REGISTERED NUMBER: |
Audited Financial Statements |
for the Year Ended 31 March 2023 |
for |
Underbelly Ltd |
REGISTERED NUMBER: |
Audited Financial Statements |
for the Year Ended 31 March 2023 |
for |
Underbelly Ltd |
Underbelly Ltd (Registered number: 04206540) |
Contents of the Financial Statements |
for the Year Ended 31 March 2023 |
Page |
Company Information | 1 |
Balance Sheet | 2 |
Notes to the Financial Statements | 3 |
Underbelly Ltd |
Company Information |
for the Year Ended 31 March 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: |
AUDITORS: |
Kevan Pilling House |
1 Myrtle Street |
Bolton |
Lancashire |
BL1 3AH |
Underbelly Ltd (Registered number: 04206540) |
Balance Sheet |
31 March 2023 |
2023 | 2022 |
Notes | £ | £ |
FIXED ASSETS |
Tangible assets | 4 |
Investments | 5 |
CURRENT ASSETS |
Debtors | 6 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 7 | ( |
) | ( |
) |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
( |
) |
CREDITORS |
Amounts falling due after more than one year |
8 |
( |
) |
( |
) |
NET LIABILITIES | ( |
) | ( |
) |
CAPITAL AND RESERVES |
Called up share capital |
Revaluation reserve | 9 |
Retained earnings | ( |
) | ( |
) |
SHAREHOLDERS' FUNDS | ( |
) | ( |
) |
In accordance with Section 444 of the Companies Act 2006, the Statement of Comprehensive Income has not been delivered. |
The financial statements were approved by the Board of Directors and authorised for issue on |
Underbelly Ltd (Registered number: 04206540) |
Notes to the Financial Statements |
for the Year Ended 31 March 2023 |
1. | STATUTORY INFORMATION |
Underbelly Ltd is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Significant judgements and estimates |
Significant judgement has been applied in regards to Depreciation, Accrued Income and Prepayments, Accruals and Deferred Income. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Tangible fixed assets |
Plant and machinery etc | - |
Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Underbelly Ltd (Registered number: 04206540) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2023 |
2. | ACCOUNTING POLICIES - continued |
Going concern |
At the time of approving the accounts the directors are confident that the company has adequate resources to continue to operate for the foreseeable future for the following reasons: |
- The company returned to profitability and recorded a strong profit in the year to 31 March 2024, relating in particular to focusing on our established event season and growing their profitability, the introduction of a successful new winter event in the winter of 2023/24, two new financially successful theatre productions, and a new venue operation which returned an operating profit in the first six months of its operation. |
- The company has had a strong first five months of the year from 1 April 2024, again due to focusing on our established event season with positive forecasts for the remaining year to 31 March 2025. |
- In addition, the business has secured since 31 March 2023 new medium-term financing to assist in forward cashflow and development of new events and shows. |
The 2 year Cashflow to 31 March 2026 produced by management show positive cash returns and an ability to meet funding requirements. The directors therefore continue to adopt the going concern basis of accounting in preparing the financial statements. |
3. | EMPLOYEES AND DIRECTORS |
The average number of employees during the year was |
4. | TANGIBLE FIXED ASSETS |
Plant and |
machinery |
etc |
£ |
COST |
At 1 April 2022 |
Additions |
At 31 March 2023 |
DEPRECIATION |
At 1 April 2022 |
Charge for year |
At 31 March 2023 |
NET BOOK VALUE |
At 31 March 2023 |
At 31 March 2022 |
Underbelly Ltd (Registered number: 04206540) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2023 |
5. | FIXED ASSET INVESTMENTS |
Shares in |
group |
undertakings |
£ |
COST OR VALUATION |
At 1 April 2022 |
Impairments | ( |
) |
At 31 March 2023 |
NET BOOK VALUE |
At 31 March 2023 |
At 31 March 2022 |
Cost or valuation at 31 March 2023 is represented by: |
Shares in |
group |
undertakings |
£ |
Valuation in 2021 | 154,829 |
Valuation in 2023 | (147,713 | ) |
Cost | 34,724 |
41,840 |
6. | DEBTORS |
2023 | 2022 |
£ | £ |
Amounts falling due within one year: |
Trade debtors |
Other debtors |
Amounts falling due after more than one year: |
Other debtors |
Aggregate amounts |
Underbelly Ltd (Registered number: 04206540) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2023 |
6. | DEBTORS - continued |
