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Registered number: 12136501














BROADWICK GROUP LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED  31 MARCH 2023

 
BROADWICK GROUP LIMITED
 
 
COMPANY INFORMATION


Directors
B J Thomson 
S J Tracey 
R M S Hajaj 




Registered number
12136501



Registered office
Acre House
11/15 William Road

London

NW1 3ER




Independent auditors
Sopher + Co LLP
Chartered Accountants & Statutory Auditors

5 Elstree Gate

Elstree Way

Borehamwood

Hertfordshire

WD6 1JD





 
BROADWICK GROUP LIMITED
 

CONTENTS



Page
Group Strategic Report
 
1 - 2
Directors' Report
 
3 - 4
Independent Auditors' Report
 
5 - 8
Consolidated Statement of Comprehensive Income
 
9
Consolidated Statement of Financial Position
 
10
Company Statement of Financial Position
 
11
Consolidated Statement of Changes in Equity
 
12
Company Statement of Changes in Equity
 
13
Consolidated Statement of Cash Flows
 
14 - 15
Notes to the Financial Statements
 
16 - 42


 
BROADWICK GROUP LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023

Introduction
 
The directors present the strategic report of Broadwick Group Limited ("the Company") and its subsidiaries (together "the Group") for the year ended 31 March 2023. The trading name of the Group is "Broadwick Group".
Our heritage is in music. We own and operate a portfolio of award-winning venues and entertainment brands and partner with some of the world’s most influential artists to deliver powerful programming and cultural experiences across the world.
We believe in redefining spaces and how people experience culture. By breaking down traditional barriers, we curate unique narratives, reveal distinct identities and create one of a kind experiences across all of our spaces and venues.
At the heart of Broadwick is a founding belief in the power of ‘live’ with the objective always being to inspire, connect and create massive impact through music, culture and space. With three core divisions; Entertainment, Venues and Services, Broadwick Group design, build and operate some of the world’s most exciting venue and entertainment brands.

Business review
 
With strong financial management, support from our investors and an active shareholder team leading the business we are poised to capitalise on multiple venue acquisitions, rapidly expanding our portfolio of brands whilst increasing our working capital reserves to deliver strong growth in future years.
At the reporting date, Group turnover for the period was £61,350,310 (2022 - £35,476,894) with a gross profit margin of 38.0% (2022 - 37.1%). 

Principal risks and uncertainties
 
In compliance with accounting standards and best practice, we have summarised below the principal risks facing the Group:
a) Commercial risk
Systems and procedures are in place to identify, assess and mitigate major business risks that could impact the Group. Monitoring exposure to risk and uncertainty is an integral part of the Group’s structured management processes. Generally, the principal risks that the company faces are operational risk, competition, regulatory and legislative impacts, recruitment and retention of staff and maintenance of reputation, as well as financial risk.
b) Liquidity risk
The Group seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably.

Financial key performance indicators
 
The continued success and sustainability of the Group will be determined significantly by the ability to continue to grow revenues more than its costs. Therefore the level of turnover, year on year growth and gross profit margins are key performance indicators (KPIs).
The Group’s KPIs for this period are stated above under “Business review”.

Page 1

 
BROADWICK GROUP LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023

Other key performance indicators
 
The directors believe there are numerous non-financial performance indicators, but none are individually key to assessing the overall performance of the Group.


This report was approved by the board on 31 January 2024 and signed on its behalf.



S J Tracey
Director

Page 2

 
BROADWICK GROUP LIMITED
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023

The directors present their report and the financial statements for the year ended 31 March 2023.

Results and dividends

The profit for the year, after taxation and minority interests, amounted to £1,182,375 (2022 - £141,490).

The Group did not pay any dividends in the year (2022 - £nil).

Directors

The directors who served during the year were:

B J Thomson 
S J Tracey 
R M S Hajaj 

Directors' responsibilities statement

The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Group's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.

The directors are 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 the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Future developments

We continue to look at acquiring new venues that fit our portfolio strategically and represent opportunities to
further strengthen our financial position.

Page 3

 
BROADWICK GROUP LIMITED
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the company and the Group's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the company and the Group's auditors are aware of that information.

Subsequent events

Details of subsequent events are given in note 34.

Auditors

Under section 487(2) of the Companies Act 2006Sopher + Co LLP will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.

This report was approved by the board on 31 January 2024 and signed on its behalf.
 





S J Tracey
Director

Page 4

 
BROADWICK GROUP LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BROADWICK GROUP LIMITED
 

Opinion


We have audited the financial statements of Broadwick Group Limited (the 'parent company') and its subsidiaries (the 'Group') for the year ended 31 March 2023, which comprise the Group Statement of Comprehensive Income, the Group and company Statements of Financial Position, the Group Statement of Cash Flows, the Group and company Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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 Group's and of the parent company's affairs as at 31 March 2023 and of the Group's 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.


Basis for opinion


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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the directors' 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 Group's or the parent 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 directors with respect to going concern are described in the relevant sections of this report.


Other information


The directors are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Auditors' Report thereon. 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.
 
Page 5

 
BROADWICK GROUP LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BROADWICK GROUP LIMITED (CONTINUED)



Other information (continued)
In connection with our audit of the financial statementsour 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.


