Company registration number 08822170 (England and Wales)
LIGHT CINEMAS GROUP LIMITED
FORMERLY THE LIGHT CINEMAS (HOLDINGS) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 27 JULY 2023
LIGHT CINEMAS GROUP LIMITED
FORMERLY THE LIGHT CINEMAS (HOLDINGS) LIMITED
COMPANY INFORMATION
Directors
Mr Keith Pullinger
Mr John Sullivan
Mr Simon Burke
Mr James Morris
Mr Scott Barham
Company number
08822170
Registered office
6 Kingly Street
London
England
W1B 5PF
Auditor
UHY Hacker Young
Quadrant House
4 Thomas More Square
London
E1W 1YW
LIGHT CINEMAS GROUP LIMITED
FORMERLY THE LIGHT CINEMAS (HOLDINGS) LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 6
Independent auditor's report
7 - 10
Group statement of comprehensive income
11
Group balance sheet
12
Company balance sheet
13 - 14
Group statement of changes in equity
15
Company statement of changes in equity
16
Group statement of cash flows
17
Notes to the financial statements
18 - 38
LIGHT CINEMAS GROUP LIMITED
FORMERLY THE LIGHT CINEMAS (HOLDINGS) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 27 JULY 2023
- 1 -

The directors present the strategic report for the year ended 27 July 2023.

Principal activities and review of the business

Light Cinemas Group Limited, formerly The Light Cinemas (Holdings) Limited is the holding company for the Light Cinemas Group, a UK based cinema business.

Group Results

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:

 

 

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.

 

Development of the Group's business and product

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.

 

 

Group Key Performance Indicators

 

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 %

 

 

LIGHT CINEMAS GROUP LIMITED
FORMERLY THE LIGHT CINEMAS (HOLDINGS) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 27 JULY 2023
- 2 -
Principal risks and uncertainties

There are a number of key risks to the business:

 

 

 

Directors' statement of compliance with duty to promote the success of the group

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:

Duty to promote the success of the company

(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.

LIGHT CINEMAS GROUP LIMITED
FORMERLY THE LIGHT CINEMAS (HOLDINGS) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 27 JULY 2023
- 3 -
Section 172 statement

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

Mr James Morris
Director
13 August 2024
LIGHT CINEMAS GROUP LIMITED
FORMERLY THE LIGHT CINEMAS (HOLDINGS) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 27 JULY 2023
- 4 -

The directors present their annual report and financial statements for the year ended 27 July 2023.

Results and dividends

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.

Directors

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

Mr Keith Pullinger
Mr John Sullivan
Mr Simon Burke
Mr James Morris
Mr Scott Barham
Mr Tom Palmer
(Resigned 29 July 2022)
Mr Adam Hughes
(Resigned 24 November 2023)
Financial instruments
Principal financial risks

The principal financial risks affecting the group have been discussed in the strategic report.

Disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the group continues and that the appropriate training is arranged. It is the policy of the group that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Employee involvement

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.

 

Auditor

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.

 

 

 

LIGHT CINEMAS GROUP LIMITED
FORMERLY THE LIGHT CINEMAS (HOLDINGS) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 27 JULY 2023
- 5 -
Energy and carbon report
2023
2022
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
- Gas combustion
414,438
503,476
- Electricity purchased
4,925,938
4,997,374
5,340,376
5,500,850
2023
2022
Emissions of CO2 equivalent
metric tonnes
metric tonnes
Scope 1 - direct emissions
- Gas combustion
85.80
97.40
- Fuel consumed for owned transport
-
-
85.80
97.40
Scope 2 - indirect emissions
- Electricity purchased
1,020.20
966.60
Scope 3 - other indirect emissions
- Fuel consumed for transport not owned by the group
-
-
Total gross emissions
1,106.00
1,064.00
Intensity ratio
CO2e per visitor
0.42
0.4
Quantification and reporting methodology

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

Intensity measurement

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per visitor.

