REGISTERED NUMBER: 01860954 (England and Wales) |
Group Strategic Report, |
Report of the Directors and |
Consolidated Financial Statements |
for the Year Ended 31 December 2022 |
for |
Tyne Tees Entertainments Limited and |
Subsidiary Company |
REGISTERED NUMBER: 01860954 (England and Wales) |
Group Strategic Report, |
Report of the Directors and |
Consolidated Financial Statements |
for the Year Ended 31 December 2022 |
for |
Tyne Tees Entertainments Limited and |
Subsidiary Company |
Tyne Tees Entertainments Limited and |
Subsidiary Company (Registered number: 01860954) |
Contents of the Consolidated Financial Statements |
for the Year Ended 31 December 2022 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 5 |
Consolidated Income Statement | 9 |
Consolidated Other Comprehensive Income | 10 |
Consolidated Balance Sheet | 11 |
Company Balance Sheet | 12 |
Consolidated Statement of Changes in Equity | 13 |
Company Statement of Changes in Equity | 14 |
Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Financial Statements | 17 |
Tyne Tees Entertainments Limited and |
Subsidiary Company |
Company Information |
for the Year Ended 31 December 2022 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditor |
Chartered Accountants |
3 Kingfisher Court |
Bowesfield Park |
Stockton on Tees |
TS18 3EX |
Tyne Tees Entertainments Limited and |
Subsidiary Company (Registered number: 01860954) |
Group Strategic Report |
for the Year Ended 31 December 2022 |
The directors present their strategic report of the company and the group for the year ended 31 December 2022. |
REVIEW OF BUSINESS |
The principal activities of the group in the year under review were the operation of amusement arcades, the operation of an indoor soft play centre and an ice cream parlour. |
The financial position of the group was significantly impacted by the effects of the coronavirus pandemic over the last two years. This year has seen an increase in turnover and profitability to a position in excess of pre-pandemic levels. |
The subsidiary contributed £1,079,823 (2021: £951,347) to the group turnover of £3,483,419 (2021: £2,401,162). The group's profit for the year, attributable to equity shareholders, amounted to £464,753 (2021: £842,186). |
The gross profit margin has increased by 0.9% to 66.5% (2021: 65.6%). The increase in margin is in line with the directors' expectations as the group has recovered from the impact of the coronavirus restrictions. |
The group operates in areas where the local economies continue to experience challenging conditions. Under these conditions the directors are satisfied with the performance of the group. |
The directors use turnover and gross margin analysis as the Key Performance Indicators. |
Given the straightforward nature of the group, the group's directors are of the opinion that analysis using other Key Performance Indicators is not necessary for an understanding of the development and performance of the entity. |
PRINCIPAL RISKS AND UNCERTAINTIES |
In common with other businesses in the leisure industry, the principle risks affecting performance are the general economic climate and both personal and corporate attitudes to discretionary expenditure. The directors believe that they have taken adequate steps to mitigate these risks. The year end position of the company is considered satisfactory, with the potential for sustained profitability in the forthcoming years. |
KEY PERFORMANCE INDICATORS |
Given the straightforward nature of the business, the company's directors are of the opinion that analysis using KPI's is not necessary for an understanding of the development, performance or position of the entity, and that all relevant financial information has been disclosed within the financial statements. |
ON BEHALF OF THE BOARD: |
Tyne Tees Entertainments Limited and |
Subsidiary Company (Registered number: 01860954) |
Report of the Directors |
for the Year Ended 31 December 2022 |
The directors present their report with the financial statements of the company and the group for the year ended 31 December 2022. |
PRINCIPAL ACTIVITIES |
The principal activities of the group in the year under review were those of the operation of amusement arcades, the operation of an indoor soft play centre and an ice cream parlour. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 December 2022. |
FUTURE DEVELOPMENTS |
The group continues to consolidate its arcade and soft play businesses. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2022 to the date of this report. |
POLITICAL DONATIONS AND EXPENDITURE |
