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Registered number: 13307238









AK THEATRICALS LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

 
AK THEATRICALS LIMITED
 
 
COMPANY INFORMATION


Directors
H Arnold 
G Kalin 




Registered number
13307238



Registered office
124 Finchley Road

London

NW3 5JS




Independent auditors
Nyman Libson Paul LLP
Chartered Accountants & Statutory Auditors

124 Finchley Road

London

NW3 5JS





 
AK THEATRICALS LIMITED
 

CONTENTS



Page
Group Strategic Report
 
1
Directors' Report
 
2 - 3
Independent Auditors' Report
 
4 - 7
Consolidated Statement of Income and Retained Earnings
 
8
Consolidated Balance Sheet
 
9 - 10
Company Balance Sheet
 
11
Consolidated Statement of Changes in Equity
 
12
Company Statement of Changes in Equity
 
13
Consolidated Statement of Cash Flows
 
14 - 15
Consolidated Analysis of Net Debt
 
16
Notes to the Financial Statements
 
17 - 38


 
AK THEATRICALS LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023

Introduction
 
The directors present their strategic report for the period ended 31 March 2023.

Business review
 
In the year ended 31 March 2023, the Group made further investments in theatrical productions, opened one further immersive theatrical production and continued to develop other immersive theatrical productions.
The Group generated revenue from net box office sales, producer fees, royalties, producer share of profits and licensing productions, resulting in an increase in revenues, expenditure and investment in venues. The results for the year show a loss after tax of £5,077,182, after theatre tax relief and minority interest, as anticipated due to the expenditure on development and marketing of the productions.
Management are confident that the Group has invested in, and produced, a number of good productions which,  together with plans to develop further productions that will prove popular, profitable, will generate the working capital required for the Group to continue to repay its debts as they fall due.

Principal risks and uncertainties
 
The Group faces competitive pressures from similar immersive theatrical productions to attract the general public and generate box office and associated revenues.  The Group also faces risks that the productions in which it has invested in do not prove profitable and its investment is not recoupable.
Management carefully manage this risk by using its experience and knowledge of the industry to identify productions that it considers would be popular and profitable. Management also manage the risk by carefully monitoring performance of productions to make strategic decisions in relation to continuing with, or closing a production.

Financial key performance indicators
 
The key performance indicators used by management in operating the business are gross box office receipts, cost of preproduction and profitability of its own productions and of those it has invested in.  In the year ended 31 March 2023 most of the productions were in their initial stages with one further immersive theatrical production being opened and a further immersive theatrical production being in development, together with the development of one traditional theatrical production. This is consistent with the financial results reported on page 8 in these consolidated financial statements.


This report was approved by the board on 22 January 2025 and signed on its behalf.



G Kalin
Director

Page 1

 
AK THEATRICALS LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023

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

Directors

The directors who served during the year were:

H Arnold 
G Kalin 

Directors' responsibilities statement

The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated 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 United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 the Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Group's financial statements and then apply them consistently;

make judgments 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 Group 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 the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The loss for the year, after taxation and minority interests, amounted to £4,932,032 (2022 - loss £182,772).

The directors do not recommend the payment of a final dividend.

Future developments

The Group’s management continues to build strong relationships within the immersive and traditional theatre sectors to ensure that the Group produces popular, high quality and profitable attractions and productions. The Group's management explore new intellectual property opportunities to diversify and expand their offering of productions and attractions. Opportunities to licence existing productions and attractions in overseas territories are investigated to further leverage the value of the intellectual property of developed attractions. The performance of attractions and productions are closely monitored, allowing management to effectively plan the duration of a run to maximise profits, minimise losses and for scheduling attractions into venues leased within the Group.

Page 2

 
AK THEATRICALS LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Group since the year end.

Auditors

The auditorsNyman Libson Paul LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 22 January 2025 and signed on its behalf.
 





G Kalin
Director

Page 3

 
AK THEATRICALS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF AK THEATRICALS LIMITED
 

Opinion


We have audited the financial statements of AK Theatricals Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 March 2023, which comprise the Consolidated Statement of Income and Retained Earnings, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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 Group's and of the parent Company's affairs as at 31 March 2023 and of the Group's loss 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.


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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.


Material uncertainty related to going concern


We draw attention to note 2.3 in the financial statements, which indicates that that the company as at 31 March 2023 has net current liabilities of £8,450,136 and net liabilities of £5,364,023. As stated in note 2.3, these events or conditions, along with the other matters as set forth in note 2.3, indicate that a material uncertainty exists that may cast significant doubt on the Group's or the parent Company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.