Measures taken to improve energy efficiency

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.

LIGHT CINEMAS GROUP LIMITED
FORMERLY THE LIGHT CINEMAS (HOLDINGS) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 27 JULY 2023
- 6 -
Statement of directors' responsibilities

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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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 auditor of the company 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 auditor of the company is aware of that information.

On behalf of the board
Mr James Morris
Director
13 August 2024
FORMERLY THE LIGHT CINEMAS (HOLDINGS) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LIGHT CINEMAS GROUP LIMITED
- 7 -
Opinion

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).

In our opinion the financial statements:

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.

FORMERLY THE LIGHT CINEMAS (HOLDINGS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LIGHT CINEMAS GROUP LIMITED
- 8 -

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:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and 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:

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 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.

FORMERLY THE LIGHT CINEMAS (HOLDINGS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LIGHT CINEMAS GROUP LIMITED
- 9 -
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.

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.

FORMERLY THE LIGHT CINEMAS (HOLDINGS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LIGHT CINEMAS GROUP LIMITED
- 10 -
Marc Waterman (Senior Statutory Auditor)
For and on behalf of UHY Hacker Young
13 August 2024
Chartered Accountants
Statutory Auditor
LIGHT CINEMAS GROUP LIMITED
FORMERLY THE LIGHT CINEMAS (HOLDINGS) LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 27 JULY 2023
- 11 -
Year
Period
ended
ended
27 July
28 July
2023
2022
Notes
£
£
Turnover
3
33,121,056
32,981,408
Cost of sales
(9,839,457)
(10,735,930)
Gross profit
23,281,599
22,245,478
Administrative expenses
(24,885,303)
(20,825,527)
Other operating income
728,265
995,578
Operating (loss)/profit
4
(875,439)
2,415,529
Interest payable and similar expenses
8
(1,607,964)
(1,327,164)
(Loss)/profit before taxation
(2,483,403)
1,088,365
Tax on (loss)/profit
9
282,894
(850,769)
(Loss)/profit for the financial year
(2,200,509)
237,596
(Loss)/profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
LIGHT CINEMAS GROUP LIMITED
FORMERLY THE LIGHT CINEMAS (HOLDINGS) LIMITED
GROUP BALANCE SHEET
AS AT
27 JULY 2023
27 July 2023
- 12 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
11
40,056
10,327
Tangible assets
12
31,611,892
30,315,450
31,651,948
30,325,777
Current assets
Stocks
15
386,131
404,512
Debtors
16
2,855,137
1,930,263
Cash at bank and in hand
5,507,772
7,073,938
8,749,040
9,408,713
Creditors: amounts falling due within one year
17
(22,119,925)
(12,602,244)
Net current liabilities
(13,370,885)
(3,193,531)
Total assets less current liabilities
18,281,063
27,132,246
Creditors: amounts falling due after more than one year
18
(29,243,919)
(35,611,698)
Provisions for liabilities
21
(355,696)
(638,590)
Net liabilities
(11,318,552)
(9,118,042)
Capital and reserves
Called up share capital
23
4,951,431
4,951,432
Share premium account
1,485
1,485
Capital redemption reserve
1,000
1,000
Profit and loss reserves
(16,272,468)
(14,071,959)
Total equity
(11,318,552)
(9,118,042)
The financial statements were approved by the board of directors and authorised for issue on 13 August 2024 and are signed on its behalf by:
13 August 2024
Mr James Morris
Director
LIGHT CINEMAS GROUP LIMITED
FORMERLY THE LIGHT CINEMAS (HOLDINGS) LIMITED
COMPANY BALANCE SHEET
AS AT 27 JULY 2023
27 July 2023
- 13 -
27 July 2023
28 July 2022
Notes
£
£
£
£
Fixed assets
Intangible assets
11
40,056
10,327
Tangible assets
12
335,804
255,591
Investments
13
18,802
18,802
394,662
284,720
Current assets
Debtors
16
4,179,183
5,318,537
Cash at bank and in hand
279,386
1,564,076
4,458,569
6,882,613
Creditors: amounts falling due within one year
17
(9,959,250)
(2,241,380)
Net current (liabilities)/assets
(5,500,681)
4,641,233
Total assets less current liabilities
(5,106,019)
4,925,953
Creditors: amounts falling due after more than one year
18
(5,982,203)
(12,745,656)
Net liabilities
(11,088,222)
(7,819,703)
Capital and reserves
Called up share capital
23
4,951,431
4,951,431
Share premium account
1,485
1,485
Capital redemption reserve
1,000
1,000
Profit and loss reserves
(16,042,138)
(12,773,619)
Total equity
(11,088,222)
(7,819,703)

