IRIS Accounts Production v23.2.0.158 01602315 Board of Directors 1.1.22 31.12.22 31.12.22 The principal activity of the company in the period under review was that of design and installation of temporary lighting, sound, video, rigging, staging, drapes and associated special effects for the commercial theatre market; ranging from corporate conferences, hospitality and exhibitions through to the domestic market of large scale weddings and parties and then to true theatre work and the entertainment industry, education, places of worship and theatre and amateur theatre customers. true false true true false false false true false iso4217:GBPiso4217:USDiso4217:EURxbrli:sharesxbrli:pure016023152021-12-31016023152022-12-31016023152022-01-012022-12-31016023152020-12-31016023152021-01-012021-12-31016023152021-12-3101602315ns16:EnglandWales2022-01-012022-12-3101602315ns15:PoundSterling2022-01-012022-12-3101602315ns11:Director12022-01-012022-12-3101602315ns11:PrivateLimitedCompanyLtd2022-01-012022-12-3101602315ns11:FRS1022022-01-012022-12-3101602315ns11:Audited2022-01-012022-12-3101602315ns11:LargeMedium-sizedCompaniesRegimeForDirectorsReport2022-01-012022-12-3101602315ns11:LargeMedium-sizedCompaniesRegimeForAccounts2022-01-012022-12-3101602315ns11:FullAccounts2022-01-012022-12-310160231512022-01-012022-12-3101602315ns11:Director22022-01-012022-12-3101602315ns11:Director32022-01-012022-12-3101602315ns11:Director42022-01-012022-12-3101602315ns11:RegisteredOffice2022-01-012022-12-3101602315ns6:CurrentFinancialInstruments2022-12-3101602315ns6:CurrentFinancialInstruments2021-12-3101602315ns6:ShareCapital2022-12-3101602315ns6:ShareCapital2021-12-3101602315ns6:SharePremium2022-12-3101602315ns6:SharePremium2021-12-3101602315ns6:RetainedEarningsAccumulatedLosses2022-12-3101602315ns6:RetainedEarningsAccumulatedLosses2021-12-3101602315ns6:ShareCapital2020-12-3101602315ns6:RetainedEarningsAccumulatedLosses2020-12-3101602315ns6:SharePremium2020-12-3101602315ns6:RetainedEarningsAccumulatedLosses2021-01-012021-12-3101602315ns6:RetainedEarningsAccumulatedLosses2022-01-012022-12-310160231512022-01-012022-12-310160231512021-01-012021-12-310160231522022-01-012022-12-310160231522021-01-012021-12-3101602315ns6:NetGoodwill2022-01-012022-12-3101602315ns6:LeaseholdImprovements2022-01-012022-12-3101602315ns6:PlantMachinery2022-01-012022-12-3101602315ns6:FurnitureFittings2022-01-012022-12-3101602315ns6:MotorVehicles2022-01-012022-12-3101602315ns6:ComputerEquipment2022-01-012022-12-3101602315ns16:UnitedKingdom2022-01-012022-12-3101602315ns16:UnitedKingdom2021-01-012021-12-3101602315ns6:TotalGeographicSegmentsIncludingAnyUnallocatedAmount2022-01-012022-12-3101602315ns6:TotalGeographicSegmentsIncludingAnyUnallocatedAmount2021-01-012021-12-3101602315ns6:NetGoodwill2021-12-3101602315ns6:NetGoodwill2022-12-3101602315ns6:NetGoodwill2021-12-3101602315ns6:LeaseholdImprovements2021-12-3101602315ns6:PlantMachinery2021-12-3101602315ns6:FurnitureFittings2021-12-3101602315ns6:LeaseholdImprovements2022-12-3101602315ns6:PlantMachinery2022-12-3101602315ns6:FurnitureFittings2022-12-3101602315ns6:LeaseholdImprovements2021-12-3101602315ns6:PlantMachinery2021-12-3101602315ns6:FurnitureFittings2021-12-3101602315ns6:MotorVehicles2021-12-3101602315ns6:ComputerEquipment2021-12-3101602315ns6:MotorVehicles2022-12-3101602315ns6:ComputerEquipment2022-12-3101602315ns6:MotorVehicles2021-12-3101602315ns6:ComputerEquipment2021-12-3101602315ns6:WithinOneYearns6:CurrentFinancialInstruments2022-12-3101602315ns6:WithinOneYearns6:CurrentFinancialInstruments2021-12-3101602315ns6:Non-currentFinancialInstruments2022-12-3101602315ns6:Non-currentFinancialInstruments2021-12-3101602315ns6:AcceleratedTaxDepreciationDeferredTax2021-12-3101602315ns6:TaxLossesCarry-forwardsDeferredTax2021-12-3101602315ns6:WithinOneYear2022-12-3101602315ns6:WithinOneYear2021-12-3101602315ns6:BetweenOneFiveYears2022-12-3101602315ns6:BetweenOneFiveYears2021-12-3101602315ns6:AllPeriods2022-12-3101602315ns6:AllPeriods2021-12-3101602315ns6:AcceleratedTaxDepreciationDeferredTax2022-12-3101602315ns6:TaxLossesCarry-forwardsDeferredTax2022-12-3101602315ns6:DeferredTaxation2021-12-3101602315ns6:DeferredTaxation2022-01-012022-12-3101602315ns6:DeferredTaxation2022-12-3101602315ns6:EntitiesWithJointControlOrSignificantInfluenceOverReportingEntity2022-01-012022-12-3101602315ns6:EntitiesWithJointControlOrSignificantInfluenceOverReportingEntity2021-01-012021-12-3101602315ns6:OtherRelatedPartyRelationshipType1ComponentTotalRelatedParties2022-01-012022-12-3101602315ns6:KeyManagementPersonnelCloseFamilyMembersEntitiesUnderKeyManagementPersonnelsControl2022-01-012022-12-3101602315ns6:OtherRelatedParties2022-01-012022-12-3101602315ns6:OtherRelatedParties2021-01-012021-12-3101602315ns6:OtherRelatedParties2022-12-3101602315ns6:OtherRelatedParties2021-12-31
REGISTERED NUMBER: 01602315 (England and Wales)









STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

FOR

HAWTHORN THEATRICAL LIMITED

HAWTHORN THEATRICAL LIMITED (REGISTERED NUMBER: 01602315)

CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022










Page

Company Information 1

Strategic Report 2 to 4

Report of the Directors 5 to 6

Report of the Independent Auditors 7 to 10

Statement of Comprehensive Income 11

Statement of Financial Position 12

Statement of Changes in Equity 13

Statement of Cash Flows 14

Notes to the Statement of Cash Flows 15

Notes to the Financial Statements 16 to 26


HAWTHORN THEATRICAL LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2022







DIRECTORS: Mr M Hawthorn
Mr N O Rudge
Mr B E Erwin
Mr D W J McEwan





REGISTERED OFFICE: Union Business Park
Florence Way
Uxbridge
Middlesex
UB8 2LS





REGISTERED NUMBER: 01602315 (England and Wales)





AUDITORS: Seymour Taylor Limited, Statutory Auditor
57 London Road
High Wycombe
Buckinghamshire
HP11 1BS

HAWTHORN THEATRICAL LIMITED (REGISTERED NUMBER: 01602315)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022


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

REVIEW OF BUSINESS
The company's key financial and performance indicators during the period was as follows:




Year ended

Year ended
%
Change
31.12.22 31.12.21
£'000 £'000
Turnover 19,752 12,360 50%
Profit/(loss) after taxation 2,592 856 203%
Shareholders' funds 13,603 11,011 24%

During the year the company continued to provide the hire of audio visual equipment and services to customers in a number of different business sectors as well as overseas. 2022 was a year of revenue recovery combined with investment in team members and equipment.

The company is grateful for our team members' enthusiasm in helping customers deliver great events. We won work from new clients and strengthened relationships with existing clients through adaption to their needs.

