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REGISTERED NUMBER: 03561597 (England and Wales)












STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS

FOR THE PERIOD

30 DECEMBER 2022 TO 28 DECEMBER 2023

FOR

REEL CINEMAS LIMITED

REEL CINEMAS LIMITED (REGISTERED NUMBER: 03561597)

CONTENTS OF THE FINANCIAL STATEMENTS
for the period 30 December 2022 to 28 December 2023










Page

Company Information 1

Strategic Report 2

Report of the Directors 6

Report of the Independent Auditors 10

Statement of Income and Retained Earnings 12

Balance Sheet 13

Notes to the Financial Statements 14


REEL CINEMAS LIMITED

COMPANY INFORMATION
for the period 30 December 2022 to 28 December 2023







DIRECTORS: S Suri
S Suri
R Suri





REGISTERED OFFICE: Sital House
3 - 6 Cattle Market
Loughborough
Leicestershire
LE11 3DL





REGISTERED NUMBER: 03561597 (England and Wales)





AUDITORS: Magma Audit LLP (part of the Dains Group)
Chartered Accountants
Statutory Auditor
Unit 2, Charnwood Edge Business Park
Syston Road
Leicestershire
LE7 4UZ

REEL CINEMAS LIMITED (REGISTERED NUMBER: 03561597)

STRATEGIC REPORT
for the period 30 December 2022 to 28 December 2023


The directors present their strategic report for the period 30 December 2022 to 28 December 2023.

OVERVIEW
Originally established in 2001 by K C Suri, REEL Cinemas is one of the UK’s leading independently owned cinema circuits. As of the year-end in December 2023, REEL traded in 15 venues and 74 screens spanning the UK.

REEL’s roots trace back to rejuvenating historic venues like the Curzon in our hometown of Loughborough. REEL Cinemas then became a pioneer of what has become known as the ‘miniplex’ model. Featuring 5-6 screens, these purpose-built venues serve communities often overlooked by larger chains.

Since the beginning, REEL Cinemas has focused on offering our customers exceptional yet affordable experiences. Our identity is deeply rooted in the communities we serve, and we take pride in our strong partnerships with a diverse range of councils and landlords across the UK, driven by a shared dedication to these communities.

In every location, we strive to be "the REEL Heart of the Community" by:

- Prioritising sustainable growth and unwavering quality.
- By being financially robust, maintaining our near debt-free status and strategically leasing sites from our parent
property group.
- Forging community-centric partnerships with local charities, educational institutions, businesses, and more -
creating "Magic Moments" that bring movies to life in ways that resonate with the unique spirit and needs of each
community that we’re fortunate to be part of.

REVIEW OF BUSINESS
The results of the company for the period ended 28 December 2023 show turnover of £13,909,594 (2022 - £13,314,020) and pre-tax profit of £327,974 (2022 - £2,454,860).

Ticket revenue for the period was £7,415,511 (2022 - £6,749,277), concession revenue was £4,584,641 (2022 - £4,747,345) and advertising revenue £795,011 (2022 - £743,047). These metrics are considered as key performance indicators for the company.

The Directors believe it is time to move beyond referencing pre-COVID box office figures. However, it is noteworthy that the company achieved 18% more admissions in this period compared to 2019 and the average revenue per admission is also higher than it was in 2019.

During this year, the company opened a new site in Burnley, relocating from its previous location. This new site has contributed positively to our operations and customer reach.

The company also successfully resolved its Business Interruption insurance claim, receiving a final amount of £1,500,000. This brought the total compensation received for the enforced closure of cinemas during COVID-19 to £4,500,000.

Similar to other operators, the company continued to face significant cost challenges, primarily due to persistently high energy expenses and increased staff costs. The April 2023 increase in the National Living Wage raised the base pay and exerted upward pressure on wages at higher levels to maintain appropriate differentials across various roles.

To mitigate energy costs, the company actively renegotiated its contracts to unlock savings. Initial investments have been made to transition part of the estate from digital to laser projectors, which are substantially more energy efficient, and will have a positive impact on operational costs in future years.

In this period, the company began a transition under new leadership, reaffirming its commitment to offering affordable prices and to being "the REEL Heart of the Community" wherever its sites are located.

PRINCIPAL RISKS AND UNCERTAINTIES
The principal risk to our cinema chain continues to be reductions in customer attendance and admissions.

This risk is primarily driven by a decrease in the number of movies on wide release since COVID-19. Contributing factors include the pandemic's disruption to film production, the growth of streaming platforms, and the consolidation of movie studios. For instance, Disney's acquisition of 20th Century Fox in 2019 led to a reduction in the number of films released from 21 by the separate studios in 2019 to 13 by the combined studio in 2023.

