Registration number:
Arch Light Cinemas Limited
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Arch Light Cinemas Limited
Contents
Company Information |
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Statement of Financial Position |
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Notes to the Unaudited Financial Statements |
Arch Light Cinemas Limited
Company Information
Director |
S C Burdge |
Registered office |
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Accountants |
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Arch Light Cinemas Limited
Statement of Financial Position as at 30 April 2023
Note |
2023 |
2022 |
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Fixed assets |
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Tangible assets |
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Current assets |
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Stocks |
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- |
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Debtors |
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Cash at bank and in hand |
- |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current liabilities |
( |
( |
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Total assets less current liabilities |
( |
( |
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Creditors: Amounts falling due after more than one year |
( |
( |
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Net liabilities |
( |
( |
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Capital and reserves |
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Called up share capital |
1 |
1 |
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Share premium reserve |
325,000 |
325,000 |
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Retained earnings |
(2,834,310) |
(1,513,018) |
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Shareholders' deficit |
(2,509,309) |
(1,188,017) |
For the financial period ending 30 April 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Director's responsibilities:
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The director acknowledges his responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts. |
These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006 and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Statement of Income and Retained Earnings has been taken.
Arch Light Cinemas Limited
Statement of Financial Position as at 30 April 2023
Approved and authorised by the
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S C Burdge
Director
Company registration number: 10155039
Arch Light Cinemas Limited
Notes to the Unaudited Financial Statements for the Period from 22 April 2022 to 30 April 2023
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
The principal activity of the company during the period was that of the operation of a cinema.
Accounting policies |
Statement of compliance
These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.
Basis of preparation
These financial statements have been prepared using the historical cost convention and are presented in sterling, which is the functional currency of the entity.
Summary of significant accounting policies
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Going concern
The company made a loss for the period ended 30 April 2023 and had net liabilities at that date amounting to £2,509,309 and net current liabilities of £7,992,152. At that date, an amount of £2,484,295 was due to a related undertaking, who have agreed to not call for repayment until such time as the company has sufficient working capital. Additionally, other creditors includes an amount of £1,562,660 received in advance from investors which relates to share capital which had not been allocated and issued at 30 April 2023.
The directors have considered the current inflationary increases and economic uncertainty and the directors' view is that the impact on the company will be manageable.
After making enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly the directors continue to adopt the going concern basis in preparing the financial statements.
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods or provision of services in the ordinary course of the company's activities. Turnover is shown net of value added tax, returns, rebates and discounts.
The company recognises revenue from cinema ticket sales on the date of the related showing. The company recognises revenue from food at the point of sale. The company recognises revenue from film club memberships spread evenly over the life of the membership.
Arch Light Cinemas Limited
Notes to the Unaudited Financial Statements for the Period from 22 April 2022 to 30 April 2023
Government grants
Government grants are recognised when it is reasonable to expect that the grants will be received and that all related conditions will be met, usually on submission of a valid claim for payment.
Grants of a revenue nature are credited to income so as to match them with the expenditure to which they relate.
Tangible assets
Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation commences when the asset in question becomes available for use. Depreciation is charged so as to write off the cost of assets as follows:
Asset class |
Depreciation method and rate |
Leasehold improvements |
Straight line over the life of the lease |
Furniture, fittings and equipment |
Straight line over 5-10 years |
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the income statement over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Arch Light Cinemas Limited
Notes to the Unaudited Financial Statements for the Period from 22 April 2022 to 30 April 2023
Finance leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease. Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Statement of Financial Position as a finance lease obligation.
Lease payments are apportioned between finance costs in the Income Statement and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Staff numbers |
The average number of persons employed by the company during the period, was
Arch Light Cinemas Limited
Notes to the Unaudited Financial Statements for the Period from 22 April 2022 to 30 April 2023
Tangible assets |
Leasehold improvements |
Furniture, fittings and equipment |
Total |
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Cost or valuation |
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At 22 April 2022 |
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Additions |
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At 30 April 2023 |
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Depreciation |
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At 22 April 2022 |
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Charge for the period |
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At 30 April 2023 |
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Carrying amount |
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At 30 April 2023 |
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At 21 April 2022 |
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Stocks |
2023 |
2022 |
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Finished goods and goods for resale |
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- |
Debtors |
2023 |
2022 |
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Trade debtors |
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Other debtors |
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Arch Light Cinemas Limited
Notes to the Unaudited Financial Statements for the Period from 22 April 2022 to 30 April 2023
Creditors |
Creditors: amounts falling due within one year
Note |
2023 |
2022 |
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Loans and borrowings |
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Trade creditors |
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Taxation and social security |
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Other creditors |
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Creditors: amounts falling due after more than one year
Note |
2023 |
2022 |
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Loans and borrowings |
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Other non-current financial liabilities |
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- |
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1,148,750 |
116,146 |
Loans and borrowings |
2023 |
2022 |
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Current loans and borrowings |
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Bank overdrafts |
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Finance lease liabilities |
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Other borrowings |
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- |
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2023 |
2022 |
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Non-current loans and borrowings |
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Finance lease liabilities |
- |
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Other borrowings |
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- |
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The bank overdraft is secured by a fixed and floating charge over the assets and undertakings of the company.
Finance lease liabilities are secured on the assets concerned.
Arch Light Cinemas Limited
Notes to the Unaudited Financial Statements for the Period from 22 April 2022 to 30 April 2023
Financial commitments, guarantees and contingencies |
Amounts not provided for in the statement of financial position
The total amount of financial commitments not included in the statement of financial position is £9,083,572 (2022 - £9,212,347) in respect of operating leases.
Non adjusting events after the financial period |
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