Opinion on other matters prescribed by the Companies Act 2006
 

In our opinion, based on the work undertaken in the course of the audit:


the information given in the Group Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 3, the directors are 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 directors determine 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 directors are responsible for assessing the Group's and the parent 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 directors either intend to liquidate the Group or the parent company or to cease operations, or have no realistic alternative but to do so.


Page 6

 
BROADWICK GROUP LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BROADWICK GROUP LIMITED (CONTINUED)

Auditors' 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 Auditors' 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 Group 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:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: 
 
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; 
we identified the laws and regulations applicable to the Company through discussions with directors and other management, and from our commercial knowledge and experience of the entertainment sector; 
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the Company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety and licensing laws;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and 
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. 

We assessed the susceptibility of the Company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: 
 
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; 
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and 
understanding the design of the Company’s remuneration policies. 

To address the risk of fraud through management bias and override of controls, we: 
 
performed analytical procedures to identify any unusual or unexpected relationships; 
tested journal entries to identify unusual transactions; 
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and 
investigated the rationale behind significant or unusual transactions. 
Page 7

 
BROADWICK GROUP LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BROADWICK GROUP LIMITED (CONTINUED)

Auditors' responsibilities for the audit of the financial statements (continued)
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: 
 
agreeing financial statement disclosures to underlying supporting documentation; 
enquiring of management as to actual and potential litigation and claims; and 
reviewing correspondence with HMRC, relevant regulators and the Company’s legal advisors. 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. 
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.


Use of our 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 2006Our 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 Auditors' 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.





Martyn Atkinson FCA (Senior Statutory Auditor)
  
for and on behalf of
Sopher + Co LLP
 
Chartered Accountants
Statutory Auditors
  
5 Elstree Gate
Elstree Way
Borehamwood
Hertfordshire
WD6 1JD

31 January 2024
Page 8

 
BROADWICK GROUP LIMITED
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023


2023
2022
Note
£
£

  

Turnover
 4 
61,350,310
35,476,894

Cost of sales
  
(38,050,700)
(22,303,665)

Gross profit
  
23,299,610
13,173,229

Administrative expenses
  
(23,077,961)
(12,817,025)

Other operating income
 5 
361,022
593,533

Operating profit
 6 
582,671
949,737

Share of profit of joint venture
  
2,822
-

Share of profit of associates
  
646,577
-

Total operating profit
  
1,232,070
949,737

Income from participating interests
  
25,000
-

Interest receivable and similar income
 10 
2,538
-

Interest payable and similar expenses
 11 
(314,001)
(387,255)

Profit before taxation
  
945,607
562,482

Tax on profit
 12 
242,060
(450,753)

Profit for the financial year
  
1,187,667
111,729

Profit for the year attributable to:
  

Non-controlling interests
  
5,292
(29,761)

Owners of the parent company
  
1,182,375
141,490

  
1,187,667
111,729

There was no other comprehensive income for 2023 (2022:£NIL).

The notes on pages 16 to 42 form part of these financial statements.

Page 9

 
BROADWICK GROUP LIMITED
REGISTERED NUMBER:12136501

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 14 
5,363,220
5,925,931

Tangible assets
 15 
6,698,175
4,646,190

Investments
 16 
982,470
-

  
13,043,865
10,572,121

Current assets
  

Stocks and work in progress
 17 
233,872
403,619

Debtors: amounts falling due after more than one year
 18 
167,522
191,663

Debtors: amounts falling due within one year
 18 
13,565,149
8,362,484

Cash at bank and in hand
 19 
4,458,366
3,832,343

  
18,424,909
12,790,109

Current liabilities
  

Creditors: amounts falling due within one year
 20 
(23,297,126)
(16,347,197)

Net current liabilities
  
 
 
(4,872,217)
 
 
(3,557,088)

Total assets less current liabilities
  
8,171,648
7,015,033

Creditors: amounts falling due after more than one year
 21 
(6,554,696)
(6,585,748)

Net assets
  
1,616,952
429,285


Capital and reserves
  

Called up share capital 
 26 
13,333
13,333

Share premium account
 27 
2,842,667
2,842,667

Profit and loss account
 27 
(1,215,423)
(2,397,798)

Non-controlling interests
  
(23,625)
(28,917)

  
1,616,952
429,285


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 31 January 2024.



S J Tracey
Director

The notes on pages 16 to 42 form part of these financial statements.

Page 10

 
BROADWICK GROUP LIMITED
REGISTERED NUMBER:12136501

COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 14 
64,505
63,904

Tangible assets
 15 
146,779
59,849

Investments
 16 
6,566,149
4,515,460

  
6,777,433
4,639,213

Current assets
  

Debtors: amounts falling due within one year
 18 
3,556,666
3,844,968

Cash at bank and in hand
 19 
71,219
66,339

  
3,627,885
3,911,307

Current liabilities
  

Creditors: amounts falling due within one year
 20 
(2,753,961)
(1,276,617)

Net current assets
  
 
 
873,924
 
 
2,634,690

Total assets less current liabilities
  
7,651,357
7,273,903

  

Creditors: amounts falling due after more than one year
 21 
(4,795,357)
(4,417,903)

  

Net assets
  
2,856,000
2,856,000


Capital and reserves
  

Called up share capital 
 26 
13,333
13,333

Share premium account
 27 
2,842,667
2,842,667

  
2,856,000
2,856,000


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 31 January 2024.