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
COMPANY BALANCE SHEET (CONTINUED)
AS AT 27 JULY 2023
27 July 2023
- 14 -
The financial statements were approved by the board of directors and authorised for issue on 13 August 2024 and are signed on its behalf by:
13 August 2024
Mr James Morris
Director
Company registration number 08822170 (England and Wales)
LIGHT CINEMAS GROUP LIMITED
FORMERLY THE LIGHT CINEMAS (HOLDINGS) LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 27 JULY 2023
- 15 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
£
£
£
£
£
Balance at 30 July 2021
4,951,431
1,485
1,000
(14,309,555)
(9,355,639)
Period ended 28 July 2022:
Profit and total comprehensive income
-
-
-
237,596
237,596
Balance at 28 July 2022
4,951,431
1,485
1,000
(14,071,959)
(9,118,043)
Year ended 27 July 2023:
Loss and total comprehensive income
-
-
-
(2,200,509)
(2,200,509)
Balance at 27 July 2023
4,951,431
1,485
1,000
(16,272,468)
(11,318,552)
LIGHT CINEMAS GROUP LIMITED
FORMERLY THE LIGHT CINEMAS (HOLDINGS) LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 27 JULY 2023
- 16 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
£
£
£
£
£
Balance at 30 July 2021
4,951,431
1,485
1,000
(10,684,746)
(5,730,830)
Period ended 28 July 2022:
Loss and total comprehensive income for the period
-
-
-
(2,088,873)
(2,088,873)
Balance at 28 July 2022
4,951,431
1,485
1,000
(12,773,619)
(7,819,703)
Year ended 27 July 2023:
Profit and total comprehensive income
-
-
-
(3,268,519)
(3,268,519)
Balance at 27 July 2023
4,951,431
1,485
1,000
(16,042,138)
(11,088,222)
LIGHT CINEMAS GROUP LIMITED
FORMERLY THE LIGHT CINEMAS (HOLDINGS) LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 27 JULY 2023
- 17 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
6,628,213
11,814,193
Interest paid
(414,648)
(295,591)
Income taxes paid
-
(104,378)
Net cash inflow from operating activities
6,213,565
11,414,224
Investing activities
Proceeds on disposal of intangibles
(31,200)
-
Purchase of tangible fixed assets
(6,905,987)
(9,214,154)
Net cash used in investing activities
(6,937,187)
(9,214,154)
Financing activities
Cost of raising finance
(230,237)
(223,488)
Proceeds of new loans
-
2,000,000
Repayment of bank loans
(600,000)
(600,000)
Payment of finance leases obligations
(12,306)
(23,497)
Net cash (used in)/generated from financing activities
(842,543)
1,153,015
Net (decrease)/increase in cash and cash equivalents
(1,566,165)
3,353,085
Cash and cash equivalents at beginning of year
7,073,937
3,720,852
Cash and cash equivalents at end of year
5,507,772
7,073,937
LIGHT CINEMAS GROUP LIMITED
FORMERLY THE LIGHT CINEMAS (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 27 JULY 2023
- 18 -
1
Accounting policies
Company information

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.