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.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


Page 4

 
AK THEATRICALS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF AK THEATRICALS LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Group 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 Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent Company 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.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 2, 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 Group's and the parent 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 Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


Page 5

 
AK THEATRICALS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF AK THEATRICALS LIMITED (CONTINUED)


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

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, reading minutes of meetings of those charged with governance, enquiries with management and review of accounting estimates. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.


Page 6

 
AK THEATRICALS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF AK THEATRICALS LIMITED (CONTINUED)


Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our 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 Auditors' 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.





Paul Taiano (Senior Statutory Auditor)
  
for and on behalf of
Nyman Libson Paul LLP
 
Chartered Accountants
Statutory Auditors
  
124 Finchley Road
London
NW3 5JS

24 January 2025
Page 7

 
AK THEATRICALS LIMITED
 
 
CONSOLIDATED STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 MARCH 2023

2023
2022
Note
£
£

  

Turnover
  
8,253,160
2,420,634

Cost of sales
  
(9,764,532)
(1,825,053)

Gross (loss)/profit
  
(1,511,372)
595,581

Administrative expenses
  
(2,101,783)
(881,361)

Operating loss
  
(3,613,155)
(285,780)

Amounts written off investments
  
(2,487,159)
-

Interest receivable and similar income
  
570
177

Loss before tax
  
(6,099,744)
(285,603)

Tax on loss
  
1,022,562
(1,338)

Loss after tax
  
(5,077,182)
(286,941)

  

  

Retained earnings at the beginning of the year
  
(182,772)
-

  
(182,772)
-

Loss for the year attributable to the owners of the parent
  
(4,932,032)
(182,772)

Retained earnings at the end of the year
  
(5,114,804)
(182,772)

Non-controlling interest at the beginning of the year
  
(104,169)
-

Profit for the year attributable to the non-controlling interest
  
(145,150)
(104,169)

Non-controlling interest at the end of the year
  
(249,319)
(104,169)


The notes on pages 17 to 38 form part of these financial statements.

Page 8

 
AK THEATRICALS LIMITED
REGISTERED NUMBER: 13307238

CONSOLIDATED BALANCE SHEET
AS AT 31 MARCH 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
  
168,529
166,404

Tangible assets
  
2,291,645
914,810

Investments
  
625,939
2,146,383

  
3,086,113
3,227,597

Current assets
  

Stocks
  
5,251,572
3,957,765

Debtors: amounts falling due within one year
  
9,049,855
1,657,953

Current asset investments
  
10,871,366
6,862,878

Cash at bank and in hand
  
1,219,556
3,494,230

  
26,392,349
15,972,826

Creditors: amounts falling due within one year
  
(34,842,485)
(19,487,264)

Net current liabilities
  
 
 
(8,450,136)
 
 
(3,514,438)

Total assets less current liabilities
  
(5,364,023)
(286,841)

Provisions for liabilities
  

Net assets excluding pension asset
  
(5,364,023)
(286,841)

Net liabilities
  
(5,364,023)
(286,841)


Capital and reserves
  

Called up share capital 
  
100
100

Profit and loss account
  
(5,114,804)
(182,772)

Equity attributable to owners of the parent Company
  
(5,114,704)
(182,672)

Non-controlling interests
  
(249,319)
(104,169)

  
(5,364,023)
(286,841)


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 22 January 2025.




G Kalin
Director

The notes on pages 17 to 38 form part of these financial statements.
Page 9

 
AK THEATRICALS LIMITED
REGISTERED NUMBER: 13307238
    
CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2023


Page 10

 
AK THEATRICALS LIMITED
REGISTERED NUMBER: 13307238

COMPANY BALANCE SHEET
AS AT 31 MARCH 2023

2023
2022
Note
£
£

Fixed assets
  

Investments
  
646,042
2,166,486

  
646,042
2,166,486

Current assets
  

Debtors: amounts falling due within one year
  
1,020,722
567,152

Cash at bank and in hand
  
22,344
47,924

  
1,043,066
615,076

Creditors: amounts falling due within one year
  
(4,036,028)
(2,755,308)

Net current liabilities
  
 
 
(2,992,962)
 
 
(2,140,232)

Total assets less current liabilities
  
(2,346,920)
26,254

  

  

Net assets excluding pension asset
  
(2,346,920)
26,254

Net (liabilities)/assets
  
(2,346,920)
26,254


Capital and reserves
  

Called up share capital 
  
100
100

Profit and loss account brought forward
  
26,154
-

Loss/(profit) for the year
  
(2,373,174)
26,154

Profit and loss account carried forward
  
(2,347,020)
26,154

  
(2,346,920)
26,254


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 22 January 2025.