S J Tracey
Director

The notes on pages 16 to 42 form part of these financial statements.

Page 11

 

BROADWICK GROUP LIMITED
 
 
 


CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023



Called up share capital
Share premium account
Profit and loss account
Equity attributable to owners of parent company
Non-controlling interests
Total equity


£
£
£
£
£
£



At 1 April 2021
13,333
2,842,667
(2,539,288)
316,712
844
317,556





Profit for the year
-
-
141,490
141,490
(29,761)
111,729





At 1 April 2022
13,333
2,842,667
(2,397,798)
458,202
(28,917)
429,285





Profit for the year
-
-
1,182,375
1,182,375
5,292
1,187,667



At 31 March 2023
13,333
2,842,667
(1,215,423)
1,640,577
(23,625)
1,616,952



The notes on pages 16 to 42 form part of these financial statements.

Page 12

 
BROADWICK GROUP LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023


Called up share capital
Share premium account
Total equity

£
£
£


At 1 April 2021
13,333
2,842,667
2,856,000



Profit for the year
-
-
-



At 1 April 2022
13,333
2,842,667
2,856,000



Profit for the year
-
-
-


At 31 March 2023
13,333
2,842,667
2,856,000


The notes on pages 16 to 42 form part of these financial statements.

Page 13

 
BROADWICK GROUP LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
1,187,667
111,729

Adjustments for:

Amortisation of intangible assets
754,773
732,206

Depreciation of tangible assets
1,394,346
903,558

Loss on disposal of tangible assets
9,623
-

Interest paid
314,001
387,254

Interest received
(2,538)
-

Dividends received
(25,000)
-

Taxation charge
(242,060)
450,753

Decrease in stocks
169,747
30,875

(Increase) in debtors
(2,614,340)
(2,778,940)

(Increase) in amounts owed by associates
(1,189,597)
-

Increase in amounts owed to associates
18,031
-

Share of operating profit in joint ventures
(2,822)
-

Share of operating (loss)/profit in associates
(498,971)
-

Increase in creditors
3,591,623
3,455,855

Corporation tax paid
-
(76,928)

Net cash generated from operating activities

2,864,483
3,216,362


Cash flows from investing activities

Purchase of intangible fixed assets
(8,051)
(72,688)

Sale of intangible fixed assets
5,000
-

Purchase of tangible fixed assets
(3,344,089)
(1,306,941)

Sale of tangible fixed assets
20,495
2,308

Purchase of share in associates
(22,089)
-

Interest received
2,538
-

Dividends received
25,000
-

Purchase of subsidiary undertakings
(2,028,500)
-

Cash acquried on acquisition of subsidiaries
3,310,071
-

Net cash from investing activities

(2,039,625)
(1,377,321)
Page 14

 
BROADWICK GROUP LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023


2023
2022

£
£



Cash flows from financing activities

Bank loan received
-
600,000

Bank loan repayments
(70,000)
-

Other loan received
1,067,374
-

Other loan repayments
(265,591)
(574,838)

Finance and hire purchase lease repayments
(616,617)
(489,354)

Finance and hire purchase lease interest paid
(120,208)
(183,898)

Bank and other loans interest paid
(193,793)
(203,356)

Net cash used in financing activities

(198,835)
(851,446)

Net increase in cash and cash equivalents
626,023
987,595

Cash and cash equivalents at beginning of year
3,832,343
2,844,748

Cash and cash equivalents at the end of year
4,458,366
3,832,343


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
4,458,366
3,832,343

4,458,366
3,832,343


Page 15

 
BROADWICK GROUP LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

1.


General information

Broadwick Group Limited is a private limited liability company registered in England and Wales. Its registered office address is Acre House, 11/15 William Road, London, NW1 3ER.
The principal activity of the Company during the year was that of a holding company.
The principal activity of the Group was the development and operation of live music, corporate and ticketed events venues.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).

The company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between Group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the statement of financial position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.

Page 16

 
BROADWICK GROUP LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

 
2.3

Going concern

The group was profitable in the year and at the balance sheet date has net assets, but net current liabilities. 
Included in creditors due within 1 year is deferred income of £6.53M in relation to ticket and venue hire fees received in advance which will be recognised as turnover in the year ended 31 March 2024 when the events take place. After the reporting date the group continues to receive event income in advance which is an integral part of the group's cashflow planning and allows the group to remain in a strong financial position despite the net current liabilities reported on its balance sheet.
The Group continues to received financial support from its investors, has strong cash reserves and the Group's results after the reporting date up to the date of signing these financial statements show the Group has remained profitable. The Group's forecasts for the year ended 31 March 2024 and 31 March 2025 also show profitability is expected to continue. Therefore the accounts have been prepared under the going concern basis.

 
2.4

Turnover

Turnover comprises revenue recognised by the Group in respect of staging and operating live music and corporate events, the hiring out of live music and corporate venues, event management fees, sponsorship income and production fees is recognised when the events are staged and it is probable that economic benefits will flow to the Group. 
The operation of events includes beverage and merchandise sales, which are recognised at point of sale. 
Amounts received in advance with respect to events occurring during future periods are deferred and recognised in the period the event occurs. These amounts are shown in other creditors.
Turnover in respect of promoting events is recognised over the period the services are provided.
All revenue is exclusive of Value Added Tax and trade discounts.

