Company registration number 00901003 (England and Wales)
PIER AMUSEMENTS FELIXSTOWE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
PIER AMUSEMENTS FELIXSTOWE LIMITED
COMPANY INFORMATION
Directors
Mr J S G Threadwell
Mr D J Threadwell
Ms G L Threadwell
Secretary
Ms D J Woodmansee
Company number
00901003
Registered office
Regal House
Manwick Road
Felixstowe
IP11 2DQ
Auditor
Ensors Accountants LLP
Connexions
159 Princes Street
Ipswich
IP1 1QJ
Business address
Regal House
Manwick Road
Felixstowe
IP11 2DQ
PIER AMUSEMENTS FELIXSTOWE LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Statement of financial position
8
Statement of changes in equity
9
Notes to the financial statements
10 - 21
PIER AMUSEMENTS FELIXSTOWE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -
The directors present their report together with the audited financial statements for the year ended 31 March 2024.
Fair review of the business and future developments
The directors are pleased to report another good year of results. The business was able to trade within the year without encumbrance.
The outlook is good with the first quarterly trading results of 24/25 showing a small increase in turnover.
Challenges still remain though through recruitment, rising energy costs and cost of living impacting on people’s disposable income.
Currently the directors have no future development plans in mind, other than to consolidate and improve existing operations.
Principal risks and uncertainties
The directors assess the principal risks and uncertainties to be as follows:
Key performance indicators
The directors continue to monitor the key performance indicators for the business which include:
Monitoring EBITDA on a monthly and year-on-year basis and growth in respect of overall income on a weekly basis of individual businesses within the company, for example, theatre, bars, amusements, restaurants, etc.
On behalf of the board
Mr J S G Threadwell
Director
25 July 2024
PIER AMUSEMENTS FELIXSTOWE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
The directors present their annual report and financial statements for the year ended 31 March 2024.
Principal activities
The principal activity of the company continued to be that of operators of amusements, alongside a licensed bar and restaurant.
Results and dividends
The results for the year are set out on page 7.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr J S G Threadwell
Mr D J Threadwell
Ms G L Threadwell
Auditor
Ensors Accountants LLP were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
Mr J S G Threadwell
Director
25 July 2024
PIER AMUSEMENTS FELIXSTOWE LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
The directors are responsible for preparing the annual report and the 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The 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 enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
PIER AMUSEMENTS FELIXSTOWE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF PIER AMUSEMENTS FELIXSTOWE LIMITED
- 4 -
Opinion
We have audited the financial statements of Pier Amusements Felixstowe Limited (the 'company') for the year ended 31 March 2024 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 March 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Emphasis of matter - property valuations
We draw your attention to the revaluation of property, plant and equipment, in the comparative period, in the Statement of Comprehensive Income which is in regards to the revaluation of the freehold. The directors have advised that less certainty, and a higher degree of caution, should be attached to the fact that this uplift is all included in the year ended 31 March 2023 and should not have been spread over previous periods.
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 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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
PIER AMUSEMENTS FELIXSTOWE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF PIER AMUSEMENTS FELIXSTOWE LIMITED (CONTINUED)
- 5 -
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the 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, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, 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 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 company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
In planning our audit, we identify and assess the risk of material misstatement within the financial statements, whether due to fraud or error. In assessing the risks, consideration is given to the control environment (including directors' own processes for identification and risk assessment) as well as the nature of the entity, the industry in which it operates and the underlying performance. Consideration is also given to the attitudes and incentives of management to commit fraud, with specific procedures planned and performed to respond to the risk of inappropriate management override of controls.
We also obtained an understanding of the applicable laws and regulations to which the company must adhere, through discussions with the directors, as well as commercial knowledge of the sector and statutory legislation, in order to determine the key laws and regulations applicable to the company.
PIER AMUSEMENTS FELIXSTOWE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF PIER AMUSEMENTS FELIXSTOWE LIMITED (CONTINUED)
- 6 -
After assessing the risk of fraud, we performed audit procedures to gain assurance regarding fraud and management override as follows:
- Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the rationale behind significant transactions outside the normal course of business
- Assessment of key accounting estimates within the financial statements in order to assess their reasonableness to determine whether there is any bias in the estimates
- Enquiring of directors as to whether they are aware of any alleged, suspected or actual fraud during the year.
We also performed procedures to satisfy ourselves regarding compliance with applicable laws and regulations, including:
- Enquiry of directors and the entity’s solicitors around actual and potential litigation and claims
- Reviewing legal expense accounts for any indicators of litigations.