G Kalin
Director

The notes on pages 17 to 38 form part of these financial statements.

Page 11

 
AK THEATRICALS LIMITED
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023


Called up share capital
Profit and loss account
Equity attributable to owners of parent Company
Non-controlling interests
Total equity

£
£
£
£
£


Comprehensive income for the year

Loss for the year
-
(182,772)
(182,772)
(104,169)
(286,941)

Shares issued during the year
100
-
100
-
100



At 1 April 2022
100
(182,772)
(182,672)
(104,169)
(286,841)


Comprehensive income for the year

Loss for the year
-
(4,932,032)
(4,932,032)
(145,150)
(5,077,182)


At 31 March 2023
100
(5,114,804)
(5,114,704)
(249,319)
(5,364,023)


The notes on pages 17 to 38 form part of these financial statements.

Page 12

 
AK THEATRICALS LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023


Called up share capital
Profit and loss account
Total equity

£
£
£


Comprehensive income for the year

Profit for the year
-
26,154
26,154

Shares issued during the year
100
-
100



At 1 April 2022
100
26,154
26,254


Comprehensive income for the year

Loss for the year
-
(2,373,174)
(2,373,174)


At 31 March 2023
100
(2,347,020)
(2,346,920)


The notes on pages 17 to 38 form part of these financial statements.

Page 13

 
AK THEATRICALS LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023

2023
2022
£
£

Cash flows from operating activities

Loss for the financial year
(5,077,182)
(286,941)

Adjustments for:

Amortisation of intangible assets
17,679
10,580

Depreciation of tangible assets
267,628
99,858

Impairments of current asset investments
8,150,271
-

Amounts written off other loans
(8,006,788)
-

Interest received
(570)
(177)

Taxation charge
(1,022,562)
1,338

(Increase) in stocks
(1,293,807)
(3,957,765)

(Increase) in debtors
(1,262,294)
(790,101)

(Increase) in amounts owed by associates
(5,107,000)
(868,000)

Increase in creditors
3,765,762
1,906,924

Increase in amounts owed to associates
1,490,000
2,500,000

Impairment of fixed asset investments
2,487,159
-

Net cash generated from operating activities

(5,591,704)
(1,384,284)


Cash flows from investing activities

Purchase of intangible fixed assets
(19,804)
(176,984)

Purchase of tangible fixed assets
(1,644,464)
(1,014,668)

Purchase of short-term unlisted investments
(14,322,182)
(6,862,878)

Repayment of short-term unlisted investments
2,163,423
-

Purchase of fixed asset investments
(966,715)
(2,146,383)

Interest received
570
177

Net cash from investing activities

(14,789,172)
(10,200,736)
Page 14

 
AK THEATRICALS LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023


2023
2022

£
£



Cash flows from financing activities

Issue of ordinary shares
-
100

Other new loans
20,105,885
15,078,873

Repayment of other loans
(1,999,406)
-

Net cash used in financing activities
18,106,479
15,078,973

Net (decrease)/increase in cash and cash equivalents
(2,274,397)
3,493,953

Cash and cash equivalents at beginning of year
3,493,953
-

Cash and cash equivalents at the end of year
1,219,556
3,493,953


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
1,219,556
3,494,230

Bank overdrafts
-
(277)

1,219,556
3,493,953


The notes on pages 17 to 38 form part of these financial statements.

Page 15

 
AK THEATRICALS LIMITED
 

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 MARCH 2023





At 1 April 2022
Cash flows
Other non-cash changes
At 31 March 2023
£

£

£

£

Cash at bank and in hand

3,494,230

(2,274,674)

-

1,219,556

Bank overdrafts

(277)

277

-

-

Debt due within 1 year

(15,085,846)

(17,522,355)

7,429,548

(25,178,653)


(11,591,893)
(19,796,752)
7,429,548
(23,959,097)

The notes on pages 17 to 38 form part of these financial statements.

Page 16

 
AK THEATRICALS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

1.