 
2.5

Foreign currency translation

The company's functional and presentational currency is £ Sterling.
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end, foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Statement of Comprehensive Income.

Page 17

 
BROADWICK GROUP LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

 
2.6

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.7

Leased assets: the Group as lessee

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the Group. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

 
2.8

Government grants

Grants are accounted under the accruals model. Grants of a revenue nature are recognised in the Statement of Comprehensive Income in the same period as the related expenditure.

 
2.9

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.10

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount.

 
2.11

Pensions

The Group contributes to a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Group in independently administered funds.

Page 18

 
BROADWICK GROUP LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

 
2.12

Taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

 
2.13

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. The useful economic life of website and brand development costs have been estimated as 10 years.
Goodwill
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the net book value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the Consolidated Statement of Comprehensive Income over its useful economic life which has been estimated as 10 years.

Page 19

 
BROADWICK GROUP LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

 
2.14

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

At each reporting date the Group assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives.

Depreciation is charged on the following basis:


Leasehold improvements, and plant and machinery purchased specifically for use at leased premises are depreciated straight line over the remaining life of the leases.
Other plant, machinery and equipment is depreciated as follows:
Plant and machinery                     - 3 to 10 years straight line
Motor vehicles                              - 25% reducing balance
Fixtures, fittings and equipment     - 25% reducing balance or 3 to 10 years straight line
IT equipment                                - 3 to 4 years straight line
Assets held under finance lease    - over the term of the lease
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.15

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Page 20

 
BROADWICK GROUP LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

 
2.16

Associates and joint ventures

An entity is treated as a joint venture where the Group is a party to a contractual agreement with one or more parties from outside the Group to undertake an economic activity that is subject to joint control.

An entity is treated as an associated undertaking where the Group exercises significant influence in that it has the power to participate in the operating and financial policy decisions.
In the consolidated accounts, interests in associated undertakings are accounted for using the equity method of accounting. Under this method an equity investment is initially recognised at the transaction price (including transaction costs) and is subsequently adjusted to reflect the investors share of the profit or loss, other comprehensive income and equity of the associate. The Consolidated Statement of Comprehensive Income includes the Group's share of the operating results, interest, pre-tax results and attributable taxation of such undertakings applying accounting policies consistent with those of the Group. In the Consolidated Statement of Financial Position, the interests in associated undertakings are shown as the Group's share of the identifiable net assets, including any unamortised premium paid on acquisition.
Any premium on acquisition is dealt with in accordance with the goodwill policy.

 
2.17

Stock and work in progress

Stock is stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. At each reporting date, stocks are assessed for impairment. The impairment loss is recognised immediately in the Statement of Comprehensive Income.
Work in progress relates to development costs incurred in relation to events scheduled after the reporting date. Work in progress is valued at the lower of cost and net realisable value.

 
2.18

Holiday pay accrual

A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the reporting date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the reporting date.

 
2.19

Basic financial instruments

The Group only enters into transactions that result in basic financial instruments such as trade and other debtors, trade and other creditors, cash at bank and in hand and loans with related parties. 
Trade debtors, other debtors and loans to related parties are recognised initially at the transaction price less attributable transaction costs. Trade creditors, other creditors and loans from related parties are recognised initially at transaction price plus attributable transaction costs. Subsequently they are measured at amortised cost using the effective interest method, less any impairment losses in the case of trade and other debtors, and loans to related parties.
Cash is represented by cash in hand and deposits with financial institutions.

Page 21

 
BROADWICK GROUP LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In the application of accounting policies management is required to make judgments, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
The directors have made the following judgments:
a) Determining whether there are indicators of impairment of Company's and Group's tangible and intangible assets. Factors taken into consideration include the economic viability and expected future financial performance of the assets. 
b) Determining whether leases entered into by the group as a lessee are operating or finance leases. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis.
The directors have made the following key estimates:
a) Intangible and tangible fixed assets are depreciated over their useful lives taking  into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and estimated disposal values.
b) In classifying the deferred tax asset between debtors due after more than one year and debtors due within one year, predictions have been made for each entity of the Group that has a carried forward tax loss at 31 March 2023 to estimate when the losses are expected to be utilised.


4.


Turnover

In the opinion of the directors, the analysis of turnover by class of business would be seriously prejudicial to the interests of the Group.

All turnover arose within the United Kingdom.


5.


Other operating income

2023
2022
£
£

Other operating income
263,222
229,483

Government grants receivable
97,800
364,050

361,022
593,533


Page 22

 
BROADWICK GROUP LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

6.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Amortisation of intangible fixed assets
776,404
732,206

Depreciation of tangible fixed assets
1,394,396
903,558

Operating lease rentals
2,551,429
1,620,503

Exchange differences
6,914
1,432


7.


Auditor's remuneration

2023
2022
£
£

Fees payable to the Group's auditor for:


The audit of the Group's annual financial statements
25,000
15,000

The audit of subsidiary annual financial statements
112,500
77,500

Other services
7,100
-

144,600
92,500


8.


