecognised deferred tax assets
1,035,749
675,989
Adjustments in respect of prior years
6,418
(27,500)
Group relief
-
0
(40,114)
Under/(over) provided in prior years
5,650
-
0
Deferred tax adjustments in respect of prior years
-
0
3,610
Effect of change in deferred tax rate
190,008
(37,238)
Other tax adjustments, reliefs and transfers
352,072
(1,187,500)
OCI tax adjustment
-
0
(1,073)
Fixed asset differences
-
1,195,337
Super deduction expenditure
(53,697)
(41,818)
Taxation charge/(credit)
1,691,898
(150,418)
PRODUCTION PARK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 26 -
12
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 January 2022
1,028,608
Additions
3,155,685
At 31 December 2022
4,184,293
Amortisation and impairment
At 1 January 2022
343,173
Amortisation charged for the year
245,286
At 31 December 2022
588,459
Carrying amount
At 31 December 2022
3,595,834
At 31 December 2021
685,435
The company had no intangible fixed assets at 31 December 2022 or 31 December 2021.
PRODUCTION PARK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 27 -
13
Tangible fixed assets
Group
Freehold land and buildings
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Other equipment
Office equipment
Total
£
£
£
£
£
£
£
£
£
Cost
At 1 January 2022
7,757,443
-
0
69,943
1,666,450
305,760
36,018
209,373
38,843
10,083,830
Additions
5,008,021
-
0
4,083,867
457,214
45,105
173,007
316,203
10,390
10,093,807
Acquired on acquisition of subsidiary
-
0
43,109
12,195,952
59,130
-
0
385,590
-
0
-
0
12,683,781
Disposals
-
0
-
0
-
0
-
0
-
0
(87,900)
-
0
-
0
(87,900)
At 31 December 2022
12,765,464
43,109
16,349,762
2,182,794
350,865
506,715
525,576
49,233
32,773,518
Depreciation and impairment
At 1 January 2022
9,825
-
0
51,989
504,441
250,369
11,659
171,670
35,046
1,034,999
Depreciation charged in the year
-
0
11,763
1,278,768
312,498
38,729
63,698
43,672
3,533
1,752,661
Acquired on acquisition of subsidiary
-
0
24,840
5,094,046
48,290
-
0
151,405
-
0
-
0
5,318,581
At 31 December 2022
9,825
36,603
6,424,803
865,229
289,098
226,762
215,342
38,579
8,106,241
Carrying amount
At 31 December 2022
12,755,639
6,506
9,924,959
1,317,565
61,767
279,953
310,234
10,654
24,667,277
At 31 December 2021
7,747,618
-
0
17,954
1,162,009
55,391
24,359
37,703
3,797
9,048,831
The company had no tangible fixed assets at 31 December 2022 or 31 December 2021.
PRODUCTION PARK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
13
Tangible fixed assets
(Continued)
- 28 -

Freehold property is carried at the current market value, the last valuation incorporated within these financial statements was undertaken in December 2021 by an external valuer Colliers International. The directors are satisfied that this valuation was appropriate as at 31 December 2022.

14
Investment property
Group
Company
2022
2022
£
£
Fair value
At 1 January 2022
15,111,314
-
Additions through external acquisition
867,817
-
Net gains or losses through fair value adjustments
468,542
-
At 31 December 2022
16,447,673
-

Investment property is carried at the current market value, the last professional valuation incorporated within these financial statements was undertaken in December 2021 by an external valuer Colliers International. The directors have updated this valuation based on their knowledge and expertise as at 31 December 2022.

15
Fixed asset investments
Group
Company
2022
2021
2022
2021
Notes
£
£
£
£
Investments in subsidiaries
16
-
0
-
0
5,000,095
5,000,000
Investments in associates
17
1,502
1,502
85,850
85,850
Unlisted investments
4,500
4,500
-
0
-
0
6,002
6,002
5,085,945
5,085,850
PRODUCTION PARK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
15
Fixed asset investments
(Continued)
- 29 -
Movements in fixed asset investments
Group
Shares in associates
Other investments
Total
£
£
£
Cost or valuation
At 1 January 2022
4,002
4,500
8,502
Disposals
(2,500)
-
(2,500)
At 31 December 2022
1,502
4,500
6,002
Impairment
At 1 January 2022
2,500
-
2,500
Disposals
(2,500)
-
(2,500)
At 31 December 2022
-
-
-
Carrying amount
At 31 December 2022
1,502
4,500
6,002
At 31 December 2021
1,502
4,500
6,002
Movements in fixed asset investments
Company
Shares in subsidiaries and associates
£
Cost or valuation
At 1 January 2022
5,085,850
Additions
95
At 31 December 2022
5,085,945
Carrying amount
At 31 December 2022
5,085,945
At 31 December 2021
5,085,850
16
Subsidiaries