General information

AK Theatricals Limited ('the Company') is a private limited by shares and is incorporated in England. The address is its registered office is 124 Finchley Road, London, England, NW3 5JS.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Income and Retained Earnings in these financial statements.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between wholly owned group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the consolidated statement of income and retained earnings from the date on which control is obtained. They are deconsolidated from the date control ceases.

 
2.3

Going concern

At the balance sheet date, the Group had net liabilities of £5,364,023 (2022: £286,741). The Group meets its day to day working capital requirements through production funding, which is not repayable but recoupable from net revenues generated by the relevant productions and funding from a company with a 50% shareholding in the Company.
In view of the above, the directors have a reasonable expectation that the Company and the Group have adequate resources to continue in operational existence for at least twelve months from the date of approval of these financial statements. The directors therefore consider it appropriate to adopt the going concern basis in preparing the Company's financial statements.

Page 17

 
AK THEATRICALS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

 
2.4

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Consolidated Statement of Income and Retained Earnings within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

 
2.5

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Production revenue comprises the Group's share, as producer, of admissions receipts and merchandise sales net of relevant commissions and banking charges. Production revenue is recognised in the period to which the attendance occurs.
Bar and merchandise income comprises sale of food, drink and merchandise at the theatre and is recognised at the point of sale.
Licence fee income comprises fees receivable for licencing productions to overseas territories and is recognised when contractually due.
Royalty income comprises royalties receivable relating to immersive and theatre production services and are recorded in the period in which the revenue is contractually due.
Non returnable production funding comprises production investments from third party investors that are irrecoupable under the terms of the investment agreements and is recognised in the period in which it is determined that the production investment will not be recouped.

Page 18

 
AK THEATRICALS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

 
2.6

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.7

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.8

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Group in independently administered funds.

 
2.9

Taxation

Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate income.

 
2.10

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 
2.11

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 19

 
AK THEATRICALS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)


2.11
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Long-term leasehold property
-
straight-line over the term of the lease
Fixtures and fittings
-
straight-line over 5 years
Office equipment
-
straight-line over 3 years
Other fixed assets
-

The assets' residual values, 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.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.12

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.13

Associates and joint ventures

An entity is treated as a joint venture where the Group is a party to a contractual agreement with one or more parties from outside the Group to undertake an economic activity that is subject to joint control.

An entity is treated as an associated undertaking where the Group exercises significant influence in that it has the power to participate in the operating and financial policy decisions.
In the consolidated accounts, interests in associated undertakings are accounted for using the equity method of accounting. Under this method an equity investment is initially recognised at the transaction price (including transaction costs) and is subsequently adjusted to reflect the investors share of the profit or loss, other comprehensive income and equity of the associate. The Consolidated Statement of Income and Retained Earnings includes the Group's share of the operating results, interest, pre-tax results and attributable taxation of such undertakings applying accounting policies consistent with those of the Group. In the Consolidated Balance Sheet, the interests in associated undertakings are shown as the Group's share of the identifiable net assets, including any unamortised premium paid on acquisition.
Any premium on acquisition is dealt with in accordance with the goodwill policy.

 
2.14

Stocks

Stocks comprise goods for sale and production costs, which are recorded as a current asset.  Production costs are amortised to the Statement of Income and Retained Earnings over the period in which the rights to the production are being exploited by the Company on an anticipated revenue basis.

Page 20

 
AK THEATRICALS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

 
2.15

Debtors

Short-term debtors are measured at transaction price, less any impairment.

 
2.16

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. 

 
2.17

Creditors

Short-term creditors are measured at the transaction price.

 
2.18

Financial instruments

The Group 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 Group's Balance Sheet when the Group 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 trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of
Page 21

 
AK THEATRICALS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)


2.18
Financial instruments (continued)

the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Group after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Group will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled.

Page 22

 
AK THEATRICALS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilites as at the reporting date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates.
Accruals
The Group makes an estimate of accruals at the year end based on invoices received after the year end and work undertaken which has not been invoiced based on quotations or estimates of amounts that may be due for payment
.
Tangible assets
Tangible assets are depreciated over their useful lives taking into account residual values where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending upon a number of factors. In re-assessing the assets' lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account.
Impairment of fixed and current asset investments
The Group makes an estimate of the fair value of fixed and current asset investments. When assessing impairment, management considers the best estimate of the funds the Group would receive for the asset if it were to be sold and the fair value of the future economic benefits that will flow to the entity from holding the investments.
Impairment of debtors
The Group makes an estimate of the recoverable value of trade and other debtors. When assessing impairment, management considers factors including the current credit rating of the debtor, the ageing profile and historical experience.
Impairment of pre-production costs carried forward as stocks
The Group makes an estimate of the recoverable value of pre-production costs carried forward as work in progress. When assessing impairment, management considers factors including the forecasted running profits generated by the relevant production.