All audit team members were made aware of the applicable laws and regulations, as well as potential fraud risks during the planning stage of the audit and this was discussed at the audit team planning meeting. It was therefore determined that team members all had the relevant awareness and competence to identify any instances of non-compliance or fraud.
There are, however, inherent limitations to our above audit procedures. Auditing standards only require us to enquire of the directors and management regarding non-compliance with laws and regulations, as well as review regulatory and legal correspondence (if there is any). It is therefore possible that instances of non-compliance could be missed, particularly where the the law in itself is far removed from any financial transactions.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company's member in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's member those matters we are required to state to the member in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's member, for our audit work, for this report, or for the opinions we have formed.
Barry Gostling
Senior Statutory Auditor
For and on behalf of Ensors Accountants LLP
29 July 2024
Chartered Accountants
Statutory Auditor
Connexions
159 Princes Street
Ipswich
IP1 1QJ
PIER AMUSEMENTS FELIXSTOWE LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 7 -
2024
2023
Notes
£
£
Revenue
3
4,430,404
4,225,705
Cost of sales
(1,383,264)
(1,366,066)
Gross profit
3,047,140
2,859,639
Administrative expenses
(2,001,005)
(1,794,006)
Other operating income
24,000
34,894
Operating profit
4
1,070,135
1,100,527
Finance costs
7
(66,544)
(119,470)
Profit before taxation
1,003,591
981,057
Tax on profit
8
(250,898)
(185,149)
Profit for the financial year
752,693
795,908
Other comprehensive income
Revaluation of property, plant and equipment
1,836,270
Total comprehensive income for the year
752,693
2,632,178
The income statement has been prepared on the basis that all operations are continuing operations.
PIER AMUSEMENTS FELIXSTOWE LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2024
31 March 2024
- 8 -
2024
2023
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
9
9,146,359
9,113,920
Current assets
Inventories
10
95,737
80,888
Trade and other receivables
11
49,035
38,111
Cash and cash equivalents
303,920
288,068
448,692
407,067
Current liabilities
12
(2,702,234)
(3,067,384)
Net current liabilities
(2,253,542)
(2,660,317)
Total assets less current liabilities
6,892,817
6,453,603
Non-current liabilities
13
(640,000)
(1,000,004)
Provisions for liabilities
Deferred tax liability
15
466,711
420,186
(466,711)
(420,186)
Net assets
5,786,106
5,033,413
Equity
Called up share capital
17
1,000
1,000
Revaluation reserve
2,112,610
2,112,610
Retained earnings
3,672,496
2,919,803
Total equity
5,786,106
5,033,413
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 25 July 2024 and are signed on its behalf by:
Mr J S G Threadwell
Director
Company registration number 00901003 (England and Wales)
PIER AMUSEMENTS FELIXSTOWE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 9 -
Share capital
Revaluation reserve
Retained earnings
Total
£
£
£
£
Balance at 1 April 2022
1,000
276,340
2,123,895
2,401,235
Year ended 31 March 2023:
Profit
-
-
795,908
795,908
Other comprehensive income:
Revaluation of property, plant and equipment
-
1,836,270
-
1,836,270
Total comprehensive income
-
1,836,270
795,908
2,632,178
Balance at 31 March 2023
1,000
2,112,610
2,919,803
5,033,413
Year ended 31 March 2024:
Profit and total comprehensive income
-
-
752,693
752,693
Balance at 31 March 2024
1,000
2,112,610
3,672,496
5,786,106
PIER AMUSEMENTS FELIXSTOWE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
1
Accounting policies
Company information
Pier Amusements Felixstowe Limited is a private company limited by shares incorporated in England and Wales. The registered office is Regal House, Manwick Road, Felixstowe, IP11 2DQ.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties at fair value. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: The disclosure requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b), 11.48(c), 12.26, 12.27, 12.29(a), 12.29(b), and 12.29A;
Section 26 ‘Share based Payment’: Share based payment arrangements required under FRS 102 paragraphs 26.18(b), 26.19 to 26.21 and 26.23;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Family Amusements Limited. These consolidated financial statements are available from its registered office, Regal House, Manwick Road, Felixstowe, Suffolk, IP11 2DQ.
1.2
Going concern
The company’s business activities together with the factors likely to affect its future development, performance and position are set out in the strategic report, together with details of the principal risks and uncertainties.true
In the current period, the Company has made a significant profit.
