Marylebone Cinema Limited
Unaudited Financial Statements
For the year ended 31 January 2024
Pages for Filing with Registrar
Company Registration No. 11729892 (England and Wales)
Marylebone Cinema Limited
Contents
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 10
Marylebone Cinema Limited
Balance Sheet
As at 31 January 2024
Page 1
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
3
43,066
54,066
Tangible assets
4
2,892,638
3,277,997
2,935,704
3,332,063
Current assets
Stock
14,163
9,906
Debtors
5
188,539
237,813
Cash at bank and in hand
90,171
47,053
292,873
294,772
Creditors: amounts falling due within one year
6
(842,092)
(5,094,500)
Net current liabilities
(549,219)
(4,799,728)
Total assets less current liabilities
2,386,485
(1,467,665)
Creditors: amounts falling due after more than one year
7
(4,072,701)
(242,600)
Provisions for liabilities
(263,283)
(120,757)
Net liabilities
(1,949,499)
(1,831,022)
Capital and reserves
Called up share capital
9
6,750
6,750
Profit and loss reserves
(1,956,249)
(1,837,772)
Total equity
(1,949,499)
(1,831,022)

The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true

For the financial year ended 31 January 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

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

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

Marylebone Cinema Limited
Balance Sheet (Continued)
As at 31 January 2024
Page 2
The financial statements were approved and signed by the director and authorised for issue on 10 September 2024
S C Burdge
Director
Company Registration No. 11729892
Marylebone Cinema Limited
Notes to the Financial Statements
For the year ended 31 January 2024
Page 3
1
Accounting policies
Company information

Marylebone Cinema Limited is a private company limited by shares incorporated in England and Wales. The registered office is 28 Bedford Square, London, United Kingdom, WC1B 3JS.

1.1
Reporting period

The previous accounting period was made up from 30 January 2022 to 31 January 2023. Therefore, the comparative figures are not entirely comparable. The previous period was extended to bring the reporting period date in line with a month end.

1.2
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.

The 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. The principal accounting policies adopted are set out below.

1.3
Going concern

The company had a net deficit of assets at 31 January 2024 amounting to £1,true949,499.

 

At 31 January 2024 an amount of £4,327,325 was due to a related party. The agreement requires repayment of £290,000 within one year of the balance sheet. Full repayment of this will not be required until 2035. After the balance sheet date, £2,500,000 of this loan was converted into preference shares treated as equity.

 

The director has provided cash flow forecasts which support the company's abilities to repay its creditors as they fall due. When preparing the forecasts, the director has utilised assumptions and estimates based on the information available at the date of the signature of the director's report. The director has confirmed that he will continue to provide financial support to the company for the foreseeable future if required to meet any liabilities as and when they fall due.

 

Therefore, after making enquiries, the director has a reasonable expectation that the company has adequate resources to continue in operation existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

1.4
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

The company recognises revenue from cinema ticket sales on the date of the related showing. The company recognises revenue from food at the point of sale. The company recognises revenue from film club memberships spread evenly over the period of the membership.

Marylebone Cinema Limited
Notes to the Financial Statements (Continued)
For the year ended 31 January 2024
1
Accounting policies
(Continued)
Page 4
1.5
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

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:

Website development costs
5 years straight line
1.6
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 refurbishment & fitout
25 years straight line
Fixtures, fittings & equipment
5 years straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.7
Impairment of fixed assets

At each reporting period end date, the company 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.

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.

Marylebone Cinema Limited
Notes to the Financial Statements (Continued)
For the year ended 31 January 2024
1
Accounting policies
(Continued)
Page 5

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.8
Stock

Stock 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 stock to their present location and condition. Cost is determined using the first-in, first-out (FIFO) method.

 

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

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stock 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.

1.9
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.

1.10
Financial instruments

The company only has basic financial instruments measured at amortised costs, with no financial instruments classified as other or basic instruments measured at fair value.

1.11
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.12
Taxation

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

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the 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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Marylebone Cinema Limited
Notes to the Financial Statements (Continued)
For the year ended 31 January 2024
1
Accounting policies
(Continued)
Page 6
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 when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.13
Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.14
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.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.15
Retirement benefits

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

1.16
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.

Marylebone Cinema Limited
Notes to the Financial Statements (Continued)
For the year ended 31 January 2024
Page 7
2
Employees

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

2024
2023
Number
Number
Total
19
22
3
Intangible fixed assets
Website development costs
£
Cost
At 1 February 2023 and 31 January 2024
55,000
Amortisation and impairment
At 1 February 2023
934
Amortisation charged for the year
11,000
At 31 January 2024
11,934
Carrying amount
At 31 January 2024
43,066
At 31 January 2023
54,066
Marylebone Cinema Limited
Notes to the Financial Statements (Continued)
For the year ended 31 January 2024
Page 8
4
Tangible fixed assets
Cinema, refurbishment and fitout
Fixtures, fittings and equipment
Total
£
£
£
Cost
At 1 February 2023
3,192,858
1,321,673
4,514,531
Additions
-
0
8,750
8,750
At 31 January 2024
3,192,858
1,330,423
4,523,281
Depreciation and impairment
At 1 February 2023
408,801
827,733
1,236,534
Depreciation charged in the year
127,836
266,273
394,109
At 31 January 2024
536,637
1,094,006
1,630,643
Carrying amount
At 31 January 2024
2,656,221
236,417
2,892,638
At 31 January 2023
2,784,057
493,940
3,277,997

The carrying value of tangible fixed assets held under finance leases at the year end date was £60,911 (2023: £136,393).

5
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
103,687
77,807
Other debtors
57,113
4,700
Prepayments and accrued income
27,739
155,306
188,539
237,813
6
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans
41,057
39,189
Trade creditors
137,545
207,168
Taxation and social security
84,903
59,904
Other creditors
514,135
4,546,962
Accruals and deferred income
64,452
241,277
842,092
5,094,500
Marylebone Cinema Limited
Notes to the Financial Statements (Continued)
For the year ended 31 January 2024
Page 9
7
Creditors: amounts falling due after more than one year
2024
2023
£
£
Bank loans and overdrafts
14,345
42,590
Other creditors
4,058,356
200,010
4,072,701
242,600
8
Loans and overdrafts
2024
2023
£
£
Bank loans
55,402
81,779
Finance lease liabilities
135,031
238,798
Other loans
4,427,325
130,000
4,617,758
450,577
Payable within one year
545,057
207,977
Payable after one year
4,072,701
242,600

Finance lease liabilities are secured on the assets concerned.

 

9
Called up share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
6,750
6,750
6,750
6,750
10
Events after the reporting date

On 13 August 2024, an agreement was made to convert £2,500,000 of long-term creditors to equity preference shares with par value of £2,500,000.

Marylebone Cinema Limited
Notes to the Financial Statements (Continued)
For the year ended 31 January 2024
Page 10
11
Related party transactions
Transactions with related parties

The company had transactions in the period with third parties which are considered related parties due to having a shared director with significant control of both entities.

 

Sales of £31,284 (2023: £53,417) were made to related parties in the period. At period-end, balances of £21,309 (2023: £18,471) were due to Marylebone Cinema from related parties.

 

Purchases of £95,269 (2023: £93,978) were made from related parties in the period. At period-end, balances of £4,348,705 (2023: £4,376,677) were due by Marylebone Cinema to related parties.

 

The exemption has been taken to not disclose related party transactions with 100% group companies.

12
Controlling party

The ultimate controlling party is Stephen Burdge due to his controlling ownership in the company.

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