Page 23

 
AK THEATRICALS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

4.


Turnover

An analysis of turnover by class of business is as follows:


2023
2022
£
£

Production revenue
4,951,954
1,987,429

Producer fees and services
167,400
25,179

Food and beverage
928,586
334,591

Retail and photography
109,585
-

Royalties receivable
345,577
70,243

Licence fees receivable
1,150,000
-

Non returnable production funding
577,240
-

Other income
22,818
3,192

8,253,160
2,420,634


Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
8,253,160
2,420,634

8,253,160
2,420,634



5.


Operating loss

The operating loss is stated after charging:

2023
2022
£
£

Exchange differences
3,223
(27)

Other operating lease rentals
1,091,573
17,661


6.


Auditors' remuneration

2023
2022
£
£

Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements
35,000
-

Page 24

 
AK THEATRICALS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

7.


Employees

Staff costs, including directors' remuneration, were as follows:


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Wages and salaries
2,812,843
1,511,486
-
-

Social security costs
272,343
133,685
-
-

Cost of defined contribution scheme
40,742
18,114
-
-

3,125,928
1,663,285
-
-

The directors of the Company are recognised as being the key management personnel of the Company.  It is these individuals who together hold joint responsibility for planning, directing and controlling the activities of the Company.

The average monthly number of employees, including the directors, during the year was as follows:


2023
2022
Number
Number



Staff (Group)
118
20

Directors
2
2

120
22


8.


Interest receivable

2023
2022
£
£


Other interest receivable
570
177

570
177

Page 25

 
AK THEATRICALS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

9.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
(1,022,562)
1,190


(1,022,562)
1,190


Total current tax
(1,022,562)
1,190

Deferred tax


Origination and reversal of timing differences
-
148

Total deferred tax
-
148


Tax on loss
(1,022,562)
1,338
Page 26

 
AK THEATRICALS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
 
9.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2022 - lower than) the standard rate of corporation tax in the UK of 19% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Loss on ordinary activities before tax
(6,099,744)
(285,603)


Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2022 - 19%)
(1,158,951)
(54,265)

Effects of:


Impairment of tangible fixed asset investments
472,560
-

Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
1,265
10,713

Capital allowances for year in excess of depreciation
(148,648)
(67,523)

Utilisation of tax losses
(6,528)
-

Unutilised tax losses
1,143,841
112,265

Theatrical production tax profit adjustment
(735,180)
-

Enhanced losses surrendered for theatre tax relief
431,749
-

Theatre tax relief
(1,022,670)
-

Deferrex taxation
-
148

Total tax charge for the year
(1,022,562)
1,338

Page 27

 
AK THEATRICALS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

10.


Intangible assets

Group and Company





Trademarks
Goodwill
Total

£
£
£



Cost


At 1 April 2022
156,984
20,000
176,984


Additions
19,804
-
19,804



At 31 March 2023

176,788
20,000
196,788



Amortisation


At 1 April 2022
10,580
-
10,580


Charge for the year on owned assets
17,679
-
17,679



At 31 March 2023

28,259
-
28,259



Net book value



At 31 March 2023
148,529
20,000
168,529



At 31 March 2022
146,404
20,000
166,404



Page 28

 
AK THEATRICALS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

11.


Tangible fixed assets

Group






Long-term leasehold property
Fixtures and fittings
Office equipment
Other fixed assets
Total

£
£
£
£
£



Cost or valuation


At 1 April 2022
306,357
687,075
21,236
-
1,014,668


Additions
259,346
1,005,829
8,274
371,015
1,644,464



At 31 March 2023

565,703
1,692,904
29,510
371,015
2,659,132



Depreciation


At 1 April 2022
13,616
83,045
3,197
-
99,858


Charge for the year on owned assets
24,801
235,861
6,967
-
267,629



At 31 March 2023

38,417
318,906
10,164
-
367,487



Net book value



At 31 March 2023
527,286
1,373,998
19,346
371,015
2,291,645



At 31 March 2022
292,741
604,030
18,039
-
914,810




The net book value of land and buildings may be further analysed as follows:


2023
2022
£
£

Long leasehold
527,286
292,741

527,286
292,741


Page 29

 
AK THEATRICALS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

12.


