Company registration number 03751454 (England and Wales)
LCA LIGHTS CAMERA ACTION LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
LCA LIGHTS CAMERA ACTION LTD
COMPANY INFORMATION
Directors
P R Capstick
N C E Shapley
D A Gordon
P D B Mallia
Secretary
N C E Shapley
Company number
03751454
Registered office
Centauri House
Hillbottom Road
Sands Industrial Estate
High Wycombe
Buckinghamshire
United Kingdom
HP12 4HQ
Auditor
Azets Audit Services
Suites B & D
Burnham Yard
London End
Beaconsfield
Buckinghamshire
United Kingdom
HP9 2JH
LCA LIGHTS CAMERA ACTION LTD
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 23
LCA LIGHTS CAMERA ACTION LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2024
- 1 -

The directors present the strategic report for the year ended 31 January 2024.

Review of the business

The profit for the year, after taxation, is £1,873,340 (2023: £1,909,921). The directors have not declared a dividend (2023: £1,500,000).

 

The Company’s key financial and other performance indicators during the year were as follows:

 

 

2024

2023

Change

 

£'000

£'000

%

Turnover (UK)

12,940

14,299

-9.5%

Turnover (Overseas)

1,383

3,497

-60.5%

Operating profit

2,465

2,493

-1.1%

Profit for the financial year

1,873

1,910

-1.9%

Shareholder’s equity

5,994

4,120

45.5%

Current assets as % of current liabilities (‘quick ratio’)

499.4%

185.30%

314.1%

Average number of employees

6

7

-14.3%

 

 

Turnover decreased 9.5% from the UK market and decreased 60.5% from the overseas market, this was due to impact of the actors and writers strikes which meant the majority of large productions in the UK/US film industry were paused which led to a lack of capital investment.

 

Turnover for the UK and Overseas business will continue to be stagnated in FY25 due to the slower then expected bounce back of our customers in the Film industry who have been more conservative with cashflow in the aftermath of the strikes and are not expected to make major capital investments until FY26.

 

Operating profit decreased by 1.1% during the year. The decrease can be attributed to the decrease in turnover.

 

Shareholders’ equity increased by 45.5% due to retained earnings.

 

The company’s “quick ratio” (current assets as a percentage of current liabilities) has increased by 314.1%.

 

The total average number of employees decreased by 14.3%.

 

 

LCA LIGHTS CAMERA ACTION LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 2 -
Principal risks and uncertainties

The Company has regular management meetings where the board meet and evaluates the risks faced by the company. The principal risks and uncertainties facing the Company are broadly grouped as – competitive, legislative and financial instrument risk.

 

In the UK the Company has a number of key clients which need to be managed and serviced efficiently to prevent competitors gaining traction with these clients.

 

In overseas markets the principal competitive risk relates to competition from local competitors who may be perceived as being able to offer a better level of service and increased competition on larger capex projects.

 

The company predominantly operates in nations where regulations are taken seriously and companies are expected to act on them. The company has now grown to be a medium/large sized business and thus the reporting burden on the company will increase significantly.

    

Price risk arises on financial instruments because of changes in, for example, commodity prices or equity prices.

 

Credit risk is the risk that one party to a financial instrument will cause a financial loss for that other party by failing to discharge an obligation. Company policies are aimed at minimising such losses, and require that deferred terms are only granted to customers who demonstrate an appropriate payment history and satisfy credit worthiness procedures. Details of the Company’s receivables are shown on the face of the balance sheet.

 

Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities. The Company aims to mitigate liquidity risk by managing cash generation by its operations, applying cash collection targets throughout the Company.

 

Foreign exchange risk is the risk that an entity will suffer financial loss due to the movement in the strength of its base currency. The company manages this risk through self-hedging.

    

Cash flow risk is the risk of exposure to variability in cash flows that is attributable to a particular risk associated with a recognised asset or liability such as future interest payments on a variability rate debt. The Company manages this risk, where significant, by reliance on its parent company to cover any potential shortfalls.

Future Developments

LCA Lights Camera Action Ltd will continue to invest in its staff and new partnerships to support our vision of being the leading international provider of cutting-edge Film and TV technology products and solutions and will look to grow through organic client opportunities and continued strategic geographical expansion.

On behalf of the board

D A Gordon
Director
31 October 2024
LCA LIGHTS CAMERA ACTION LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JANUARY 2024
- 3 -

The directors present their annual report and financial statements for the year ended 31 January 2024.

Principal activities

The principal activity of the company continued to be that of wholesale of other machinery and equipment.