The business ended 2022 with confidence and although trading in 2023 has reflected the slower macroeconomic environment, revenues and profits remain robust.

PRINCIPAL RISKS AND UNCERTAINTIES
The principal risks and uncertainties facing the company are as follows:

Competitor risks
The company has recognised competitive risks from alternative suppliers. The company seeks to differentiate itself from competitors, providing a premium service in addition to the supply of high quality equipment. The company constantly monitors its competitive offering and adjusts as challenges present themselves. The Company is investing in training and service excellence, including the introduction of Event Pulse powered by Medallia, to monitor customer satisfaction to ensure we remain the provider of choice for our venue partners and customers.


HAWTHORN THEATRICAL LIMITED (REGISTERED NUMBER: 01602315)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022

PRINCIPAL RISKS AND UNCERTAINTIES
Foreign currency
Intercompany balances held in foreign currency, especially US dollars and Euros, affect the company's performance. The company will closely monitor these risks and take action where required.

General economic uncertainty
As the global economy recovers from COVID related shutdowns, inflationary pressures and supply chain difficulties are a risk to the company's operations as the availability of people (both salaried and freelance) and equipment is constrained. As part of a global organisation, the company is working with other group companies to obtain and share resources and exploring other solutions to these risks.

COVID-19
Following the COVID-19 pandemic and the global increase in interest rates, the directors have given consideration to the company's operations, including its going concern status.

The directors have concluded that the company continues to be a going concern due to expected future trading levels and the funding support achieved by the ultimate parent company for its subsidiaries, which has confirmed its continuing support.

Emissions and energy consumption
Disclosure in respect of greenhouse gas emissions, energy consumption and energy efficiency has not been included within this report as the company does not exceed the thresholds to disclose.


HAWTHORN THEATRICAL LIMITED (REGISTERED NUMBER: 01602315)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022

SECTION 172(1) STATEMENT
The following disclosure describes how the directors have had regard to the matters set out in section 172(1)(a) to (f) and forms the directors' statement required under section 414CZA of The Companies Act 2006.

The directors consider that customers, investors, suppliers and workforce are key stakeholders and are considered in key decisions.

Customers
Our corporate culture of Purpose, Mission and Values are focussed on delivering value for our Customers. We consider delivering for our customer requirements as key to continued success.

Investors
We create value for our investors by generating strong and sustainable results. We set out KPIs in our Strategic Report. We discuss key decisions in regular meetings with management. Our investors have considered the funding requirements of the business for capital expenditure when determining that no dividend be paid from the 2022 results.

Suppliers
Our suppliers are important to our business success and each supplier has a named relationship contact person within the business for communication when required. We maintain good relationships with a range of suppliers to ensure the availability and flexibility that our customers require.

Workforce
Our workforce deliver great results for our stakeholders and are considered in all key decisions. We are committed to training and workforce welfare and monitor both training hours and employee engagement regularly. We communicate regularly with our workforce including in Town Halls where all staff can ask questions to management and Directors.

Community
We consider the wider needs of the communities in which we operate through a commitment to minimising our impact on the environment, upholding excellent standards of business conduct and, where possible, supporting local communities in which we operate.

Key Decisions
During the year under review, these stakeholders and factors were included the decision to award significant pay increases to team members and continue to increase the size of the workforce. This action was considered in the best long-term interests of our stakeholders.
During 2022, significant investment has been made in new equipment and training. This action was considered in the best long-term interests of our stakeholders.
The business also made the decision to not pursue any acquisition opportunities, again this being considered in the best long-term interests of our stakeholders.

ON BEHALF OF THE BOARD:





Mr D W J McEwan - Director


29 September 2023

HAWTHORN THEATRICAL LIMITED (REGISTERED NUMBER: 01602315)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2022


The directors of Hawthorn Theatrical Limited (the company) present their report and financial statements for the year ended 31 December 2022.

DIVIDENDS
No dividends will be distributed for the year ended 31 December 2022 (2021: £nil).