In addition to these trends, specific events in this period have further disrupted cinema-going habits. Whilst the "Barbenheimer" phenomenon of mid-2023 highlighted strong consumer demand exists for good quality content, the 2023 SAG-AFTRA strike, the first joint strike by writers and actors since 1960, significantly impacted the film industry, by delaying the release of high-profile movies such as "Dune 2" into 2024 and beyond.

REEL CINEMAS LIMITED (REGISTERED NUMBER: 03561597)

STRATEGIC REPORT
for the period 30 December 2022 to 28 December 2023


Lastly, the ongoing cost-of-living challenges in the UK continue to affect discretionary spending. We have observed that households are tightening their budgets, particularly in relation to spending on concessions.

While these challenges are significant, the company is actively investing in strategies to adapt and thrive in this evolving landscape. We have tailored pricing strategies to meet the needs of local markets and curate a diverse selection of movies and food and beverage options to appeal to local preferences. Significant investments are being made (and are planned) to transform movie-going into an event-driven experience, with the aim of diversifying our revenue streams and enhancing the overall customer experience.

SECTION 172(1) STATEMENT
The strategic report for Reel Cinemas Limited, which employs 283 staff across the UK, aims to provide transparency regarding how the directors have fulfilled their duties under the Companies Act and the UK Corporate Governance Code. This report addresses key areas specified under Section 172, detailing our long-term strategy, stakeholder engagement, and environmental impact.

(a) Long-term Decision Making
Strategic Planning: Our strategic plans emphasize sustainable growth by expanding Reel Cinemas Limited with new locations, investing in the latest technology for enhanced customer experiences, and exploring new revenue streams such as exclusive screenings and event hosting.

Stakeholder Interests: We consider the interests of stakeholders, including employees, customers, suppliers, and local communities, in our strategic decisions. For example, our community engagement programmes include partnerships with local schools and charities, and our environmental sustainability projects involve reducing our carbon footprint through the use of energy-efficient technologies such as laser projection and solar panels.

Risk Management: Principal risks, such as market competition and technological changes, are addressed through regular risk assessments and strategic adjustments.

Key Stakeholders: Key stakeholders include our employees, customers, suppliers, local communities, and shareholders. We maintain regular communication with these groups through surveys, meetings, and feedback platforms to ensure their needs and concerns are addressed effectively.

(b) Employee Interests
Employee Needs: The board prioritizes employee well-being through competitive compensation, professional development opportunities, and a supportive work environment. Specific initiatives include training programmes and provision of mental health support services.

Employee Engagement: We are establishing employee representative committees to enhance engagement. These committees will provide a platform for employees to voice their concerns and suggestions directly to the board, fostering a more inclusive and responsive workplace.

(c) Business Relationships
Culture and Stakeholder Engagement: Our company culture at Reel Cinemas Limited emphasizes customer satisfaction, ethical practices, and strong relationships with suppliers. We engage with customers through loyalty programs and feedback surveys, and maintain fair and transparent dealings with our suppliers.

(d) Community and Environmental Impact
Community Engagement: Our operations positively impact local communities by creating jobs and supporting local events. Specific community projects include hosting free movie screenings for charities and sponsoring local sports teams.

Environmental Sustainability: We are committed to reducing our environmental footprint through energy-efficient technologies, waste reduction programmes, and sustainable sourcing of materials.

(e) High Standards of Business Conduct
Business Conduct: We uphold high standards of business conduct, reflected in our company culture and operational practices. Ethical behavior, transparency, and customer focus are core to our business ethos. Our code of conduct and regular ethics training ensure all employees adhere to these standards.

(f) Fairness Between Members
Equitable Treatment: We ensure fair treatment of all members by maintaining transparent communication, addressing concerns promptly, and making decisions that consider the interests of all members.


REEL CINEMAS LIMITED (REGISTERED NUMBER: 03561597)

STRATEGIC REPORT
for the period 30 December 2022 to 28 December 2023

CURRENT TRADING, POST BALANCE SHEET POSITION AND SUBSEQUENT EVENTS
The company has opened one new site in FY 2024, with two other new schemes in the pipeline beyond 2024. Other opportunities are being actively sought, reflecting the company's confidence in the resilience of the exhibition industry - albeit a confidence that is rooted in the belief that evolution of the model is critical for long-term survival.

Investments continue to be made to enhance and broaden the customer experience, improve staff retention, and reduce utility costs while increasing sustainability (e.g., installation of laser projectors and solar panels, improved HVAC systems).

The operating environment for the exhibition industry remains challenging. Another National Living Wage increase in April 2024 has contributed to increased staff costs, while the impacts of the 2023 SAG-AFTRA strike have been felt in early 2024 through gaps in the film slate. However, the positive audience reaction to key releases and the strength of the slate from Q4 2024 onwards give cause for optimism.

The foundations of the company remain strong, with the majority of the circuit's freeholds owned by companies in the same ownership as REEL, providing added resilience. Meanwhile, borrowing taken during the pandemic continues to reduce in line with our plan with net gearing nil at the year end.

