DRIFTWOOD CINEMA C.I.C.

Company limited by guarantee

Company Registration Number:
SC498511 (Scotland)

Unaudited statutory accounts for the year ended 28 February 2023

Period of accounts

Start date: 1 March 2022

End date: 28 February 2023

DRIFTWOOD CINEMA C.I.C.

Contents of the Financial Statements

for the Period Ended 28 February 2023

Directors report
Profit and loss
Balance sheet
Additional notes
Balance sheet notes
Community Interest Report

DRIFTWOOD CINEMA C.I.C.

Directors' report period ended 28 February 2023

The directors present their report with the financial statements of the company for the period ended 28 February 2023

Principal activities of the company

The principal activity of the company continued to be that of the operation of arts facilities.



Directors

The directors shown below have held office during the whole of the period from
1 March 2022 to 28 February 2023

Matthew Kitson
Ms J welsh
Mr S A Campbell


The above report has been prepared in accordance with the special provisions in part 15 of the Companies Act 2006

This report was approved by the board of directors on
6 November 2023

And signed on behalf of the board by:
Name: Matthew Kitson
Status: Director

DRIFTWOOD CINEMA C.I.C.

Profit And Loss Account

for the Period Ended 28 February 2023

2023 2022


£

£
Turnover: 23,473 9,637
Cost of sales: ( 28,697 ) ( 19,794 )
Gross profit(or loss): (5,224) (10,157)
Administrative expenses: ( 35,784 ) ( 24,985 )
Other operating income: 40,020 43,628
Operating profit(or loss): (988) 8,486
Profit(or loss) before tax: (988) 8,486
Tax: 424 ( 1,312 )
Profit(or loss) for the financial year: (564) 7,174

DRIFTWOOD CINEMA C.I.C.

Balance sheet

As at 28 February 2023

Notes 2023 2022


£

£
Fixed assets
Tangible assets: 3 10,802 7,756
Total fixed assets: 10,802 7,756
Current assets
Debtors: 4 2,217
Cash at bank and in hand: 19,250 15,062
Total current assets: 21,467 15,062
Creditors: amounts falling due within one year: 5 ( 1,051 ) ( 2,651 )
Net current assets (liabilities): 20,416 12,411
Total assets less current liabilities: 31,218 20,167
Provision for liabilities: ( 2,052 ) ( 1,382 )
Accruals and deferred income: ( 10,945 )
Total net assets (liabilities): 18,221 18,785
Members' funds
Profit and loss account: 18,221 18,785
Total members' funds: 18,221 18,785

The notes form part of these financial statements

DRIFTWOOD CINEMA C.I.C.

Balance sheet statements

For the year ending 28 February 2023 the company was entitled to exemption under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These accounts have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

This report was approved by the board of directors on 6 November 2023
and signed on behalf of the board by:

Name: Matthew Kitson
Status: Director

The notes form part of these financial statements

DRIFTWOOD CINEMA C.I.C.

Notes to the Financial Statements

for the Period Ended 28 February 2023

  • 1. Accounting policies

    Basis of measurement and preparation

    These financial statements have been prepared in accordance with the provisions of Section 1A (Small Entities) of Financial Reporting Standard 102

    Tangible fixed assets depreciation policy

    Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net ofdepreciation and any impairment losses.Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over theiruseful lives on the following bases:Plant and equipment 20% on reducing balanceThe gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to surplus or deficit.