Fixed asset investments

Group





Investments in associates

£



Cost or valuation


At 1 April 2022
2,146,383


Additions
966,715



At 31 March 2023

3,113,098



Impairment


Charge for the period
2,487,159



At 31 March 2023

2,487,159



Net book value



At 31 March 2023
625,939



At 31 March 2022
2,146,383

Page 30

 
AK THEATRICALS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
Company





Investments in subsidiary companies
Investments in associates
Total

£
£
£



Cost or valuation


At 1 April 2022
20,103
2,146,383
2,166,486


Additions
-
966,715
966,715



At 31 March 2023
20,103
3,113,098
3,133,201



Impairment


Charge for the period
-
2,487,159
2,487,159



At 31 March 2023

-
2,487,159
2,487,159



Net book value



At 31 March 2023
20,103
625,939
646,042



At 31 March 2022
20,103
2,146,383
2,166,486

Page 31

 
AK THEATRICALS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Class of shares

Holding

AK Theatricals Investments Limited
124 Finchley Road, London  NW3 5JS
Ordinary
100%
The Path Entertainment Group Limited
124 Finchley Road, London  NW3 5JS
Ordinary
67%
Gamepath Entertainment Limited *
124 Finchley Road, London  NW3 5JS
Ordinary
67%
Showpath Entertainment Limited *
124 Finchley Road, London  NW3 5JS
Ordinary
67%
Gamepath (Monopoly) Limited **
124 Finchley Road, London  NW3 5JS
Ordinary
67%
Gamepath Paddington Ldn Limited **
124 Finchley Road, London  NW3 5JS
Ordinary
67%
Gamepath Saw Ldn Limited **
124 Finchley Road, London  NW3 5JS
Ordinary
67%
Showpath Spongebob Limited ***
124 Finchley Road, London  NW3 5JS
Ordinary
67%
Gamepath Venues Limited **
124 Finchley Road, London  NW3 5JS
Ordinary
67%
Buzztickets Limited
124 Finchley Road, London  NW3 5JS
Ordinary
100%

Page 32

 
AK THEATRICALS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
Subsidiary undertakings (continued)

The aggregate of the share capital and reserves as at 31 March 2023 and the profit or loss for the year ended on that date for the subsidiary undertakings were as follows:

Name
Aggregate of share capital and reserves
Profit/(Loss)
£
£

AK Theatricals Investments Limited
(2,269,043)
(2,268,557)

The Path Entertainment Group Limited
(838,891)
(594,789)

Gamepath Entertainment Limited *
159,416
194,621

Showpath Entertainment Limited *
20,651
20,770

Gamepath (Monopoly) Limited **
(59,757)
(57,434)

Gamepath Paddington Ldn Limited **
(29,362)
(19,828)

Gamepath Saw Ldn Limited **
1
21,077

Showpath Spongebob Limited ***
1
-

Gamepath Venues Limited **
1
-

Buzztickets Limited
100
-

AK Theatricals Investments Limited is exempt from the requirement relating to the audit of their individual financial statements for the period ended 31 March 2023 by virtue of Section 479A of the Companies Act 2006. The parent company, AK Theatricals Limited, guarantees any liabilities of the subsidiary.
* These companies are held by The Path Entertainment Group Limited
** These companies are held by Gamepath Entertainment Limited
*** These companies are held by Showpath Entertainment Limited


13.


Stocks

Group
Group
2023
2022
£
£

Production costs
5,205,179
3,940,000

Bar and catering stock
46,393
17,765

5,251,572
3,957,765


Page 33

 
AK THEATRICALS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

14.


Debtors

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Trade debtors
93,059
24,922
-
-

Amounts owed by group undertakings
-
-
818,997
499,998

Amounts owed by joint ventures and associated undertakings
5,975,000
868,000
-
-

Other debtors
1,220,358
496,338
201,675
60,675

Called up share capital not paid
50
51
50
50

Prepayments and accrued income
738,927
268,642
-
6,429

Tax recoverable
1,022,461
-
-
-

9,049,855
1,657,953
1,020,722
567,152



15.


Current asset investments

Group
Group
2023
2022
£
£

Unlisted investments
10,871,366
6,862,878

10,871,366
6,862,878



16.


