The directors present the strategic report for the year ended 27 July 2023.
Light Cinemas Group Limited, formerly The Light Cinemas (Holdings) Limited is the holding company for the Light Cinemas Group, a UK based cinema business. |
The 2023 financial year demonstrated the resilience of the business and continued to validate the decision to pursue a diversified entertainment model; cinema, leisure and food.
The recovery in the UK cinema market has been stymied by a lack of locally produced content, Studios developing their own streaming services, the Hollywood writers’ strike and content having been delayed by Covid. Overall, like for like box office revenues were down 18% versus 2022.
Despite this, the business was actually able to increase its gross profit by £1.0m to £23.2m due to the opening of our latest site at Banbury, which helped increase market share to 1.71%, and the positive mix effect of greater leisure revenues.
However. there were a number of factors which adversely impacted profitability in the year:
The ending of Government support on rates.
A spike in energy prices due to international instability.
The gradual phasing out of covid related rental concessions.
Despite these challenges, the Light achieved an EBITDA of £1.0m. The Light also had sufficient capital to continue to fund its expansion plans and successfully opened a new entertainment site in Redhill in June 2023. This site combined with a number of other commercial opportunities that have been identified are expected to increase EBITDA to £2.3m in FY24. In addition, the business expects to complete a refinancing of its loan facilities with Santander to provide sufficient liquidity through to 2027.
The Light is committed to its strategic plan to focus on a wider entertainment model. The company has demonstrated an ability to attract a strong pipeline of opportunities which will enable it to maintain and expand its growth. It is expected that the business will seek to raise investment in the near future to support this accelerated growth plan and recapitalise the balance sheet.
| 2023 | 2022 | Change |
|
Screens | 99 | 93 | +6 |
|
Revenue | £33.1m | £32.9m | +£0.2m |
|
Gross Profit | £23.2m | £22.2m | +£1m |
|
UK Market Share | 1.71% | 1.68% | +0.03 % |
|
There are a number of key risks to the business:
The ongoing shift towards online content consumption and streaming platforms poses a risk to traditional cinema. The unpredictability of film release schedules and the emergence of alternative distribution channels may impact the availability of blockbuster titles for theatrical release. Our strategies to mitigate this risk include diversifying content offerings, strengthening partnerships with distributors, and exploring alternative sources of content, such as event cinema and independent films.
Rising inflationary pressures, including higher energy prices and increasing operating expenses, present challenges to maintaining profit margins. To mitigate this risk we are implementing cost-saving measures, enhancing operational efficiency, and renegotiating supplier contracts to minimise the impact of cost escalations on profitability.
Intensifying competition within the cinema market, exacerbated by streaming services and alternative entertainment options, may lead to downward pressure on ticket prices and concession sales. To mitigate this risk, we continue to focus on differentiating our product offering through enhanced customer experiences, premium amenities, and value-added services to justify premium pricing and maintain competitive positioning in the market.
A reduction in disposal income due to higher taxation and the rising cost of living. To address this risk, we continue to maintain affordable entry-level prices, delivering value for money, and sustaining high service standards to retain customer loyalty and mitigate the impact of economic fluctuations on revenue.
The directors are required to make a statement which describes how they have behaved with regard to the matters set out in Section 172(1) of the Companies Act 2006, namely:
(a) the likely consequences of any decision in the long-term;
(b) the interests of the company’s employees;
(c) the need to foster the company’s business relationships with suppliers, customers, and others;
(d) the impact of the company’s operations on the community and the environment;
(e) the desirability of the company maintaining a reputation for high standard of business conduct;
(f) the need to act fairly between members of the company.
The directors insist on high operating standards and fiscal discipline and routinely engage with management and employees of the company to understand the underlying issues within the organisation. Additionally, the board looks outside the organisation at macro factors affecting the business. The directors consider all known facts when developing strategic decisions and long-term plans, taking into account their likely consequences for the group.
The directors and management are committed to the interests and well-being of its employees. The group is committed to the highest levels of integrity and transparency where possible with employees and other stakeholders. Safety initiatives, consistent training, benefit packages and open dialogue between all employees are just a few of the ways the group ensures its employees improve skill sets and work hand-in-hand with management to improve all aspects of the group’s performance.
Other stakeholders include, customers, suppliers, distributors, debt holders, industry associations, government and regulatory agencies, the BFI, local communities and shareholders.