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 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:

 

LIGHT CINEMAS GROUP LIMITED
FORMERLY THE LIGHT CINEMAS (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 27 JULY 2023
1
Accounting policies
(Continued)
- 19 -
1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.3
Basis of consolidation

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.

1.4
Going concern

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.

1.5
Turnover

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.

LIGHT CINEMAS GROUP LIMITED
FORMERLY THE LIGHT CINEMAS (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 27 JULY 2023
1
Accounting policies
(Continued)
- 20 -
1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life which is 6 and 10 years unless specifically related to a site when it is deemed to be the length of the lease.

1.7
Intangible fixed assets other than goodwill

Intangible assets are initially recognised at cost. After recognition under the cost model, intangible assets are measure at cost less any accumulated amortisation and any accumulated impairment losses.

 

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be mad the useful life shall not exceed five years.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Trademarks
Straight line over 10 years
1.8
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Cinema Build
Between 15 years and life of lease
Equipment
Between 4 and 10 years

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.

1.9
Fixed asset investments

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.

LIGHT CINEMAS GROUP LIMITED
FORMERLY THE LIGHT CINEMAS (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 27 JULY 2023
1
Accounting policies
(Continued)
- 21 -
1.10
Impairment of fixed assets

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.

1.11
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.

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.

1.12
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.

1.13
Financial instruments

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.

LIGHT CINEMAS GROUP LIMITED
FORMERLY THE LIGHT CINEMAS (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 27 JULY 2023
1
Accounting policies
(Continued)
- 22 -
Basic financial assets

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

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.

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 group after deducting all of its liabilities.

Basic financial 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.

1.14
Equity instruments

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.

1.15
Taxation

The tax expense represents the sum of the tax currently payable.

Current tax

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.

LIGHT CINEMAS GROUP LIMITED
FORMERLY THE LIGHT CINEMAS (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 27 JULY 2023
1
Accounting policies
(Continued)
- 23 -
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 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.

1.16
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 fixed assets.

1.17
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.18
Leases

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.

1.19
Government grants

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.

LIGHT CINEMAS GROUP LIMITED
FORMERLY THE LIGHT CINEMAS (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 27 JULY 2023
1
Accounting policies
(Continued)
- 24 -
1.20
Foreign exchange

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.

1.21

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.

2
Judgements and key sources of estimation uncertainty

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.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Services
21,519,820
21,886,919
Goods
11,601,236
11,094,489
33,121,056
32,981,408
2023
2022
£
£
Other revenue
Grants received
728,265
995,578
LIGHT CINEMAS GROUP LIMITED
FORMERLY THE LIGHT CINEMAS (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 27 JULY 2023
- 25 -
4
Operating (loss)/profit
2023
2022
£
£
Operating (loss)/profit for the year is stated after charging/(crediting):
Exchange differences apart from those arising on financial instruments measured at fair value through profit or loss
10,351
(70,223)
Depreciation of owned tangible fixed assets
2,488,622
2,098,240
Impairment of owned tangible fixed assets
3,115,366
1,785,417
Loss on disposal of tangible fixed assets
5,555
-
Amortisation of intangible assets
1,471
1,472
Operating lease charges
5,294,383
4,247,381
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
46,120
40,492
6
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
510
368
35
30