Cash and cash equivalents

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Cash at bank and in hand
1,219,556
3,494,230
22,344
47,924

Less: bank overdrafts
-
(277)
-
(157)

1,219,556
3,493,953
22,344
47,767


Page 34

 
AK THEATRICALS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

17.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Bank overdrafts
-
277
-
157

Other loans
25,178,564
15,078,873
-
-

Trade creditors
797,595
436,632
-
-

Amounts owed to group undertakings
-
-
-
241,001

Amounts owed to associates
5,872,500
2,500,000
3,990,000
2,500,000

Corporation tax
1,190
1,190
1,190
1,190

Other taxation and social security
335,116
82,838
5,838
3,960

Other creditors
185,936
122,286
-
-

Accruals and deferred income
2,471,584
1,265,168
39,000
9,000

34,842,485
19,487,264
4,036,028
2,755,308



18.


Financial instruments

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Financial assets

Financial assets measured at fair value through profit or loss
17,751,100
8,206,475
1,010,674
450,675


Financial liabilities

Other financial liabilities measured at fair value through profit or loss
29,966,157
13,013,505
3,990,048
2,740,998


Financial assets measured at fair value through profit or loss comprise trade debtors, group debtors, other debtors and investments in theatrical productions.


Other financial liabilities measured at fair value through profit and loss comprise trade creditors, theatrical production funding creditors and group creditors.

Page 35

 
AK THEATRICALS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

19.


Deferred taxation


Group



2022


£






At beginning of year
148


Charged to profit or loss
(148)



At end of year
-


20.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



50 (2022 - 50) Ordinary A shares of £1.00 each
50
50
50 (2022 - 50) Ordinary B shares of £1.00 each
50
50

100

100



21.


Reserves

Profit and loss account

Retained earnings represents accumulated comprehensive income for the year and prior periods less dividends paid.


22.


Capital commitments




At 31 March 2023 the Group and Company had capital commitments as follows:


Group
Group
2023
2022
£
£

Contracted for but not provided in these financial statements
(2,115,994)
-

(2,115,994)
-

Page 36

 
AK THEATRICALS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

23.


Pension commitments

The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group  in an independently administered fund. The pension cost charge represents contributions payable by the Group  to the fund and amounted to £40,742 (2022 - £18,114). Contributions totalling £9,339 (2022 - £6,973) were payable to the fund at the balance sheet date and are included in creditors.


24.


Commitments under operating leases

At 31 March 2023 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
2023
2022
£
£

Not later than 1 year
890,000
487,500

Later than 1 year and not later than 5 years
3,320,000
2,600,000

Later than 5 years
6,555,333
5,850,000

10,765,333
8,937,500

25.


Related party transactions

During the year, fees totalling £11,895 (2022: £nil) were payable by the Group to companies in which a director has a material interest. At the balance sheet date, creditors include £nil (2022: £nil) due in respect of these fees.  Also during the year, fees totalling £2,652 (2022: £nil) were payable to companies in which a director has a material interest.  At the balance sheet date, debtors include £nil (2022: £nil) receivable in respect of these fees.
During the year, the Group received funding totalling £3,372,500 (2022: £2,499,998) from a company with a 50% shareholding in Group. At the balance sheet date, creditors include £5,872,498 (2022: £2,499,998) due to the company.
During the year, the Group provided production funding totalling £3,721,750 (2022: £2,132,000) to subsidiary companies not within the wholly owned Group. Also during the year a provision of £1,447,258 (2022: £nil) was made against the recoupable production funding.  At the balance sheet date, debtors include £4,406,492 (2022: £2,132,000) due from these companies.
During the year, the Group provided production funding totalling £5,348,000 (2022: £828,675) to  companies with a common director and in which the company has a non controlling shareholding.  At the balance sheet date, debtors include £6,176,675 (2022: £828,675) due from these companies.
During the year, the Group provided production funding totalling £2,400,000 (2022: £1,367,500) to  companies with a common director and in which the company has a non controlling shareholding.  Also during the year a provision of £2,860,000 (2022: £nil) was made against the recoupable production funding advanced.  During the period producer fees and royalties totalling £30,534 (2022: £nil) were receivable from the these companies.  At the balance sheet date, debtors include £1,268,300 (2022: £1,367,500) due from these companies.

Page 37

 
AK THEATRICALS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

26.


Controlling party

In the opinion of the directors there is no ultimate controlling party.

 
Page 38