Details of the company's subsidiaries at 31 December 2022 are as follows:

PRODUCTION PARK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
16
Subsidiaries
(Continued)
- 30 -
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Sit Down Limited
UK
Ordinary
100.00
-
Backstage Academy (Training) Ltd
UK
Ordinary
-
100.00
Cato Music Limited
UK
Ordinary
-
100.00
Advanced Profiling Services Ltd
UK
Ordinary
-
100.00
Stand Down Studio Limited
UK
Ordinary
-
100.00
Interactive Immersive Classroom Limited
UK
Ordinary
-
80.00
Blitz Rigging Limited
UK
Ordinary
95.00
-
Production Park Limited
UK
Ordinary
-
100.00
Blitz Hire Limited
UK
Ordinary
-
75.00

The address of the registered office of all subsidiary undertakings is Unit 53, Lidgate Crescent, South Kirkby, Pontefract, WF9 3NR.

17
Associates

Details of associates at 31 December 2022 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Sixty82 BV
Netherlands
Ordinary
32

The address of the registered office of Sixty82 BV is Amperelaan 9, 9207 AM Drachten.

18
Stocks
Group
Company
2022
2021
2022
2021
£
£
£
£
Finished goods and goods for resale
32,641
22,930
-
0
-
0
PRODUCTION PARK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 31 -
19
Debtors
Group
Company
2022
2021
2022
2021
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,557,177
301,096
-
0
-
0
Amounts owed by group undertakings
-
-
5,270,507
5,350,508
Amounts owed by undertakings in which the company has a participating interest
839,101
761,089
-
-
Other debtors
907,060
1,117,945
-
0
-
0
Prepayments and accrued income
1,489,024
518,156
-
0
-
0
5,792,362
2,698,286
5,270,507
5,350,508
Amounts falling due after more than one year:
Amounts owed by group undertakings
-
-
7,121,619
7,891,759
Total debtors
5,792,362
2,698,286
12,392,126
13,242,267

Amounts owed by group undertakings are subject to interest and are repayable on demand.

20
Creditors: amounts falling due within one year
Group
Company
2022
2021
2022
2021
Notes
£
£
£
£
Bank loans
22
240,000
240,000
-
0
-
0
Obligations under finance leases
23
61,322
-
0
-
0
-
0
Other borrowings
22
1,524,072
395,247
-
0
-
0
Trade creditors
1,795,334
497,561
-
0
-
0
Corporation tax payable
1,097,974
-
0
-
0
-
0
Other taxation and social security
603,657
89,575
-
-
Government grants
25
186,500
-
0
-
0
-
0
Other creditors
1,248,974
196,160
-
0
-
0
Accruals and deferred income
3,237,732
1,396,351
-
0
-
0
9,995,565
2,814,894
-
0
-
0

The group's bankers hold a first legal charge over all freehold property and a debenture incorporating a fixed and floating charge over all present and future assets of the group.

 

Obligations under hire purchase and finance leases are secured on the related assets.

 

Interest on the bank loan is charged at 3.99% over the Bank of England base rate.

PRODUCTION PARK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 32 -
21
Creditors: amounts falling due after more than one year
Group
Company
2022
2021
2022
2021
Notes
£
£
£
£
Bank loans and overdrafts
22
660,000
900,000
-
0
-
0
Obligations under finance leases
23
87,310
-
0
-
0
-
0
Other borrowings
22
23,674,448
11,604,753
-
0
-
0
Other creditors
9,852,776
9,102,509
7,595,791
8,357,518
Accruals and deferred income
835,379
527,492
835,379
527,492
35,109,913
22,134,754
8,431,170
8,885,010

The group's bankers hold a first legal charge over all freehold property and a debenture incorporating a fixed and floating charge over all present and future assets of the group.

 

Obligations under hire purchase and finance leases are secured on the related assets.

 

Interest on the bank loans is charged at 3.99% over the Bank of England base rate. Interest on other borrowings is charged at 3.25%.

