Lanza & Baucina Limited
Annual Report and Financial Statements
For the year ended 31 December 2023
Company Registration No. 04324946 (England and Wales)
Lanza & Baucina Limited
Company Information
Directors
R V Lanza
A M Lanza
A Licata Di Baucina
Secretary
R V Lanza
Company number
04324946
Registered office
10 The Village
101 Amies Street
London
United Kingdom
SW11 2JW
Auditors
Moore Kingston Smith LLP
Charlotte Building
17 Gresse Street
London
W1T 1QL
Lanza & Baucina Limited
Contents
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 8
Statement of income and retained earnings
9
Balance sheet
10
Statement of cash flows
11
Notes to the financial statements
12 - 23
Lanza & Baucina Limited
Strategic Report
For the year ended 31 December 2023
Page 1

Lanza & Baucina operate in the Luxury and Exclusive Event business where its clients demand confidentiality, exceptional event management and bespoke particulars which make them unique and differentiates their events from other operators in this field. The personalised nature of the directors with their clients is also unique as we do not advertise. This sets us apart from the field.

Fair review of the business

In 2023 turnover decreased by £5.44m (2022: £38m increase), with our margins % increased in the year. Gross profit increased by £1.4m (2022: £6.3m increase). Profit before tax increased by £0.936m (2022: £6m increase). Core permanent staff levels have increased to 11 (2022: 10) persons and we maintain freelance consultants in optimising fixed costs to allow flexibility.

 

At December 2023 our net asset position was £4.6m (2022: £3.7m) and our net current asset position was £2.6m (2022: £1.9m).

 

We continue our trend of being in the top performers in Europe in this niche market.

Principal risks and uncertainties and strategy

To minimize risk our billing is in normally in advance before commencement of each stage. The nature of our business relies on the closeness to our clients and trust is a key element, further minimizing risk.

The directors have considered the potential impact on the business operations of the company in response to the expected economic slowdown in growth, increased costs caused by inflation and the directors will take the following steps to mitigate any associated risks:

Key performance indicators

The company uses the following KPI's to measure its performance with previous years and that with the market in general:

 

Turnover                          Down 11.8% to £40.41m (2022: £45.9m)

 

UK business turnover percentage      Up 12.22% to 12.22% (2022: 0%)

 

Cost of sales as a percentage of turnover Down 6.1% to 76.9% (2022: 83.0%)

 

Administrative expenses as a percentage of Gross profit      Up 7.1% to 14.6% (2022: 7.5%)

Future outlook

We look forward to maintaining our gross margins with similar returns in the coming year. We expect a similar level of turnover and therefore a similar profit in 2024.

Environment impact

Lanza & Baucina endeavour to source natural event spaces where possible and are considerate on sourcing client requests with sustainable products to maintain a neutral effect on the environment.

 

Lanza & Baucina Limited
Strategic Report (Continued)
For the year ended 31 December 2023
Page 2

On behalf of the board

R V Lanza
Director
23 September 2024
Lanza & Baucina Limited
Directors' Report
For the year ended 31 December 2023
Page 3

The directors present their annual report and financial statements for the year ended 31 December 2023.

Principal activities

The principal activity of the company continued to be that of event management.

Results and dividends

The profit for the year, after taxation, amounted to £6,261,153 (2022: £5,823,483).

Ordinary dividends were declared amounting to £5,329,275 (2022: £4,000,000). 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:

R V Lanza
A M Lanza
A Licata Di Baucina
Auditor

In accordance with the company's articles, a resolution proposing that Moore Kingston Smith LLP be reappointed as auditor of the company will be put at a General Meeting.

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 company’s auditor 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 company’s auditor is aware of that information.

On behalf of the board
R V Lanza
Director
23 September 2024
2024-09-23
Lanza & Baucina Limited
Directors' Responsibilities Statement
For the year ended 31 December 2023
Page 4

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 company and of the profit or loss of the company 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 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.

Lanza & Baucina Limited
Independent Auditor's Report
To the Members of Lanza & Baucina Limited
Page 5
Opinion

We have audited the financial statements of Lanza & Baucina Limited (the 'company') for the year ended 31 December 2023 which comprise the Statement of Income and Retained Earnings, the Balance Sheet, the 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 FRS 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 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 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.