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
7,633,642
6,982,033
1,762,893
1,850,157
Social security costs
563,333
483,129
228,316
188,681
Pension costs
106,422
88,132
30,739
27,936
8,303,397
7,553,294
2,021,948
2,066,774
LIGHT CINEMAS GROUP LIMITED
FORMERLY THE LIGHT CINEMAS (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 27 JULY 2023
- 26 -
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
574,333
469,398
Social security costs
70,833
35,141
Company pension contributions to defined contribution schemes
3,796
-
648,962
504,539
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
219,525
150,000
Company pension contributions to defined contribution schemes
1,321
-
8
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
625,097
430,789
Other interest on financial liabilities
746,868
651,450
Interest on finance leases and hire purchase contracts
3,574
21,436
Finance costs for financial instruments measured at fair value through profit or loss
232,425
223,489
Total finance costs
1,607,964
1,327,164
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
-
0
(1,323)
Foreign current tax on profits for the current period
-
0
91,290
Total current tax
-
0
89,967
LIGHT CINEMAS GROUP LIMITED
FORMERLY THE LIGHT CINEMAS (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 27 JULY 2023
9
Taxation
2023
2022
£
£
(Continued)
- 27 -
Deferred tax
Origination and reversal of timing differences
(282,894)
760,802
Total tax (credit)/charge
(282,894)
850,769

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:

2023
2022
£
£
(Loss)/profit before taxation
(2,483,403)
1,088,365
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 20.95% (2022: 19.00%)
(520,273)
206,789
Tax effect of expenses that are not deductible in determining taxable profit
(810,015)
-
0
Group relief
1
-
0
Depreciation on assets not qualifying for tax allowances
9,868
-
0
Deferred tax adjustments in respect of prior years
-
0
(1,690)
Fixed asset differences
-
0
187,866
Deferred tax not recognised
1,148,982
220,686
Remeasurement of deferred tax for change in rates
(111,457)
130,033
Other tax adjustments
-
0
107,085
Taxation (credit)/charge
(282,894)
850,769
LIGHT CINEMAS GROUP LIMITED
FORMERLY THE LIGHT CINEMAS (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 27 JULY 2023
- 28 -
10
Impairments

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

2023
2022
Notes
£
£
In respect of:
Property, plant and equipment
12
3,115,366
1,785,417
Recognised in:
Administrative expenses
3,115,366
1,785,417

The impairment losses in respect of financial assets are recognised in other gains and losses in the profit and loss account.

11
Intangible fixed assets
Group
Goodwill
Trademarks
Total
£
£
£
Cost
At 29 July 2022
7,897,008
14,770
7,911,778
Additions
-
0
31,200
31,200
At 27 July 2023
7,897,008
45,970
7,942,978
Amortisation
At 29 July 2022
7,897,008
4,443
7,901,451
Amortisation charged for the year
-
0
1,471
1,471
At 27 July 2023
7,897,008
5,914
7,902,922
Carrying amount
At 27 July 2023
-
0
40,056
40,056
At 28 July 2022
-
0
10,327
10,327
LIGHT CINEMAS GROUP LIMITED
FORMERLY THE LIGHT CINEMAS (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 27 JULY 2023
11
Intangible fixed assets
(Continued)
- 29 -
Company
Goodwill
Trademarks
Total
£
£
£
Cost
At 29 July 2022
494,546
14,770
509,316
Additions
-
0
31,200
31,200
At 27 July 2023
494,546
45,970
540,516
Amortisation
At 29 July 2022
494,546
4,443
498,989
Amortisation charged for the year
-
0
1,471
1,471
At 27 July 2023
494,546
5,914
500,460
Carrying amount
At 27 July 2023
-
0
40,056
40,056
At 28 July 2022
-
0
10,327
10,327
LIGHT CINEMAS GROUP LIMITED
FORMERLY THE LIGHT CINEMAS (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 27 JULY 2023
- 30 -
12
Tangible fixed assets
Group
Cinema Build
Equipment
Total
£
£
£
Cost
At 29 July 2022
31,691,971
9,929,666
41,621,637
Additions
5,061,861
1,844,124
6,905,985
Disposals
(3,678)
(2,018)
(5,696)
At 27 July 2023
36,750,154
11,771,772
48,521,926
Depreciation and impairment
At 29 July 2022
7,186,397
4,119,790
11,306,187
Depreciation charged in the year
1,387,602
1,101,020
2,488,622
Impairment losses
2,618,278
497,088
3,115,366
Eliminated in respect of disposals
-
0
(141)
(141)
At 27 July 2023
11,192,277
5,717,757
16,910,034
Carrying amount
At 27 July 2023
25,557,877
6,054,015
31,611,892
At 28 July 2022
24,505,574
5,809,876
30,315,450
Company
Cinema Build
Equipment
Total
£
£
£
Cost
At 29 July 2022
97,528
265,449
362,977
Additions
55,627
58,830
114,457
At 27 July 2023
153,155
324,279
477,434
Depreciation and impairment
At 29 July 2022
54,497
52,889
107,386
Depreciation charged in the year
11,730
22,514
34,244
At 27 July 2023
66,227
75,403
141,630
Carrying amount
At 27 July 2023
86,928
248,876
335,804
At 28 July 2022
43,031
212,560
255,591
LIGHT CINEMAS GROUP LIMITED
FORMERLY THE LIGHT CINEMAS (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 27 JULY 2023
12
Tangible fixed assets
(Continued)
- 31 -

