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REGISTERED NUMBER: 08470533 (England and Wales)















STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

FOR

PALACE SCENERY CONSTRUCTION LTD

PALACE SCENERY CONSTRUCTION LTD (REGISTERED NUMBER: 08470533)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 5

Statement of Comprehensive Income 7

Balance Sheet 8

Statement of Changes in Equity 9

Cash Flow Statement 10

Notes to the Financial Statements 11


PALACE SCENERY CONSTRUCTION LTD

COMPANY INFORMATION
FOR THE YEAR ENDED 31 MARCH 2023







DIRECTORS: Mr S P Bohan
Mr R S Bohan



SECRETARY: Mr S P Bohan



REGISTERED OFFICE: 1 Tollgate Drive
London
SE21 7LS



REGISTERED NUMBER: 08470533 (England and Wales)



SENIOR STATUTORY AUDITOR: Mr Anthony Brain



AUDITORS: CG LEE Limited
Chartered Certified Accountants
Statutory Auditors
Ingram House
Meridian Way
Norwich
Norfolk
NR7 0TA

PALACE SCENERY CONSTRUCTION LTD (REGISTERED NUMBER: 08470533)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023

The directors present their strategic report for the year ended 31 March 2023.

REVIEW OF BUSINESS
During the year under review the company continued to work in the film industry, designing and building sets for major films. The company has built up its business over the years as a reputable company, not only in constructing film sets, but also providing the behind-the-camera workforce for the film production company.
During the year, turnover has reduced by 12%, whilst the gross profit margin has remained consistent throughout the period. There has been an increase in overheads and depreciation due to general rising costs, costs associated with a fire at the studios and increased depreciation on fixed assets purchased at the end of the previous financial year.

The Directors are pleased overall with the results and the financial position of the company for the year.

FUTURE OUTLOOK
The company commenced the 2023/24 year working on several major film projects. However, this mostly ceased at the end of July 2023 following the Writers Guild of America and SAG-AFTRA strikes for both screen writers and actors. This is having a significant impact on the film industry across the world. The employees are employed on a film by film basis, which allows the company to adapt to the working environment as required.

Given the company's liquidity, it is expected that it can continue to meet ongoing overheads and liabilities for the foreseeable future.

PRINCIPAL RISKS AND UNCERTAINTIES
The company monitors cash flow as part of its day to day control procedures. Regular consideration of the company's future cash flows ensures that the company operates within funding available to it. The company's principal risk is that large budget film production, and funding for it, is reduced in the UK. In order to mitigate the impact of possible reduction in film production the company has very flexible contracts with both employees and subcontractors and is able to substantially reduce costs in the short term.

The principal risks facing the company include:

Liquidity risk
Liquidity risk refers to the risk the company is unable to meet its short-term obligations and this arises from the possibility that customers may not be able to settle their obligations within normal terms of trade. The directors consider there are sufficient resources to maintain robust liquidity should the company have a sudden downturn in sales. The company reviews its working capital requirements on a regular basis to ensure it meets the needs of the growing business.

Credit risk
The company sells to most of its customers on customary credit terms and is, as a result, exposed to the usual credit risk and cash flow risk associated with this form of trading.

Operational health and safety
Failure to maintain a trained workforce could adversely affect the company, and consequently health and safety is
reviewed on a regular basis.

Tax Breaks
The UK film industry continues to benefit from film tax relief for films made in the UK. Should the government withdraw this relief there could be a significant reduction in films made in the UK. The directors are fully aware of this and the company has flexible contracts with employees and subcontractors which should enable the company to reduce its costs significantly in the short term.

Interest risk
The company has no significant non trading debts and as such the directors feel that interest rate risk is minimal.

ON BEHALF OF THE BOARD:





Mr R S Bohan - Director


18 October 2023

PALACE SCENERY CONSTRUCTION LTD (REGISTERED NUMBER: 08470533)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 MARCH 2023

The directors present their report with the financial statements of the company for the year ended 31 March 2023.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of of construction and provision of film sets, equipment to television and film production companies, and consultancy services in relation thereto.

DIVIDENDS
The company paid dividends of £4,000 during the year.

FUTURE DEVELOPMENTS
The directors consider the future developments of the company are covered in the Future Outlook section in the Strategic Report.

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

Mr S P Bohan
Mr R S Bohan

FINANCIAL RISK MANAGEMENT
The directors consider the Financial Risk Management of the company is covered under the Principal Risks and Uncertainties section of the Strategic Report.

DISABLED EMPLOYEES
The company gives full consideration to applications for employment from disabled persons where the requirements of the job can be adequately fulfilled by a handicapped or disabled person. Where existing employees become disabled, it is the company's policy wherever practical to provide continuing employment under normal terms and conditions and that the training, career development and promotion of a disabled person should, as far as possible, be identical to that of an able bodied person.