Employees

Staff costs, including directors' fees, were as follows:


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Wages and salaries
7,909,732
3,319,504
3,148,179
2,102,480

Social security costs
874,486
409,569
384,412
260,460

Cost of defined contribution scheme
307,404
126,577
124,039
84,209

9,091,622
3,855,650
3,656,630
2,447,149


Page 23

 
BROADWICK GROUP LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

8.Employees (continued)

The average monthly number of employees, including the directors, during the year was as follows:



Group
Group
Company
Company
        2023
        2022
        2023
        2022
            No.
            No.
            No.
            No.









Group directors
3
3
3
3



Subsidiary directors
2
3
-
-



Other employees
136
63
37
21

141
69
40
24


9.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
483,122
157,581

Group contributions to defined contribution pension schemes
39,334
21,250

522,456
178,831


During the year retirement benefits were accruing to 2 directors (2022 - 2) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £246,311 (2022 - £157,500).

The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £21,504 (2022 - £15,000).


10.


Interest receivable

2023
2022
£
£


Other interest receivable
2,538
-

Page 24

 
BROADWICK GROUP LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

11.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
29,582
906

Other loan interest payable
164,178
201,203

Finance leases and hire purchase contracts
120,208
183,898

Other interest payable
33
1,248

314,001
387,255


12.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the period
-
(5,457)

Adjustments to previous periods
(45,623)
-


Deferred tax


Origination and reversal of timing differences
(196,437)
456,210


Taxation on profit on ordinary activities
(242,060)
450,753

Factors affecting tax charge for the year

The tax assessed for the year is lower than (2022 - higher than) the standard rate of corporation tax in the UK of 19% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
945,607
562,483


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2022 - 19%)
179,665
106,872

Effects of:


Non-tax deductible amortisation of goodwill
141,991
138,400

Expenses not deductible for tax purposes
29,172
(89,373)

Capital allowances for year in excess of depreciation
(515,285)
(70,437)

Utilisation of tax losses
(278,348)
(98,691)

Adjustments to tax charge in respect of prior periods
(45,623)
-

Short term timing difference on acquisition of subsidiaries
9,265
-

Non-taxable income - share of profits from associates and joint ventures
(123,386)
-

Dividends from UK companies
(4,750)
-
Page 25

 
BROADWICK GROUP LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
 
12.Taxation (continued)


Unrelieved tax losses carried forward
561,676
7,772

Deferred tax
(196,437)
456,210

Total tax charge for the year
(242,060)
450,753


Factors that may affect future tax charges

At the reporting date, the parent company had tax losses of £47,241 (2022 - £nil) and subsidiary undertakings of the group had tax losses of £6,503,133 (2022 - £5,011,933) available to carry forward and be utilised against future taxable trading profits. A deferred tax asset has been recognised in relation to these losses.
From 1 April 2023 the rate of corporation tax will remain at 19% for companies with an annual profit of £50,000 or less, increase to 25% for companies with an annual profit of £250,000 or more, and increase to a marginal rate for companies with profits between £50,000 and £250,000. These thresholds are divided by the number of associated companies.


13.


Parent company profit for the year

The company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements. The profit after tax of the parent company for the year was £NIL (2022 - £NIL).

Page 26

 
BROADWICK GROUP LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

14.


Intangible assets

Group




Website & development costs
Goodwill
Total

£
£
£



Cost


At 1 April 2022
86,102
7,284,220
7,370,322


Additions
8,051
189,011
197,062


Disposals
(5,000)
-
(5,000)



At 31 March 2023

89,153
7,473,231
7,562,384



Amortisation


At 1 April 2022
17,198
1,427,193
1,444,391


Charge for the year on owned assets
7,450
747,323
754,773



At 31 March 2023

24,648
2,174,516
2,199,164



Net book value



At 31 March 2023
64,505
5,298,715
5,363,220



Page 27

 
BROADWICK GROUP LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
 
           14.Intangible assets (continued)

Company



Website & development costs

£



Cost


At 1 April 2022
67,688


Additions
8,051



At 31 March 2023

75,739



Amortisation


At 1 April 2022
3,784


Charge for the year
7,450



At 31 March 2023

11,234



Net book value



At 31 March 2023
64,505

Page 28

 
BROADWICK GROUP LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

15.


Tangible fixed assets

Group






Leasehold improvements
Plant, machinery and equipment
Motor vehicles
Total

£
£
£
£



Cost


At 1 April 2022
1,890,084
5,773,500
-
7,663,584


Additions
2,351,384
959,855
32,850
3,344,089


Acquisition of subsidiary
-
132,361
-
132,361


Disposals
(355,822)
(133,343)
-
(489,165)



At 31 March 2023

3,885,646
6,732,373
32,850
10,650,869



Depreciation


At 1 April 2022
548,242
2,469,152
-
3,017,394


Charge for the year on owned assets
401,429
516,648
-
918,077


Charge for the year on financed assets
-
474,626
1,643
476,269


Disposals
(355,822)
(103,224)
-
(459,046)



At 31 March 2023

593,849
3,357,202
1,643
3,952,694



Net book value



At 31 March 2023
3,291,797
3,375,171
31,207
6,698,175

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2023
2022
£
£



Plant, machinery and equipment
551,131
918,370

Motor vehicles
31,207
-

582,338
918,370

Page 29

 
BROADWICK GROUP LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

           15.Tangible fixed assets (continued)


Company






Plant, machinery and equipment

£

Cost


At 1 April 2022
69,495


Additions
127,372



At 31 March 2023

196,867



Depreciation


At 1 April 2022
9,646


Charge for the year on owned assets
40,442



At 31 March 2023

50,088



Net book value



At 31 March 2023
146,779






Page 30

 
BROADWICK GROUP LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

16.


