Company registration number SC343592 (Scotland)
ESSENTIAL EDINBURGH
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
ESSENTIAL EDINBURGH
COMPANY INFORMATION
Directors
Denzil Gough Onslow Skinner
Barry Blamire
Roderick Charles Smith
Derek Brownlee
David Alexander Stewart
Louise Maclean
John Alan Thomlinson
Lynzi Leroy
Kieran Jp Quinn
David Stewart
Richard Morris
Caoimhe Duignan
(Appointed 27 February 2024)
Anne Ledgerwood
(Appointed 27 February 2024)
Secretary
David Ian Lindgren
Company number
SC343592
Registered office
Caledonian Exchange
19a Canning Street
Edinburgh
EH3 8HE
Auditor
McLachlan + Tiffin
Clifton House
Craigard Road
Crieff
Perthshire
PH7 4BN
Business address
90A George Street
Edinburgh
EH2 3DF
Bankers
Royal Bank of Scotland plc
36 St Andrew Square
Edinburgh
EH2 2YB
Solicitors
Lindsays WS
Caledonian Exchange
19a Canning Street
Edinburgh
EH3 8HE
ESSENTIAL EDINBURGH
CONTENTS
Page
Directors' report
1 - 6
Directors' responsibilities statement
7
Independent auditor's report
8 - 10
Statement of income and retained earnings
11
Balance sheet
12
Notes to the financial statements
13 - 16
ESSENTIAL EDINBURGH
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -
The Directors of Essential Edinburgh have pleasure in presenting their report and financial statements for the year to 31 March 2024. This was the first year of our fourth term following our successful renewal ballot period in March 2023.
Essential Edinburgh’s core purpose is to manage the City Centre Business Improvement District (BID) on behalf of over six hundred and fifty businesses who are committed to providing additional collective investment for local improvements.
As in previous years most of the funding for Essential Edinburgh came from the levy paid by qualifying businesses. In the reporting year levy payers contributed £1.13m which was 91% of our total income.
Edinburgh city centre is performing very strongly against Scottish and UK comparators, consistently trending above Scottish and UK retail and hospitality figures. We maintain our ability to attract high quality hotel, retail and hospitality businesses to the city.
Edinburgh’s tourist market has maintained its position as the UK’s second most visited city, with numbers continuing to grow sustainably.
2023/24 saw the company deliver services, events, support, and initiatives which brought significant benefits to our levy payers. As per our published business plan, these are reported across four key headings, namely Promoting, Enhancing, Protecting and Engaging.
PROMOTING
Footfall
Edinburgh city centre is performing strongly against Scottish and UK comparators. Footfall has continued its recovery – up 3% annually on Princes Street – with hospitality and retail sales also on a positive upward curve with average sales across the twelve months up 23% and 3% respectively.
The city’s preeminent tourism profile is key to this as is our attractiveness as a festival city, especially during the key months of August and December. The exciting addition of Murrayfield as a major concert venue is a very welcome addition, with the visits of Harry Styles, Beyonce and Bruce Springsteen having a really positive effect in May 23.
Square Cinema
In 2023, following the renewal ballot and the demise of the Edinburgh International Film Festival, Essential Edinburgh created a new name and identity for our outdoor cinema event – Square Cinema. The event took place from 23rd – 25th June 2023 in St Andrew Square Garden with LNER as lead sponsor. City centre footfall was boosted with the weekend’s event, up 2% on same weekend in 2022 and up 6% on 2019. Over 10,000 people enjoyed Square Cinema, with 78% coming into the city centre specifically for the event, and 69% going on to eat, drink and shop in the city centre, spending on average £66.
Gumball 3000 Rally
In June 2023 Edinburgh was the Official Start Line Host of the 24th Annual Gumball 3000 Rally, a week-long 3,000 mile road trip across Europe.
Thousands of spectators flocked to George Street across the weekend to see some of the world's most impressive and iconic cars and witness the ‘Flag Drop’ start taking place. Footfall on Princes Street for that weekend rose by 10% compared to 2022 and was up 4.4% on the same days in 2019.
Fringe Festival
Essential Edinburgh maintained its support for Assembly Festival on George Street during August 2023, pulling the Fringe Festival footprint within the BID. Support was also provided to support St James Quarter’s August activities in collaboration with the Fringe Society.
ESSENTIAL EDINBURGH
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
Edinburgh Cocktail Week 2023
For the third year running Essential Edinburgh was the main sponsor for Edinburgh Cocktail Week, which ran from 6th – 15th October 2023. Our investment in this event nsures participation from any interested BID bars and restaurants, making sure footfall is driven to BID area businesses. The event footfall was up 3.5% on 2022 with over 24k attendees. Bar sales within the BID were up 26% on average (22% on average outside the BID) and average bar sales totalled over £395.5k. The ten-day event has an estimated impact on the economy of £3.25 million.