No political donations were made by the group during the year. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
Tyne Tees Entertainments Limited and |
Subsidiary Company (Registered number: 01860954) |
Report of the Directors |
for the Year Ended 31 December 2022 |
AUDITORS |
The auditors, Anderson Barrowcliff LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Tyne Tees Entertainments Limited and |
Subsidiary Company |
Opinion |
We have audited the financial statements of Tyne Tees Entertainments Limited and Subsidiary Company (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2022 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of 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: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 31 December 2022 and of the group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 the 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 directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
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. |
In connection with our audit of the financial statements, 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 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 the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
Tyne Tees Entertainments Limited and |
Subsidiary Company |
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 its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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 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 group's and 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
Tyne Tees Entertainments Limited and |
Subsidiary Company |
Auditors' 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 a Report of the Auditors 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. |
Based on our understanding of the industry, we have considered applicable laws and regulations which may be fundamental to the company's ability to operate or to avoid a material penalty, and we considered the extent to which non-compliance might have a material effect on the financial statements. We considered management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to the posting of inappropriate manual journal entries to manipulate financial performance, management bias in significant accounting estimates and any significant one-off or unusual transactions. |
We discussed among the audit engagement team the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements. |
Audit procedures performed by the engagement team included: |
- | Enquiry of management, those charged with governance,around actual and potential litigation and claims. |
- | Enquiry of entity staff to identify any instances of non-compliance with laws and regulations. |
- | Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations. |
- | Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business. |
- | Challenging estimates and judgements made by management in their significant accounting estimates. |
- | Revenue recognition; agreeing a sample of revenue transactions to gain assurance over the occurrence and accuracy of revenue and also to ensure revenue has been recognised in the correct period. |
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. The risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Report of the Independent Auditors to the Members of |
Tyne Tees Entertainments Limited and |
Subsidiary Company |
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 a Report of the Auditors 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. |
for and on behalf of |
Statutory Auditor |
Chartered Accountants |
3 Kingfisher Court |
Bowesfield Park |
Stockton on Tees |
TS18 3EX |
Tyne Tees Entertainments Limited and |
Subsidiary Company (Registered number: 01860954) |
Consolidated |
Income Statement |
for the Year Ended 31 December 2022 |
2022 | 2021 |
Notes | £ | £ |
TURNOVER | 3 | 3,483,419 | 2,401,162 |
Cost of sales | 1,166,659 | 826,790 |
GROSS PROFIT | 2,316,760 | 1,574,372 |
Administrative expenses | 1,688,026 | 1,510,495 |
628,734 | 63,877 |
Other operating income | 16,000 | 335,297 |
OPERATING PROFIT | 5 | 644,734 | 399,174 |
Exceptional item |
VAT refund and interest | 6 | - | 634,729 |
644,734 | 1,033,903 |
Interest receivable and similar income | 4,277 | 963 |
649,011 | 1,034,866 |
Interest payable and similar expenses | 7 | 363 | 34 |
PROFIT BEFORE TAXATION | 648,648 | 1,034,832 |
Tax on profit | 8 | 179,531 | 192,646 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 469,117 | 842,186 |
Tyne Tees Entertainments Limited and |