Lanza & Baucina Limited
Independent Auditor's Report (Continued)
To the Members of Lanza & Baucina Limited
Page 6

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 company and its 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 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.

Lanza & Baucina Limited
Independent Auditor's Report (Continued)
To the Members of Lanza & Baucina Limited
Page 7
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.

 

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

 

 

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

 

 

Lanza & Baucina Limited
Independent Auditor's Report (Continued)
To the Members of Lanza & Baucina Limited
Page 8

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company.

Our approach was as follows:

 

 

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. 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.

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.

Gary De Souza
Senior Statutory Auditor
for and on behalf of Moore Kingston Smith LLP
23 September 2024
Chartered Accountants
Statutory Auditor
Charlotte Building
17 Gresse Street
London
W1T 1QL
Lanza & Baucina Limited
Statement of Income and Retained Earnings
For the year ended 31 December 2023
Page 9
2023
2022
Notes
£
£
Turnover
3
40,413,047
45,856,116
Cost of sales
(31,083,253)
(37,935,550)
Gross profit
9,329,794
7,920,566
Administrative expenses
(1,365,207)
(596,980)
Operating profit
4
7,964,587
7,323,586
Interest receivable and similar income
7
58,862
1,347
Interest payable and similar expenses
8
(844)
(2,400)
Fair value gains and losses
9
140,492
(95,849)
Profit before taxation
8,163,097
7,226,684
Tax on profit
10
(1,901,944)
(1,403,201)
Profit for the financial year
6,261,153
5,823,483
Retained earnings brought forward
3,640,236
1,816,753
Dividends
(5,329,275)
(4,000,000)
Retained earnings carried forward
4,572,114
3,640,236

The Statement of income and retained earnings has been prepared on the basis that all operations are continuing operations.

Lanza & Baucina Limited
Balance Sheet
As at 31 December 2023
Page 10
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
11
-
0
3,599
Tangible assets
12
1,177,098
1,217,196
Investments
13
850,154
559,662
2,027,252
1,780,457
Current assets
Debtors
14
3,930,671
2,080,434
Cash at bank and in hand
8,321,224
10,700,098
12,251,895
12,780,532
Creditors: amounts falling due within one year
15
(9,666,485)
(10,872,460)
Net current assets
2,585,410
1,908,072
Total assets less current liabilities
4,612,662
3,688,529
Creditors: amounts falling due after more than one year
16
(20,548)
(28,293)
Net assets
4,592,114
3,660,236
Capital and reserves
Called up share capital
19
20,000
20,000
Profit and loss reserves
4,572,114
3,640,236
Total equity
4,592,114
3,660,236
The financial statements were approved by the board of directors and authorised for issue on 23 September 2024 and are signed on its behalf by:
R V Lanza
Director
Company Registration No. 04324946
Lanza & Baucina Limited
Statement of Cash Flows
For the year ended 31 December 2023
Page 11
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
23
5,206,812
10,626,768
Interest paid
(844)
(2,400)
Income taxes paid
(1,752,207)
(198,147)
Net cash inflow from operating activities
3,453,761
10,426,221
Investing activities
Purchase of tangible fixed assets
(8,156)
(13,651)
Purchase of fixed asset investments
(150,000)
-
0
Interest received
58,862
1,347
Net cash used in investing activities
(99,294)
(12,304)
Financing activities
Payment of finance leases obligations
(7,331)
(6,332)
Dividends paid
(5,726,010)
(1,447,500)
Net cash used in financing activities
(5,733,341)
(1,453,832)
Net (decrease)/increase in cash and cash equivalents
(2,378,874)
8,960,085
Cash and cash equivalents at beginning of year
10,700,098
1,740,013
Cash and cash equivalents at end of year
8,321,224
10,700,098
Lanza & Baucina Limited
Notes to the Financial Statements
For the year ended 31 December 2023
Page 12
1
Accounting policies
Company information

Lanza & Baucina Limited is a company limited by shares incorporated in England and Wales. The registered office is 10 The Village, 101 Amies Street, London, SW11 2JW.