Fixed asset investments

Group





Investments in associates
Investment in joint ventures
Total

£
£
£



Cost


Additions
22,089
-
22,089


On acquisition of subsidiaries
382,089
76,499
458,588


Share of profit/(loss)
498,971
2,822
501,793



At 31 March 2023
903,149
79,321
982,470




Company





Investments in subsidiary companies
Investments in associates
Total

£
£
£



Cost


At 1 April 2022
4,515,460
-
4,515,460


Additions
2,028,600
22,089
2,050,689



At 31 March 2023
6,544,060
22,089
6,566,149





17.


Stock and work in progress

Group
Group
2023
2022
£
£

Work in progress
56,251
365,189

Bar and merchandise stock
177,621
38,430

233,872
403,619


Page 31

 
BROADWICK GROUP LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

18.


Debtors

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Due after more than one year

Trade debtors
-
120,000
-
-

Prepayments and accrued income
50,619
-
-
-

Deferred tax asset
116,903
71,663
-
-

167,522
191,663
-
-


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Due within one year

Trade debtors
5,163,111
4,992,321
-
9,000

Amounts owed by group undertakings
-
-
3,157,953
3,754,363

Amounts owed by joint ventures and associated undertakings
1,189,597
-
-
-

Other debtors
1,893,513
1,017,549
284,807
29,975

Prepayments and accrued income
4,591,846
1,788,990
113,906
51,630

Tax recoverable
130,309
90,081
-
-

Deferred taxation
596,773
473,543
-
-

13,565,149
8,362,484
3,556,666
3,844,968



19.


Cash and cash equivalents

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Cash at bank and in hand
4,458,366
3,832,343
71,219
66,339


Page 32

 
BROADWICK GROUP LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

20.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Bank loans
270,000
70,000
-
-

Other loans
689,920
265,591
689,920
265,591

Trade creditors
4,602,179
3,610,838
6,232
87,990

Amounts owed to group undertakings
-
-
839,927
100

Amounts owed to associates
18,031
-
-
-

Other taxation and social security
1,091,424
317,655
406,711
129,295

Obligations under finance lease and hire purchase contracts
435,758
618,480
-
-

Other creditors
2,765,391
2,261,902
105,909
209,607

Accruals and deferred income
13,424,423
9,202,731
705,262
584,034

23,297,126
16,347,197
2,753,961
1,276,617


The bank and other loans are secured by a fixed and floating charge over the assets of the Group.
Obligations under finance leases and hire purchase contracts are secured on the assets concerned.


21.


Creditors: Amounts falling due after more than one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Bank loans
785,000
530,000
-
-

Other loans
4,795,357
4,417,903
4,795,357
4,417,903

Net obligations under finance leases and hire purchase contracts
403,231
741,555
-
-

Accruals and deferred income
571,108
896,290
-
-

6,554,696
6,585,748
4,795,357
4,417,903


The bank and other loans are secured by a fixed and floating charge over the assets of the Group.
Obligations under finance leases and hire purchase contracts are secured on the assets concerned.

Page 33

 
BROADWICK GROUP LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

22.


Loans


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Amounts falling due within one year

Bank loans
270,000
70,000
-
-

Other loans
689,920
265,591
689,920
265,591


959,920
335,591
689,920
265,591

Amounts falling due 1-2 years

Bank loans
495,000
120,000
-
-

Other loans
4,415,517
3,062,365
4,415,517
3,062,365

Amounts falling due 2-5 years

Bank loans
290,000
360,000
-
-

Other loans
379,840
1,355,538
379,840
1,355,538

Amounts falling due after more than 5 years

Bank loans
-
50,000
-
-

6,540,277
5,283,494
5,485,277
4,683,494



23.


Hire purchase and finance leases


Minimum lease payments under hire purchase and finance leases fall due as follows:

Group
Group
2023
2022
£
£

Within one year
435,758
618,480

Between 1-5 years
403,231
741,555

838,989
1,360,035


24.


Financial instruments






The company only enters into transactions that result in the recognition of basic financial assets and liabilities. It does not have financial assets and liabilities measured at fair value.

Page 34

 
BROADWICK GROUP LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

25.


Deferred taxation


Group



2023


£






At beginning of year
545,206


Charged to profit or loss
196,437


Arising on business combinations
(27,967)



At end of year
713,676

Group
Group
2023
2022
£
£

Accelerated capital allowances
(894,200)
(262,882)

Tax losses carried forward
1,607,876
808,088

713,676
545,206


Based on the projections of each Group enitity, it's estimated that £596,773 of the deferred tax asset will reverse during the year ended 31 March 2024.


26.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



1,000,000 Ordinary shares of £0.01 each
10,000
10,000
333,334 Preferred shares of £0.01 each
3,333
3,333

13,333

13,333

The Ordinary shares and Preferred shares have attached to them full voting and dividend rights. In the event of a capital distribution (including on winding up) the Preferred shares shall receive an amount equal to the preference amount plus any arrears of dividends in priority to any distribution on the ordinary shares.


