Company Registration No. 06372815 (England and Wales)
NMC COMMERCIAL LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
PAGES FOR FILING WITH REGISTRAR
NMC COMMERCIAL LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 6
NMC COMMERCIAL LIMITED
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
4
10,920
10,547
Current assets
Stocks
19,372
13,720
Debtors
5
8,428
5,484
Cash at bank and in hand
222,454
246,619
250,254
265,823
Creditors: amounts falling due within one year
6
(251,999)
(264,373)
Net current (liabilities)/assets
(1,745)
1,450
Total assets less current liabilities
9,175
11,997
Creditors: amounts falling due after more than one year
7
(9,075)
(11,897)
Net assets
100
100
Capital and reserves
Called up share capital
8
100
100
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
The financial statements were approved by the board of directors and authorised for issue on 2 October 2024 and are signed on its behalf by:
P Southby
Director
Company registration number 06372815 (England and Wales)
NMC COMMERCIAL LIMITED
BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2024
31 March 2024
- 2 -
1
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.
2
Accounting policies
Company information
NMC Commercial Limited is a private company limited by shares incorporated in England and Wales. The registered office is 14-18 Broad Street, Nottingham, NG1 3AL.
2.1
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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.
NMC COMMERCIAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
2
Accounting policies
(Continued)
- 3 -
2.2
Going concern
Broadway Cinema, represented by Nottingham Media Centre Ltd, is navigating a challenging but promising trading environment. Unrestricted reserves increasing from £1,103,293, to £1,221,755 with the organisation demonstrating a strong commitment to financial sustainability.
To enhance our financial oversight, we have established a Finance Group comprised of Trustees and Senior Staff. This group meets regularly to closely monitor our financial performance, identify potential risks, and implement strategies to improve our financial position.
Broadway confronted significant challenges in 2023, stemming from the SAG-AFTRA strikes and a persistent shortfall in pre-pandemic audience levels. The initial six months of the year were particularly difficult, necessitating a reduction in the projected budget for the 2023-26 plan. Nevertheless, the latter half of the year witnessed encouraging signs of recovery, exemplified by the resounding success of "Barbenheimer" in July. This blockbuster drew 17,340 patrons and generated £112,445 in ticket sales, representing a substantial 58% increase compared to the corresponding period in the previous year. The autumn and winter seasons demonstrated further resilience, culminating in a robust fourth quarter that attracted 52,466 attendees and garnered £359,866 in revenue, marking a 41% improvement over the prior year. These positive trends suggest a promising outlook for Broadway's future, as the industry appears to be gradually rebounding from the challenges posed by the pandemic and labour disputes.
Furthermore, we have successfully secured a Museum and Galleries Tax Relief claim worth £67,000. This has significantly improved our financial position for the current year and will provide additional income for future years. With the hospitality industry showing signs of recovery food inflation falling and a reduction in energy pricing, we are approaching the year ahead with confidence.
Looking ahead, we have set a long-term target to recover from the impact of previous challenges and aim for free reserves equivalent to 12 weeks of turnover. While there are uncertainties about the pace of recovery in customer numbers, our prudent investment and reserves policy, along with our commitment to financial sustainability, indicate our determination to weather these challenges. Our ability to adapt to changing market dynamics and maintain a proactive approach to financial management remains crucial.
Based on our proactive financial management and positive performance indicators, the Broadway Cinema Board of Trustees reasonably expects the organisation to continue its operational existence for the foreseeable future. This allows us to adopt the going concern basis of accounting in preparing our financial statements.
2.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
2.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Fixtures and fittings
25% reducing balance
NMC COMMERCIAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
2
Accounting policies
(Continued)
- 4 -
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.
2.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible 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.
2.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
2.7
Cash at bank and in hand
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.
2.8
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
34
28
NMC COMMERCIAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 5 -
4
Tangible fixed assets
Fixtures and fittings
£
Cost
At 1 April 2023
50,962
Additions
3,090
Disposals
(12,619)
At 31 March 2024
41,433
Depreciation and impairment
At 1 April 2023
40,415
Depreciation charged in the year
2,501
Eliminated in respect of disposals
(12,403)
At 31 March 2024
30,513
Carrying amount
At 31 March 2024
10,920
At 31 March 2023
10,547
5
Debtors
2024
2023
Amounts falling due within one year:
£
£
Other debtors
8,428
5,484
6
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans
3,803
3,654
Trade creditors
39,382
26,404
Amounts owed to group undertakings
46,539
83,490
Taxation and social security
47,790
42,879
Other creditors
114,485
107,946
251,999
264,373
7
Creditors: amounts falling due after more than one year
2024
2023
£
£
Bank loans and overdrafts
9,075
11,897
The bank loan has been guaranteed by Nottingham Media Centre Limited.
NMC COMMERCIAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 6 -
8
Called up share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
ordinary shares of £1 each
100
100
100
100
9
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Melvin Bailey
Statutory Auditor:
Rogers Spencer
Date of audit report:
11 October 2024
10
Related party transactions
NMC Commercial Limited is a wholly owned subsidiary of Nottingham Media Centre Limited (company number 2315936), a registered charity (number 700880). The registered office of both companies is 14-18 Broad Street, Nottingham, NG1 3AL.
As at 31 March 2024 an inter company loan was due from NMC Commercial Limited to Nottingham Media Centre Limited of £46,539 (2023: £83,490). The loan was unsecured and interest free.