FUTURE DEVELOPMENTS
Our strategy of on-going investment in infrastructure, product development and expansion of existing markets is aimed at maintaining continuous growth and our balance sheet is adequately resourced to support this.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2022 to the date of this report.

Mr M Hawthorn
Mr N O Rudge
Mr B E Erwin

Other changes in directors holding office are as follows:

Mr D W J McEwan was appointed as a director after 31 December 2022 but prior to the date of this report.

FINANCIAL INSTRUMENTS
Details in relation to the financial risk management objectives and policies are disclosed within the strategic report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the 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 of the profit or loss of the company 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 transactions and disclose with reasonable accuracy at any time the financial position of the 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 company 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 company'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 company's auditors are aware of that information.

HAWTHORN THEATRICAL LIMITED (REGISTERED NUMBER: 01602315)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2022


AUDITORS
The auditors, Seymour Taylor Limited, will be re-appointed in accordance with section 487(2) of the Companies Act 2006.

ON BEHALF OF THE BOARD:





Mr D W J McEwan - Director


29 September 2023

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
HAWTHORN THEATRICAL LIMITED


Opinion
We have audited the financial statements of Hawthorn Theatrical Limited (the 'company') for the year ended 31 December 2022 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, 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 company's affairs as at 31 December 2022 and of its 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 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 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 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 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 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
HAWTHORN THEATRICAL LIMITED


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the 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, or returns adequate for our audit have not been received from branches not visited by us; or
- the 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 five, 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 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 company or to cease operations, or have no realistic alternative but to do so.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
HAWTHORN THEATRICAL LIMITED


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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Identifying and assessing potential risks related to irregularities
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:
- the nature of the industry and sector, control environment and business performance;
- results of our enquiries of management about their own identification and assessment of the risks of irregularities;
- any matters we identified in respect of the Company's documentation of their policies and procedures relating to:
- identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of noncompliance;
- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;
- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;
- the matters discussed among the audit engagement team and involving relevant internal specialists, including tax regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory frameworks that the Company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act and local tax legislation.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the Company's ability to operate or to avoid a material penalty.

Audit response to risks identified
As a result of performing the above, we identified revenue deferrals as a key audit matter related to the potential risk of fraud. The key audit matters section of our report explains the matter in more detail and also describes the specific procedures we performed in response to that key audit matter. Our procedures to respond to risks identified included the following:
- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
- enquiring of management concerning actual and potential litigation and claims;
- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
- obtained an understanding of provisions and held discussions with management to understand the basis of recognition or non-recognition of tax provisions; and
- in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
HAWTHORN THEATRICAL LIMITED

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members including internal specialists and significant component audit teams, and remained alert to any indications of fraud or noncompliance with laws and regulations throughout the audit.

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.

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.




Elizabeth Horton ACA FCCA (Senior Statutory Auditor)
for and on behalf of Seymour Taylor Limited, Statutory Auditor
57 London Road
High Wycombe
Buckinghamshire
HP11 1BS

29 September 2023

HAWTHORN THEATRICAL LIMITED (REGISTERED NUMBER: 01602315)

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2022

2022 2021
Notes £'000 £'000

TURNOVER 3 19,752 12,360

Cost of sales 13,467 9,504
GROSS PROFIT 6,285 2,856

Administrative expenses 3,394 2,562
2,891 294

Other operating income - 771
OPERATING PROFIT and
PROFIT BEFORE TAXATION 2,891 1,065

Tax on profit 6 299 209
PROFIT FOR THE FINANCIAL YEAR 2,592 856

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

2,592

856

HAWTHORN THEATRICAL LIMITED (REGISTERED NUMBER: 01602315)

STATEMENT OF FINANCIAL POSITION
31 DECEMBER 2022

2022 2021
Notes £'000 £'000 £'000 £'000
FIXED ASSETS
Intangible assets 7 - 14
Tangible assets 8 6,330 6,006
6,330 6,020

CURRENT ASSETS
Stocks 9 235 292
Debtors 10 10,210 6,775
Cash at bank 1,189 1,980
11,634 9,047
CREDITORS
Amounts falling due within one year 11 4,150 4,056
NET CURRENT ASSETS 7,484 4,991
TOTAL ASSETS LESS CURRENT
LIABILITIES