Subsidiary Company (Registered number: 01860954) |
Consolidated |
Other Comprehensive Income |
for the Year Ended 31 December 2022 |
2022 | 2021 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 469,117 | 842,186 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
469,117 |
842,186 |
Total comprehensive income attributable to: |
Owners of the parent | 469,117 | 842,186 |
Tyne Tees Entertainments Limited and |
Subsidiary Company (Registered number: 01860954) |
Consolidated Balance Sheet |
31 December 2022 |
2022 | 2021 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 10 | 6,486,877 | 6,550,936 |
Investments | 11 | - | - |
6,486,877 | 6,550,936 |
CURRENT ASSETS |
Stocks | 12 | 15,265 | 15,166 |
Debtors | 13 | 58,675 | 686,850 |
Cash at bank and in hand | 2,700,326 | 1,572,958 |
2,774,266 | 2,274,974 |
CREDITORS |
Amounts falling due within one year | 14 | 427,505 | 530,389 |
NET CURRENT ASSETS | 2,346,761 | 1,744,585 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
8,833,638 |
8,295,521 |
PROVISIONS FOR LIABILITIES | 19 | 256,000 | 187,000 |
NET ASSETS | 8,577,638 | 8,108,521 |
CAPITAL AND RESERVES |
Called up share capital | 20 | 10,000 | 10,000 |
Retained earnings | 21 | 8,567,638 | 8,098,521 |
SHAREHOLDERS' FUNDS | 8,577,638 | 8,108,521 |
The financial statements were approved by the Board of Directors and authorised for issue on 29 September 2023 and were signed on its behalf by: |
G Caris - Director |
Tyne Tees Entertainments Limited and |
Subsidiary Company (Registered number: 01860954) |
Company Balance Sheet |
31 December 2022 |
2022 | 2021 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 10 |
Investments | 11 |
CURRENT ASSETS |
Stocks | 12 |
Debtors | 13 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 19 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 20 |
Retained earnings | 21 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 454,153 | 705,042 |
The financial statements were approved by the Board of Directors and authorised for issue on |
Tyne Tees Entertainments Limited and |
Subsidiary Company (Registered number: 01860954) |
Consolidated Statement of Changes in Equity |
for the Year Ended 31 December 2022 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 January 2021 | 10,000 | 7,256,335 | 7,266,335 |
Changes in equity |
Total comprehensive income | - | 842,186 | 842,186 |
Balance at 31 December 2021 | 10,000 | 8,098,521 | 8,108,521 |
Changes in equity |
Total comprehensive income | - | 469,117 | 469,117 |
Balance at 31 December 2022 | 10,000 | 8,567,638 | 8,577,638 |
Tyne Tees Entertainments Limited and |
Subsidiary Company (Registered number: 01860954) |
Company Statement of Changes in Equity |
for the Year Ended 31 December 2022 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 January 2021 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 December 2021 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 December 2022 |
Tyne Tees Entertainments Limited and |
Subsidiary Company (Registered number: 01860954) |
Consolidated Cash Flow Statement |
for the Year Ended 31 December 2022 |
2022 | 2021 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 1,532,192 | 1,234,167 |
Interest paid | (363 | ) | (8 | ) |
Interest element of hire purchase or finance lease rental payments paid |
- |
(26 |
) |
Tax paid | (180,000 | ) | (148,198 | ) |
Net cash from operating activities | 1,351,829 | 1,085,935 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (295,812 | ) | (254,927 | ) |
Sale of tangible fixed assets | 63,245 | 10,518 |
Interest received | 4,277 | 963 |
Net cash from investing activities | (228,290 | ) | (243,446 | ) |
Cash flows from financing activities |
Capital repayments in year | - | (2,161 | ) |
Amount introduced by directors | 90,474 | 87,326 |
Amount withdrawn by directors | (87,245 | ) | (98,495 | ) |
Net cash from financing activities | 3,229 | (13,330 | ) |
Increase in cash and cash equivalents | 1,126,768 | 829,159 |
Cash and cash equivalents at beginning of year |
2 |
1,568,099 |
738,940 |
Cash and cash equivalents at end of year | 2 | 2,694,867 | 1,568,099 |
Tyne Tees Entertainments Limited and |
Subsidiary Company (Registered number: 01860954) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 31 December 2022 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2022 | 2021 |
£ | £ |
Profit before taxation | 648,648 | 1,034,832 |
Depreciation charges | 303,294 | 275,152 |
Profit on disposal of fixed assets | (6,668 | ) | (4,927 | ) |
Finance costs | 363 | 34 |
Finance income | (4,277 | ) | (963 | ) |
941,360 | 1,304,128 |
Increase in stocks | (99 | ) | (3,566 | ) |
