Company registration number 01738825 (England and Wales)
TICKETGRANGE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
Richard Anthony
Chartered Accountants and Registered Auditors
TICKETGRANGE LIMITED
COMPANY INFORMATION
Director
Mr J Harris
Secretary
Mr J Harris
Company number
01738825
Registered office
The Downshire
71 Baldwins Lane
Croxley Green
Rickmansworth
Herts
WD3 3LT
Auditor
Richard Anthony
2nd Floor Gadd House
Arcadia Avenue
London
N3 2JU
TICKETGRANGE LIMITED
CONTENTS
Page
Strategic report
1
Director's report
2
Director's responsibilities statement
3
Independent auditor's report
4 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 23
TICKETGRANGE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 1 -
The director presents the strategic report for the year ended 31 March 2023.
Review of the business
The results for the year and the financial position at the year end were considered satisfactory by the directors.
The results for the year reflect a profit after taxation of £886,312 (2022 - £3,492,262) as shown in the profit and loss account. The net current assets of the company as at the year end, as disclosed in the balance sheet, were £2,620,843 (2022 - £4,015,462).
Ordinary dividends were paid amounting to £150,000 (2022 - £500,000).
After discussions between the directors over their respective personal priorities and business interests, agreement was reached to implement a de-merger of the company’s business. This de-merger took place with effect from 1 November 2022 with John Harris continuing as a director of the company and Richard Harris resigning and becoming a director and shareholder of Springstate Limited, the transferee company in the de-merger process. Reference is made to the de-merger in note 21 to the financial statements.
Principal risks and uncertainties
The economic environment in the UK represent the principal risks to the company. But the director is positive about the future of the company given the following:
Sufficient cash is available in bank as well as in hand.
The director has plenty of personal savings and is willing to inject cash into the business should there be such need to keep the business going.
Following the de-merger, the director acknowledges the importance of establishing the new business norm following the significant impact of the de-merger, with a view to evaluating the impact on cash flows and performance. Before undertaking significant changes to the mode of operation, the director intends to undertake a review of the retained business elements to ascertain how best to exploit business opportunities.
Development and performance
The directors continue to examine all aspects of the business with a view to maintaining profitability and minimising risk with cost control continuing to be at the forefront.
As mentioned above, during the immediate ensuing periods the Director will look to ascertain the new normal for the business as it stood at the Balance Sheet date, and monitor cash flows and profitability with a view to forming a business plan going forward.
Key performance indicators
The directors and senior management monitor all other statistical information on a regular basis to ensure that they are aware of trends and influences on profitability, without relying on particular Key Performance Indicators.
Mr J Harris
Director
22 January 2024
TICKETGRANGE LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -
The director presents his annual report and financial statements for the year ended 31 March 2023.
Principal activities
The principal activity of the company continued to be that of operating amusement arcades. The company also receives rental income from investment properties.
Results and dividends
The results for the year are set out on page 8.
As set out in the Strategic Report, a de-merger of the business took place during the year as referred to in note 21 of the financial statements.
Ordinary dividends were paid amounting to £150,000. The director does not recommend payment of a final dividend.
Director
The director who held office during the year and up to the date of signature of the financial statements was as follows:
Mr R Harris
(Resigned 1 November 2022)
Mr J Harris
Auditor
Richard Anthony were reappointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mr J Harris
Director
22 January 2024
TICKETGRANGE LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -
The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is 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 director is 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. He is 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.
TICKETGRANGE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TICKETGRANGE LIMITED
- 4 -
Opinion
We have audited the financial statements of Ticketgrange Limited (the 'company') for the year ended 31 March 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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.
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 Auditor's 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.
The company has been split between the 2 shareholders of the business in current year. The director has confirmed that the company remains a going concern. Our opinion is not modified in respect of this matter.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's 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 director with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is responsible for the other information contained within the annual report. 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. 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 course of 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 our audit:
the information given in the strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the director's report have been prepared in accordance with applicable legal requirements.
TICKETGRANGE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TICKETGRANGE LIMITED
- 5 -
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 director's report.
We have nothing to report in respect of the following matters in relation to which 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 remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of director
As explained more fully in the director's responsibilities statement, the director is 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 director determines is 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.
Auditor's 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 an auditor's report 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.
Risk identified:
The following risks were identified during the course of audit:
Audit response:
Land registry reports were obtained and checked for existence and ownership of Freehold Land and Buildings and Investment Properties.
Investment Properties were valued by a professional valuer on 7 July 2021. There are no changes to the valuation during the year under review.
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.
The company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation. We determined that the following laws and regulations were most significant:
TICKETGRANGE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TICKETGRANGE LIMITED
- 6 -
The Companies Act 2006
Financial Reporting Standard 102
UK tax legislation
UK employment legislation
UK health and safety legislation
General Data Protection Regulations
Gaming Commission rules
We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
We understood how the company is complying with those legal and regulatory frameworks by making inquiries of management and those responsible for legal and compliance procedures.