The directors have assessed the financial position of the company as part of its considerations surrounding the company's continued adoption of the going concern basis of accounting. The directors are of the opinion that the company has adequate resources to continue operating for the foreseeable future. With this in mind the directors believe that the company has formally considered and concluded that the preparation of the financial statements on a going concern basis is appropriate.

NON-FINANCIAL INFORMATION STATEMENT
Governance Arrangements for Climate-related Risks
Climate Governance: Our Senior Operations Manager is responsible for overseeing climate-related risks and opportunities and reports directly to the Director, ensuring climate considerations are integrated into our strategic planning.

Identification and Management of Climate Risks
Risk Identification: We conduct regular assessments to identify climate-related risks. These risks are evaluated in terms of their potential impact on our operations and long-term strategy.

Risk Management: Identified risks are managed through mitigation strategies, including deployment of energy-efficient technologies, sustainable sourcing practices, and emergency preparedness plans. For example, our transition to laser projectors has significantly reduced energy consumption.

Principal Climate-related Risks and Opportunities
Key Risks and Opportunities: Principal risks include regulatory changes and resource scarcity resulting in increased energy costs, while opportunities involve energy savings and enhanced brand reputation through sustainability efforts. For instance, our investment in energy-efficient technologies such as laser projection has not only reduced costs but also improved our public image.

Impact on Business Model and Strategy
Business Model Impact: Climate-related risks and opportunities influence our operational strategies, such as investing in renewable energy sources and developing sustainable products and services. These efforts align with our long-term goal of becoming a leader in sustainable cinema operations.

REEL CINEMAS LIMITED (REGISTERED NUMBER: 03561597)

STRATEGIC REPORT
for the period 30 December 2022 to 28 December 2023


Key Performance Indicators
Performance Metrics: Key performance indicators (KPIs) include carbon emissions, energy consumption, and waste reduction rates. These KPIs are calculated based on industry standards and internal benchmarks.

Assessment and Calculation: Our KPIs are assessed through regular data collection and analysis, ensuring accurate measurement of our progress towards climate-related goals. We use industry benchmarks to compare our performance and identify areas for improvement.

ON BEHALF OF THE BOARD:





S Suri - Director


30 August 2024

REEL CINEMAS LIMITED (REGISTERED NUMBER: 03561597)

REPORT OF THE DIRECTORS
for the period 30 December 2022 to 28 December 2023


The directors present their report with the financial statements of the company for the period 30 December 2022 to 28 December 2023.

PRINCIPAL ACTIVITY
The principal activity of the company during the year consisted of running cinema complexes and associated leisure activities.

DIVIDENDS
No dividends will be distributed for the period ended 28 December 2023.

FUTURE DEVELOPMENTS
The Reel circuit continues to expand, with new venues opening all the time and in new locations. Each will incorporate the Reel Lounge and cement Reel Cinemas' ambition to bring the luxury cinema-going experience to audiences in small towns without the high admission price that usually accompanies it.

DIRECTORS
The directors shown below have held office during the whole of the period from 30 December 2022 to the date of this report.

S Suri
S Suri
R Suri

Other changes in directors holding office are as follows:

K C Suri ceased to be a director after 28 December 2023 but prior to the date of this report.

FINANCIAL INSTRUMENTS
Cashflow risk
The main cashflow risks, under normal trading circumstances are fluctuating attendances as a result of demand for tickets and concession sales relating to film releases. Short term cash flow risk is mitigated by regular review of the expected timing of receipts and by ensuring that the company has committed facilities in place in order to manage its working capital and investment requirements. The risk is also partially managed as a result of film hire cost, being based on a percentage of cinema attendance sales.

Credit risk
The company's principal financial assets are other receivables. The company's credit risk is primarily attributable to these receivables. The board of directors continually monitor these receivables and ensure that appropriate forecasting is undertaken so as to ensure that these are repaid as required. Credit risk in relation to sales is mitigated in that payment is received in advance of the film showing reducing the risk of bad debts.

Liquidity risk
In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and cinema development, the company uses a mixture of term debt which is secured and where available and considered appropriate landlord contributions to new developments. The board regularly reviews the facilities available to the company to ensure that there is sufficient working capital available.

Cost risk
The company has had a historically stable cost base. The key risks are unforeseen maintenance liabilities and movements in utility costs. A programme of regular maintenance is in place to manage the risk of failure in the infrastructure, whilst utility contracts are managed and reviewed on an ongoing basis.

Interest rate risk
The company reviews its exposure to interest rates regularly and considers the benefit (or otherwise) of hedging against adverse interest rate movements as part of these reviews.

ENGAGEMENT WITH EMPLOYEES
The directors recognise that its employees are its most valuable asset and the directors are committed to engaging with them in a meaningful and transparent way. The directors value their feedback and input on various aspects of the business, such as strategy, performance, culture, values, health and safety, diversity and inclusion, and learning and development.