Edinburgh's Christmas and Hogmanay
With the Christmas and Hogmanay period so crucial to our members, we partnered with Unique Assembly for the second year to support activity within the BID area.
Following the great success the previous year, a covered ice rink was again placed on the west end of George Street, with 72,000 tickets sold. St Andrew Square Garden became a focal point within the programme of events with family orientated activities, and Festival of Kindness.
Overall footfall for Edinburgh's Christmas was over three million – record footfall for the event and the top performing city in the UK at Christmas – and footfall on Princes Street was up 2% on the same period in 2022-23.
For the second year we supported increased activity over the Hogmanay period, especially geared on providing options for people on the 1st and 2nd of January to come into the city centre.
Eat Out Edinburgh 2024
We worked closely with our hospitality business to deliver the third year of our media and social media campaign, aimed at attracting residents and visitors to eat out across the BID area. Following two successful years of Eat Out Edinburgh in March 2022 and 2023, we doubled the length for 2024 following business and public feedback to take in full month of March. The PR campaign was hugely successful getting 30 pieces of media coverage, with over 11.3 million views. We had over 1.6 million total paid impressions on Facebook & Instagram, with 468K total reach. Over 115K website users, 1.3m webpage engagements and 400K page views. There were over 18,700 bookings made for Eat Out Edinburgh offerings – 47 offers in total. Edinburgh hospitality sales increased year-on-year by 9.2% for March 2024
China Ready
As a founding partner and investor in the China Ready programme, we continue to support their work. WeChat and RED channels are valuable assets for local businesses. As of 25th March 2024, Edinburgh's Chinese Social Media Campaign has generated over 144,300 combined followers with over 378.9 million content views.
We promoted the city centre across Edinburgh's official channels, gearing content towards the Chinese audience. Key content included Eat Out Edinburgh, retail and food & drink offers and recommendations, Edinburgh's Christmas and Hogmanay.
ETAG / FOREVER EDINBURGH
Essential Edinburgh supports the work of the Edinburgh Tourism Action Group (ETAG) and financially supports the role of the Programme Manager for the Edinburgh Visitor Economy Partnership. As part of both the operational advisory group on Tourism and the Strategic Implementation Group we represent members views at the key industry forums. Over the course of the year there has been much discussion on the Visitor levy (Scotland) bill as well as the ongoing delivery of the 2030 Tourism strategy.
ENHANCING
Clean Team
Our ‘Clean Team' worked tirelessly throughout the year, offering an emergency call out service, removing graffiti and flyposting, as well as their daily rounds. From 6am to 8pm they deliver an excellent service to our levy payers, receiving excellent feedback.
During the year the clean team tackled a huge 133% increase in graffiti, removed 21% more flyposting and cleaned up 228% more environmental and hazardous waste. They removed 46.2 tonnes of litter from the streets and basements, cleaning 57% more from basements than the year before.
ESSENTIAL EDINBURGH
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
Change Waste Recycling
Almost a third of all BID businesses benefit from our favourable group-buying rate with Change Waste Recycling. In total, they collected 2117.07 tonnes of waste with a recycling rate of 65%. A total of 2,097.46 tonnes of carbon was diverted from landfill - up annually by 340% - benefitting both individual levy-payers and the environment.
St Andrew Square Garden
As the managers of St Andrew Square Garden, we keep it in excellent condition all year round. In the last year we have continued our annual planned maintenance and progressed our programme of improvement and enhancement, including returfing around all the pathways and high-impact footfall areas.
Seasonal Planting
We have managed the maintenance of the planters throughout the city centre, refreshing them seasonally.
Christmas Lights
From late November through to early January we situated our four new, and larger, Christmas Light trees along George Street, with our original light trees installed in the east and west ends of the BID, bringing bright focal points at ground level to enhance the ambience and appeal. Along with new lights on Rose Street, this represents a significant new investment following our successful renewal.
In partnership with Unique Events, we invested in enhanced winter lighting in St Andrew Square to make it look and feel as festive as possible.
Outdoor Seating
Following another successful year of outdoor seating, we worked closely with the City of Edinburgh Council and hospitality businesses along George Street, Castle Street and St Andrew Square to coordinate outside seating areas. The areas provide much needed additional covers for businesses, and also help to create a vibrant and attractive city centre environment for the spring and summer months.