The engagement partner assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with these laws and regulations. The assessment did not identify any issues in this area.
We assessed the susceptibility of the entity's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:
Identifying and assessing the measures management has in place to prevent and detect fraud,
Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process,
Challenging assumptions and judgements made by management in its significant estimates, and
Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.
As a result of the above procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential existed within the recording and recognition of revenue.
Our procedures in this respect were focused on the origination of revenue and directed towards ensuring the accuracy and completeness of the same by undertaking testing on a sample basis of the revenue items to ensure that sales had been recorded correctly and in the appropriate accounting period. We consider that the work we undertook in this regard was considered capable of detecting irregularities and fraud within the sales cycle.
Due to the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulations. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. Therefore, if a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach. The risk is also greater regarding irregularities occurring to fraud other than error, as fraud involves intentional concealment, forgery, collusion, omission, or misrepresentation.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's 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 an auditor's report 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.
TICKETGRANGE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TICKETGRANGE LIMITED
- 7 -
Michael Barnett BA FCA
Senior Statutory Auditor
For and on behalf of Richard Anthony
24 January 2024
Chartered Accountants
Statutory Auditor
2nd Floor Gadd House
Arcadia Avenue
London
N3 2JU
TICKETGRANGE LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
3,393,965
3,516,963
Cost of sales
(729,628)
(804,068)
Gross profit
2,664,337
2,712,895
Administrative expenses
(1,823,778)
(2,265,344)
Other operating income
264,393
4,335,086
Operating profit
4
1,104,952
4,782,637
Interest receivable and similar income
8
22,499
406
Profit before taxation
1,127,451
4,783,043
Tax on profit
9
(241,139)
(1,290,781)
Profit for the financial year
886,312
3,492,262
The profit and loss account has been prepared on the basis that all operations are continuing operations.
TICKETGRANGE LIMITED
BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
3,687,828
5,296,210
Investment property
12
1,250,000
2,100,000
4,937,828
7,396,210
Current assets
Stocks
13
2,200
15,812
Debtors
14
176,942
168,633
Cash at bank and in hand
2,800,770
4,740,380
2,979,912
4,924,825
Creditors: amounts falling due within one year
15
(359,069)
(909,363)
Net current assets
2,620,843
4,015,462
Total assets less current liabilities
7,558,671
11,411,672
Provisions for liabilities
Deferred tax liability
16
63,134
44,490
(63,134)
(44,490)
Net assets
7,495,537
11,367,182
Capital and reserves
Called up share capital
18
150
300
Non-distributable profits reserve
19
81,041
Distributable profit and loss reserves
20
7,414,346
11,366,882
Total equity
7,495,537
11,367,182
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.true
The financial statements were approved by the board of directors and authorised for issue on 22 January 2024 and are signed on its behalf by:
Mr J Harris
Director
Company registration number 01738825 (England and Wales)
TICKETGRANGE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 10 -
Share capital
Non-distri-butable profits
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 April 2021
300
8,374,620
8,374,920
Year ended 31 March 2022:
Profit and total comprehensive income
-
-
3,492,262
3,492,262
Dividends
10
-
-
(500,000)
(500,000)
Balance at 31 March 2022
300
11,366,882
11,367,182
Year ended 31 March 2023:
Profit and total comprehensive income
-
-
886,312
886,312
Dividends
10
-
-
(150,000)
(150,000)
Reduction of shares
18
(150)
-
(150)
Transfers
-
81,041
(81,041)
-
Reduction in reserves upon demerger
-
-
(4,607,807)
(4,607,807)
Balance at 31 March 2023
150
81,041
7,414,346
7,495,537
TICKETGRANGE LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
- 11 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
26
726,218
5,171,656
Income taxes paid
(276,000)
(1,213,091)
Net cash inflow from operating activities
450,218
3,958,565
Investing activities
Purchase of tangible fixed assets
(28,448)
(54,899)
Proceeds from disposal of tangible fixed assets
2,374,078
Interest received
22,499
406
Net cash generated from/(used in) investing activities
2,368,129
(54,493)
Financing activities
Dividends paid
(150,000)
(500,000)
Net cash used in financing activities
(150,000)
(500,000)
Net increase in cash and cash equivalents
2,668,347
3,404,072
Cash and cash equivalents at beginning of year
4,740,380
1,336,308
Cash and cash equivalents at end of year
2,800,770
4,740,380
TICKETGRANGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 12 -
1
Accounting policies
Company information
Ticketgrange Limited is a private company limited by shares incorporated in England and Wales. The registered office is The Downshire, 71 Baldwins Lane, Croxley Green, Rickmansworth, Herts, WD3 3LT.
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.