13,814

11,011

PROVISIONS FOR LIABILITIES 13 211 -
NET ASSETS 13,603 11,011

CAPITAL AND RESERVES
Called up share capital 14 27 27
Share premium 15 4,183 4,183
Retained earnings 15 9,393 6,801
13,603 11,011

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:





Mr D W J McEwan - Director


HAWTHORN THEATRICAL LIMITED (REGISTERED NUMBER: 01602315)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022

Called up
share Retained Share Total
capital earnings premium equity
£'000 £'000 £'000 £'000

Balance at 1 January 2021 27 5,945 4,183 10,155

Changes in equity
Total comprehensive income - 856 - 856
Balance at 31 December 2021 27 6,801 4,183 11,011

Changes in equity
Total comprehensive income - 2,592 - 2,592
Balance at 31 December 2022 27 9,393 4,183 13,603

HAWTHORN THEATRICAL LIMITED (REGISTERED NUMBER: 01602315)

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2022

2022 2021
Notes £'000 £'000
Cash flows from operating activities
Cash generated from operations 1 3,066 1,994
Net cash from operating activities 3,066 1,994

Cash flows from investing activities
Purchase of tangible fixed assets (1,892 ) (154 )
Sale of tangible fixed assets 12 -
Net cash from investing activities (1,880 ) (154 )

Cash flows from financing activities
Intercompany loans due to the company 680 (352 )
Intercompany loans due by the company (2,657 ) 70
Net cash from financing activities (1,977 ) (282 )

(Decrease)/increase in cash and cash equivalents (791 ) 1,558
Cash and cash equivalents at
beginning of year

2

1,980

422

Cash and cash equivalents at end of
year

2

1,189

1,980

HAWTHORN THEATRICAL LIMITED (REGISTERED NUMBER: 01602315)

NOTES TO THE STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2022


1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
2022 2021
£'000 £'000
Profit before taxation 2,891 1,065
Depreciation charges 1,577 1,499
Profit on disposal of fixed assets (7 ) -
4,461 2,564
Decrease/(increase) in stocks 57 (136 )
Increase in trade and other debtors (865 ) (1,537 )
(Decrease)/increase in trade and other creditors (587 ) 1,103
Cash generated from operations 3,066 1,994

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 December 2022
31.12.22 1.1.22
£'000 £'000
Cash and cash equivalents 1,189 1,980
Year ended 31 December 2021
31.12.21 1.1.21
£'000 £'000
Cash and cash equivalents 1,980 422


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.22 Cash flow At 31.12.22
£'000 £'000 £'000
Net cash
Cash at bank 1,980 (791 ) 1,189
1,980 (791 ) 1,189
Total 1,980 (791 ) 1,189

HAWTHORN THEATRICAL LIMITED (REGISTERED NUMBER: 01602315)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022


1. STATUTORY INFORMATION

Hawthorn Theatrical Limited is a private company, limited by shares, registered in England and Wales. The company's registered office is Union Business Park, Florence Way, Uxbridge, Middlesex, UB8 2LS. The registered number is 01602315.

The principal activity of the company in the period under review was that of design and installation of temporary lighting, sound, video, rigging, staging, drapes and associated special effects for the commercial theatre market; ranging from corporate conferences, hospitality and exhibitions through to the domestic market of large scale weddings and parties and then to true theatre work and the entertainment industry, education, places of worship and theatre and amateur theatre customers.

The financial statements are presented in the currency of the primary economic environment in which the entity operates (its functional currency), as such, the results and statement of financial position are presented in Sterling (£'000). Monetary amounts in these financial statements are rounded to the nearest thousand unless otherwise stated.

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
These financial statements have been prepared in accordance with applicable United Kingdom accounting standards, including Financial Reporting Standard 102 - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' ('FRS 102') and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Related party exemption
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Critical accounting estimates and judgements
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 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, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The areas for which estimation has been applied are considered to be in calculating impairments. Although these areas are subject to judgement, they are not considered to be subject to significant estimation.