Decrease/(increase) in trade and other debtors | 628,175 | (59,474 | ) |
Decrease in trade and other creditors | (37,244 | ) | (6,921 | ) |
Cash generated from operations | 1,532,192 | 1,234,167 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 December 2022 |
31.12.22 | 1.1.22 |
£ | £ |
Cash and cash equivalents | 2,700,326 | 1,572,958 |
Bank overdrafts | (5,459 | ) | (4,859 | ) |
2,694,867 | 1,568,099 |
Year ended 31 December 2021 |
31.12.21 | 1.1.21 |
£ | £ |
Cash and cash equivalents | 1,572,958 | 743,925 |
Bank overdrafts | (4,859 | ) | (4,985 | ) |
1,568,099 | 738,940 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.1.22 | Cash flow | At 31.12.22 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 1,572,958 | 1,127,368 | 2,700,326 |
Bank overdrafts | (4,859 | ) | (600 | ) | (5,459 | ) |
1,568,099 | 1,126,768 | 2,694,867 |
Total | 1,568,099 | 1,126,768 | 2,694,867 |
Tyne Tees Entertainments Limited and |
Subsidiary Company (Registered number: 01860954) |
Notes to the Consolidated Financial Statements |
for the Year Ended 31 December 2022 |
1. | STATUTORY INFORMATION |
Tyne Tees Entertainments Limited and Subsidiary Company is a |
The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £. |
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Basis of consolidation |
The consolidated financial statements incorporate the financial statements of the company and its subsidiary company. The results of the subsidiaries acquired are consolidated for the periods from the date on which control passed and are accounted for under the acquisition method. |
As permitted by section 408 of the Companies Act 2006, the profit and loss account of the parent company is not presented as part of these financial statements. |
Turnover |
Turnover represents arcade takings, takings from the children's indoor play centre and ice cream parlour, excluding value added tax, and is recognised on a cash basis. |
Tangible fixed assets |
Freehold property | - |
Leasehold improvements | - |
Amusement machines | - |
Fixtures and fittings | - |
Motor vehicles | - |
Tangible fixed assets are stated at cost or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended. |
The directors consider that freehold properties are maintained in such a state of repair that their residual value is at least equal to their net book value. |
Impairment |
Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease. |
Stocks |
Stocks are valued at the lower of cost and estimated selling price less costs to sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing stock to its present location and condition. Provision is made for damaged, obsolete and slow-moving stock where appropriate. |
Tyne Tees Entertainments Limited and |
Subsidiary Company (Registered number: 01860954) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2022 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme for the benefit of the directors. Contributions payable for the year are charged in the profit and loss account. |
Debtors and creditors receivable/payable within one year |
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses. |
Loans and Borrowings |
Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. If an arrangement constitutes a finance transaction it is measured at present value. |
Judgements and key sources of estimation uncertainty |
In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts 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 of the revision, if the revision affects only that period, or in the period of revision and future periods if the revision affects both current and future periods. |
Tyne Tees Entertainments Limited and |
Subsidiary Company (Registered number: 01860954) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2022 |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the principal activities of the group. |
An analysis of turnover by class of business is given below: |
2022 | 2021 |
£ | £ |
Amusement arcade | 2,403,596 | 1,449,815 |
Indoor soft play centre | 1,079,823 | 951,347 |
3,483,419 | 2,401,162 |
4. | EMPLOYEES AND DIRECTORS |
2022 | 2021 |
£ | £ |
Wages and salaries | 1,081,194 | 949,339 |
Social security costs | 43,941 | 29,700 |
Other pension costs | 6,959 | 5,993 |
1,132,094 | 985,032 |
The average number of employees during the year was as follows: |
2022 | 2021 |
Weekly staff | 78 | 72 |
Directors | 5 | 3 |
2022 | 2021 |
£ | £ |
Directors' remuneration | 333,411 | 295,013 |
Information regarding the highest paid director is as follows: |
2022 | 2021 |
£ | £ |
Emoluments etc | 79,122 | 74,752 |