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. The principal accounting policies adopted are set out below.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company 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.

1.3
Turnover

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, including commissions earned but excluding discounts, rebates, value added tax and other sales taxes.

 

Revenue is recognised (and associated costs expensed) in the month in which the related event is held on the basis that there is no right to revenue until this point. Deferred and accrued income and costs are held on the balance sheet until the event is concluded.

1.4
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:

Software
33% straight line
1.5
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.

Lanza & Baucina Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
Page 13

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:

Long term leasehold property
2% straight line
Leasehold property improvements
20% straight line
Fixtures, fittings and equipment
33.3% straight line
Motor vehicles
20% 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.

1.6
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.

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.

1.7
Investments

Investments include investment of listed equity instruments which are initially measured at fair value and subsequent changes in fair value are recognised in profit or loss. Other investments, where the fair value cannot be measured reliably including artwork, are measured at cost less impairment.

1.8
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.

Lanza & Baucina Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
Page 14
1.9
Financial instruments

The company 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 company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with 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.

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.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Lanza & Baucina Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
Page 15
Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.10
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.

1.11
Taxation

The tax expense represents 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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

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.

1.12
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.

1.13
Retirement benefits

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

1.14
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.

Lanza & Baucina Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
Page 16

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 leases asset are consumed.

1.15
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 in the period are included in profit or loss.

2
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.

 

There are no judgements or estimates that have significant effect on amounts recognised in the financial statements.

 

3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
Event revenue and comissions receivable
40,413,047
45,856,116
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
4,939,681
-
Rest of Europe
25,382,090
42,251,758
Rest of the world
10,091,276
3,604,358
40,413,047
45,856,116
Lanza & Baucina Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
3
Turnover and other revenue
(Continued)
Page 17
2023
2022
£
£
Other significant revenue
Interest income
58,862
1,347
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
114,497
(404,903)
Fees payable to the company's auditor for the audit of the company's financial statements
41,763
34,000
Depreciation of owned tangible fixed assets
47,220
47,224
Loss on disposal of tangible fixed assets
1,034
-
Amortisation of intangible assets
3,599
18,268
Operating lease charges
5,235
5
Employees

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

2023
2022
Number
Number
11
10

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
617,667
522,879
Social security costs
81,385
59,067
Pension costs
199,523
19,106
898,575
601,052
Lanza & Baucina Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 18
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
41,001
28,875
Company pension contributions to defined contribution schemes
166,665
-
207,666
28,875
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
58,862
1,347
8
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
-
1,158
Other finance costs:
Interest on finance leases and hire purchase contracts
844
1,242
844
2,400
9
Fair value gains and losses
2023
2022
£
£
Fair value (losses)/ gains on financial instruments
Gain/(loss) on financial assets held at fair value through profit or loss
140,492
(95,849)
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
1,901,944
1,403,201
Lanza & Baucina Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
10
Taxation
(Continued)
Page 19

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
8,163,097
7,226,684
Expected tax charge based on the standard rate of corporation tax in the UK of 23.50% (2022: 19.00%)
1,918,328
1,373,070
Tax effect of expenses that are not deductible in determining taxable profit
6,362
22,365
Tax effect of income not taxable in determining taxable profit
(33,016)
-
0
Effect of change in corporation tax rate
1,662
-
0
Permanent capital allowances in excess of depreciation
8,608
2,078
Depreciation on assets not qualifying for tax allowances
-
0
5,688
Taxation charge for the year
1,901,944
1,403,201
11
Intangible fixed assets
Software
£
Cost
At 1 January 2023 and 31 December 2023
55,358
Amortisation and impairment
At 1 January 2023
51,759
Amortisation charged for the year
3,599
At 31 December 2023
55,358
Carrying amount
At 31 December 2023
-
0
At 31 December 2022
3,599
Lanza & Baucina Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 20
12
Tangible fixed assets
Long term leasehold property
Leasehold property improvements
Fixtures, fittings and equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2023
1,451,368
149,544
98,107
40,808
1,739,827
Additions
-
0
-
0
8,156
-
0
8,156
Disposals
-
0
-
0
(11,685)
-
0
(11,685)
At 31 December 2023
1,451,368
149,544
94,578
40,808
1,736,298
Depreciation and impairment
At 1 January 2023
280,597
147,865
82,607
11,562
522,631
Depreciation charged in the year
29,027
915
9,116
8,162
47,220
Eliminated in respect of disposals
-
0
-
0
(10,651)
-
0
(10,651)
At 31 December 2023
309,624
148,780
81,072
19,724
559,200
Carrying amount
At 31 December 2023
1,141,744
764
13,506
21,084
1,177,098
At 31 December 2022
1,170,771
1,679
15,500
29,246
1,217,196