Included in other debtors is a balance due from Underbelly Asia Ltd, a company registered in Hong Kong and a wholly owned subsidiary of Underbelly Ltd, of £484,465 (2022: £453,617). |
There is a strong appetite and interest for Underbelly shows and live entertainment events across the Middle East, Asia and the Pacific regions. |
Underbelly Asia is currently in negotiations with several potential partners with the intention of producing shows from 2025 onwards, including La Clique which enjoyed a successful run in Singapore in 2021. |
The directors therefore expect future positive cashflow from the operation of Underbelly Asia Ltd and that the outstanding amounts will be paid in full. |
There is a further balance due from By Popular Demand Promotions, the majority shareholder in Underbelly |
Ltd, which acts as a holding company of £351,131 (2022: £333,615). |
Currently By Popular Demand Promotions Ltd does not have sufficient reserves to settle the outstanding |
amount. |
The balance is expected to be settled by dividends from Underbelly Ltd's future profits in line with any |
conditions imposed by bank borrowings. |
7. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans and overdrafts |
Trade creditors |
Taxation and social security |
Other creditors |
8. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans |
Other creditors |
Creditors falling due after more than one year include the following amounts: |
Long-term bank loans 1-2 years of £440,000 (2022: £440,000) |
Long-term bank loans 2-5 years of £513,331 (2022: £953,332) |
Other long-term loans of £600,000 (2022: £600,000), this loan is not repayment until the bank CBILs loan has been repaid. |
Underbelly Ltd (Registered number: 04206540) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2023 |
9. | RESERVES |
Revaluation |
reserve |
£ |
At 1 April 2022 |
Reserve transfer | (147,713 | ) |
At 31 March 2023 |
10. | DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006 |
The Report of the Auditors was unqualified. |
We, as auditors, draw your attention to the following notes in light of the loss during the financial year and the negative balance sheets position: |
The going concern note in Note 2 Accounting Policies. |
The post balance sheet events note in Note 14 Post Balance Sheet Events. |
for and on behalf of |
11. | OTHER FINANCIAL COMMITMENTS |
The company has material annual rental obligations of offices and venues totalling £560,000. |
12. | RELATED PARTY DISCLOSURES |
There is an amount due from the parent company of £351,131 (2022: £333,615). |
Interest has been charged on the amounts loaned to the parent company of £17,365 (2022: £10,039). |
Interest has been charged on the amounts loaned from the directors of £31,222 (2022: £16,815). |
During the year the company sold its investment in KKC Productions Ltd for £84,001. |
13. | FRC ETHICAL STANDARD - PROVISIONS AVAILABLE FOR SMALL ENTITIES |
In common with many other businesses of our size and nature we use our auditors to prepare and submit returns to the tax authorities and assist with the preparation of the financial statements. |
Underbelly Ltd (Registered number: 04206540) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2023 |
14. | POST BALANCE SHEET EVENTS |
The company returned to profitability and recorded a strong profit in the year to 31 March 2024, relating in particular to focusing on our established event season and growing their profitability, the introduction of a successful new winter event in the winter of 2023/24, two new financially successful theatre productions, and a new venue operation which returned an operating profit in the first six months of its operation. |
The company has had a strong first five months of the year from 1 April 2024, again due to focusing on our established event season with positive forecasts for the remaining year to 31 March 2025. |
Events in the year ending 31 March 2024 and in the first six months of 31 March 2025 have shown a return close to pre-pandemic levels of audience attendance which has increased turnover, and outweighed increases in operating costs due to higher than expected inflation. |
In addition, the business has secured since 31 March 2023 new medium term finance to assist in forward cashflow and development of new events and shows. |
15. | ULTIMATE CONTROLLING PARTY |
Mr C Wood and Mr E Bartlam are managing directors and majority shareholders through their holding company By Popular Demand Promotions Ltd, a company registered in England and Wales, registered office 4th Floor, 36-38 Hatton Garden, London, EC1N 8EB. |