Company registration number 01788744 (England and Wales)
HARRY LEVY AMUSEMENT CONTRACTOR LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
HARRY LEVY AMUSEMENT CONTRACTOR LIMITED
COMPANY INFORMATION
Directors
H J Levy
P J Martin
D L Harding
Secretary
P J Martin
Company number
01788744
Registered office
Unit 6
Pysons Road
Broadstairs
Kent
United Kingdom
CT10 2LF
Auditor
Azets Audit Services
Laurel House
173 Chorley New Road
Bolton
United Kingdom
BL1 4QZ
HARRY LEVY AMUSEMENT CONTRACTOR LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Statement of income and retained earnings
7
Balance sheet
8
Notes to the financial statements
9 - 19
HARRY LEVY AMUSEMENT CONTRACTOR LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 1 -
The directors present the strategic report for the year ended 30 April 2024.
Review of the business
Turnover dropped by 15% during the year, with sales of imported machines significantly lower than the previous year.
Principal risks and uncertainties
The principal risks and uncertainties associated with the business have always been the general UK economy, changes in disposable income and the weather during key trading periods.
The company’s exposure to financial risk is managed as follows:-
Liquidity and cashflow risk
The company finances its operations through the generation of cash from operating activities and manages its cash requirements using cash flow forecasts and annual budgets.
Credit risk
All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are reviewed on a regular basis and provision is made for doubtful debts when required.
Interest rate risk
The company is exposed to cash flow interest rate risk on floating rate bank overdrafts and loans.
Foreign Currency Risk
The principal foreign currency exposure arises from trading with overseas companies. This exposure may be hedged in order to fix the cost, via the use of foreign exchange forward contracts.
Key Financial & Other Performance Indicators
The company’s key financial and other performance indicators during the year were as follows:
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H J Levy
Director
30 October 2024
HARRY LEVY AMUSEMENT CONTRACTOR LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 2 -
The directors present their annual report and financial statements for the year ended 30 April 2024.
Principal activities
The principal activity of the company during the year continued to be the manufacture and distribution of amusement machines and the operation of arcades.
Results and dividends
The results for the year are set out on page 7.
No ordinary dividends were paid. 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:
H J Levy
P J Martin
D L Harding
Auditor
The auditor, Azets Audit Services, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of directors' responsibilities
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:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
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 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.
Going concern
The financial statements are prepared under the going concern basis. The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for a period of 12 months from the date of approval of these financial statements. Accordingly, they continue to adopt the going concern basis in preparing these financial statements.
HARRY LEVY AMUSEMENT CONTRACTOR LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 3 -
On behalf of the board
H J Levy
Director
30 October 2024
HARRY LEVY AMUSEMENT CONTRACTOR LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF HARRY LEVY AMUSEMENT CONTRACTOR LIMITED
- 4 -
Opinion
We have audited the financial statements of Harry Levy Amusement Contractor Limited (the 'company') for the year ended 30 April 2024 which comprise the statement of income and retained earnings, the balance sheet 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 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 30 April 2024 and of its profit for the year 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.
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.
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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
HARRY LEVY AMUSEMENT CONTRACTOR LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HARRY LEVY AMUSEMENT CONTRACTOR LIMITED
- 5 -
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:
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 remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
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.
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.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
HARRY LEVY AMUSEMENT CONTRACTOR LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HARRY LEVY AMUSEMENT CONTRACTOR LIMITED
- 6 -
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
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.
Graham Rigby
Senior Statutory Auditor
For and on behalf of Azets Audit Services
30 October 2024
Chartered Accountants
Statutory Auditor
Laurel House
173 Chorley New Road
Bolton
United Kingdom
BL1 4QZ
HARRY LEVY AMUSEMENT CONTRACTOR LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 30 APRIL 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
10,022,244
11,818,574
Cost of sales
(7,100,558)
(8,134,827)
Gross profit
2,921,686
3,683,747
Distribution costs
(410,826)
(406,240)
Administrative expenses
(1,750,141)
(2,049,611)
Other operating income
4,471
Operating profit
4
760,719
1,232,367
Interest receivable and similar income
22,274
17,064
Interest payable and similar expenses
(84)
Profit before taxation
782,993
1,249,347
Tax on profit
7
(216,786)
(272,731)
Profit for the financial year
566,207
976,616
Retained earnings brought forward
5,070,985
4,094,369
Retained earnings carried forward
5,637,192
5,070,985
The Statement of Income and Retained Earnings has been prepared on the basis that all operations are continuing operations.