More information on impairment movements in the year is given in note 10.

13
Fixed asset investments
Company
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
14
18,802
18,802
18,802
18,802
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 29 July 2022 and 27 July 2023
18,802
Carrying amount
At 27 July 2023
18,802
At 28 July 2022
18,802
LIGHT CINEMAS GROUP LIMITED
FORMERLY THE LIGHT CINEMAS (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 27 JULY 2023
- 32 -
14
Subsidiaries

Details of the company's subsidiaries at 27 July 2023 are as follows:

Name of undertaking
Address
Class of
% Held
shares held
Direct
The Light Cinemas Limited
1
Ordinary
100.00
The Light Cinemas (New Brighton) Limited
2
Ordinary
100.00
The Light Cinemas (Cambridge) Limited
3
Ordinary
100.00
Light Cinemas Halle GmbH
4
Ordinary
100.00
The Light Venues Limited
5
Ordinary
100.00
The Light Cinemas (Global) Limited
6
Ordinary
100.00
The Light Property Holdings Limited
7
Ordinary
100.00

Registered office addresses (all UK unless otherwise indicated):

1
1 George Street,Glasgow G2 1AL
2
1 George Street, Glasgow G2 1AL
3
6 Kingly Street, London W1B 5PF
4
Pfaffengasse 28, 06886 Lutherstadt Wittenberg, Germany
5
6 Kingly Street, London W1B 5PF
6
6 Kingly Street, London W1B 5PF
7
6 Kingly Street, London W1B 5PF

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.

15
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Finished goods and goods for resale
386,131
404,512
-
0
-
0
LIGHT CINEMAS GROUP LIMITED
FORMERLY THE LIGHT CINEMAS (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 27 JULY 2023
- 33 -
16
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
352,786
135,912
-
0
-
0
Amounts owed by group undertakings
-
-
4,002,184
5,133,960
Other debtors
775,851
120,120
125,832
68,079
Prepayments and accrued income
1,726,500
1,674,231
51,167
116,498
2,855,137
1,930,263
4,179,183
5,318,537
17
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Debenture loans
19
2,229,953
-
0
2,229,953
-
0
Bank loans
19
5,502,737
600,000
5,502,737
600,000
Obligations under finance leases
20
-
0
12,186
-
0
-
0
Trade creditors
3,927,843
2,709,669
429,443
234,778
Amounts owed to group undertakings
-
0
-
0
30,726
30,726
Corporation tax payable
(100)
(1,459)
(100)
(100)
Other taxation and social security
580,852
422,121
404,387
38,657
Other creditors
207,347
178,264
-
0
-
0
Accruals and deferred income
9,671,293
8,681,463
1,362,104
1,337,319
22,119,925
12,602,244
9,959,250
2,241,380
18
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Loan notes
19
5,982,203
7,465,288
5,982,203
7,465,288
Bank loans and overdrafts
19
-
0
5,280,368
-
0
5,280,368
Capital contributions
23,261,716
22,866,042
-
0
-
0
29,243,919
35,611,698
5,982,203
12,745,656
LIGHT CINEMAS GROUP LIMITED
FORMERLY THE LIGHT CINEMAS (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 27 JULY 2023
18
Creditors: amounts falling due after more than one year
(Continued)
- 34 -

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.   