Tyne Tees Entertainments Limited and |
Subsidiary Company (Registered number: 01860954) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2022 |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2022 | 2021 |
£ | £ |
Hire of plant and machinery | 699 | 700 |
Other operating leases | 1,975 | 2,067 |
Depreciation - owned assets | 303,294 | 272,684 |
Depreciation - assets on hire purchase contracts or finance leases | - | 2,468 |
Profit on disposal of fixed assets | (6,668 | ) | (4,927 | ) |
Auditors remuneration | 7,900 | 7,000 |
Income from grants | - | (335,297 | ) |
6. | EXCEPTIONAL ITEMS |
2022 | 2021 |
£ | £ |
Exceptional item |
VAT refund and interest | - | 634,729 |
The exceptional item in the prior year relates to VAT recovered during the year following the Upper Tier Tribunal decision judgement in favour of the taxpayer in the Rank case. This amount consists of the recovered VAT of £594,760 and statutory interest of £39,969. |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2022 | 2021 |
£ | £ |
Bank interest | 351 | 8 |
Interest on VAT | 12 | - |
Hire purchase | - | 26 |
363 | 34 |
8. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2022 | 2021 |
£ | £ |
Current tax: |
UK corporation tax | 110,531 | 178,346 |
Deferred taxation | 69,000 | 14,300 |
Tax on profit | 179,531 | 192,646 |
Tyne Tees Entertainments Limited and |
Subsidiary Company (Registered number: 01860954) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2022 |
8. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2022 | 2021 |
£ | £ |
Profit before tax | 648,648 | 1,034,832 |
Profit multiplied by the standard rate of corporation tax in the UK of 19 % (2021 - 19 %) |
123,243 |
196,618 |
Effects of: |
Expenses not deductible for tax purposes | 252 | 77 |
Capital allowances in excess of depreciation | - | (4,049 | ) |
Depreciation in excess of capital allowances | 56,036 | - |
Total tax charge | 179,531 | 192,646 |
9. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements. |
10. | TANGIBLE FIXED ASSETS |
Group |
Freehold | Leasehold | Amusement |
property | improvements | machines |
£ | £ | £ |
COST |
At 1 January 2022 | 5,072,908 | 1,118,748 | 1,737,891 |
Additions | - | - | 173,069 |
Disposals | - | - | (100,540 | ) |
At 31 December 2022 | 5,072,908 | 1,118,748 | 1,810,420 |
DEPRECIATION |
At 1 January 2022 | 30,336 | 273,606 | 1,426,413 |
Charge for year | - | 24,674 | 136,837 |
Eliminated on disposal | - | - | (73,977 | ) |
At 31 December 2022 | 30,336 | 298,280 | 1,489,273 |
NET BOOK VALUE |
At 31 December 2022 | 5,042,572 | 820,468 | 321,147 |
At 31 December 2021 | 5,042,572 | 845,142 | 311,478 |
Tyne Tees Entertainments Limited and |
Subsidiary Company (Registered number: 01860954) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2022 |
10. | TANGIBLE FIXED ASSETS - continued |
Group |
Fixtures |
and | Motor |
fittings | vehicles | Totals |
£ | £ | £ |
COST |
At 1 January 2022 | 1,126,906 | 220,583 | 9,277,036 |
Additions | 35,734 | 87,009 | 295,812 |
Disposals | - | (64,095 | ) | (164,635 | ) |
At 31 December 2022 | 1,162,640 | 243,497 | 9,408,213 |
DEPRECIATION |
At 1 January 2022 | 889,584 | 106,161 | 2,726,100 |
Charge for year | 106,431 | 35,352 | 303,294 |
Eliminated on disposal | - | (34,081 | ) | (108,058 | ) |
At 31 December 2022 | 996,015 | 107,432 | 2,921,336 |
NET BOOK VALUE |
At 31 December 2022 | 166,625 | 136,065 | 6,486,877 |
At 31 December 2021 | 237,322 | 114,422 | 6,550,936 |
Company |
Freehold | Leasehold | Amusement |
property | improvements | machines |
£ | £ | £ |
COST |
At 1 January 2022 |
Additions |
Disposals | ( |
) |
At 31 December 2022 |
DEPRECIATION |
At 1 January 2022 |
Charge for year |
Eliminated on disposal | ( |
) |
At 31 December 2022 |
NET BOOK VALUE |
At 31 December 2022 |
At 31 December 2021 |
Tyne Tees Entertainments Limited and |
Subsidiary Company (Registered number: 01860954) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2022 |
10. | TANGIBLE FIXED ASSETS - continued |
Company |
Fixtures |
and | Motor |
fittings | vehicles | Totals |
£ | £ | £ |
COST |
At 1 January 2022 |
Additions |
Disposals | ( |
) | ( |
) |
At 31 December 2022 |
DEPRECIATION |
At 1 January 2022 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 December 2022 |
NET BOOK VALUE |
At 31 December 2022 |
At 31 December 2021 |
Included within the net book value of leasehold improvements is £749,460 (2021: £761,317) relating to long leasehold property. |
11. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 January 2022 |
and 31 December 2022 |
NET BOOK VALUE |
At 31 December 2022 |
At 31 December 2021 |