REEL CINEMAS LIMITED (REGISTERED NUMBER: 03561597)

REPORT OF THE DIRECTORS
for the period 30 December 2022 to 28 December 2023


During the year, the directors have used various methods of communication and consultation to foster a culture of trust and collaboration among the company's employees. These include:

- Regular team meetings and briefings to share information on business objectives, achievements, challenges and
opportunities.
- Employee surveys and focus groups to gather feedback on employee satisfaction, engagement, motivation and
well-being.
- Training and development programmes to enhance skills, knowledge and competencies of our employees and
prepare them for future roles.
- Recognition and reward schemes to celebrate outstanding performance, innovation and contribution to our
business success.
- Social events and activities to promote team spirit, camaraderie and a sense of belonging.

The directors believe that these initiatives have helped to create a positive and engaging work environment where employees feel valued, respected and empowered. The directors are proud of the high level of engagement and commitment that its employees demonstrate every day. The directors continue to seek their views and suggestions on how it can improve its business performance and employee experience.

Disabled Employees
The company is committed to promoting equality of opportunity and diversity in its workforce and to ensuring that no one is discriminated against on the grounds of disability. The company recognises the valuable contribution that disabled people can make to the business and the aim to create an inclusive and supportive work environment for them.

It is the company's policy to give full and fair consideration to applications for employment by disabled people and to assess each applicant on their merits, having regard to their particular aptitudes and abilities. The company makes reasonable adjustments to its recruitment process and to the workplace where necessary and practicable to accommodate disabled applicants and employees.

The policy for the employment, training, career development and promotion of disabled people is to provide them with equal opportunities to fulfil their potential and to progress within the organisation. The company offers appropriate training and development programmes to enhance their skills, knowledge and competencies and to prepare them for future roles.

The policy for the continuing employment and training of employees who have become disabled while employed by the company is to support them in retaining their jobs and in adapting to their changed circumstances. The company consults with them and their representatives on the best way to meet their needs and aspirations. Reasonable adjustments to working arrangements, duties, equipment or facilities are made where necessary and practicable.

The company monitors and reviews its policies and practices on a regular basis to ensure that they are effective and comply with the relevant legislation. The directors are proud of its diverse and talented workforce and values the difference that disabled people bring to the business.

ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS
The company and its customers recognise the need to build strong relationships with its suppliers, as this is paramount to the success of the business. Strong relationships with film distributors ensure we are able to offer customers the latest movies alongside an exceptional guest experience. Along with the film licensors, strong relationships are built and developed with innovative suppliers of equipment to ensure that the latest technology is available to guests meaning that they are enjoyed in the best environment possible.

Stakeholder Engagement and Considerations
Relevant Issues and Stakeholders: Directors consider issues such as employee welfare, customer satisfaction, supplier relationships, and community impact. Regular engagement with stakeholders through surveys, meetings, and community events helps us understand their concerns and incorporate their feedback into our decisions.

Methods of Engagement: We engage with stakeholders through various methods, including employee feedback surveys, customer feedback platforms, supplier meetings.

Impact on Decisions and Strategies: Stakeholder feedback directly influences our strategic decisions. For example, feedback from community outreach led to the expansion of our local sponsorships, and employee surveys resulted in enhanced training and development initiatives.


STREAMLINED ENERGY AND CARBON REPORTING
The company has a strong commitment to delivering its services in the most environmentally efficient way.


REEL CINEMAS LIMITED (REGISTERED NUMBER: 03561597)

REPORT OF THE DIRECTORS
for the period 30 December 2022 to 28 December 2023

Reel Cinemas Limited reported carbon emissions for the reporting year December 2022 to November 2023 amounting to 1,391.96 tCO2e with 52.3% arising from electricity consumption.

Energy consumption used to calculate emissions (kWh) 2023

Scope 1 - Direct Emissions
Gas consumption 3,186,704

Scope 2 - Energy Indirect Emissions
Electricity consumption - location based 3,516,853

Scope 3 - Other Indirect Emissions
Electricity - transmission & distribution 3,516,853
Business travel 78,215

Carbon emissions (tCO2e) 2023

Scope 1 - Direct Emissions 582.90
Scope 2 - Energy Indirect Emissions 728.25
Scope 3 - Other Indirect Emissions 80.81

The company is reporting any/all of its Scope 1 & 2 emissions along with feasible Scope 3 emissions. Total SECR Energy in kWh was 6,703,557.

Intensity Ratio 2023

tCO2e/Turnover £m 15.63

Quantification and reporting methodology
This report has been created using the Environmental Reporting Guidelines, including Streamlined Energy & Carbon Reporting guidance issued by the UK Government in April 2019.