Amounts included above which fall due after five years are as follows:
Payable by instalments
12,987,875
14,604,105
-
-
Payable other than by instalments
1,510,985
-
-
-
14,498,860
14,604,105
-
-
22
Loans and overdrafts
Group
Company
2022
2021
2022
2021
£
£
£
£
Bank loans
900,000
1,140,000
-
0
-
0
Other loans
25,198,520
12,000,000
-
0
-
0
26,098,520
13,140,000
-
-
Payable within one year
1,764,072
635,247
-
0
-
0
Payable after one year
24,334,448
12,504,753
-
0
-
0
PRODUCTION PARK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 33 -
23
Finance lease obligations
Group
Company
2022
2021
2022
2021
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
61,322
-
0
-
0
-
0
In two to five years
87,310
-
0
-
0
-
0
148,632
-
-
-

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

24
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2022
2021
Group
£
£
Accelerated capital allowances
1,446,245
105,991
Revaluations
662,200
545,065
2,108,445
651,056
The company has no deferred tax assets or liabilities.
Group
Company
2022
2022
Movements in the year:
£
£
Liability at 1 January 2022
651,056
-
Charge to profit or loss
539,235
-
On acquisition
918,154
-
Liability at 31 December 2022
2,108,445
-

The deferred tax liability set out above is not expected to reverse within 12 months and relates to accelerated capital allowances and unrealised chargeable gains.

PRODUCTION PARK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 34 -
25
Government grants
Group
Company
2022
2021
2022
2021
£
£
£
£
Arising from government grants
186,500
-
-
-
26
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
83,392
68,065

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

27
Share capital
Group and company
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A Ordinary shares of 1p each
146,800
146,800
1,468
1,468
C Ordinary shares of 1p each
8,600
8,600
86
86
D Ordinary shares of 1p each
3,600
3,600
36
36
159,000
159,000
1,590
1,590
2022
2021
2022
2021
Preference share capital
Number
Number
£
£
Issued and fully paid
Preference shares of £100 each
49,523
49,523
4,952,300
4,952,300
Preference shares classified as equity
4,952,300
4,952,300
Total equity share capital
4,953,890
4,953,890
28
Reserves
Profit & loss account

The profit and loss reserve represents accumulated profit and losses less dividends paid on equity capital.

 

Revaluation reserve

The revaluation reserve represents the difference between the valuation which the freehold property is held in the financial statements and the historical cost price at which the property was purchased.

PRODUCTION PARK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 35 -
29
Acquisition of a business

On 30 June 2022 the group acquired 75 percent of the issued capital of Blitz Hire Limited.

Book Value
Adjustments
Fair Value
Net assets acquired
£
£
£
Property, plant and equipment
7,365,200
-
7,365,200
Trade and other receivables
2,654,976
-
2,654,976
Cash and cash equivalents
3,176,227
-
3,176,227
Trade and other payables
(2,611,937)
-
(2,611,937)
Deferred tax
(918,154)
-
(918,154)
Total identifiable net assets
9,666,312
-
9,666,312
Non-controlling interests
(2,416,578)
Goodwill
3,155,685
Total consideration
10,405,419
The consideration was satisfied by:
£
Cash
10,405,419
Contribution by the acquired business for the reporting period included in the group statement of comprehensive income since acquisition:
£
Turnover
8,220,474
Profit after tax
235,815
30
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2022
2021
2022
2021
£
£
£
£
Within one year
798,142
-
-
-
Between two and five years
3,784,117
-
-
-
In over five years
4,247,183
-
-
-
8,829,442
-
-
-
PRODUCTION PARK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 36 -
31
Related party transactions

The following amounts were outstanding at the reporting end date:

Amounts due from related parties
2022
2021
Balance
Balance
£
£
Group
Entities over which the group has control, joint control or significant influence
12,392,126
13,242,267
32
Cash generated from/(absorbed by) group operations
2022
2021
£
£
Profit/(loss) for the year after tax
58,509
(68,639)
Adjustments for:
Share of results of associates and joint ventures
24,698
24,698
Taxation charged/(credited)
1,691,898
(150,418)
Finance costs
1,260,567
467,446
Investment income
(21,457)
(1,697)
(Gain)/loss on disposal of tangible fixed assets
-
38,703
Fair value gain on investment properties
(468,542)
(615,766)
Amortisation and impairment of intangible assets
245,286
87,502
Depreciation and impairment of tangible fixed assets
1,752,661
286,453
Other gains and losses
-
6,900
Movements in working capital:
(Increase)/decrease in stocks
(9,711)
12,952
Increase in debtors
(439,100)
(905,083)
Increase/(decrease) in creditors
2,986,370
(3,771,186)
Increase in deferred income
186,500
-
Cash generated from/(absorbed by) operations
7,267,679
(4,588,135)
33
Analysis of changes in net debt - group
1 January 2022
Cash flows
New finance leases
31 December 2022
£
£
£
£
Cash at bank and in hand
3,504,875
1,119,314
-
4,624,189
Borrowings excluding overdrafts
(13,140,000)
(12,958,520)
-
(26,098,520)
Obligations under finance leases
-
31,142
(179,774)
(148,632)
(9,635,125)
(11,808,064)
(179,774)
(21,622,963)
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