HARRY LEVY AMUSEMENT CONTRACTOR LIMITED
BALANCE SHEET
AS AT
30 APRIL 2024
30 April 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
8
2,897,073
2,923,611
Current assets
Stocks
9
2,428,966
2,440,375
Debtors
10
4,772,186
5,166,467
Cash at bank and in hand
988,369
576,328
8,189,521
8,183,170
Creditors: amounts falling due within one year
11
(3,914,934)
(4,531,620)
Net current assets
4,274,587
3,651,550
Total assets less current liabilities
7,171,660
6,575,161
Provisions for liabilities
Deferred tax liability
12
259,468
229,176
(259,468)
(229,176)
Net assets
6,912,192
6,345,985
Capital and reserves
Called up share capital
14
1,275,000
1,275,000
Profit and loss reserves
15
5,637,192
5,070,985
Total equity
6,912,192
6,345,985
The financial statements were approved by the board of directors and authorised for issue on 30 October 2024 and are signed on its behalf by:
H J Levy
Director
Company Registration No. 01788744
HARRY LEVY AMUSEMENT CONTRACTOR LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
- 9 -
1
Accounting policies
Company information
Harry Levy Amusement Contractor Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 6 Patricia Way, Pysons Road, Broadstairs, Kent, CT10 2LF.
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.
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 or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 3 'Financial Statements Presentation' - Paragraph 3.17(d);
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 low and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’ – Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income
Section 26 ‘Share based Payment’ – Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements
Section 33 ‘Related Party Disclosures’ – Compensation for key management personnel.
Harry Levy Amusement Contractor Limited is a wholly owned subsidiary of The Harry Levy Group Limited and the results of Harry Levy Amusement Contractor Limited are included in the consolidated financial statements of The Harry Levy Group Limited which are available from Companies House, Crown Way, Maindy, Cardiff, CF14 3UZ.
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
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.
HARRY LEVY AMUSEMENT CONTRACTOR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 10 -
Revenue from the provision of services is recognised when the service has been provided, the amount of revenue can be reliably measured and it is probable that the economic benefits associated with the transaction will flow to the entity.
1.4
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:
Freehold land and buildings
Not depreciated
Amusement machines
2 to 5 years straight line
Plant, equipment, fixtures and fittings
4 to 7 years straight line
Computers
4 years straight line
Motor vehicles
4 years straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
Freehold land and buildings is not depreciated as in the opinion of the directors the residual value of the land is not less than the historic cost.
1.5
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.
Recoverable amount is the higher of fair value less costs to sell and value in use.
1.6
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 excluding amusement machines are valued using the FIFO method. Amusement machines are valued using actual cost as they are serial number tracked.
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.
1.7
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
HARRY LEVY AMUSEMENT CONTRACTOR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 11 -
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ 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.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.
Impairment of financial assets
Financial assets 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.
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
Basic financial liabilities, including creditors, bank loans and loans from fellow group companies 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. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
HARRY LEVY AMUSEMENT CONTRACTOR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 12 -
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.10
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
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.
1.13
Interest income is recognised in the statement of income and retained earnings using the effective interest method.
HARRY LEVY AMUSEMENT CONTRACTOR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 13 -
1.14
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.
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.
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 charge for tangible assets is sensitive to changes in the estimated useful economic life and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on technological advancements, future investments, economic utilisation and the physical conditions of the assets. See Note 8 for the carrying amount of tangible assets and Note 1.4 for the estimated useful economic lives of each class of asset.
Provision for doubtful debts
The directors have reviewed the trading balances owing to the company from its customers and made adequate provisions for any debts where it is considered probable that the amount will not be recovered. The amounts would have otherwise been recognised in trade debtors.
Stock provisions
The company sells stock that is subject to changing consumer demands. As a result it is necessary to consider the recoverability of the cost of stock and the associated provision required. When calculating the stock provision, management considers the condition of the stock, as well as applying assumptions around the saleability of stock held.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2024
2023
£
£
Turnover analysed by class of business
Sale of machines and consumables
7,008,917
8,827,169
Arcade income and other sales
3,013,327
2,991,405
10,022,244
11,818,574
HARRY LEVY AMUSEMENT CONTRACTOR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
3
Turnover and other revenue
(Continued)
- 14 -
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
9,482,748
10,730,421
Europe
259,464
659,630
Rest of the world
280,032
428,523
10,022,244
11,818,574
2024
2023
£
£
Other revenue
Interest income
22,274
17,064
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
13,925
12,925
Depreciation of owned tangible fixed assets
545,168
580,732
Profit on disposal of tangible fixed assets
-
(12,429)
Operating lease charges
245,000
235,438
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Directors
3
3
Staff
68
68
Total
71
71
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
1,583,787
1,551,101
Social security costs
139,001
141,050
Pension costs
40,337
41,209
1,763,125
1,733,360
HARRY LEVY AMUSEMENT CONTRACTOR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 15 -
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
175,041
169,899
The directors are deemed to be key management personnel.
