Company registration number SC130813 (Scotland)
FESTIVAL FRINGE TRADING LIMITED
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
FESTIVAL FRINGE TRADING LIMITED
COMPANY INFORMATION
Directors
Mr Bernard Higgins
Mrs Valerie Urquhart
(Appointed 8 January 2024)
Secretary
Ms Shona McCarthy
Company number
SC130813
Registered office
180 High Street
EDINBURGH
EH1 1QS
Accountants
Hollis Accounting Limited
3 Melville Crescent
Edinburgh
EH3 7HW
Business address
180 High Street
EDINBURGH
EH1 1QS
FESTIVAL FRINGE TRADING LIMITED
CONTENTS
Page
Directors' report
1
Accountants' report
2
Statement of income and retained earnings
3
Balance sheet
4
Notes to the financial statements
5 - 7
FESTIVAL FRINGE TRADING LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 1 -

The directors present their annual report and financial statements for the year ended 30 November 2023.

Principal activities

The principal activities of the company are the sale of merchandise relating to the Edinburgh Festival Fringe, managing income from sponsorship for the Edinburgh Festival Fringe Society Limited, and managing third party box office contracts for the Fringe Box Office.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr Bernard Higgins
Ms Fiona Davis
(Resigned 22 August 2023)
Ms Tari Lang
(Resigned 22 August 2023)
Mrs Valerie Urquhart
(Appointed 8 January 2024)
Small companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

On behalf of the board
Mrs Valerie Urquhart
Director
23 July 2024
FESTIVAL FRINGE TRADING LIMITED
REPORT TO THE DIRECTORS ON THE PREPARATION OF THE UNAUDITED STATUTORY ACCOUNTS OF FESTIVAL FRINGE TRADING LIMITED
- 2 -

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Festival Fringe Trading Limited for the year ended 30 November 2023 set out on pages 3 to 7 from the company’s accounting records and from information and explanations you have given us.

 

As a practising member firm of the ICAS we are subject to its ethical and other professional requirements which are detailed at https://icas.com/icas-framework-preparation-of-accounts.

This report is made solely to the board of directors of Festival Fringe Trading Limited, as a body, in accordance with the terms of our engagement letter dated 28 January 2015. Our work has been undertaken solely to prepare for your approval the financial statements of Festival Fringe Trading Limited and state those matters that we have agreed to state to the board of directors of Festival Fringe Trading Limited, as a body, in this report in accordance with the requirements of the ICAS as detailed at https://icas.com/icas-framework-preparation-of-accounts. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Festival Fringe Trading Limited and its board of directors as a body, for our work or for this report.

It is your duty to ensure that Festival Fringe Trading Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of Festival Fringe Trading Limited. You consider that Festival Fringe Trading Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the financial statements of Festival Fringe Trading Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

Hollis Accounting Limited
5 August 2024
Chartered Accountants
3 Melville Crescent
Edinburgh
EH3 7HW
FESTIVAL FRINGE TRADING LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 3 -
2023
2022
Notes
£
£
Turnover
684,564
928,650
Cost of sales
(531,529)
(678,926)
Gross profit
153,035
249,724
Administrative expenses
(28,678)
(35,497)
Profit before taxation
124,357
214,227
Tax on profit
-
0
-
0
Profit for the financial year
124,357
214,227
Retained earnings brought forward
43,600
78,795
Distributions to parent charity under gift aid
(124,357)
(249,422)
Retained earnings carried forward
43,600
43,600
FESTIVAL FRINGE TRADING LIMITED
BALANCE SHEET
AS AT
30 NOVEMBER 2023
30 November 2023
- 4 -
2023
2022
Notes
£
£
£
£
Current assets
Stocks
10,035
14,116
Debtors
4
173,315
313,865
Cash at bank and in hand
2,559
291,631
185,909
619,612
Creditors: amounts falling due within one year
5
(142,209)
(575,912)
Net current assets
43,700
43,700
Capital and reserves
Called up share capital
100
100
Profit and loss reserves
43,600
43,600
Total equity
43,700
43,700

For the financial year ended 30 November 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with the provisions of FRS102 Section 1A - Small entities.

The financial statements were approved by the board of directors and authorised for issue on 23 July 2024 and are signed on its behalf by:
Mrs Valerie Urquhart
Director
Company registration number SC130813 (Scotland)
FESTIVAL FRINGE TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 5 -
1
Accounting policies
Company information

Festival Fringe Trading Limited is a private company limited by shares incorporated in Scotland. The registered office is 180 High Street, EDINBURGH, EH1 1QS.

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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

1.2
Going concern

Festival Fringe Trading Limited (the Company) is reliant for future trading on the viability of its parent charity, Edinburgh Festival Fringe Society Limited (the Society). The financial statements of the Company and its parent charity have been prepared on a going concern basis. true

 

The Directors have considered the position of the company and of the parent charity. In relation to the Society, the Trustees have considered relevant information, including the annual and long-term budget, forecast future cash flows and the impact of subsequent events in making their assessment. The impact of the pandemic on the long-term recovery (of both the Fringe and the Fringe Society) has informed forecasting and revenue plans to ensure these are reasonable and achievable, including reduced dependency on festival revenue to cover the cost of service.

 

The underlying trading assumptions used in forecasting are inevitably judgemental and could be subject to significant variation. In making these assessments the key scenarios and assumptions include; careful and considered management of spend and growth, diversification of unrestricted income streams, and the focus on growing audiences across the festival in the context of a changing sector. The charity is working to secure additional commercial and donated income through recent investment, and while there remains uncertainty, there is adequate skilled resource in place to drive this work forward, with positive early results.

 

In the event that income growth plans do not materialise, the Society has mitigants it can put in place which include cost reduction and/or additional borrowing facilities which are in place if needed.

 

The Trustees have concluded that these circumstances give rise to some uncertainty. However, given the result of these assessments, including the measures that could be undertaken to mitigate the current adverse impacts and the current resources available, the Trustees are of the opinion that they can continue to adopt the going concern basis in preparing the annual report and accounts.

 

The financial statements do not include any adjustment that may arise in the event that the charitable company is unable to realise its assets and discharge its liabilities in the normal course of business.

1.3
Turnover

Turnover 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 and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

FESTIVAL FRINGE TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 6 -

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

1.4
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.5
Cash at bank and in hand

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.

1.6
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.

1.7

Distribution of profits

The Company has a policy of paying gift aid of an amount up to the taxable profits each year to Edinburgh Festival Fringe Society Limited, its ultimate parent undertaking. In line with ICAEW Technical Release ‘Tech16/14BL’, the company treats this donation as a distribution of reserves and it is paid either pre year end or within 9 months of the year end. Any donation made in this manner is capped to the level of distributable reserves available. The Board are responsible for formally agreeing the amount to be distributed each year.

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.

FESTIVAL FRINGE TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 7 -
3
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Total
-
0
-
0
4
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
173,315
295,156
Other debtors
-
0
18,709
173,315
313,865
5
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
133
282
Amounts owed to group undertakings
137,895
571,447
Other creditors
4,181
4,183
142,209
575,912
6
Related party transactions

The company is exempt from disclosing related party transactions with its parent undertaking due to consolidated accounts being prepared which are publically available.

7
Parent company

The ultimate controlling party is Edinburgh Festival Fringe Society Limited, a company limited by guarantee and registered in Scotland. Edinburgh Festival Fringe Society Limited is a registered charity.

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