Where they exist, Advantage Utilities uses the UK Government published carbon conversion factors relevant to the reporting period. Where emissions without published conversion factors have been used these have been calculated by Advantage Utilities in consultation with relevant stakeholders and any industry norms or standards that exist.

Intensity measurement
The chosen intensity measurement ratio is total gross emissions in metric tonnes of CO2e per £1,000,000 of trading revenues as this is representative of the main activity of the company.

Measures taken to improve energy efficiency
During the year, the company upgraded the traditional digital projection equipment to laser projectors at the Burnley site. In the coming year, the directors will be investigating the use of solar panels at each site and engaging with Advantage Utilities to investigate potential renewable energy sources for each of the buildings to replace current supplies.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-state whether applicable accounting standards have been followed, subject to any material departures disclosed and
explained in the financial statements;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.


REEL CINEMAS LIMITED (REGISTERED NUMBER: 03561597)

REPORT OF THE DIRECTORS
for the period 30 December 2022 to 28 December 2023

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
The auditors, Magma Audit LLP (part of the Dains Group), is deemed to be reappointed under section 487(2) of the Companies Act 2006.

ON BEHALF OF THE BOARD:





S Suri - Director


30 August 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
REEL CINEMAS LIMITED


Opinion
We have audited the financial statements of Reel Cinemas Limited (the 'company') for the period ended 28 December 2023 which comprise the Statement of Income and Retained Earnings, Balance Sheet and Notes to the Financial Statements, including a summary of 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:
-give a true and fair view of the state of the company's affairs as at 28 December 2023 and of its profit for the period then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the 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.

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 company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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 the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
REEL CINEMAS LIMITED


Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on pages eight and nine, 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 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 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 company or to cease operations, or have no realistic alternative but to do so.

Auditors' 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 a Report of the Auditors 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 company and industry, we have identified the principal risks of non-compliance with laws and regulations, and we have 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 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 controls), and determined that the principal risks were related to posting inappropriate journal entries, and management bias in accounting estimates. Audit procedures performed included:

- enquiries with management for consideration of known or suspected instances of non-compliance with laws and
regulations and fraud;
- challenging assumptions made by management in their accounting estimates, in particular in relation to the
depreciation of fixed assets; and
- identifying and testing material journal entries, in particular those journal entries posted with unusual account
combinations, journal entries crediting revenue, journal entries crediting cash and journal entries with specific
defined descriptions.

There are inherent limitations in the audit procedures described above. The more 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 forgery or intentional misrepresentation, for example, or through collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

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 a Report of the Auditors 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.




Paul Orton FCA FCCA (Senior Statutory Auditor)
for and on behalf of Magma Audit LLP (part of the Dains Group)
Chartered Accountants
Statutory Auditor
Unit 2, Charnwood Edge Business Park
Syston Road
Leicestershire
LE7 4UZ

4 September 2024

REEL CINEMAS LIMITED (REGISTERED NUMBER: 03561597)

STATEMENT OF INCOME AND
RETAINED EARNINGS
for the period 30 December 2022 to 28 December 2023

Period Period
30/12/22 31/12/21
to to
28/12/23 29/12/22
Notes £    £   

TURNOVER 4 13,909,594 13,314,020

Cost of sales (8,276,712 ) (7,856,847 )
GROSS PROFIT 5,632,882 5,457,173

Administrative expenses (7,231,504 ) (6,387,870 )
(1,598,622 ) (930,697 )

Other operating income 5 1,992,783 3,522,379
OPERATING PROFIT 7 394,161 2,591,682

Interest receivable and similar income 50,020 2,919
444,181 2,594,601

Interest payable and similar expenses 10 (116,207 ) (139,741 )
PROFIT BEFORE TAXATION 327,974 2,454,860

Tax on profit 11 (298,684 ) (515,511 )
PROFIT FOR THE FINANCIAL PERIOD 29,290 1,939,349

Retained earnings at beginning of period 3,938,336 1,998,987

RETAINED EARNINGS AT END OF
PERIOD

3,967,626

3,938,336

REEL CINEMAS LIMITED (REGISTERED NUMBER: 03561597)

BALANCE SHEET
28 December 2023

2023 2022
Notes £    £   
FIXED ASSETS
Intangible assets 12 - -
Tangible assets 13 15,305,624 10,960,073
15,305,624 10,960,073

CURRENT ASSETS
Stocks 14 302,678 305,732
Debtors 15 2,016,448 4,789,973
Cash at bank and in hand 2,849,421 2,329,665
5,168,547 7,425,370
CREDITORS
Amounts falling due within one year 16 (5,603,725 ) (4,460,479 )
NET CURRENT (LIABILITIES)/ASSETS (435,178 ) 2,964,891
TOTAL ASSETS LESS CURRENT
LIABILITIES

14,870,446

13,924,964

CREDITORS
Amounts falling due after more than one
year

17

(6,987,063

)

