Company Registration No. 06372815 (England and Wales)
NMC COMMERCIAL LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
PAGES FOR FILING WITH REGISTRAR
NMC COMMERCIAL LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 6
NMC COMMERCIAL LIMITED
BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
4
10,547
12,612
Current assets
Stocks
13,720
14,746
Debtors
5
5,484
5,270
Cash at bank and in hand
246,619
106,485
265,823
126,501
Creditors: amounts falling due within one year
6
(264,373)
(176,676)
Net current assets/(liabilities)
1,450
(50,175)
Total assets less current liabilities
11,997
(37,563)
Creditors: amounts falling due after more than one year
7
(11,897)
(15,268)
Net assets/(liabilities)
100
(52,831)
Capital and reserves
Called up share capital
8
100
100
Profit and loss reserves
(52,931)
Total equity
100
(52,831)
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 6 November 2023 and are signed on its behalf by:
Mr P Southby
Director
Company registration number 06372815 (England and Wales)
NMC COMMERCIAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -
1
Accounting policies
Company information
NMC Commercial Limited is a private company limited by shares incorporated in England and Wales. The registered office is 14-18 Broad Street, Nottingham, NG1 3AL.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 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, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
1.2
Going concern
Broadway Cinema, represented by Nottingham Media Centre Ltd, is navigating a challenging trading environment, which has led to a reduction in unrestricted reserves by £1,219,181 to £1,103,293. Despite this, the organisation remains committed to its goal of financial sustainability and has implemented robust financial systems. The management team reviews monthly and the Board of Trustees quarterly against the budget, taking necessary actions as required. Moreover, Broadway has received various sources of income, including cinema box office admission charges, café bar sales, grant funding, and public donations through its philanthropic fundraising scheme.
Looking ahead, Broadway has set a long-term target to recover from the impact of the Covid pandemic, aiming for free reserves equivalent to 12 weeks of turnover. Although there are uncertainties about the pace of recovery in customer numbers, Broadway Cinema's prudent investment and reserves policy, along with its commitment to achieving financial sustainability, indicate its determination to weather the challenges ahead.
Furthermore, there is evidence of the enduring appeal of cinema, as demonstrated by strong performance in July 2023 with the success of films like Barbie and Oppenheimer. This illustrates that when the right films are released, the appeal of cinema endures, offering a ray of hope for Broadway's future prospects. The organisation's ability to adapt to changing market dynamics, coupled with a proactive approach to financial management, makes it reasonable to believe that Broadway Cinema will continue to operate successfully as a going concern.
With a proactive approach to financial management and recent positive performance indicators, including the success of certain movie releases, Broadway Cinema's Board of Trustees reasonably expects the organisation to continue its operational existence for the foreseeable future, thus adopting the going concern basis of accounting in preparing its financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
NMC COMMERCIAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 3 -
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Fixtures and fittings
25% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.7
Cash at bank and in hand
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
1.8
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
NMC COMMERCIAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 4 -
1.9
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
28
26
4
Tangible fixed assets
Fixtures and fittings
£
Cost
At 1 April 2022
49,765
Additions
1,197
At 31 March 2023
50,962
Depreciation and impairment
At 1 April 2022
37,153
Depreciation charged in the year
3,262
At 31 March 2023
40,415
Carrying amount
At 31 March 2023
10,547
At 31 March 2022
12,612
NMC COMMERCIAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 5 -
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Other debtors
5,484
5,270
6
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
3,654
3,281
Trade creditors
26,404
28,272
Amounts owed to group undertakings
83,490
94,469
Taxation and social security
42,879
26,442
Other creditors
107,946
24,212
264,373
176,676
7
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
11,897
15,268
The bank loan has been guaranteed by Nottingham Media Centre Limited.
Creditors which fall due after five years are as follows:
2023
2022
£
£
Payable by instalments
-
1,640
8
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
ordinary shares of £1 each
100
100
100
100
9
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Melvin Bailey
Statutory Auditor:
Rogers Spencer
NMC COMMERCIAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 6 -
10
Related party transactions
NMC Commercial Limited is a wholly owned subsidiary of Nottingham Media Centre Limited (company number 2315936), a registered charity (number 700880). The registered office of both companies is 14-18 Broad Street, Nottingham, NG1 3AL.
As at 31 March 2023 an inter company loan was due from NMC Commercial Limited to Nottingham Media Centre Limited of £83,490 (2022: £94,469). The loan was unsecured and interest free.