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts. The depreciation charge in respect of such assets amounted to £8,162 (2022: £8,162) for the year.

2023
2022
£
£
Motor vehicles
21,084
29,246
13
Fixed asset investments
2023
2022
£
£
Listed investments
744,517
454,025
Unlisted investments
105,637
105,637
850,154
559,662
Lanza & Baucina Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
13
Fixed asset investments
(Continued)
Page 21
Movements in fixed asset investments
Investments
£
Cost or valuation
At 1 January 2023
559,662
Additions
150,000
Valuation changes
140,492
At 31 December 2023
850,154
Carrying amount
At 31 December 2023
850,154
At 31 December 2022
559,662
14
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
2,326,108
1,580,580
Other debtors
40,645
22,424
Prepayments and accrued income
1,563,918
477,430
3,930,671
2,080,434
15
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Obligations under finance leases
17
5,866
5,452
Trade creditors
1,363,401
2,774,499
Corporation tax
1,553,097
1,403,360
Other taxation and social security
60,003
16,976
Other creditors
2,484,221
2,876,600
Accruals and deferred income
4,199,897
3,795,573
9,666,485
10,872,460

The company has one outstanding charge over the property known as Apartment 10, 101 Amies Street, London, SW11 2JW. This is secured by fixed and floating charges over the assets of the company.

Lanza & Baucina Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 22
16
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Obligations under finance leases
17
20,548
28,293

Net obligations under hire purchase contracts are secured against the assets to which they relate.

17
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
5,866
5,452
In two to five years
20,548
28,293
26,414
33,745

Finance lease payments represent rentals payable by the company 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. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

18
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
199,523
19,106

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

19
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of £1 each
19,999
20,000
19,999
20,000
Ordinary B shares of £1 each
1
-
1
-
20,000
20,000
20,000
20,000

During the year the 20,000 Ordinary shares were redesignated; 19,999 became Ordinary A shares and 1 became an Ordinary B share, both A and B shares are of equal rank.

Lanza & Baucina Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 23
20
Related party transactions

During the year, dividends amounting to £5,329,275 (2022: £4,000,000) were declared.

 

At the balance sheet date, £1,408 was due from directors (2022: £3,056) and £358,455 was due to directors (2022: £308,766).

 

£1,350,000 (2022: £1,230,000) was due to the parent company and £562,500 (2022: £512,500) was due to a company under common directorship.

21
Ultimate controlling party

The ultimate parent company is Yellow Pencils Holdings Limited, a company registered in England and Wales.

 

The ultimate controlling party is R V Lanza by virtue of his majority shareholding in Yellow Pencils Holdings Limited.

22
Analysis of changes in net funds
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
10,700,098
(2,378,874)
8,321,224
Obligations under finance leases
(33,745)
7,331
(26,414)
10,666,353
(2,371,543)
8,294,810
23
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
6,261,153
5,823,483
Adjustments for:
Taxation charged
1,901,944
1,403,201
Finance costs
844
2,400
Investment income
(58,862)
(1,347)
Loss on disposal of tangible fixed assets
1,034
-
Amortisation and impairment of intangible assets
3,599
18,268
Depreciation and impairment of tangible fixed assets
47,220
47,224
Other gains and losses
(140,492)
95,849
Movements in working capital:
(Increase)/decrease in debtors
(1,850,237)
1,535,880
(Decrease)/increase in creditors
(959,391)
1,701,810
Cash generated from operations
5,206,812
10,626,768
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