(6,630,279

)

PROVISIONS FOR LIABILITIES 21 (915,757 ) (356,349 )
NET ASSETS 6,967,626 6,938,336

CAPITAL AND RESERVES
Called up share capital 22 3,000,000 3,000,000
Retained earnings 23 3,967,626 3,938,336
SHAREHOLDERS' FUNDS 6,967,626 6,938,336

The financial statements were approved by the Board of Directors and authorised for issue on 30 August 2024 and were signed on its behalf by:





S Suri - Director


REEL CINEMAS LIMITED (REGISTERED NUMBER: 03561597)

NOTES TO THE FINANCIAL STATEMENTS
for the period 30 December 2022 to 28 December 2023


1. STATUTORY INFORMATION

Reel Cinemas Limited is a private limited company, limited by shares, incorporated in England and Wales. The registered office is Sital House, 3-6 Cattle Market, Loughborough, Leicestershire, LE11 3DL.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
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 on the historical cost convention. The principal accounting policies adopted are set out below.

This 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 and loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

Section 4 'Statement of Financial Position' - Reconciliation of the opening and closing number of shares;

Section 7 'Statement of Cash Flows' - Presentation of a statement of cash flows and related notes and disclosures;

Section 33 'Related Party Disclosures' - Compensation for key management personnel.

The financial statements of the company are consolidated in the financial statements of Reel Cinemas (Europe) Limited. These consolidated financial statements are available from its registered office, and from Companies House.

Going concern
At the time of preparing the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future and have been prepared on a going concern basis. In assessing this, the directors prepare annual forecasts to ensure that the company has sufficient facilities in place to meet its liabilities as they fall due. The forecasts and management accounts are also reviewed from a compliance perspective with regards to the debt covenants with the company's lender Barclays Bank Plc. Annual reviews are also conducted with the Bank to ensure that any facilities provided by them are discussed with regards to their continued availability to the company.

Turnover
Turnover represents amounts receivable for goods and services net of VAT and trade discounts.

Cinema and concession sales are received through cash, debit and credit card transactions. All sales are recognised on a cinema week basis of Friday to Thursday. Advertising income is received at the end of the month to which it relates. The remaining sales are recognised on the basis of sales invoices raised at appropriate points.

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Goodwill represents the excess of the cost of acquisition of businesses over the fair value of 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 no more than 10 years. Goodwill is reviewed for impairment annually.

REEL CINEMAS LIMITED (REGISTERED NUMBER: 03561597)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the period 30 December 2022 to 28 December 2023


2. ACCOUNTING POLICIES - continued

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:

Leasehold improvements 10 - 25 years
Plant and machinery 10% - 25% on cost
Assets under constructionNot depreciated

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 and loss.

Assets under construction
Assets under construction are those assets that are currently in development and are not in use by the company. The costs relating to the development of the projects are capitalised however no depreciation is charged until the asset is available for use.

Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. At each reporting date, an assessment is made for impairment.

Financial instruments
The company has elected to apply the provisions of section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial asset and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to sett off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets
Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost.

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 company after deducting all of its liabilities.

Basic financial liabilities, including trade and other payables, bank loans and loans from fellow group companies are initially recognised at transaction price.

Taxation
The tax expenses 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 and 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 date.

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.

REEL CINEMAS LIMITED (REGISTERED NUMBER: 03561597)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the period 30 December 2022 to 28 December 2023


2. ACCOUNTING POLICIES - continued

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 relate to taxes levied by the same tax authority.

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 the profit and loss account so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease and taken to the profit and loss account in the period that they occur.

Rentals payable under operating leases, including any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease.

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.

Retirement benefits
The company operates a defined contribution scheme for the benefit of its employees. Payments to the defined contribution retirement benefit scheme are charged as an expense as they fall due.

Debtors
Basic financial assets, including trade and other debtors, are initially recognised at transaction price, 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. Such assets are subsequently carried at amortised cost using the effective interest method, less any impairment.

Cash and cash equivalents
Cash and cash equivalents are represented by cash in hand, deposits held at call with financial institutions, and other short-term highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

Creditors
Basic financial liabilities, including trade and other creditors, loans from third parties and loans from related parties, 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. Such instruments are subsequently carried at amortised cost using the effective interest method, less any impairment.

Other grants
Grants received to fund capital expenditure are amortised to the profit and loss account over the expected useful life of the assets they are funding.

REEL CINEMAS LIMITED (REGISTERED NUMBER: 03561597)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the period 30 December 2022 to 28 December 2023


3. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Useful economic lives of tangible assets
The annual depreciation for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 13 for the carrying amount of the property plant and equipment, and the accounting policy of tangible fixed assets for the useful economic lives for each class of assets.

4. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

Period Period
30/12/22 31/12/21
to to
28/12/23 29/12/22
£    £   
Cinema sales 7,415,511 6,749,277
Concession sales 4,584,641 4,747,345
Advertising 795,011 743,047
Sundry sales 1,114,431 1,074,351
13,909,594 13,314,020

5. OTHER OPERATING INCOME
Period Period
30/12/22 31/12/21
to to
28/12/23 29/12/22
£    £   
Rents received 40,168 40,168
Sundry receipts 231,801 231,801
Management fees receivable 97,574 127,170
Government grants 123,240 123,240
Exceptional items 1,500,000 3,000,000
1,992,783 3,522,379

Further information relating to the exceptional items is included within note 9.

REEL CINEMAS LIMITED (REGISTERED NUMBER: 03561597)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the period 30 December 2022 to 28 December 2023


6. EMPLOYEES AND DIRECTORS
Period Period
30/12/22 31/12/21
to to
28/12/23 29/12/22
£    £   
Wages and salaries 3,092,112 3,060,137
Social security costs 163,301 164,165
Other pension costs 36,924 34,134
3,292,337 3,258,436

The average number of employees during the period was as follows:
Period Period
30/12/22 31/12/21
to to
28/12/23 29/12/22

Directors 4 4
Management 6 6
Accounts 5 5
Cinema and site staff 242 257
257 272

Period Period
30/12/22 31/12/21
to to
28/12/23 29/12/22
£    £   
Directors' remuneration - -

7. OPERATING PROFIT

The operating profit is stated after charging:

Period Period
30/12/22 31/12/21
to to
28/12/23 29/12/22
£    £   
Other operating leases 2,138,537 1,972,153
Depreciation - owned assets 1,086,716 1,411,479
Loss on disposal of fixed assets 450,375 224

8. AUDITORS' REMUNERATION

Period Period
30/12/22 31/12/21
to to
28/12/23 29/12/22
£ £
Fees payable to the company's auditors for the audit of the company's
financial statements 19,000 17,800
Auditors' remuneration for non audit work 5,575 6,540

REEL CINEMAS LIMITED (REGISTERED NUMBER: 03561597)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the period 30 December 2022 to 28 December 2023


9. EXCEPTIONAL ITEMS
Period Period
30/12/22 31/12/21
to to
28/12/23 29/12/22
£    £   
Exceptional items 1,500,000 3,000,000

Exceptional items represents Business Interruption insurance proceeds arising from loss of profits experienced during the coronavirus pandemic.

10. INTEREST PAYABLE AND SIMILAR EXPENSES
Period Period
30/12/22 31/12/21
to to
28/12/23 29/12/22
£    £   
Bank loan interest 116,207 139,741

11. TAXATION

Analysis of the tax charge
The tax charge on the profit for the period was as follows:
Period Period
30/12/22 31/12/21
to to
28/12/23 29/12/22
£    £   
Current tax:
UK corporation tax - 609,963
Adjustment to prior years (260,724 ) -
Total current tax (260,724 ) 609,963

Deferred tax 559,408 (94,452 )
Tax on profit 298,684 515,511

REEL CINEMAS LIMITED (REGISTERED NUMBER: 03561597)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the period 30 December 2022 to 28 December 2023


11. TAXATION - continued

Reconciliation of total tax charge included in profit and loss
The tax assessed for the period is higher than the standard rate of corporation tax in the UK. The difference is explained below:

Period Period
30/12/22 31/12/21
to to
28/12/23 29/12/22
£    £   
Profit before tax 327,974 2,454,860
Profit multiplied by the standard rate of corporation tax in the UK of 25%
(2022 - 19%)

81,994

466,423

Effects of:
Expenses not deductible for tax purposes 5,177 18,490
Income not taxable for tax purposes (10,042 ) (67,458 )
Capital allowances in excess of depreciation (243,567 ) -
Depreciation in excess of capital allowances - 98,056
Utilisation of tax losses 166,438 -
Adjustments to tax charge in respect of previous periods (260,724 ) -
Deferred tax adjustment 559,408 -
Total tax charge 298,684 515,511

12. INTANGIBLE FIXED ASSETS
Goodwill
£   
COST
At 30 December 2022 456,001
Disposals (1 )
At 28 December 2023 456,000
AMORTISATION
At 30 December 2022 456,001
Eliminated on disposal (1 )
At 28 December 2023 456,000
NET BOOK VALUE
At 28 December 2023 -
At 29 December 2022 -

REEL CINEMAS LIMITED (REGISTERED NUMBER: 03561597)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the period 30 December 2022 to 28 December 2023