Page 35

 
BROADWICK GROUP LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

27.


Reserves

Share premium account

The share premium reserve represents the amount by which the amount received by the company for
shares issued exceeds the shares par values.

Profit and loss account

The profit and loss reserve represents the cumulative balance of retained profits and losses since the Group started trading. It is a distributable reserve.

28.


Analysis of net debt





At 1 April 2022
Cash flows
New finance leases less finance lease repayments
At 31 March 2023
£

£

£

£

Cash at bank and in hand

3,832,343

626,023

-

4,458,366

Debt due after 1 year

(4,947,903)

(632,454)

-

(5,580,357)

Debt due within 1 year

(335,591)

(624,329)

-

(959,920)

Finance leases and hire purchase contracts

(1,360,035)

-

521,046

(838,989)


(2,811,186)
(630,760)
521,046
(2,920,900)

Page 36

 
BROADWICK GROUP LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

29.
 

Business combinations

On 14 June 2022 Broadwick Group Limited acquired 100% of Vibration Group Limited. 
At that time Vibration Group Limited owned 100% of Full Circle Performance and Production Limited and 100% of Rider Provider Limited. Therefore the Group also acquired these entities as indirect subsidiaries.
At that time Vibration Group Limited owned 50% of Skin London Limited. Therefore the Group also acquired this entity as an indirect joint venture.
At that time Vibration Group Limited also owned 49% of 3D Set Company Limited, 31% of Five Star Events Group Limited, and indirectly owned 31% of FSG Security Limited, 31% of FSC Security Limited, 31% of FSG Payroll Limited, 25% of FSC Projects Limited and 31% of Five Star Crew Co. Limited. Therefore the Group also acquired these entities as indirect associates.

Acquisition of Vibration Group Limited

Recognised amounts of identifiable assets acquired and liabilities assumed

Book value
Fair value
£
£

Fixed Assets

Tangible
111,866
111,866

Investments in joint ventures
76,500
76,500

Investments in associates
382,089
382,089

570,455
570,455

Current Assets

Debtors
1,732,474
1,732,474

Cash at bank and in hand
2,949,607
2,949,607

Total Assets
5,252,536
5,252,536

Creditors

Due within one year
(2,798,001)
(2,798,001)

Due after more than one year
(587,089)
(587,089)

Provisions for liabilities
(27,957)
(27,957)

Total Identifiable net assets
1,839,489
1,839,489


Goodwill
189,011

Total purchase consideration
2,028,500

Page 37

 
BROADWICK GROUP LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

29.Business combinations (continued)

Consideration

£


Cash
1,050,400

Deferred consideration
949,600

Directly attributable costs
28,500

Total purchase consideration
2,028,500

Cash outflow on acquisition

£


Purchase consideration settled in cash, as above
1,050,400

Directly attributable costs
28,500

1,078,900

Less: Cash and cash equivalents acquired
(3,310,071)

Net cash outflow/(inflow) on acquisition
(2,231,171)

The consolidated results of Vibration Group Limited since acquisition are as follows:

Current period since acquisition
£

Turnover
13,351,894

Profit for the period since acquisition
869,285


30.


Contingent liabilities

Various companies within the group are guarantors for a loan of £2,784,855 (2022 - £2,610,913) provided to Broadwick Group Limited. The loan is secured by a fixed and floating charge over the assets of the affected companies. 
On 12 October 2020 Broadwick Group Limited purchased the entire share capital of Venue Lab Ltd and agreed to pay certain monies for the acquisition over a period of time. £2,000,000 (2022 - £2,000,000) was outstanding at the reporting date. Various companies within the group have provided a guarantee for this liability by way of a fixed and floating charge over their assets.

Page 38

 
BROADWICK GROUP LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

31.


Pension commitments

The Group contributes to a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £307,404 (2022 - £138,587). £101,750 (2022 - £13,904) was payable to the fund at the reporting date.


32.


Commitments under operating leases

At 31 March 2023 the Group  had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group

Group
2023
2022
£
£

Not later than 1 year
3,965,621
3,016,465

Later than 1 year and not later than 5 years
12,659,820
12,786,348

Later than 5 years
8,638,447
4,313,447

25,263,888
20,116,260

In addition, the Group has contingent rent arrangements in place with some landlords which are
dependent on the level of profit generated at each site.


33.


Related party transactions

At the reporting date the Group owed £105 (2022 - £10,490) to a director.
During the year Hydra Events Limited, a subsidiary undertaking of the Group, received sales of £56,086 from Broadwick Entertainment Limited, a fellow subsidiary. At the reporting date Hydra Events Limited was owed £16,792 (2022 - £16,792) by and owed £238,486 (2022 - £211,600) to group undertakings.
During the year the Group received sales of £11,778,599 from an entity that became an associate during the year. At the reporting date the Group was owed £1,034,909 by the associate. Sales of £2,409,216 were also received in advance from the associate in respect of events scheduled after the reporting date, which are included in deferred income.
During the year the Group received a dividend of £25,000 (2022 - £nil) from an entity that became an associate during the year. Additional dividends of £147,606 were declared but unpaid as at 31 March 2023 so are included in debtors as amounts owed by the associate.
Additional amounts of £7,082 (2022 - £nil) were owed from other associates of the Group and amounts of £18,031 (2022 - £nil) were owed to other associates of the Group.
The Group has taken advantage of the exemption allowed under section 33.1A of FRS 102 not to disclose transactions between wholly owned members of the group.
Key management personnel
During the period, salaries paid to key management personel amounted to £772,502 (2022 - £254,074). 