PROTECTING
BID Cop
Our flagship partnership with Police Scotland continues to strengthen and make our city centre an even safer environment. PC Ehssan Sanii has made a significant impact by supporting our levy-payers. In this reporting year he either visited, met with, called or emailed 270 individual levy-paying businesses, totalling 1,179 interactions.
Reported crime for Edinburgh City Centre is up 17% compared to last year, and up 23.4% compared to the five-year average.
Positively, detected (or solved) crime for Edinburgh City Centre was up 18.7% on the previous year, and up 16.6% compared to the five-year average.
Check Out and Checkin
In September 2023 we upgraded Check Out with a new digital platform that is operational 24/7. In the first six months up to 31st March 2024 we circulated 568 alerts to over 150 subscribed levy-paying retailers. Engagement has increased by more than 40%, and there were more than 68,000 email interactions.
Checkin was conceived in 2007 as a partnership between Essential Edinburgh, The Balmoral Hotel and Police Scotland with a view to tackle all types of hotel crime in Edinburgh. Our aim is to create a safe and secure environment for the residents, staff and visitors within our hotels and we currently have almost 130 active members helping to achieve this.
ESSENTIAL EDINBURGH
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -
Street Assist
A safe environment is key to a vibrant and diverse night-time economy and essential to both the success of the city centre and the enjoyment of Edinburgh for our residents and visitors.
In April 2023 Essential Edinburgh agreed a five-year support partnership with Street Assist Edinburgh, a charity run by skilled volunteers which offers all kind of help and support to people out and about enjoying the nightlife offered by the Capital's vibrant city centre.
Street Assist provide a non-judgemental welfare and first aid service to help people who may have become vulnerable during the busy night-time economy hours. In the first year of our partnership with Street Assist, their volunteers provided 11.7k hours of support and treated 937 patients, 66% of whom were local residents and 21% were visitors.
Cyrenians
For the past six years we have supported the homeless and begging community through our partnership with Cyrenians. Our funding provides two dedicated case workers as part of the Navigator Project, enabling skilled practitioners to work on the streets with the aim of ensuring that help and advice is on hand to support people who are living a street-based life into accommodation.
In this reporting year the Homeless Navigator Project has supported 243 people on outreach with 9 people receiving ongoing 1:1 support. They helped 15 people gain short-term or long-term accommodation and worked with over 20 agencies.
The strength of this work is the partnership that exists between the key providers of support in the city – our work directly with Police Scotland and Cyrenians, and with partners and agencies across the city.
ENGAGING
Throughout the year Essential Edinburgh have worked on behalf of levy payers to engage on their behalf with many exciting projects and developments in the city.
We continue to engage with all stakeholders regarding the redevelopment of George Street, working hard to ensure we maintain access requirements for customers to access businesses on the street. The challenges of this major build continue to cause us concerns. Over the year, we contributed to two meetings of the Transport and Environment Committee, working in partnership with the George Street Association.
We have worked closely and proactively with new developments both in the planning and construction phase, and it was pleasing to see new hotel developments planned for St Andrew Square and Princes Street. We remain vocal on the need for a mixed-use approach to the city centre, supporting developments as they arise.
We have worked with many partners to press for business rates reform. There is a huge discrepancy between the rates payable for city centre businesses compared to out-of-town centres and smaller city centre areas. The business rates have reached a point where it is a true barrier to potential occupants in the city centre or is a business cost which is unsustainable in the longer term.
We continue to lobby, along with the Association of International Retail, the New West End Company, and other interested parties to reverse the Westminster decision to abolish tax free shopping. This has had a major detrimental impact on business across the BID area with over £20m of lost revenue. As we start the road to recovery this will have a long-term impact on tourist numbers and spend.
We continued to lobby the City of Edinburgh Council to support change of use applications across the BID area. It is imperative that all these are considered to support new entrants to the city centre as well as repurposing former retail units if needed. We support the maintenance of a balanced mix of uses but we must reflect economic realities and trends.
We chair the partnership group for St Andrew Square to discuss the key issues needed to maintain it as a high-quality open space in the city centre. We successfully lobbied for the removal of tour buses from the north side of the Square on behalf of the owners.
ESSENTIAL EDINBURGH
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 5 -
Our partnership with FUSE has supported employment opportunities and recruitment for levy payers within the BID area. FUSE have engaged with 131 levy-paying businesses to support recruitment and training within the BID area.
We continue to play important roles on many city-wide working groups supporting our members. These include ETAG, Edinburgh Chamber of Commerce, Edinburgh Economic Forum, Forever Edinburgh and the Strategic Implementation Group for Tourism.