Tyne Tees Entertainments Limited and |
Subsidiary Company (Registered number: 01860954) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2022 |
11. | FIXED ASSET INVESTMENTS - continued |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiary |
Registered office: 21-25 Marine Avenue, Whitley Bay, Tyne & Wear, NE26 1LX |
Nature of business: |
% |
Class of shares: | holding |
2022 | 2021 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
The above subsidiary is included in the consolidation. |
12. | STOCKS |
Group | Company |
2022 | 2021 | 2022 | 2021 |
£ | £ | £ | £ |
Stocks | 15,265 | 15,166 |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2022 | 2021 | 2022 | 2021 |
£ | £ | £ | £ |
Trade debtors | - | - |
Amounts owed by group undertakings | - | - |
Other debtors | 2,000 | 637,729 |
Prepayments | 56,675 | 49,121 |
58,675 | 686,850 |
Tyne Tees Entertainments Limited and |
Subsidiary Company (Registered number: 01860954) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2022 |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2022 | 2021 | 2022 | 2021 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 15) | 5,459 | 4,859 |
Trade creditors | 73,713 | 76,781 |
Taxation | 108,877 | 178,346 |
Social security and other taxes | 17,536 | 16,559 |
VAT | 60,466 | 47,566 | 34,011 | 27,644 |
Other creditors | 51,963 | 71,895 |
Directors' current accounts | 63,063 | 59,834 | 36,897 | 59,834 |
Accrued expenses | 46,428 | 74,549 |
427,505 | 530,389 |
15. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
2022 | 2021 | 2022 | 2021 |
£ | £ | £ | £ |
Amounts falling due within one year or on | demand: |
Bank overdrafts | 5,459 | 4,859 |
16. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Company |
Non-cancellable operating | leases |
2022 | 2021 |
£ | £ |
Within one year |
Between one and five years |
17. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group | Company |
2022 | 2021 | 2022 | 2021 |
£ | £ | £ | £ |
Bank overdrafts | 5,459 | 4,859 |
The bank overdraft has a fixed charge over book debts and a floating charge over all other assets dated 18 March 1987. It also has first legal charge over leasehold property known as 9 &10 The Esplanade, Redcar, Cleveland. |
Tyne Tees Entertainments Limited and |
Subsidiary Company (Registered number: 01860954) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2022 |
18. | FINANCIAL INSTRUMENTS |
The expenses attributable to the company's financial instruments are summarised as follows: |
2022 | 2021 |
£ | £ |
Expenses |
Financial liabilities measured at amortised cost |
- Hire purchase interest | - | 26 |
19. | PROVISIONS FOR LIABILITIES |
Group | Company |
2022 | 2021 | 2022 | 2021 |
£ | £ | £ | £ |
Deferred taxation | 256,000 | 187,000 | 256,000 | 187,000 |
Group |
Deferred |
tax |
£ |
Balance at 1 January 2022 | 187,000 |
Provided during year | 69,000 |
Balance at 31 December 2022 | 256,000 |
Company |
Deferred |
tax |
£ |
Balance at 1 January 2022 |
Provided during year |
Balance at 31 December 2022 |
20. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2022 | 2021 |
value: | £ | £ |
Ordinary | £1 | 10,000 | 10,000 |
There is a single class of ordinary shares. There are no restrictions on the distribution of dividends and the repayment of capital. |
Tyne Tees Entertainments Limited and |
Subsidiary Company (Registered number: 01860954) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2022 |
21. | RESERVES |
Group |
Retained |
earnings |
£ |
At 1 January 2022 | 8,098,521 |
Profit for the year | 469,117 |
At 31 December 2022 | 8,567,638 |
Company |
Retained |
earnings |
£ |
At 1 January 2022 |
Profit for the year |
At 31 December 2022 |
Retained earnings represents cumulative profits and losses net of dividends and other adjustments. |
22. | PENSION COMMITMENTS |
The group operates a defined contribution pension scheme for its directors and employees. Premiums are charged to the profit and loss account in the year they are paid. The charge for the year was £6,959 (2021 - £5,993). |
23. | RELATED PARTY DISCLOSURES |
The total remuneration for key management personnel for the year totalled £333,411 (2021 - £295,013), being remuneration disclosed in note 3. |
Other related parties - common control |
The group pays rent of £18,500 (2021 - £18,500) per annum on a property owned by an entity under common control. |
Key management personnel |
The group leases property owned by key management personnel for £1 per annum. |
24. | ULTIMATE CONTROLLING PARTY |
The group is under the control of the directors by virtue of their equity shareholdings. |