HAWTHORN THEATRICAL LIMITED (REGISTERED NUMBER: 01602315)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2022


2. ACCOUNTING POLICIES - continued

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Goods and services are invoiced at the end of each contract. However, for larger contracts, interim amounts are billed throughout the period.

Goods and services provided to customers during the year, which at the financial reporting date have not been billed to customers have been recognised as turnover in accordance with FRS102. Unbilled revenue as at the balance sheet date is included in debtors.

Intangible fixed assets
Goodwill relating to the purchase of trading contracts in connection with Anagram Production Services Limited in March 2013 is being written off over its expected useful economic life of 10 years, reflecting the length of the underlying contracts.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Improvements to property - over the lease term
Plant and machinery - straight line - 33% and straight line - 10%
Tools and equipment - reducing balance - 15%
Motor vehicles - reducing balance - 25%
Office equipment - reducing balance - 33% and reducing balance - 15%

All tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. Such costs include costs directly attributable to making the asset capable of operating as intended.

Stocks
Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

Work in progress
Work in progress is valued on the basis of direct costs plus attributable overheads based on a normal level of activity.

Provision is made for any foreseeable losses where appropriate. No element of profit is included in the valuation of work in progress.

HAWTHORN THEATRICAL LIMITED (REGISTERED NUMBER: 01602315)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2022


2. ACCOUNTING POLICIES - continued

Financial instruments
The company has applied the provisions of Section 11 "Basic Financial Instruments" and Section 12 "Other Financial Instrument Issues" of FRS 102 to its financial statements.

Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability.

Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity.

Impairment of financial assets
At each period end date, the company reviews the carrying amounts of its financial 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).

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount is reduced to its recoverable amount, with the impairment recognised immediately in the statement of income and retained earnings.

Taxation
Tax on the profit or loss for the year comprises current and deferred tax. Tax is recognised in the profit and loss account except to the extent that it relates to items recognised directly in equity or other comprehensive income, in which case it is recognised directly in equity or other comprehensive income.

Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively enacted at the balance sheet date, and any adjustment to tax payable in respect of previous years.

Deferred tax is provided on timing differences which arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in the financial statements. Differences between accumulated depreciation and tax allowances for the cost of a fixed asset, if and when all conditions for retaining the tax allowances have been met, are not provided for. Deferred tax is not recognised on permanent differences arising because certain types of income or expense are non-taxable or are disallowable for tax or because certain tax charges or allowances are greater or smaller than the corresponding income or expense.

Deferred tax is measured at the tax rate that is expected to apply to the reversal of the related difference, using tax rates enacted or substantively enacted at the balance sheet date. Deferred tax balances are not discounted.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that is it probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

HAWTHORN THEATRICAL LIMITED (REGISTERED NUMBER: 01602315)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2022


2. ACCOUNTING POLICIES - continued

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Investments
Investments that are not publicly traded, and whose fair value cannot otherwise be measured reliably, are held as fixed assets and stated at cost less any provision for impairment in value.

The carrying values of investments are reviewed for impairment in periods if events or changes in circumstances indicate the carrying value may not be recoverable.

Provisions
Provisions are recognised when the company has a legal or constructive obligation at the statement of financial position date as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation and the amount can be reliably estimated. Provisions are recognised as a liability in the statement of financial position and the relevant amount included as an expense in the income statement.

Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision or contingency is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in the profit or loss account in the period it arises.

Leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Termination benefits
Termination benefits are recognised as a liability and expense in profit or loss when the company is demonstrably committed either to terminate the employment of an employee or group of employees before the normal retirement date or to provide termination benefits as a result of an offer made in order to encourage voluntary redundancy. The company is demonstrably committed to a termination only when there is a detailed formal plan from which there is no realistic possibility of withdrawal.

Termination benefits are measured at the best estimate of the expenditure that would be required to settle the obligation at the reporting date. In the case of an offer made to encourage voluntary redundancy, the measurement of termination benefits shall be based on the number of employees expected to accept the offer.