    Other accounting policies

    1.1 Accounting conventionThese financial statements have been prepared in accordance with FRS 102 “The Financial ReportingStandard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.1.2 Income and expenditureIncome and expenses are included in the financial statements as they become receivable or due.Expenses include VAT where applicable as the company cannot reclaim it.1.3 Tangible fixed assetsTangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net ofdepreciation and any impairment losses.Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:Plant and equipment 20% on reducing balanceThe gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to surplus or deficit.1.4 Impairment of fixed assetsAt each reporting period end date, the company reviews the carrying amounts of its tangible assets todetermine whether there is any indication that those assets have suffered an impairment loss. If any suchindication exists, the recoverable amount of the asset is estimated in order to determine the extent of theimpairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in surplus or deficit, unless the relevant asset is carried at arevalued amount, in which case the impairment loss is treated as a revaluation decrease.Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in surplus or deficit, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.1.5 Cash and cash equivalentsCash and cash equivalents are basic financial assets and include cash in hand, deposits held at call withbanks, other short-term liquid investments with original maturities of three months or less, and bankoverdrafts. Bank overdrafts are shown within borrowings in current liabilities.1.6 Financial instrumentsThe company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.Financial instruments are recognised in the company's balance sheet when the company becomes party tothe contractual provisions of the instrument.Financial assets and liabilities are offset, with the net amounts presented in the financial statements, whenthere is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.Basic financial assetsBasic financial assets, which include debtors and cash and bank balances, are initially measured attransaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.Classification of financial liabilitiesFinancial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in theassets of the company after deducting all of its liabilities.Basic financial liabilitiesBasic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.1.7 TaxationThe tax expense represents the sum of the tax currently payable and deferred tax.Draft Financial Statements at 24 August 2023 at 16:04:201.8 Employee benefitsThe costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.Termination benefits are recognised immediately as an expense when the company is demonstrablycommitted to terminate the employment of an employee or to provide termination benefits.1.9 Retirement benefitsPayments to defined contribution retirement benefit schemes are charged as an expense as they fall due.1.10 Government grantsGovernment grants are recognised at the fair value of the asset received or receivable when there isreasonable assurance that the grant conditions will be met and the grants will be received.A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceedsare received or receivable. A grant received before the recognition criteria are satisfied is recognised as aliability.1.11 Foreign exchangeTransactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.Judgements and key sources of estimation uncertaintyIn the application of the company’s accounting policies, the directors are required to make judgements,estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparentfrom 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 accountingestimates are recognised in the period in which the estimate is revised where the revision affects only thatperiod, or in the period of the revision and future periods where the revision affects both current and future periods.

DRIFTWOOD CINEMA C.I.C.

Notes to the Financial Statements

for the Period Ended 28 February 2023

  • 2. Employees

    2023 2022
    Average number of employees during the period 2 2

DRIFTWOOD CINEMA C.I.C.

Notes to the Financial Statements

for the Period Ended 28 February 2023

3. Tangible assets

Land & buildings Plant & machinery Fixtures & fittings Office equipment Motor vehicles Total
Cost £ £ £ £ £ £
At 1 March 2022 18,140 18,140
Additions 5,745 5,745
Disposals
Revaluations
Transfers
At 28 February 2023 23,885 23,885
Depreciation
At 1 March 2022 10,384 10,384
Charge for year 2,699 2,699
On disposals
Other adjustments
At 28 February 2023 13,083 13,083
Net book value
At 28 February 2023 10,802 10,802
At 28 February 2022 7,756 7,756

DRIFTWOOD CINEMA C.I.C.

Notes to the Financial Statements

for the Period Ended 28 February 2023

4. Debtors

2023 2022
£ £
Trade debtors 125
Prepayments and accrued income 1,094
Other debtors 998
Total 2,217

DRIFTWOOD CINEMA C.I.C.

Notes to the Financial Statements

for the Period Ended 28 February 2023

5. Creditors: amounts falling due within one year note

2023 2022
£ £
Taxation and social security 357 1,894
Accruals and deferred income 410 400
Other creditors 284 357
Total 1,051 2,651

COMMUNITY INTEREST ANNUAL REPORT

DRIFTWOOD CINEMA C.I.C.

Company Number: SC498511 (Scotland)

Year Ending: 28 February 2023

Company activities and impact

This company supports community voluntary groups to provide cinema screenings and other community events in their local village halls. We started supporting community cinemas in February 2015 and have grown to support 24 locations across the South West of Scotland. Our support benefits communities in the following ways: - it enables those on low incomes to access cinema experiences locally, saving on travel costs and tickets are offered on a pay-what-you-can basis: it enables people who are socially isolated or have access to transport issues to access film and filmed performances and meet socially with other member of their community: it supports dementia friendly screening for those with dementia and their carers: it supports accessible screenings for Deaf and D/Deaf audiences: it provides access to a wide variety of Scottish, Independent and International films to enable people to experience a wider world cultural view.

Consultation with stakeholders

The company's stakeholders are voluntary groups located in rural and underserved communities who run film screenings. We also engage with the local council exhibition officer and the Newton Stewart Initiative. We support a network of 24 stakeholders. We undertake audience surveys at our screenings and hold regular network meetings with our stakeholders. This has helped to build a better understanding of our audience, develop programmes of films to support audience engagement and provide targeted funding to support bringing audiences into local community venues.

Directors' remuneration

The total amount paid to directors for qualifying services was £12,480. There were no other transactions or arrangements in connection with the remuneration of directors, or compensation for director's loss of office, which require to be disclosed.

Transfer of assets

No transfer of assets other than for full consideration

This report was approved by the board of directors on
6 November 2023

And signed on behalf of the board by:
Name: Matthew R Kitson
Status: Director