13. TANGIBLE FIXED ASSETS
Assets
Leasehold Plant and under
improvements machinery construction Totals
£    £    £    £   
COST
At 30 December 2022 10,692,594 9,984,295 827,754 21,504,643
Additions 348,492 1,182,205 4,351,945 5,882,642
Disposals (1,054,392 ) (1,255,031 ) - (2,309,423 )
Reclassification/transfer 7,690 56,124 (63,814 ) -
At 28 December 2023 9,994,384 9,967,593 5,115,885 25,077,862
DEPRECIATION
At 30 December 2022 2,850,296 7,694,274 - 10,544,570
Charge for period 630,566 456,150 - 1,086,716
Eliminated on disposal (635,404 ) (1,223,644 ) - (1,859,048 )
At 28 December 2023 2,845,458 6,926,780 - 9,772,238
NET BOOK VALUE
At 28 December 2023 7,148,926 3,040,813 5,115,885 15,305,624
At 29 December 2022 7,842,298 2,290,021 827,754 10,960,073


14. STOCKS
2023 2022
£    £   
Finished goods and goods for resale 302,678 305,732

15. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 323,747 448,775
Amounts owed by group undertakings 26,008 26,008
Other debtors 628,120 2,566,594
Tax 260,724 -
Prepayments and accrued income 777,849 1,748,596
2,016,448 4,789,973

16. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans and overdrafts (see note 18) 927,085 927,085
Trade creditors 2,648,147 1,167,657
Tax - 609,963
Social security and other taxes 62,835 62,556
VAT 160,085 136,745
Other creditors 1,117,932 783,161
Accruals and deferred income 564,401 650,072
Deferred government grants 123,240 123,240
5,603,725 4,460,479

REEL CINEMAS LIMITED (REGISTERED NUMBER: 03561597)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the period 30 December 2022 to 28 December 2023


17. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2023 2022
£    £   
Bank loans (see note 18) 505,207 1,432,290
Accruals and deferred income 3,984,492 2,577,385
Deferred government grants 2,497,364 2,620,604
6,987,063 6,630,279

18. LOANS

An analysis of the maturity of loans is given below:

2023 2022
£    £   
Amounts falling due within one year or on demand:
Bank loans 927,085 927,085

Amounts falling due between one and two years:
Bank loans - 1-2 years 505,207 927,084

Amounts falling due between two and five years:
Bank loans - 2-5 years - 505,206

19. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2023 2022
£    £   
Within one year 1,773,519 1,826,423
Between one and five years 7,134,595 6,974,185
In more than five years 13,560,123 15,509,052
22,468,237 24,309,660

Operating lease payments represent the rentals by the company for a number of its properties. Leases have been negotiated for terms of up to 25 years and rentals are fixed for an average of 5 years. At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases.

20. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Bank loans 1,432,292 2,359,375

The bank loans consist of Coronavirus Business Interruption Scheme Loans and are secured with a floating charge over all the property and undertakings of the company. There are limited guarantees given by the Secretary of State for Business Energy and Industrial Strategy for a total of £2,800,000 dated 23 June 2020 and £400,000 dated 11 August 2021.

21. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax 915,757 356,349

REEL CINEMAS LIMITED (REGISTERED NUMBER: 03561597)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the period 30 December 2022 to 28 December 2023


21. PROVISIONS FOR LIABILITIES - continued

Deferred
tax
£   
Balance at 30 December 2022 356,349
Charge to Statement of Comprehensive Income during period 559,408
Balance at 28 December 2023 915,757

The movement in deferred tax for the following period, based on current rates and information, is estimated to be £60,000 credit to the profit and loss account. This primarily relates to the reversal of timing differences.

22. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
3,000,000 Ordinary £1 3,000,000 3,000,000

There is a single class of ordinary shares in issue. There are no restrictions on the distribution of dividends and the repayment of capital.

23. RESERVES

Retained earnings
Profit and loss reserves represents accumulated comprehensive income for the year and prior periods less dividends paid.

24. PENSION COMMITMENTS

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund. The charge to the profit and loss in respect of defined contribution schemes for the year was £36,924 (2022 - £34,134).

25. RELATED PARTY DISCLOSURES

Income from related parties
During the year the company made sales of £210,974 (2022 - £282,730) and received management charges of £nil (2022 - £16,197) to entities under the control of the Suri family.

Purchases from related parties
During the year the company purchased goods and received recharged expenses of £46,196 (2022 - £27,814) and paid rent, insurance and electricity costs of £1,423,201 (2022 - £1,200,573) to entities under the control of the Suri family.

Amounts owed by related parties
At the year end the company was owed £584,724 (2022 - £2,655,424) by entities under the control of the Suri family.

Amounts owed to related parties
At the year end the company owed £302,395 (2022 - £28,990) to entities under the control of the Suri family.

Banking facilities
The company's banking facilities provided by Barclays Bank Plc are secured by a cross guarantee dated 3 June 2020 over the assets of Reel Cinemas Limited, Reel Cinemas (Europe) Limited and Reel Cinema (Universal) Limited.

26. CONTROLLING PARTY

The company is not under the control of any one person.