Results and dividends

The results for the year are set out on page 8.

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:

P R Capstick
N C E Shapley
D A Gordon
P D B Mallia
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:

 

 

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.

LCA LIGHTS CAMERA ACTION LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 4 -
On behalf of the board
D A Gordon
Director
31 October 2024
LCA LIGHTS CAMERA ACTION LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF LCA LIGHTS CAMERA ACTION LTD
- 5 -
Opinion

We have audited the financial statements of LCA Lights Camera Action Ltd (the 'company') for the year ended 31 January 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity 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:

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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

LCA LIGHTS CAMERA ACTION LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF LCA LIGHTS CAMERA ACTION LTD
- 6 -
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.

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.

LCA LIGHTS CAMERA ACTION LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF LCA LIGHTS CAMERA ACTION LTD
- 7 -

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:

 

 

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.

Use of our report

This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.

Adam East ACA
Senior Statutory Auditor
For and on behalf of Azets Audit Services
31 October 2024
Chartered Accountants
Statutory Auditor
Suites B & D
Burnham Yard
London End
Beaconsfield
Buckinghamshire
United Kingdom
HP9 2JH
LCA LIGHTS CAMERA ACTION LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JANUARY 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
14,323,543
17,795,459
Cost of sales
(10,115,774)
(13,151,787)
Gross profit
4,207,769
4,643,672
Administrative expenses
(1,742,504)
(2,168,542)
Other operating income
-
0
17,759
Operating profit
4
2,465,265
2,492,889
Interest receivable and similar income
7
18,292
20
Interest payable and similar expenses
8
(51,623)
(49,319)
Profit before taxation
2,431,934
2,443,590
Tax on profit
9
(558,594)
(533,669)
Profit for the financial year
1,873,340
1,909,921

The profit and loss account has been prepared on the basis that all operations are continuing operations.

LCA LIGHTS CAMERA ACTION LTD
BALANCE SHEET
AS AT
31 JANUARY 2024
31 January 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
137,252
79,241
Current assets
Stocks
13
1,665,377
2,727,638
Debtors
14
2,287,938
5,844,276
Cash at bank and in hand
3,377,888
308,626
7,331,203
8,880,540
Creditors: amounts falling due within one year
16
(1,468,099)
(4,801,831)
Net current assets
5,863,104
4,078,709
Total assets less current liabilities
6,000,356
4,157,950
Provisions for liabilities
Deferred tax liability
18
6,631
37,565
(6,631)
(37,565)
Net assets
5,993,725
4,120,385
Capital and reserves
Called up share capital
20
100,000
100,000
Profit and loss reserves
5,893,725
4,020,385
Total equity
5,993,725
4,120,385
The financial statements were approved by the board of directors and authorised for issue on 31 October 2024 and are signed on its behalf by:
D A Gordon
Director
Company Registration No. 03751454
LCA LIGHTS CAMERA ACTION LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2024
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 February 2022
100,000
3,610,464
3,710,464
Year ended 31 January 2023:
Profit and total comprehensive income for the year
-
1,909,921
1,909,921
Dividends
10
-
(1,500,000)
(1,500,000)
Balance at 31 January 2023
100,000
4,020,385
4,120,385
Year ended 31 January 2024:
Profit and total comprehensive income for the year
-
1,873,340
1,873,340
Balance at 31 January 2024
100,000
5,893,725
5,993,725
LCA LIGHTS CAMERA ACTION LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
- 11 -
1
Accounting policies
Company information

LCA Lights Camera Action Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Centauri House, Hillbottom Road, Sands Industrial Estate, High Wycombe, Buckinghamshire, United Kingdom, HP12 4HQ.

 

These financial statements were authorised for issue by the directors on 31 October 2024.

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:

 

 

The financial statements of the company are consolidated in the financial statements of A.C Worldwide Group Limited. These consolidated financial statements are available from its registered office, Centauri House, Hillbottom Road, Sands Industrial Estate, High Wycombe, Buckinghamshire, HP12 4HQ.

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 from a sale of goods is recognised upon delivery of the goods which is the point in time at which the significant risks and rewards of ownership of the goods are transferred to the customer. Revenue is valued at invoiced amounts, excluding sales taxes and less trade discounts where relevant.

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:

Plant and equipment
15% on cost
Fixtures and fittings
10% on cost
Computers
25% on reducing balance
Motor vehicles
25% on reducing balance
LCA LIGHTS CAMERA ACTION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 12 -

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.

1.5
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. 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.

1.6
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.

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, 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.