The Directors consider that they have sufficient control over costs to ensure that adequate savings can be made to meet all financial liabilities, and trade within their cash and borrowing limits. In addition to this, the Directors consider that should the Company or wider Group be in a position whereby it breaches it’s covenants, or require additional funding from the bank, that the bank would be supportive through offering a covenant waiver, and/or providing additional funding.
Therefore, at the time of approving the financial statements, the Directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. As a result, the Directors continue to adopt the going concern basis of accounting in preparing the financial statements.
PIER AMUSEMENTS FELIXSTOWE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 11 -
1.3
Revenue
Revenue is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT. Turnover on machines on which MGD (Machine Gaming Duty) tax is payable is recognised gross with a corresponding cost recognised in relation to the MGD tax payable. Income from card transactions and cash is recognised on the day of the transaction.
Rental income is recognised on an accruals basis in the period to which it relates.
1.4
Property, plant and equipment
Tangible fixed assets are stated at cost or valuation less depreciation.
Depreciation is recognised on all tangible assets other than freehold property, as the directors believe that as the freehold properties are maintained to an exceptional standard, any impairment is immaterial and therefore no depreciation is charged. Depreciation rates are calculated to write off the cost, less any estimated residual value, over the assets' useful economic lives, as follows:
Amusement machines
15% reducing balance
Rides, furniture, fittings and equipment
10% - 15% reducing balance
Motor vehicles
25% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
Freehold buildings are held at fair value. The fair value is calculated using the stabilised earnings (profits) valuation methodology. Any changes in fair value are recognised as other comprehensive income.
The crown rights to the land the pier is situated on are granted in perpetuity, and therefore not depreciated.
1.5
Impairment of non-current assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
PIER AMUSEMENTS FELIXSTOWE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 12 -
1.6
Inventories
Inventories are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition.
Inventories held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of inventories over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.7
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
PIER AMUSEMENTS FELIXSTOWE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 13 -
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including trade and other payables, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
PIER AMUSEMENTS FELIXSTOWE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 14 -
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or non-current assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
PIER AMUSEMENTS FELIXSTOWE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 15 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Treatment of Leases
Determine whether leases entered into by the company either as a lessor or lessee are operating of 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.
Impairment of assets
Determine whether there are indicators of impairment of the company's tangible assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset and where it is a component of a larger cash-generating unit, the viability and expected future performance of that unit.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Tangible Fixed Assets
Tangible fixed assets are depreciated over their useful economic 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, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.
Valuations
The valuation of freehold buildings is determined by directors annually. Directors base their valuation on their knowledge of the business and the geographical areas they operate in and the fair value is calculated using the stabilised earnings (profits) valuation methodology. External valuations are obtained with sufficient regularity to ensure that the carrying value does not differ materially from that which would be determined using fair value.
3
Revenue
2024
2023
£
£
Revenue analysed by class of business
Leisure and catering
4,430,404
4,225,705
PIER AMUSEMENTS FELIXSTOWE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
3
Revenue
(Continued)
- 16 -
2024
2023
£
£
Revenue analysed by geographical market
United Kingdom
4,430,404
4,225,705
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
9,400
8,646
Depreciation of owned property, plant and equipment
156,784
169,658
Depreciation of property, plant and equipment held under finance leases
-
12,512
Loss on disposal of property, plant and equipment
28,614
33,506
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Administration and other
62
68
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
1,231,102
1,134,857
Social security costs
85,029
87,616
Pension costs
18,729
17,262
1,334,860
1,239,735
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
65,835
52,559
Company pension contributions to defined contribution schemes
225
122
66,060
52,681
PIER AMUSEMENTS FELIXSTOWE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 17 -
7
Finance costs
2024
2023
£
£
Interest on bank overdrafts and loans
66,544
112,009
Interest on finance leases and hire purchase contracts
-
7,461
66,544
119,470
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
204,373
150,028
Deferred tax
Origination and reversal of timing differences
46,525
35,121
Total tax charge
250,898
185,149
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
1,003,591
981,057
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
250,898
186,401
Tax effect of expenses that are not deductible in determining taxable profit
127
Gains not taxable
55,861
Change in unrecognised deferred tax assets
(73,501)
Effect of change in corporation tax rate
26,046
Fixed asset timing differences
(9,785)
Taxation charge for the year
250,898
185,149
PIER AMUSEMENTS FELIXSTOWE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 18 -
9
Property, plant and equipment
Freehold land and buildings
Amusement machines
Rides, furniture, fittings and equipment
Motor vehicles
Total
£
£
£
£
£
Cost or valuation
At 1 April 2023
8,200,000
1,691,927
104,203
31,032
10,027,162
Additions
295,983
2,948
298,931
Disposals
(167,806)
(167,806)
At 31 March 2024
8,200,000
1,820,104
107,151
31,032
10,158,287
Depreciation and impairment
At 1 April 2023
833,815
52,523
26,904
913,242
Depreciation charged in the year
147,776
7,973
1,035
156,784
Eliminated in respect of disposals
(58,098)
(58,098)
At 31 March 2024
923,493
60,496
27,939
1,011,928
Carrying amount
At 31 March 2024
8,200,000
896,611
46,655
3,093
9,146,359
At 31 March 2023
8,200,000
858,112
51,680
4,128
9,113,920
The freehold land and buildings were revalued in March 2023 by the directors to open market value. In performing the valuation the directors consulted with an external valuer on the assumptions on which to base their valuation.