HAWTHORN THEATRICAL LIMITED (REGISTERED NUMBER: 01602315)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2022


3. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

2022 2021
£'000 £'000
United Kingdom 17,082 10,458
Outside of the United Kingdom 2,670 1,902
19,752 12,360

4. EMPLOYEES AND DIRECTORS
2022 2021
£'000 £'000
Wages and salaries 3,775 2,983
Social security costs 400 330
Other pension costs 87 68
4,262 3,381

The average number of employees during the year was as follows:
2022 2021

Production 101 90
Administration 1 4
102 94

2022 2021
£    £   
Directors' remuneration - 19,282

Remuneration of key management personnel
The remuneration of key management personnel is as follows:

2022 2021
£'000 £'000

Aggregate compensation 206 391

HAWTHORN THEATRICAL LIMITED (REGISTERED NUMBER: 01602315)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2022


5. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

31.12.2231.12.21
£'000£'000
Depreciation - owned assets1,5631,472
(Profit)/Loss on disposal of fixed assets(7)-
Goodwill amortisation1427
Auditors' remuneration2730
Remuneration for non-audit services97
Foreign exchange differences(47)12
Operating lease rentals - land and buildings581581

6. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2022 2021
£'000 £'000
Deferred tax 299 209
Tax on profit 299 209

UK corporation tax has been charged at 19% (2021 - 19%).

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2022 2021
£'000 £'000
Profit before tax 2,891 1,065
Profit multiplied by the standard rate of corporation tax in the UK of
19% (2021 - 19%)

549

202

Effects of:
Expenses not deductible for tax purposes (32 ) (33 )
Capital allowances in excess of depreciation (45 ) (2 )
Utilisation of tax losses (153 ) (187 )
Tax losses carried forward - 229
Changes in tax rate (20 ) -
Total tax charge 299 209

HAWTHORN THEATRICAL LIMITED (REGISTERED NUMBER: 01602315)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2022


6. TAXATION - continued

Factors that may affect future tax

The corporation tax will increase to 25% with effect from 1 April 2023 for companies with taxable profits in excess of £250,000. For companies where taxable profits are £50,000 or less, the rate of corporation tax will remain at 19%.

The relevant deferred tax balances have been measured using the rate expected to apply on the reversal of the timing difference.

There are no expiry dates in respect of the above timing differences and unused tax losses.

7. INTANGIBLE FIXED ASSETS
Goodwill
£'000
COST
At 1 January 2022 273
Disposals (273 )
At 31 December 2022 -
AMORTISATION
At 1 January 2022 259
Amortisation for year 14
Eliminated on disposal (273 )
At 31 December 2022 -
NET BOOK VALUE
At 31 December 2022 -
At 31 December 2021 14

HAWTHORN THEATRICAL LIMITED (REGISTERED NUMBER: 01602315)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2022


8. TANGIBLE FIXED ASSETS
Improvements
to Plant and Tools and
property machinery equipment
£'000 £'000 £'000
COST
At 1 January 2022 781 26,150 818
Additions - 1,867 -
Disposals - - -
At 31 December 2022 781 28,017 818
DEPRECIATION
At 1 January 2022 651 20,590 633
Charge for year 33 1,467 26
Eliminated on disposal - - -
At 31 December 2022 684 22,057 659
NET BOOK VALUE
At 31 December 2022 97 5,960 159
At 31 December 2021 130 5,560 185

Motor Office
vehicles equipment Totals
£'000 £'000 £'000
COST
At 1 January 2022 428 1,075 29,252
Additions - 25 1,892
Disposals (37 ) - (37 )
At 31 December 2022 391 1,100 31,107
DEPRECIATION
At 1 January 2022 320 1,052 23,246
Charge for year 24 13 1,563
Eliminated on disposal (32 ) - (32 )
At 31 December 2022 312 1,065 24,777
NET BOOK VALUE
At 31 December 2022 79 35 6,330
At 31 December 2021 108 23 6,006