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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

PALACE SCENERY CONSTRUCTION LTD (REGISTERED NUMBER: 08470533)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 MARCH 2023


AUDITORS
Under section 487 of the Companies Act 2006, C G LEE Limited will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members, or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.

ON BEHALF OF THE BOARD:





Mr R S Bohan - Director


18 October 2023

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
PALACE SCENERY CONSTRUCTION LTD

Opinion
We have audited the financial statements of Palace Scenery Construction Ltd (the 'company') for the year ended 31 March 2023 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and 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 March 2023 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.

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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
PALACE SCENERY CONSTRUCTION LTD


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 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.

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 company and industry, we identified that the principal risks of non-compliance with laws and regulations related to employment laws and tax legislation, and we considered the extent to which non­ compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the financial statements such as the Companies Act 2006. We evaluated 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 posting inappropriate journal entries to revenue and management bias in accounting estimates. Audit procedures performed by the engagement team included:

- discussions with management including consideration of known or suspected instances of non-compliance with
laws and regulation;
- evaluating management's controls designed to prevent and detect irregularities;
- identifying and testing of journal entries for appropriateness and evaluating the business rationale of significant
transactions outside the normal course of business; and
- reviewing significant accounting estimates for management bias.

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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.




Mr Anthony Brain (Senior Statutory Auditor)
for and on behalf of CG LEE Limited
Chartered Certified Accountants
Statutory Auditors
Ingram House
Meridian Way
Norwich
Norfolk
NR7 0TA

18 October 2023

PALACE SCENERY CONSTRUCTION LTD (REGISTERED NUMBER: 08470533)

STATEMENT OF COMPREHENSIVE
INCOME
FOR THE YEAR ENDED 31 MARCH 2023

2023 2022
Notes £    £   

TURNOVER 43,156,515 49,542,822

Cost of sales (38,906,152 ) (44,704,630 )
GROSS PROFIT 4,250,363 4,838,192

Administrative expenses (643,300 ) (328,566 )
3,607,063 4,509,626

Other operating income - 12,259
OPERATING PROFIT 5 3,607,063 4,521,885

Profit/loss on sale
of investment 6 - 320,340
3,607,063 4,842,225

Income from fixed asset investments - 15,343
3,607,063 4,857,568

Interest payable and similar expenses 7 (4,718 ) (1,227 )
PROFIT BEFORE TAXATION 3,602,345 4,856,341

Tax on profit 8 (692,985 ) (919,533 )
PROFIT FOR THE FINANCIAL YEAR 2,909,360 3,936,808

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

2,909,360

3,936,808

PALACE SCENERY CONSTRUCTION LTD (REGISTERED NUMBER: 08470533)

BALANCE SHEET
31 MARCH 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 10 657,161 840,828

CURRENT ASSETS
Debtors 11 8,079,752 10,613,570
Cash at bank 4,851,929 3,336,099
12,931,681 13,949,669
CREDITORS
Amounts falling due within one year 12 3,280,318 7,386,864
NET CURRENT ASSETS 9,651,363 6,562,805
TOTAL ASSETS LESS CURRENT
LIABILITIES

10,308,524

7,403,633

PROVISIONS FOR LIABILITIES 13 50,762 51,231
NET ASSETS 10,257,762 7,352,402

CAPITAL AND RESERVES
Called up share capital 14 100 100
Retained earnings 15 10,257,662 7,352,302
SHAREHOLDERS' FUNDS 10,257,762 7,352,402

The financial statements were approved by the Board of Directors and authorised for issue on 18 October 2023 and were signed on its behalf by:





Mr R S Bohan - Director


PALACE SCENERY CONSTRUCTION LTD (REGISTERED NUMBER: 08470533)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023

Called up Fair
share Retained value Total
capital earnings reserve equity
£    £    £    £   

Balance at 1 April 2021 100 7,932,504 682,766 8,615,370

Changes in equity
Dividends - (5,199,776 ) - (5,199,776 )
Total comprehensive income - 3,936,808 - 3,936,808
Revaluation of fixed asset
investments

-

682,766

(682,766

)

-
Balance at 31 March 2022 100 7,352,302 - 7,352,402

Changes in equity
Dividends - (4,000 ) - (4,000 )
Total comprehensive income - 2,909,360 - 2,909,360
Balance at 31 March 2023 100 10,257,662 - 10,257,762

PALACE SCENERY CONSTRUCTION LTD (REGISTERED NUMBER: 08470533)

CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MARCH 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 17 2,878,448 3,072,450
Interest paid (4,718 ) (1,227 )
Tax paid (1,342,560 ) (458,774 )
Net cash from operating activities 1,531,170 2,612,449