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
Atruet the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover represents amounts receivable for arcade and cafe takings net of VAT.
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:
Land and buildings Freehold
1% straight line basis
Land and buildings Leasehold
7% straight line basis
Plant and machinery
25% straight line basis
Fixtures, fittings & equipment
25% reducing balance method
Motor vehicles
25% reducing balance method
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
Investment property
Investment property, which is property held to earn rentals and/or for capital appreciation, is measured using the fair value model and stated at its fair value at the reporting end date. The surplus or deficit on revaluation is recognised in the profit and loss account.
Where fair value cannot be achieved without undue cost or effort, investment property is accounted for as tangible fixed assets.
TICKETGRANGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 13 -
1.6
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.
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 profit or loss, unless the relevant asset is carried at a revalued 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 profit or loss, 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.
1.7
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.
1.8
Cash and cash equivalents
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.
1.9
Financial instruments
The 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 to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there 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.
TICKETGRANGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 14 -
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction 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.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial 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 the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic 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.
TICKETGRANGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 15 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred taxation is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes. The deferred tax balance has not been discounted.
1.12
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.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Leases
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
TICKETGRANGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 16 -
1.15
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.
1.16
Foreign exchange
Transactions 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.
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
Turnover and other revenue
An analysis of the company's turnover is as follows:
2023
2022
£
£
Turnover analysed by class of business
Amusement arcades
3,393,965
3,516,963
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
3,393,965
3,516,963
2023
2022
£
£
Other revenue
Interest income
22,499
406
Commissions received
1,209
Grants received
-
313,583
TICKETGRANGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 17 -
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
-
(313,583)
Depreciation of owned tangible fixed assets
113,265
181,189
Profit on disposal of tangible fixed assets
(513)
-
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
15,000
15,000
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Directors
1
2
Administrative staff
44
61
Total
45
63
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
1,010,600
1,260,210
Social security costs
83,799
95,355
Pension costs
15,763
19,488
1,110,162
1,375,053
7
Director's remuneration
2023
2022
£
£
Remuneration for qualifying services
49,800
62,400
TICKETGRANGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 18 -
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
22,499
406
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
22,499
406
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
222,495
923,619
Deferred tax
Origination and reversal of timing differences
18,644
367,162
Total tax charge
241,139
1,290,781
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
Profit before taxation
1,127,451
4,783,043
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
214,216
908,778
Tax effect of expenses that are not deductible in determining taxable profit
21,520
Tax effect of income not taxable in determining taxable profit
(97)
Permanent capital allowances in excess of depreciation
(13,144)
14,841
Origination and reversal of timing differences
18,644
367,162
Taxation charge for the year
241,139
1,290,781
10
Dividends
2023
2022
£
£
Interim paid
150,000
500,000
TICKETGRANGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 19 -
11
Tangible fixed assets
Land and buildings Freehold
Land and buildings Leasehold
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 April 2022
6,215,786
33,377
2,202,682
537,775
18,205
9,007,825
Additions
804
7,677
19,967
28,448
Disposals
(16,602)
(11,131)
(8,200)
(35,933)
Transfers
(1,793,685)
(33,377)
(821,557)
(337,142)
(2,985,761)
At 31 March 2023
4,422,101
1,365,327
197,179
29,972
6,014,579
Depreciation and impairment
At 1 April 2022
1,034,766
33,377
2,109,186
520,447
13,839
3,711,615
Depreciation charged in the year
48,169
54,734
4,315
6,047
113,265
Eliminated in respect of disposals
(16,514)
(10,879)
(8,054)
(35,447)
Transfers
(293,574)
(33,377)
(806,083)
(329,648)
(1,462,682)
At 31 March 2023
789,361
1,341,323
184,235
11,832
2,326,751
Carrying amount
At 31 March 2023
3,632,740
24,004
12,944
18,140
3,687,828
At 31 March 2022
5,181,020
93,496
17,328
4,366
5,296,210
12
Investment property
2023
£
Fair value
At 1 April 2022
2,100,000
Transfers
(850,000)
At 31 March 2023
1,250,000
The Investment Properties were valued by a Chartered surveyor, Roger Etchells & Co on 7 July 2021. The director deems the value of investment property to be unchanged from last valuation.
An investment property included above has a fair value of £750,000, which resulted in an associated non-distributable reserve amounting to £81,041. No deferred tax has been provided on this amount in view of the reduction in the valuation of the other investment property held at 31 March 2023.
