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Registration number: 10155039

Arch Light Cinemas Limited

Unaudited Financial Statements

for the Period from 22 April 2022 to 30 April 2023

Brebners
Chartered Accountants
130 Shaftesbury Avenue
London
W1D 5AR

 

Arch Light Cinemas Limited

Contents

Company Information

1

Statement of Financial Position

2 to 3

Notes to the Unaudited Financial Statements

4 to 9

 

Arch Light Cinemas Limited

Company Information

Director

S C Burdge

Registered office

130 Shaftesbury Avenue
2nd Floor
London
W1D 5EU

Accountants

Brebners
Chartered Accountants
130 Shaftesbury Avenue
London
W1D 5AR

 

Arch Light Cinemas Limited

Statement of Financial Position as at 30 April 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

4

6,141,072

1,380,198

Current assets

 

Stocks

5

12,244

-

Debtors

6

366,749

701,782

Cash at bank and in hand

 

-

294

 

378,993

702,076

Creditors: Amounts falling due within one year

7

(7,880,624)

(3,154,145)

Net current liabilities

 

(7,501,631)

(2,452,069)

Total assets less current liabilities

 

(1,360,559)

(1,071,871)

Creditors: Amounts falling due after more than one year

7

(1,148,750)

(116,146)

Net liabilities

 

(2,509,309)

(1,188,017)

Capital and reserves

 

Called up share capital

1

1

Share premium reserve

325,000

325,000

Retained earnings

(2,834,310)

(1,513,018)

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:

The members have not required the company to obtain an audit of its accounts for the period in question in accordance with section 476; and

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 director on 3 April 2024
 

.........................................

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

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
130 Shaftesbury Avenue
2nd Floor
London
W1D 5EU

The principal activity of the company during the period was that of the operation of a cinema.

2

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.

3

Staff numbers

The average number of persons employed by the company during the period, was 19 (2022 - 9).

 

Arch Light Cinemas Limited

Notes to the Unaudited Financial Statements for the Period from 22 April 2022 to 30 April 2023

4

Tangible assets

Leasehold improvements
£

Furniture, fittings and equipment
 £

Total
£

Cost or valuation

At 22 April 2022

1,547,123

868,342

2,415,465

Additions

4,050,268

1,274,916

5,325,184

At 30 April 2023

5,597,391

2,143,258

7,740,649

Depreciation

At 22 April 2022

484,707

550,560

1,035,267

Charge for the period

337,093

227,217

564,310

At 30 April 2023

821,800

777,777

1,599,577

Carrying amount

At 30 April 2023

4,775,591

1,365,481

6,141,072

At 21 April 2022

1,062,416

317,782

1,380,198

5

Stocks

2023
£

2022
£

Finished goods and goods for resale

12,244

-

6

Debtors

2023
£

2022
£

Trade debtors

118,815

5,143

Other debtors

247,934

696,639

366,749

701,782

 

Arch Light Cinemas Limited

Notes to the Unaudited Financial Statements for the Period from 22 April 2022 to 30 April 2023

7

Creditors

Creditors: amounts falling due within one year

Note

2023
£

2022
£

Loans and borrowings

8

659,915

175,802

Trade creditors

 

2,035,780

229,930

Taxation and social security

 

6,213

7,206

Other creditors

 

5,178,716

2,741,207

 

7,880,624

3,154,145

Creditors: amounts falling due after more than one year

Note

2023
£

2022
£

Loans and borrowings

8

150,000

116,146

Other non-current financial liabilities

 

998,750

-

 

1,148,750

116,146

8

Loans and borrowings

2023
£

2022
£

Current loans and borrowings

Bank overdrafts

34,344

35,617

Finance lease liabilities

117,342

140,185

Other borrowings

508,229

-

659,915

175,802


 

2023
£

2022
£

Non-current loans and borrowings

Finance lease liabilities

-

116,146

Other borrowings

150,000

-

150,000

116,146

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

9

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.

10

Non adjusting events after the financial period

Subsequent to 30 April 2023, 2,378 Ordinary A shares were allotted and issued for a consideration of £500,000.