LCA LIGHTS CAMERA ACTION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 13 -
1.8
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.

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.

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.

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.

LCA LIGHTS CAMERA ACTION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 14 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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.

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.

Derecognition of financial liabilities

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

1.9
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.

1.10
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.

LCA LIGHTS CAMERA ACTION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 15 -
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.

1.11
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.

1.12
Retirement benefits

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

1.13
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.

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.

Amounts due from lessees under finance leases are recognised as receivables at the amount of the company’s net investment in the leases. Finance lease income is allocated to accounting periods so as to reflect a constant periodic rate of return on the company’s net investment outstanding in respect of leases.

1.14
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.

LCA LIGHTS CAMERA ACTION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 16 -
2
Judgements and key sources of estimation uncertainty

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies.

 

The Company estimates the net realisable value of stock at the end of the reporting period taking into account the age profile of stock and expected demand from customers. The Company also assesses the likelihood of recovering outstanding balances from customers and make a provision against these balances as required.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
12,940,317
14,298,802
Rest of World
1,383,226
3,496,657
14,323,543
17,795,459
2024
2023
£
£
Other revenue
Interest income
18,292
20
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses
25,684
122,282
Fees payable to the company's auditor for the audit of the company's financial statements
19,750
8,700
Depreciation of owned tangible fixed assets
38,069
28,927
Impairment of owned tangible fixed assets
-
0
13,861
(Profit)/loss on disposal of tangible fixed assets
(2,749)
1,396
Operating lease charges
35,000
41,345
5
Employees

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

2024
2023
Number
Number
Sales and marketing
4
4
Technical support
-
1
Directors
2
2
Total
6
7
LCA LIGHTS CAMERA ACTION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
5
Employees
(Continued)
- 17 -

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
1,190,469
1,407,204
Social security costs
147,076
167,602
Pension costs
7,167
4,469
1,344,712
1,579,275
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
953,199
1,116,433
Company pension contributions to defined contribution schemes
3,781
3,331
956,980
1,119,764

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 2).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
785,906
927,764
Company pension contributions to defined contribution schemes
1,321
1,321
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
18,292
20
8
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
-
1,168
Interest payable to group undertakings
42,747
42,429
Other interest
8,876
5,722
51,623
49,319
LCA LIGHTS CAMERA ACTION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 18 -
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
589,528
487,125
Deferred tax
Origination and reversal of timing differences
(30,934)
46,544
Total tax charge
558,594
533,669

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
2,431,934
2,443,590
Expected tax charge based on the standard rate of corporation tax in the UK of 24.03% (2023: 19.00%)
584,394
464,282
Tax effect of expenses that are not deductible in determining taxable profit
15,307
14,044
Tax effect of income not taxable in determining taxable profit
(14,147)
265
Depreciation in excess of capital allowances
3,929
5,037
Non Specific provision movements
45
3,497
Deferred tax movement
(30,934)
46,544
Taxation charge for the year
558,594
533,669

Factors that may affect future tax charges

As part of Budget 2021 on 3 March 2021, it was announced that the UK corporation tax rate will increase to 25% from 1 April 2023. This change was substantively enacted on 24 May 2021. Prior to this change, the corporation tax rate was 19%. The effect on the company of this change has been reflected in the company's financial statements in the financial year as appropriate.

10
Dividends
2024
2023
£
£
Interim declared
-
0
1,500,000
LCA LIGHTS CAMERA ACTION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 19 -
11
Impairments

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

2024
2023
Notes
£
£
In respect of:
Property, plant and equipment
12
-
0
13,861
Recognised in:
Administrative expenses
-
13,861
12
Tangible fixed assets
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 February 2023
91,085
79,882
93,997
123,832
388,796
Additions
-
0
1,174
4,157
132,000
137,331
Disposals
-
0
-
0
(13,861)
(83,605)
(97,466)
At 31 January 2024
91,085
81,056
84,293
172,227
428,661
Depreciation and impairment
At 1 February 2023
86,615
63,629
85,963
73,348
309,555
Depreciation charged in the year
2,375
7,901
2,637
25,156
38,069
Eliminated in respect of disposals
-
0
-
0
(13,861)
(42,354)
(56,215)
At 31 January 2024
88,990
71,530
74,739
56,150
291,409
Carrying amount
At 31 January 2024
2,095
9,526
9,554
116,077
137,252
At 31 January 2023
4,470
16,253
8,034
50,484
79,241

More information on impairment movements in the year is given in note 11.