No acquisition costs or expected selling costs have been included in the revalued amounts. The value was assessed at £8,200,000, including plant, machinery, fixtures, fittings and equipment.
The directors have reviewed these valuations and consider them to accurately reflect the open market value at the Year End.
The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:
Freehold land and buildings
2024
2023
£
£
Cost
6,040,761
6,040,761
Accumulated depreciation
(171,955)
(146,955)
Carrying value
5,868,806
5,893,806
PIER AMUSEMENTS FELIXSTOWE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 19 -
10
Inventories
2024
2023
£
£
Finished goods and goods for resale
95,737
80,888
11
Trade and other receivables
2024
2023
Amounts falling due within one year:
£
£
Trade receivables
49,035
38,111
12
Current liabilities
2024
2023
Notes
£
£
Bank loans
14
160,000
499,999
Trade payables
350,166
278,876
Amounts owed to group undertakings
1,840,677
1,998,976
Corporation tax
204,636
150,314
Other taxation and social security
67,455
72,697
Accruals and deferred income
79,300
66,522
2,702,234
3,067,384
13
Non-current liabilities
2024
2023
Notes
£
£
Bank loans and overdrafts
14
640,000
1,000,004
14
Borrowings
2024
2023
£
£
Bank loans
800,000
1,500,003
Payable within one year
160,000
499,999
Payable after one year
640,000
1,000,004
PIER AMUSEMENTS FELIXSTOWE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
14
Borrowings
(Continued)
- 20 -
The total bank loan and overdraft of £800,000 (2023: £1,500,003) are secured on the assets of Pier Amusements Felixstowe Ltd as follows:
A first legal charge over the entity's property and its associated assets, a debenture by the entity, and by an unlimited cross guarantee by Pier Amusements Felixstowe Ltd and Family Amusements Ltd. The cross guarantee is supported by a debenture by Family Amusements Ltd and a first legal charge over properties owned by Family Amusements Ltd.
Repayments of £160,000 per year are payable with the final repayment due in 2029. Additional repayments are made at the discretion of the company. Interest is charged at 2.3% per annum over the bank's base rate as published from time to time.
15
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
466,711
420,186
2024
Movements in the year:
£
Liability at 1 April 2023
420,186
Charge to profit or loss
46,525
Liability at 31 March 2024
466,711
The deferred tax liability set out above relates to accelerated capital allowances. No significant reversal of the deferred tax liabilities are expected in the next reporting period.
Factors that may affect future tax charges
On the 1 April 2023 the main rate of corporation tax increased from 19% to 25%. Based on anticipated trading activity of the Company the rate used to determine deferred tax liabilities is 25%.
16
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
18,729
17,262
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
PIER AMUSEMENTS FELIXSTOWE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
17
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1,000
1,000
1,000
1,000
18
Financial commitments, guarantees and contingent liabilities
An unlimited cross guarantee has been given to the Group's bankers by Family Amusements Limited and Pier Amusements Felixstowe Limited, to secure the bank borrowings of each entity.
This includes:
a) A first legal charge over the property and its associated assets
b) A debenture by the company
c) An unlimited cross guarantee by the company and Family Amusements Limited supported by:
A debenture by Family Amusements Limited
First legal charges over the properties held by Family Amusements Limited, and their respective associated assets.
19
Ultimate controlling party
The company is controlled by Family Amusements Limited, a company incorporated in the United Kingdom.
Family Amusements Limited is also the parent undertaking of the largest and smallest group for which consolidated accounts are prepared. Consolidated accounts are available from Companies House, Cardiff, CF14 3UZ. The registered office of Family Amusements Limited in Regal House, Manwick Road, Felixstowe, Suffolk, IP11 2DQ.
J S G Threadwell, director, is regarded by the directors as being the ultimate controlling party.
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