Our Business Engagement Managers had 1,864 individual interactions (visit, email, meeting, phone call) with 645 individual levy-payers.
CORPORATE/FINANCIAL
Our partnership with Costa Coffee to run the coffee pavilion in St Andrew Square was renegotiated during the reporting year and we entered in a new 5-year commercial agreement with them once renewal was secured.
We continue to look at all our overhead costs and have made savings across the year. As we moved into a new term, we downsized our office space to generate further savings.
The financial year end results show a surplus for the year, primarily attributed to the collection of BID levy still outstanding from previous years. With our income relatively fixed and costs increasing year on year, a conscious effort is being made to secure new income streams to support investment back into the BID area.
A number of Directors resigned during the year due to new professional appointments and retirements and we would like to thank them for their contribution to the company in recent years.
Principal activities
The principal activity of the company continued to be that of the promotion and facilitation of the development and improvement of the centre of the city of Edinburgh.
The company is limited by guarantee and is governed by its Memorandum and Articles of Association. Every member of the company undertakes to contribute such amount not exceeding £1 should the company be wound up.
The company is limited by guarantee and therefore the directors have no beneficial or non-beneficial interest in the company.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Denzil Gough Onslow Skinner
Barry Blamire
Roderick Charles Smith
Derek Brownlee
David Alexander Stewart
Louise Maclean
Nicholas Peel
(Resigned 9 June 2023)
John Alan Thomlinson
Lynzi Leroy
Kieran Jp Quinn
David Stewart
Richard Morris
Caoimhe Duignan
(Appointed 27 February 2024)
Anne Ledgerwood
(Appointed 27 February 2024)
ESSENTIAL EDINBURGH
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 6 -
Auditor
In accordance with the company's articles, a resolution proposing that McLachlan + Tiffin be appointed as auditor of the company will be put at a General Meeting.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
On behalf of the board
Roderick Charles Smith
Director
24 September 2024
ESSENTIAL EDINBURGH
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024
- 7 -
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 applicable law and Section 1A of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice applicable to small entities). 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 surplus or deficit 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.
ESSENTIAL EDINBURGH
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ESSENTIAL EDINBURGH
- 8 -
Opinion
We have audited the financial statements of Essential Edinburgh (the 'company') for the year ended 31 March 2024 which comprise the statement of income and retained earnings, the balance sheet and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 March 2024 and of its surplus for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice applicable to small entities; 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 directors' 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 directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the directors' report has been prepared in accordance with applicable legal requirements.
ESSENTIAL EDINBURGH
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ESSENTIAL EDINBURGH (CONTINUED)
- 9 -
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 Directors' Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit; or
- the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the Directors' Report and take advantage of the small companies exemption from the requirement to prepare a Strategic Report.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement on page 6, 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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. Based on our understanding of the company and its industry, we identified that the principal risks of non-compliance with laws and regulations related to the UK tax legislation, pensions legislation, employment regulation and health and safety regulation, anti-bribery, corruption and fraud, money laundering, non-compliance with implementation of government support schemes relating to COVID-19, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, such as the Companies Act 2006.
ESSENTIAL EDINBURGH
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ESSENTIAL EDINBURGH (CONTINUED)
- 10 -
We evaluated the directors’ and management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, in particular in relation to loss reserves, and significant one-off or unusual transactions.
Our audit procedures were designed to respond to those identified risks, including non-compliance with laws and regulations (irregularities) and fraud that are material to the financial statements. Our audit procedures included but were not limited to:
discussing with the directors and management their policies and procedures regarding compliance with laws and regulations;
communicating identified laws and regulations throughout our engagement team and remaining alert to any indications of non-compliance throughout our audit; and
considering the risk of acts by the Company which were contrary to applicable laws and regulations, including fraud.
Our audit procedures in relation to fraud included but were not limited to:
making enquiries of the directors and management on whether they had knowledge of any actual, suspected or alleged fraud;
gaining an understanding of the internal controls established to mitigate risks related to fraud;
discussing amongst the engagement team the risks of fraud; and
addressing the risks of fraud through management override of controls by performing journal entry testing.
There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.
A further description of our responsibilities for the audit 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.
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.