13
Stocks
2024
2023
£
£
Finished goods and goods for resale
1,665,377
2,727,638

An increase in the slow-moving and obsolete stock provision of £39,575 (2023: decrease of £9,905) was recognised in cost of sales during the year.

LCA LIGHTS CAMERA ACTION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 20 -
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,723,842
3,688,982
Amounts owed by group undertakings
434,747
1,669,835
Finance leases receivable
-
0
445,744
Other debtors
36,277
-
0
Prepayments and accrued income
93,044
39,687
2,287,910
5,844,248
2024
2023
Amounts falling due after more than one year:
£
£
Deferred tax asset (note 18)
28
28
Total debtors
2,287,938
5,844,276

Amounts owed by group undertakings are repayable on demand and bear no interest.

A decrease in the bad debt provision of £38,982 (2023: £Nil) was recognised in administrative expenditure during the year.

15
Finance lease receivables
2024
2023
£
£
Gross amounts receivable under finance leases:
Within one year
-
0
445,744
Unearned finance income
-
0
-
0
Present value of minimum lease payments receivable
-
0
445,744
The present value is receivable as follows:
Within one year
-
0
445,744
Analysis of finance leases

The company entered into financial leasing arrangements for rental of stock. The average term of finance leases entered into is 1 year.

LCA LIGHTS CAMERA ACTION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 21 -
16
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans and overdrafts
17
14,857
-
0
Other borrowings
17
-
0
1,042,429
Trade creditors
465,151
1,324,555
Amounts owed to group undertakings
154,225
448,785
Corporation tax
313,685
368,791
Other taxation and social security
24,394
46,929
Other creditors
1,310
15,476
Accruals and deferred income
494,477
1,554,866
1,468,099
4,801,831

Amounts owed to group undertakings are unsecured and repayable on demand. Included in other borrowings are loans from group undertakings of £Nil (2023: £1,042,429). Further details are included in the note entitled 'Loans and overdrafts'.

17
Loans and overdrafts
2024
2023
£
£
Bank overdrafts
14,857
-
0
Loans from group undertakings
-
0
1,042,429
14,857
1,042,429
Payable within one year
14,857
1,042,429

Loans from group undertakings comprise amounts owed to A.C.Worldwide Group Limited, the ultimate parent company and accrue interest at a rate of 3% plus the Bank of England base rate. The loan was repaid during the year.

 

A.C. Worldwide Group Limited holds a fixed and floating charge over the assets of the company.

18
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Balances:
£
£
£
£
Accelerated capital allowances
6,631
37,565
-
-
Other timing differences
-
-
28
28
6,631
37,565
28
28
LCA LIGHTS CAMERA ACTION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
18
Deferred taxation
(Continued)
- 22 -
2024
Movements in the year:
£
Liability at 1 February 2023
37,537
Credit to profit or loss
(30,934)
Liability at 31 January 2024
6,603

The deferred tax asset set out above is expected to reverse within 12 months and relates to provision movements. The deferred tax liability set out above is not expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature over time as the assets to which they relate are replaced in the normal course of business.

19
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
7,167
4,469

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. Contributions amounting to £1,310 (2023: £1,113 ) were payable to the scheme and are included in creditors.

20
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each
100,000
100,000
100,000
100,000

Each ordinary share carries one vote, an equal right to dividends and capital (including on a winding up) and is not redeemable.

21
Reserves

Profit and loss reserves includes all current and prior period retained profits and losses.

LCA LIGHTS CAMERA ACTION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 23 -
22
Operating lease commitments
Lessee

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
18,673
-
0
Between two and five years
54,959
-
0
In over five years
9,445
-
0
83,077
-
0
23
Related party transactions

As the company is a wholly owned subsidiary of A.C. Worldwide Group Limited, the company has taken advantage of the exemption contained in FRS 102 section 33 and has therefore not disclosed transactions or balances with wholly owned subsidiaries of A.C. Worldwide Group Limited. The consolidated financial statements of A.C. Worldwide Group Limited, within which this company is included, can be obtained from the address given in note 24.

24
Ultimate controlling party

The parent company and largest and smallest group in which LCA Lights Camera Action Limited is consolidated is A.C. Worldwide Group Limited, a company incorporated in England and Wales. The registered address of the parent company is Centauri House, Sands Industrial Estate, Hillbottom Road, High Wycombe, Buckinghamshire, HP12 4HQ. Copies of the consolidated financial statements can be obtained from this address. The ultimate controlling party is D A Leggett by virtue of his controlling interest in A.C. Worldwide Group Limited.

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