The carrying value of land and buildings comprises:
2023
2022
£
£
Freehold
1,250,000
2,100,000
TICKETGRANGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 20 -
13
Stocks
2023
2022
£
£
Finished goods and goods for resale
2,200
15,812
14
Debtors
2023
2022
Amounts falling due within one year:
£
£
Other debtors
92,114
161,238
Prepayments and accrued income
84,828
7,395
176,942
168,633
15
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
6,236
49,726
Corporation tax
11,227
64,732
Other taxation and social security
118,150
202,302
Other creditors
181,454
550,601
Accruals and deferred income
42,002
42,002
359,069
909,363
16
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
63,134
44,490
2023
Movements in the year:
£
Liability at 1 April 2022
44,490
Charge to profit or loss
18,644
Liability at 31 March 2023
63,134
TICKETGRANGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 21 -
17
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
15,763
19,488
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
18
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
150
300
150
300
The change in share capital reflects cancellation of 150 shares due to the demerger on 1 November 2022.
19
Non-distributable profits reserve
2023
2022
£
£
At the beginning of the year
-
-
Transfer of non-distributable profits relating to prior periods
81,041
-
At the end of the year
81,041
-
20
Profit and loss reserves
2023
2022
£
£
At the beginning of the year
11,366,882
8,374,620
Profit for the year
886,312
3,492,262
Prior period profits transferred to non-distributable reserve
(81,041)
-
Dividends declared and paid in the year
(150,000)
(500,000)
Adjustment in respect of demerger
(4,607,807)
-
At the end of the year
7,414,346
11,366,882
Included in distributable reserves brought forward is a amount of £934,887 deducted in respect of a revaluation (in previous periods) below original cost of one of the investment properties held at the Balance Sheet date.
TICKETGRANGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 22 -
21
De-merger of business
On 1 November 2022, the business was divided between the 2 shareholders. The valuation of the business was carried out by independent valuation organisation namely Roger Etchells in 2021 when this process initially started to ensure the split is recorded on market values. The directors confirmed during the year that due to significant changes in bank base rates and commercial property market, there has been no significant change in the property values. This entity is now under 100% ownership of John Harris.
The second shareholder, Mr Richard Harris exited the business completely when the demerger took place and since then he operates under a separate entity namely Springstate Limited (company number 14137713).
As a result of the division of the business, there was an impact in Income statement for 5 months in this year and future results will also show reduced activity. Furthermore, the balance sheet of the business as at the date of the demerger was also split as agreed by the 2 shareholders. The highlights of major changes in the financial statements are estimated in the year 2020 when HMRC clearance was obtained to assist the reader of the accounts in understanding the impact on the business due to this event:
Turnover and Profit for the year (Income Statement) - estimated to be reduced by 50%
Investment properties (Balance Sheet) - reduction of £850,000 (Note 11)
Freehold properties (Balance Sheet) - reduction of £1,500,112 (NBV)
Leasehold property (Balance Sheet) - Transferred at Nil (NBV)
Fixture & fittings (Balance Sheet) - reduction of £7,494 (NBV)
Gaming machines (Balance Sheet) - reduction of £15,474 (NBV)
Motor vehicles (Balance Sheet) - no change
22
Financial commitments, guarantees and contingent liabilities
Barclays Bank Plc hold legal charge dated 21 March 2000, over freehold properties known as 26 Bridge Street and Showcase and 3, 3a, 5 and 7 Priestgate, Peterborough PE1 1WG. Barclays Bank Plc also hold legal charge dated 24 July 2002, over the freehold property known as 23 Strait Bargate, Boston, Lincolnshire PE21 6EE. Both charges comprise all monies now due or hereafter to become due or from time to time accruing due from the company to Barclays Bank Plc upon any account and in any manner whatsoever. At the Balance Sheet date, the company had no bank liabilities outstanding relating to the aforementioned charges.
23
Operating lease commitments
At the reporting end date the company had no outstanding commitments for future minimum lease payments under non-cancellable operating leases as the property has been transferred to Springstate Limited.
2023
2022
£
£
Within one year
19,945
TICKETGRANGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 23 -
24
Directors' transactions
As at the balance sheet date, £167,666 (2022 - £263,911) was due to Mr J Harris, director of the company.
Mr R Harris resigned as a director on 01 November 2022 and his balance due amounting to £11,733 (2022 - £261,733) was re-classified to Other Creditors.
A dividend totalling £150,000 (2022 - £500,000) was paid in the year in respect of shares held by the company's director.
25
Ultimate controlling party
J Harris is the ultimate controlling party within the company.
26
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
886,312
3,492,262
Adjustments for:
Taxation charged
241,139
1,290,781
Investment income
(22,499)
(406)
Gain on disposal of tangible fixed assets
(513)
-
Depreciation and impairment of tangible fixed assets
113,265
181,189
Movements in working capital:
Decrease/(increase) in stocks
13,612
(4,663)
(Increase)/decrease in debtors
(8,309)
80,814
(Decrease)/increase in creditors
(496,789)
131,679
Cash generated from operations
726,218
5,171,656
27
Analysis of changes in net funds
1 April 2022
Cash flows
31 March 2023
£
£
£
Cash at bank and in hand
4,740,380
(1,939,610)
2,800,770
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