Page 39

 
BROADWICK GROUP LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

34.


Post balance sheet events

In September 2023 the group has relocated to our new headquarters in Canary Wharf. This strategic move establishes a permanent home for our core business operations and serves as a centralised meeting place for our wider site teams. 
Effective from May 2023, the group has successfully closed the first iteration of Printworks. The Group has entered into a 3-year lease at an Enfield property which has been rebranded to Drumsheds and launched in September 2023. Drumsheds has become our flagship live event space, reinforcing our commitment to providing exceptional event experiences.


35.


Controlling party

In the opinion of the directors the Group does not have a controlling party.


36.



Subsidiary undertakings



Direct subsidiary undertakings


The following were direct subsidiary undertakings of the company:

Name

Registered office

Principal activity

Class of shares

Holding

Broadwick Entertainment Limited
Same as parent
Hosting events
Ordinary
100%
Broadwick Venues Limited
Same as parent
Venue hire
Ordinary
100%
Venue Lab Limited
Same as parent
Venue hire
Ordinary
100%
BWL (Sugar Factory) Limited
30 Water Street, Canary Wharf, London, 
E14 5GX
Venue hire
Ordinary
100%
Spaces & Stories Limited
30 Water Street, Canary Wharf, London, 
E14 5GX
Marketing services and venue hire
Ordinar
100%
Vibration Group Limited
Same as parent
Production services for events
Ordinary
100%

The aggregate of the share capital and reserves as at 31 March 2023 and the profit or loss for the year ended on that date for the direct subsidiary undertakings were as follows:

Name
Aggregate of share capital and reserves
Profit/(Loss)
£
£

Broadwick Entertainment Limited
(683,500)
916,305

Broadwick Venues Limited
(1,443,681)
378,704

Venue Lab Limited
1,032,632
825,881

BWL (Sugar Factory) Limited
(1,061,559)
(1,061,659)

Spaces & Stories Limited
(338,153)
(338,253)

Vibration Group Limited
2,126,099
508,251

Page 40

 
BROADWICK GROUP LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

36.Subsidiary undertakings (continued)


Indirect subsidiary undertakings


The following were indirect subsidiary undertakings of the company:

Name

Registered office

Principal activity

Class of shares

Holding

Hydra Events Limited
Same as parent
Hosting and promoting events
Ordinary
80%
Silverworks Island Limited (Formerly Dockyards London Limited)
30 Water Street, Canary Wharf, London, 
E14 5GX
Venue hire
Ordinary
100%
BWG (Sunderland) Limited
30 Water Street, Canary Wharf, London, E14 5GX
Dormant
Ordinary
100%
Full Circle Performance Production Limited
Same as parent
Dormant
Ordinary
100%
Rider Provider Limited
Same as parent
Dormant
Ordinary
100%

The aggregate of the share capital and reserves as at 31 March 2023 and the profit or loss for the year ended on that date for the indirect subsidiary undertakings were as follows:

Name
Aggregate of share capital and reserves
Profit/(Loss)
£
£

Hydra Events Limited
(118,128)
26,458

Silverworks Island Limited (Formerly Dockyards London Limited)
144,778
144,777

BWG (Sunderland) Limited
100
-

Full Circle Performance Production Limited
(84,331)
-

Rider Provider Limited
577
-

Page 41

 
BROADWICK GROUP LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

36.Subsidiary undertakings (continued)


Associates


The following were associates of the Group. Kaboodle Solutions Limited is a direct associate of the parent undertaking and the other entities are indirect associates.


Name

Registered office

Holding

Kaboodle Solutions Limited
1.4 One Xpress 1 George Leigh Street, Manchester, M4 5DL
22%
3D Set Company Limited
1a Davyhulme Circle, Urmston, Manchester, M41 0ST
49%
Five Star Events Group Limited
Office 001 Mercury House Willoughton Drive, Gainsborough, Lincolnshire, DN21 1DY
31%
FSG Security Limited
Office 001 Mercury House Willoughton Drive, Gainsborough, Lincolnshire, DN21 1DY
31%
FSC Security Limited
Office 001 Mercury House Willoughton Drive, Gainsborough, Lincolnshire, DN21 1DY
31%
FSG Payroll Limited
Office 001 Mercury House Willoughton Drive, Gainsborough, Lincolnshire, DN21 1DY
31%
FSC Projects Limited
Office 001 Mercury House Willoughton Drive, Gainsborough, Lincolnshire, DN21 1DY
25%
Five Star Crew Co. Limited
Office 001 Mercury House Willoughton Drive, Gainsborough, Lincolnshire, DN21 1DY
31%


Joint venture


The following was an indirect joint venture of the Group:


Name

Registered office

Holding

Skin London Limited
Same as the Group
50%

 
Page 42