7
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
186,494
Deferred tax
Origination and reversal of timing differences
9,854
256,869
Adjustment in respect of prior periods
20,438
15,862
Total deferred tax
30,292
272,731
Total tax charge
216,786
272,731
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:
2024
2023
£
£
Profit before taxation
782,993
1,249,347
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.49%)
195,748
243,498
Tax effect of expenses that are not deductible in determining taxable profit
600
38
Effect of change in corporation tax rate
56,582
Group relief
(23,952)
Under/(over) provided in prior years
20,438
15,862
Superdeduction for capital allowances
(19,297)
Taxation charge for the year
216,786
272,731
HARRY LEVY AMUSEMENT CONTRACTOR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 16 -
8
Tangible fixed assets
Freehold land and buildings
Amusement machines
Plant, equipment, fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 May 2023
1,092,045
3,350,142
803,458
70,146
118,458
5,434,249
Additions
531,138
63,580
7,960
602,678
Disposals
(224,691)
(224,691)
At 30 April 2024
1,092,045
3,656,589
867,038
78,106
118,458
5,812,236
Depreciation and impairment
At 1 May 2023
2,012,585
372,261
47,113
78,679
2,510,638
Depreciation charged in the year
403,976
116,423
9,942
14,827
545,168
Eliminated in respect of disposals
(140,643)
(140,643)
At 30 April 2024
2,275,918
488,684
57,055
93,506
2,915,163
Carrying amount
At 30 April 2024
1,092,045
1,380,671
378,354
21,051
24,952
2,897,073
At 30 April 2023
1,092,045
1,337,557
431,197
23,033
39,779
2,923,611
9
Stocks
2024
2023
£
£
Raw materials and consumables
935,642
767,830
Work in progress
122,921
129,505
Finished goods and goods for resale
1,370,403
1,543,040
2,428,966
2,440,375
An impairment charge of £61,537 (2023: credit of £14,509) was recognised in cost of sales due to movements in the stock provision for slow-moving and obsolete stock.
HARRY LEVY AMUSEMENT CONTRACTOR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 17 -
10
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,232,967
1,986,392
Amounts owed by group undertakings
3,117,757
2,811,532
Other debtors
32,070
5,046
Prepayments and accrued income
389,392
363,497
4,772,186
5,166,467
An impairment credit of £112,368 (2023: charge of £23,200) was recognised in administrative expenses against trade debtors during the year.
11
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
634,703
1,373,784
Amounts owed to group undertakings
2,518,317
2,518,317
Corporation tax
186,494
Other taxation and social security
260,030
259,651
Other creditors
17,431
19,133
Accruals and deferred income
297,959
360,735
3,914,934
4,531,620
The bank overdraft is secured by fixed and floating charges over the company's assets.
12
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
259,760
229,418
Short term timing differences
(292)
(242)
259,468
229,176
HARRY LEVY AMUSEMENT CONTRACTOR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
12
Deferred taxation
(Continued)
- 18 -
2024
Movements in the year:
£
Liability at 1 May 2023
229,176
Charge to profit or loss
30,292
Liability at 30 April 2024
259,468
13
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
40,337
41,209
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. At the year end, £3,148 (2023: £3,031) was payable to the fund and is included within other creditors.
14
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1,275,000
1,275,000
1,275,000
1,275,000
The ordinary shares have full voting rights as regards dividends, distributions and the issue of share capital.
15
Profit and loss reserves
Profit and loss reserves
The profit and loss account includes all current and prior period retained profits and losses less dividends.
16
Financial commitments, guarantees and contingent liabilities
The company has given a cross guarantee in respect of bank borrowings of a fellow subsidiary. The total bank borrowings at the balance sheet date were £1,596,335 (2023: £1,754,433).
At the year end, the company has a forward contract to manage foreign exchange risk. The company is committed to $500,000 USD at a rate of 1.186 which matures on 16 October 2024.
HARRY LEVY AMUSEMENT CONTRACTOR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 19 -
17
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
330,000
243,000
Between two and five years
567,575
602,671
In over five years
593,780
726,911
1,491,355
1,572,582
18
Directors' transactions
During the year, the company made advances to the directors of £229,512 (2023: £37,171).
The advances were repaid in full in advance of the year end.
19
Related party transactions
The company has taken advantage of the exemption under FRS 102 Section 33 (Paragraph 33.1A) from disclosing intra group transactions on the basis that the company is a wholly owned subsidiary within the grouptrue.
Amounts due to group undertakings at the reporting date totalled £2,518,317 (2023: £2,518,317). The balance consisted of monies owed to The Harry Levy Group Limited.
Amounts due from group undertakings at the reporting date totalled £3,117,757 (2023: £2,811,532). The balance consisted of monies owed from Crown Leisure Limited.
20
Ultimate controlling party
The ultimate parent company is The Harry Levy Group Limited, a company registered in England and Wales.
The ultimate controlling party is H J Levy by virtue of his position as trustee in a number of trusts which together hold the majority of shares in the The Harry Levy Group Limited.
Group financial statements are available from Companies House, Crown Way, Cardiff, CF14 3UZ.
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