Cash flows from investing activities
Purchase of tangible fixed assets (43,340 ) (681,233 )
Sale of tangible fixed assets 28,000 -
Sale of fixed asset investments - 4,864,109
Dividends received - 15,343
Net cash from investing activities (15,340 ) 4,198,219

Cash flows from financing activities
Amount introduced by directors 4,000 -
Amount withdrawn by directors - (30,000 )
Equity dividends paid (4,000 ) (5,199,776 )
Net cash from financing activities - (5,229,776 )

Increase in cash and cash equivalents 1,515,830 1,580,892
Cash and cash equivalents at beginning
of year

18

3,336,099

1,755,207

Cash and cash equivalents at end of year 18 4,851,929 3,336,099

PALACE SCENERY CONSTRUCTION LTD (REGISTERED NUMBER: 08470533)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

1. STATUTORY INFORMATION

Palace Scenery Construction Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
Palace Scenery Construction Ltd is a company incorporated in the United Kingdom under the Companies Act. The address of the registered office is given on page 1. The company's principal activities are set out in the report of the directors on page 3.

These financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 (FRS 102), the Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland, and the Companies Act 2006. The functional and presentation currency of these financial statements is pound sterling.

Turnover
Turnover represents the fair value of services provided during the year. Turnover is recognised as contract activity progresses and the right to consideration is earned. Fair value reflects the amount expected to be recoverable from clients. Turnover excludes value added tax. Unbilled turnover on individual contracts is included as accrued income within prepayments and accrued income.

Employee benefits
Short term benefits, including holiday pay and other similar non-monetary benefits are recognised as an expense in the period in which the service is received.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Plant and machinery - 25% on reducing balance
Computer equipment - 33% on cost

Impairment
Non-financial assets not carried at fair value are reviewed for impairment at the end of the first full year following acquisition and in other periods if events or changes in circumstances indicate that the asset may be impaired. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If the estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in profit or loss.

If an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset in prior periods. A reversal of an impairment loss is recognised immediately in profit or loss.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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.

PALACE SCENERY CONSTRUCTION LTD (REGISTERED NUMBER: 08470533)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023

2. ACCOUNTING POLICIES - continued

Pension costs and other post-retirement benefits
The company operates a money purchase pension scheme for the benefit of the directors and an auto-enrolment defined contribution pension scheme for the benefit of employees. The assets of the schemes are held separately from those of the company in independently administered funds. The pension cost charge represents contributions payable by the company to the schemes. There are no contractual obligations to make future payments.

Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks.

Financial instruments
Basic financial instruments are recognised at amortised cost.

Investments
Listed investments are initially measured at cost. Subsequent to initial recognition, all investments are measured at fair value and the gain or loss on revaluation is recognised through profit or loss in the period in which it arises, Such gains or losses are transferred from retained earnings to a non-distributable reserve.

3. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

a) Critical judgements in applying the Company's accounting policies

There are no critical judgements in applying the Company's accounting policies.

b) Key accounting estimates and assumptions

The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.

Depreciation of tangible fixed assets
An allowance for depreciation is made against tangible fixed assets and charged to the statement of comprehensive income over the useful economic lives of the assets. The useful economic life assessment of an asset is based on the time in which benefits of the asset are realised to the company. See note 10 for the net carrying value of the tangible fixed assets, and note 2 for the useful economic lives for each class of assets.

Impairment of debtors
The directors make an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, the directors consider factors including the credit worthiness and financial conditions of customers. See note 11 for the net carrying amount of the debtors and associated impairment provision.

Going concern
The directors make an estimate of the future performance of the company in order to prepare the financial statements under the going concern methodology. When assessing the future performance, the directors consider financial projections which reflect the current and expected market conditions, operational cash flow requirements and financing opportunities.

4. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 8,964,004 11,671,585
Social security costs 1,093,444 1,373,411
Other pension costs 121,362 154,113
10,178,810 13,199,109

PALACE SCENERY CONSTRUCTION LTD (REGISTERED NUMBER: 08470533)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023

4. EMPLOYEES AND DIRECTORS - continued

The average number of employees during the year was as follows:
2023 2022

Number of production staff 124 144

2023 2022
£    £   
Directors' remuneration 78,000 75,000
Directors' pension contributions to money purchase schemes 1,321 1,271

Key management personnel compensation
All key management personnel are considered to be directors. As such, the key management personnel compensation is equivalent to the directors' emoluments above.

5. OPERATING PROFIT

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

2023 2022
£    £   
Depreciation - owned assets 213,236 56,555
Profit on disposal of fixed assets (14,229 ) -
Auditors' remuneration 12,200 11,630
Other non- audit services 15,889 10,548
Foreign exchange differences (11 ) -

6. EXCEPTIONAL ITEMS
2023 2022
£    £   
Profit/loss on sale
of investment - 320,340

7. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Corporation tax interest 4,718 1,227

8. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 693,454 1,064,658

Deferred tax (469 ) (145,125 )
Tax on profit 692,985 919,533

UK corporation tax has been charged at 19% (2022 - 19%).