The board, both individually and together, consider that they have acted in the way they consider would be most likely to promote the success of the group as a whole. In order to do this, there is a process of dialogue with stakeholders to understand the issues that they might have. The group believes that any supplier/customer relationship must be mutually beneficial and the group is known for its commitment to details to its customers. Communications with debt holders and shareholders occur on an ongoing basis and as questions arise.
The directors are committed to positive involvement in the local communities where we operate. We offer dementia screenings and work nationally to increase awareness and build audience with charities such as Dimensions and Alzheimer’s Society and each site works on a more regional level with local outreach. The Light is also represented on the disability working group for the UK Cinema Association. We offer regular Silver Screen and Baby Friendly showings and run regular children’s activities in-cinema and our Family Special screenings offer great value prices to really engage with families during the weekends and school holidays. As well as our programming strategy aiming to ensure inclusion, we also offer safe spaces to all members of the community throughout our buildings and leisure offer. This is reinforced through staff recruitment and training, as well as through our communications strategy.
Integrity is a key tenet for The Light’s directors and employees. The Light believes that any partnership must benefit both parties. We strive to provide our stakeholders with timely and informative responses and are always striving to meet or exceed customers’ needs.
The board recognises its responsibilities under section 172 as outlined above and has acted at all times in a way consistent with promoting the success of the company with regard to all stakeholders.
On behalf of the board
The directors present their annual report and financial statements for the year ended 27 July 2023.
The results for the year are set out on page 11.
No ordinary dividends were paid. The directors do not recommend payment of a further dividend.
No preference dividends were paid. The directors do not recommend payment of a final dividend.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
The principal financial risks affecting the group have been discussed in the strategic report.
The group's policy is to consult and discuss with employees, through staff councils and at meetings, matters likely to affect employees' interests.
Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.
UHY Hacker Young LLP were appointed as auditor to the group 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.
The group has followed the 2019 HM Government Environmental Reporting Guidelines. The group has also used the GHG Reporting Protocol – Corporate Standard and have used the 2020 UK Government’s Conversion Factors for Company Reporting
The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per visitor.
The Group recognises that its operation has an environmental impact and is committed to monitoring and reducing its emissions. During the year the Group used 4.9 million kWh of electricity and 0.4 million kWh of gas. This equates to 1,105 tCO2e using the government published conversion factors for the respective period and results in an energy intensity ratio over the period of 0.4 tCO2e per visitor. The prior year consumption was 5.0 million kWh of electricity and 0.5 million kWh of gas, equating to 1,063 tCO2e with an energy intensity ratio of 0.4 per visitor. The Group continues to focus on energy reduction initiatives, particularly with regards to automated air conditioning, temperature and ventilation control based on occupancy levels.
We have audited the financial statements of Light Cinemas Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 27 July 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows 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).
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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 - Bank loans due within one year
We draw your attention to note 19 to the financial statements which outlines the negotiations for the refinancing of the bank loans which are due within one year. Our opinion is not modified in this respect.
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 and 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 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.
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.
In the light of the knowledge and understanding of the group and the parent company and their 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 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.
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 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 parent company or to cease operations, or have no realistic alternative but to do so.
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.
Based on our understanding of the group and the company and the industry in which they operate; we identified that the principal risks to the group related to non-compliance with laws and regulations in respect of health and safety, employment law and similar regulations. We considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of the controls).
Audit procedures performed included:
- Enquiries were made of management and those charged with governance around any actual or potential litigation and claims.
- Enquiries were made of management relating to compliance with significant laws and regulations.
- Reviewing minutes of meetings of those charged with governance.
- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
- Auditing the risk of management override of controls, through testing journal entries and other adjustments to ensure their appropriateness and investigate any journals appearing outside the normal course of the business.
- We made enquiries of management in relation to the challenges presented by the current economic climate and its potential direct and/or indirect impact on the business.
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
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.
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 2006. Our 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 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 members as a body, for our audit work, for this report, or for the opinions we have formed.
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £3,268,519 (2022 - £2,088,873 loss).
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
Light Cinemas Group Limited, formerly The Light Cinemas (Holdings) Limited is a private company limited by shares incorporated in England and Wales. The registered office is 6 Kingley Street, London, England, W1B 5PF.
The group consists of Light Cinemas Group Limited and all of its subsidiaries.