 

 

19
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Debenture loans
8,212,156
7,465,288
8,212,156
7,465,288
Bank loans
5,502,737
5,880,368
5,502,737
5,880,368
13,714,893
13,345,656
13,714,893
13,345,656
Payable within one year
7,732,690
600,000
7,732,690
600,000
Payable after one year
5,982,203
12,745,656
5,982,203
12,745,656

 

 

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.

20
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
-
0
12,186
-
0
-
0
LIGHT CINEMAS GROUP LIMITED
FORMERLY THE LIGHT CINEMAS (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 27 JULY 2023
20
Finance lease obligations
(Continued)
- 35 -

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.

21
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
355,696
638,590
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 29 July 2022
638,590
-
Credit to profit or loss
(282,894)
-
Liability at 27 July 2023
355,696
-

 

22
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
106,422
88,132

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.

LIGHT CINEMAS GROUP LIMITED
FORMERLY THE LIGHT CINEMAS (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 27 JULY 2023
- 36 -
23
Share capital
Group and company
2023
2022
Ordinary share capital
£
£
Issued and fully paid
5,199,998 Ordinary shares of 1p each
4,949,998
4,949,998
16,000 B Ordinary shares of 1p each
160
160
5,198 A Ordinary shares of 1p each
52
52
119,961 A1 Ordinary shares of 1p each
1,200
1,200
150 E Ordinary shares of 1p each
2
2
300,000 Ordinary shares of 0.001p each
3
3
1,350,000 D Ordinary shares of 0.001p each
14
14
4,951,429
4,951,429
Preference share capital
Issued and fully paid
208 Preference shares of 1p each
2
2
Preference shares classified as equity
2
2
Total equity share capital
4,951,431
4,951,431

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.

LIGHT CINEMAS GROUP LIMITED
FORMERLY THE LIGHT CINEMAS (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 27 JULY 2023
- 37 -
24
Operating lease commitments
Lessee

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:

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
6,880,826
4,401,957
139,660
139,660
Between two and five years
27,162,433
25,142,007
303,808
421,276
In over five years
90,476,733
84,705,913
-
22,958
124,519,992
114,249,877
443,468
583,894
25
Events after the reporting date

Since the year end we opened our 13th UK venue in Redhill. There are no other post balance sheet events.

 

26
Controlling party

The shareholders of The Light Cinema (Holdings) Limited are the ultimate controlling party.

LIGHT CINEMAS GROUP LIMITED
FORMERLY THE LIGHT CINEMAS (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 27 JULY 2023
- 38 -
27
Cash generated from group operations
2023
2022
£
£
(Loss)/profit for the year after tax
(2,484,836)
237,596
Adjustments for:
Taxation charged
-
850,769
Finance costs
1,607,964
1,327,165
Loss on disposal of tangible fixed assets
5,555
-
Amortisation and impairment of intangible assets
1,468
1,472
Depreciation and impairment of tangible fixed assets
5,611,510
3,883,656
Movements in working capital:
Decrease/(increase) in stocks
18,381
(181,266)
(Increase)/decrease in debtors
(924,874)
765,077
Increase in creditors
2,793,045
4,929,724
Cash generated from operations
6,628,213
11,814,193
28
Analysis of changes in net debt - group
29 July 2022
Cash flows and other movements
27 July 2023
£
£
£
Cash at bank and in hand
7,073,938
(1,566,166)
5,507,772
Borrowings excluding overdrafts
(13,345,656)
(369,237)
(13,714,893)
Obligations under finance leases
(12,186)
12,186
-
(6,283,904)
(1,923,217)
(8,207,121)
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