Ralph C Tiffin
Senior Statutory Auditor
For and on behalf of McLachlan + Tiffin
24 September 2024
Chartered Accountants
Statutory Auditor
Clifton House
Craigard Road
Crieff
Perthshire
PH7 4BN
ESSENTIAL EDINBURGH
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
2024
2023
Notes
£
£
Income
1,232,839
1,159,452
Cost of sales
(772,058)
(993,873)
Gross surplus
460,781
165,579
Administrative expenses
(461,709)
(406,078)
Other operating income
227,208
Operating deficit
3
(928)
(13,291)
Interest receivable and similar income
1,778
2,512
Surplus/(deficit) before taxation
850
(10,779)
Taxation
5
Surplus/(deficit) for the financial year
850
(10,779)
Retained earnings brought forward
341,596
352,375
Retained earnings carried forward
342,446
341,596
The notes on pages 12 to 17 form part of these financial statements.
ESSENTIAL EDINBURGH
BALANCE SHEET
AS AT 31 MARCH 2024
31 March 2024
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
6
3,443
5,315
Current assets
Debtors
7
112,744
149,793
Cash at bank and in hand
408,811
442,869
521,555
592,662
Creditors: amounts falling due within one year
8
(182,552)
(256,381)
Net current assets
339,003
336,281
Total assets less current liabilities
342,446
341,596
Reserves
Income and expenditure account
342,446
341,596
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with the provisions of Section 1A 'Small Entities' of Financial Reporting Standard 102.
The financial statements were approved by the board of directors and authorised for issue on 24 September 2024 and are signed on its behalf by:
Roderick Charles Smith
Director
Company Registration No. SC343592
The notes on pages 12 to 17 form part of these financial statements.
ESSENTIAL EDINBURGH
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 13 -
1
Accounting policies
Company information
Essential Edinburgh is a private company limited by guarantee incorporated in Scotland. The registered office is Caledonian Exchange, 19a Canning Street, Edinburgh, EH3 8HE.
The principal activity of the company continued to be that of the promotion and facilitation of the development and improvement of the centre of the city of Edinburgh.
1.1
Accounting convention
These financial statements have been prepared under the historic cost convention and 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 £.
1.2
Going concern
The Accounts for the year ended 31 March 2024 have been prepared on a going concern basis. The company does not require an overdraft facility for the continuing operation of the business and as at 31 March 2024 the company has net current assets of £339,003. The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. As a result the directors are satisfied that it is appropriate to adopt the going concern basis of accounting.true
1.3
Income and expenditure
Income and expenses are included in the financial statements as they become receivable or due and are exclusive of VAT where applicable. All income is recognised in the period in which it relates and in line with the related costs that have been incurred as appropriate. Income received in the period but relating to future periods is recognised as deferred income on the balance sheet.
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:
Operating equipment
20% straight line basis
Fixtures & fittings
20% straight line basis
Office equipment
20% straight line basis
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 recognised in the statement of Income and Retained Earnings.
The assets' residual lives, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
1.5
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.
ESSENTIAL EDINBURGH
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 14 -
1.6
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.
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, 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.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
1.7
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.8
The financial statements do not include a cash flow statement because the company, as a small reporting entity, is exempt from the requirements to prepare such a statement under FRS102.
ESSENTIAL EDINBURGH
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 15 -
2
Judgements and key sources of estimation uncertainty
The preparation of the financial statements in compliance with section 1A of FRS102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the company's accounting policies. The accounting judgements or significant estimates deemed to be required in preparing these accounts relate to the depreciation rates used. The directors are satisfied that the depreciation rates used are appropriate for each class of asset.
3
Operating deficit
2024
2023
Operating deficit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
5,500
4,000
4
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Core
7
7
Others (partnership posts with ETAG/CEC/SE)
-
3
Total
7
10
5
Taxation
The company has estimated losses of £508,968 (2023: £474,009) available for carry forward against future trading profits.
6
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 April 2023 and 31 March 2024
26,685
Depreciation and impairment
At 1 April 2023
21,370
Depreciation charged in the year
1,872
At 31 March 2024
23,242
Carrying amount
At 31 March 2024
3,443
At 31 March 2023
5,315
ESSENTIAL EDINBURGH
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 16 -
7
Debtors
2024
2023
Amounts falling due within one year:
£
£
Service charges due
16,644
95,621
Other debtors
96,100
54,172
112,744
149,793
Other debtors is made up £36,791 of prepayments, £25,494 of a VAT refund and £33,815 of accrued income.
8
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
76,928
50,485
Taxation and social security
8,737
13,616
Other creditors
96,887
192,280
182,552
256,381
Other creditors is made up of £84,766 of accruals, £10,444 of deferred income, and £1,677 of other creditors.
9
Members' liability
The company is limited by guarantee, not having a share capital and consequently the liability of members is limited, subject to an undertaking by each member to contribute to the net assets or liabilities of the company on winding up such amounts as may be required not exceeding £1.
10
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2024
2023
£
£
101,439
14,020
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