9. STOCKS
2022 2021
£'000 £'000
Stocks 207 292
Work-in-progress 28 -
235 292

HAWTHORN THEATRICAL LIMITED (REGISTERED NUMBER: 01602315)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2022


10. DEBTORS
2022 2021
£'000 £'000
Amounts falling due within one year:
Trade debtors 3,279 2,239
Amounts owed by group undertakings 6,487 3,830
Other debtors 87 72
Prepayments and accrued income 167 332
10,020 6,473

Amounts falling due after more than one year:
Other debtors 190 215
Deferred tax asset - 87
190 302

Aggregate amounts 10,210 6,775

Deferred tax asset
2021
£'000
Accelerated capital allowances (111 )
Tax losses carried forward 198
87

11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2022 2021
£'000 £'000
Trade creditors 1,286 1,290
Amounts owed to group undertakings 763 83
Social security and other taxes 156 107
VAT 492 760
Other creditors 53 -
Accruals and deferred income 1,400 1,816
4,150 4,056

12. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2022 2021
£'000 £'000
Within one year 46 287
Between one and five years - 46
46 333

HAWTHORN THEATRICAL LIMITED (REGISTERED NUMBER: 01602315)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2022


12. LEASING AGREEMENTS - continued

Hawthorn Theatrical Limited are a named guarantor on the lease agreement between AVC Live Limited (immediate parent of Hawthorn Theatrical Limited) and the landlord of the warehouse premises in Uxbridge. The lease commitment is shown in the financial statements of AVC Live Limited.

13. PROVISIONS FOR LIABILITIES
2022
£'000
Deferred tax
Accelerated capital allowances 536
Tax losses carried forward (320 )
Other timing differences (5 )
211

Deferred
tax
£'000
Balance at 1 January 2022 (87 )
Utilised during year 29
Accelerated capital allowances 291
Other timing differences (1 )
Changes in tax rate (21 )
Balance at 31 December 2022 211

14. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31.12.21 31.12.20
Value: £'000 £'000
20,010 Ordinary A £1 20 20
1,334 Ordinary B £1 1 1
1,334 Ordinary C £1 1 1
4,003 Ordinary D £1 4 4

27 27

15. RESERVES

Called-up share capital - This represents the nominal value of shares that have been issued.

Retained earnings - This distributable reserve records retained earnings and accumulated losses.

Share premium - The amount received in excess of the nominal value of the shares.

16. PENSION COMMITMENTS

The company operates a defined contribution scheme with contributions paid in the accounting period charged to the profit and loss account. The pension cost charge represents contributions payable by the company to the fund and amounted to £87,115 (2021: £67,731).

HAWTHORN THEATRICAL LIMITED (REGISTERED NUMBER: 01602315)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2022


17. ULTIMATE PARENT UNDERTAKING AND CONTROLLING PARTY

The company's immediate parent company is AVC Live Limited, a company incorporated in the United
Kingdom. The smallest group in whose the financial statements the company is consolidated as at 31
December 2022 is AVSC Europe Limited.

Copies of the consolidated financial statements for AVSC Europe Limited can be obtained from the
registered office address:

Union Business Park
Florence Way
Uxbridge
Middlesex
UB8 2LS

The company's ultimate holding company is Encore Global LP (previously PSAV Group LP), a
company incorporated in the United States of America. Encore Global LP is the largest group in which
the financial statements are consolidated as at 31 December 2022.

Encore Global LP is controlled by The Blackstone Group LP, an investment company incorporated in
the United States of America.

18. RELATED PARTY DISCLOSURES

Entities with control, joint control or significant influence over the entity
2022 2021
£'000 £'000
Sales 11 33
Management fees 1,442 362

Entities over which the entity has control, joint control or significant influence

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Key management personnel of the entity or its parent (in the aggregate)
2022 2021
£'000 £'000
Rent paid 277 277

All amounts due are unsecured and repayable on demand.

Other related parties
2022 2021
£'000 £'000
Sales - 18
Purchases 45 151
Amount due to related party - 83