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 certain financial instruments at fair value. The principal accounting policies adopted are set out below.
The 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 for parent company information presented within the consolidated financial statements:
Section 4 ‘Statement of Financial Position’: Reconciliation of the opening and closing number of shares;
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’: Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The consolidated financial statements incorporate those of Light Cinemas Group Limited and all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits).
All financial statements are made up to 27 July 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
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. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
Turnover represents amounts receivable for goods and services and is stated net of discounts and sales related tax.
Turnover is recognised when the goods and services are consumed by the customer. Amounts received for gift vouchers are recognised when redeemed by the customer. Amounts received for annual memberships are recognised straight line over the period of membership.
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 recognised in the profit and loss account.
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
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.
The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and 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, which include debtors 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, 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.
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 group after deducting all of its liabilities.
Basic financial liabilities, including creditors, 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.
Trade creditors 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 creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Equity instruments issued by the group 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 group.
The tax expense represents the sum of the tax currently payable.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account 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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
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 profit and loss account, 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 if, and only if, there is 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.
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 fixed assets.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in the profit and loss account for the period.
On consolidation the results of overseas operations are translated into sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rates are recognised in other comprehensive income.
Finance costs
Finance costs are charged to the statement of comprehensive income 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. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
Judgements have been exercised in relation to the intangible assets held by the group. Management have reviewed these assets for indicators of impairment and in the current year, intangible and tangible assets are not considered to have a carrying value in excess of their recoverable amount.
In reaching this conclusion, management have considered appropriate growth rates, the maturity profile of sites, a discount rate based on the current cost of capital and the economic useful life of assets. These have been validated against market conditions and industry benchmarks and the results have been subjected to sensitivity testing and analytical review.
The average monthly number of persons (including directors) employed by the group during the year was:
Their aggregate remuneration comprised:
Changes to the future UK corporation tax rates were substantively enacted as part of Budget 2021 (on 3 March 2021). This included an increase to the main rate to increase the rate from 19% to 25% from 1 April 2023. The company will be taxed at a rate of 25% unless its profits are sufficiently low enough to qualify for a lower rate of tax, the lowest rate being 19%.
The actual (credit)/charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:
Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:
The impairment losses in respect of financial assets are recognised in other gains and losses in the profit and loss account.
More information on impairment movements in the year is given in note 10.
Details of the company's subsidiaries at 27 July 2023 are as follows:
Registered office addresses (all UK unless otherwise indicated):
The Light Cinemas Limited, The light Cinemas (New Brighton) Limited, The Light Cinemas (Cambridge) Limited, The Light Cinemas (Global) Limited and The Light Venues Limited are exempt from the requirements of the Companies Act 2006 relating to the audit of individual accounts. Light Cinemas Group Limited have issued a parental guarantee to these entities in the year which permits them to take the exemption under s479a of the Act. The Light Cinemas Property Holdings Limited is a dormant company.
Bank loans due within one year are currently accruing interest at 3.5% + Bank of England base rate.
Loan notes due after one year are currently accruing interest at rates up to 16%.
The bank loans are secured via a legal charge, a floating charge and a debenture against the assets of the group. There is also a cross-company guarantee persisting with other group entities.
Capital contributions are received from landlords to reimburse the construction costs of the venues in order to make them ready to let and are amortised in line with the useful life of the assets they are financing.
The company is in the process of negotiating the refinancing of its existing bank loan facilities provided by Santander. These are currently included in amounts due within one year. The directors anticipate that this refinancing will be successfully completed by October 2024.
Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
Ordinary and B ordinary shares have attached to them full voting, dividend and capital distribution rights; they do not confer any rights of redemption.
A ordinary and A1 ordinary shares have attached to them full capital distribution rights; they do not confer any rights of redemption. Every A ordinary share has 5063 votes attached to it, save where an Event of Default has occured or is subsisting, when it shall have only 1 vote attached. A ordinary shareholders are entitled to a multiple of 5063 times the amount of dividend per share declared.
Preference shares are entitled to a preferencee dividend equal to 40% of the post-tax profits in each accounting period following the fifth anniversary of the date of adoption of the articles of association. They have attached to them full voting and capital distribution rights, they do not confer any rights of redemption.
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Since the year end we opened our 13th UK venue in Redhill. There are no other post balance sheet events.