PALACE SCENERY CONSTRUCTION LTD (REGISTERED NUMBER: 08470533)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023

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:

2023 2022
£    £   
Profit before tax 3,602,345 4,856,341
Profit multiplied by the standard rate of corporation tax in the UK of 19%
(2022 - 19%)

684,446

922,705

Effects of:
Expenses not deductible for tax purposes 851 332
Capital allowances in excess of depreciation - (160,741 )
Depreciation in excess of capital allowances 7,688 -
Sale of investments - 160,152
Exempt dividends - (2,915 )
Total tax charge 692,985 919,533

Factors that may affect current and future tax charges
An increase in the UK corporation tax rate from 19% to 25% (effective from 1 April 2023) was substantively enacted on 24 May 2021. This change has been taken into account in measuring deferred tax assets and liabilities at the balance sheet date. These changes are not anticipated to have a material impact on the company's financial statements in future years.

9. DIVIDENDS
2023 2022
£    £   
Ordinary 'A' Shares shares of £1 each
Interim 2,000 2,599,888
Ordinary 'B' Shares shares of £1 each
Interim 2,000 2,599,888
4,000 5,199,776

10. TANGIBLE FIXED ASSETS
Plant and Motor Computer
machinery vehicles equipment Totals
£    £    £    £   
COST
At 1 April 2022 1,108,155 39,579 25,892 1,173,626
Additions - 39,770 3,570 43,340
Disposals - (17,395 ) - (17,395 )
At 31 March 2023 1,108,155 61,954 29,462 1,199,571
DEPRECIATION
At 1 April 2022 321,174 - 11,624 332,798
Charge for year 196,745 9,170 7,321 213,236
Eliminated on disposal - (3,624 ) - (3,624 )
At 31 March 2023 517,919 5,546 18,945 542,410
NET BOOK VALUE
At 31 March 2023 590,236 56,408 10,517 657,161
At 31 March 2022 786,981 39,579 14,268 840,828

PALACE SCENERY CONSTRUCTION LTD (REGISTERED NUMBER: 08470533)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023

11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 5,210,070 6,333,361
Other debtors 21,000 10,000
Called up share capital not paid 100 100
Prepayments and accrued income 2,848,582 4,270,109
8,079,752 10,613,570

No provisions for impairment has been made against trade debtors in the current year or the prior year.

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade creditors 1,505,616 1,827,288
Tax 266,172 915,278
Social security and other taxes 398,365 579,427
VAT 532,254 1,342,924
Other creditors 35,977 950,023
Directors' current accounts 4,000 -
Accrued expenses 537,934 1,771,924
3,280,318 7,386,864

13. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax 50,762 51,231

Deferred
tax
£   
Balance at 1 April 2022 51,231
Credit to Statement of Comprehensive Income during year (469 )
Balance at 31 March 2023 50,762

14. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
50 Ordinary 'A' Shares £1 50 50
50 Ordinary 'B' Shares £1 50 50
100 100

15. RESERVES

Retained earnings
This balance represents all current and prior period retained profits and losses.

Fair value reserve
This reserve represents the unrealised gain generated on revaluation of investments. It comprises the excess of the fair value of the assets over deemed cost, net of associated deferred taxation.

16. ULTIMATE CONTROLLING PARTY

The company is jointly controlled by Mr S P Bohan and Mr R Bohan by virtue of them owning 100% of the company's ordinary share capital.

PALACE SCENERY CONSTRUCTION LTD (REGISTERED NUMBER: 08470533)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023

17. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
2023 2022
£    £   
Profit before taxation 3,602,345 4,856,341
Depreciation charges 213,236 56,555
Profit on disposal of fixed assets (14,229 ) -
Finance costs 4,718 1,227
Finance income - (15,343 )
3,806,070 4,898,780
Decrease/(increase) in trade and other debtors 2,533,818 (6,299,230 )
(Decrease)/increase in trade and other creditors (3,461,440 ) 4,472,900
Cash generated from operations 2,878,448 3,072,450

18. 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 March 2023
31.3.23 1.4.22
£    £   
Cash and cash equivalents 4,851,929 3,336,099
Year ended 31 March 2022
31.3.22 1.4.21
£    £   
Cash and cash equivalents 3,336,099 1,755,207


19. ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.22 Cash flow At 31.3.23
£    £    £   
Net cash
Cash at bank 3,336,099 1,515,830 4,851,929
3,336,099 1,515,830 4,851,929
Total 3,336,099 1,515,830 4,851,929