Registration number:
The Empire Holding Company Limited
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Brebners
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The Empire Holding Company Limited
Contents
Company Information |
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Strategic Report |
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Director's Report |
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Statement of Director's Responsibilities |
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Independent Auditor's Report |
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Consolidated Income Statement |
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Consolidated Statement of Comprehensive Income |
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Consolidated Statement of Financial Position |
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Statement of Financial Position |
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Consolidated Statement of Changes in Equity |
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Statement of Changes in Equity |
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Consolidated Statement of Cash Flows |
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Notes to the Financial Statements |
The Empire Holding Company Limited
Company Information
Director |
S C Burdge |
Registered office |
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Auditor |
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The Empire Holding Company Limited
Strategic Report for the Year Ended 31 December 2023
The director presents his strategic report for the year ended 31 December 2023.
Principal activity
The principal activity of the company was that of a property investment company whilst its subsidiaries are principally engaged as creative film design agencies.
The Empire Group of companies are known for the production of high quality promotional material design and trailers creation and this has resulted in their becoming a market leader for this work in the UK and Europe. The group also contains a subsidiary company in New York, USA, to which the same production values attach.
Fair review of the business
The year ended 31 December 2023 was a difficult one for the film industry because of actors' and writers' strikes. Despite this, the group maintained a positive EBITDA although did not make an operating profit. The Empire Group continues to produce the high quality product that it is known for.
At 31 December 2023 the net assets of the group were £5,453,609.
The company continues to occupy a key place within the market and has a respected name within the industry.
Financial KPIs
The company's key financial performance indicators during the year were as follows:
Unit |
2023 |
2022 |
|
Turnover |
£ |
5,186,405 |
6,091,493 |
Gross profit |
£ |
4,952,509 |
5,612,023 |
Staff / subcontractor costs as a percentage of turnover |
% |
68 |
61 |
EBITDA |
£ |
13,226 |
960,329 |
(Loss) / Profit before tax |
£ |
(525,264) |
857,501 |
The director is of the opinion that the benchmarks above are at an acceptable level and expects continued positive EBITDA in the forthcoming year.
Future developments
As with many businesses the group has been impacted by the COVID-19 pandemic. Turnover has decreased since 31 December 2022, but is showing signs of improvement during 2024, and with the industry slowly recovering the director is hopeful that the business will recover strongly. The group intends to continue to service customers in both the film market and direct streaming market, which is an area that continues to grow.
The group consolidated all of its operations into one location in March 2024, with a view to reduce its overheads and increase its operating efficiencies.
The Empire Holding Company Limited
Strategic Report for the Year Ended 31 December 2023
Principal risks and uncertainties
The director considers the main business risks to be reduced demand for film and subsequently reduced demand for film promotion activities, together with increased competition within the industry in the UK, Europe and the USA. The company and group continue to place great emphasis on the quality of design work and it is this which the director believes helps to retain the group's status within the industry. It also strives to ensure that the highest quality staff are engaged, and retained, to support the output of the group, and consequently the loss of staff to competitors is considered an operating risk to the group. The director also considers the general economic outlook to be a risk to the business, although with recent global box office successes such as Barbie, Oppenheimer and Wonka, there is clearly still a strong appetite from customers for cinema exhibition.
RISK MANAGEMENT
The director is responsible for determining the level of risk acceptable to the company. This is subject to regular review. The company seeks to mitigate its risks through the application of strict limits and controls and a monitoring process at operational level. Where it is appropriate and cost effective risks are passed to insurers.
- Strategic risk
Strategic risk is the risk that results directly from operating in a specific industry at a specific time. The company mitigates this risk by maintaining good working relationships with its customers and by ensuring that the high quality design values are maintained.
- Compliance risk
Compliance risk is the risk that results from rules and regulations affecting the group. The group mitigates this risk by ensuring it continues to uphold all regulatory standards and by ensuring that it maintains the strictest control over data protection.
- Financial risk
Financial risk is any risk relating to financing. There are regular reviews of debtors to ensure they remain at a reasonable level. The group ensures that liquidity is maintained by monitoring cash balances regularly to ensure it retains flexibility in the management of cash flows and arranging additional finance facilities where necessary. Cash is held in GBP and US Dollar currencies, which mitigates exchange rate risks.
- Operational risk
Operational risk is caused by failures in business processes or the systems or physical infrastructure that support them that have the potential to result in financial loss or reputation damage. This includes errors, omissions, systems failure, lack of resources or physical assets and deliberate acts such as fraud. The group has sufficient staff to deliver design to the clients on a timely basis, as well as constant and regular investment in its own equipment and facilities to deliver quality work. Furthermore, the group seeks to continually improve its operating efficiencies and standards.
- Reputational risk
Reputational risk is the risk that the group's reputation may be damaged from negative publicity. The group enjoys a good reputation for high quality design, and aims to uphold this reputation at all times.
Approved by the
.........................................
Director
The Empire Holding Company Limited
Director's Report for the Year Ended 31 December 2023
The director presents his report and the for the year ended 31 December 2023.
Director of the group
The director who held office during the year was as follows:
Disclosure of information in the strategic report
The company has chosen in accordance with s.414C(11) Companies Act 2006 to set out in the company's strategic report information required by Schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 to be contained in the directors' report. It has done so in respect of future developments and financial risk management and exposure.
Disclosure of information to the auditor
The director has taken steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditor is aware of that information. The director confirms that there is no relevant information that he knows of and of which he knows the auditor is unaware.
Approved by the
.........................................
Director
The Empire Holding Company Limited
Statement of Director's Responsibilities
The director acknowledges his responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the group and the company and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:
• |
select suitable accounting policies and apply them consistently; |
• |
make judgements and accounting estimates that are reasonable and prudent; |
• |
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
• |
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The director is 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 him to ensure that the financial statements comply with the Companies Act 2006 and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. He is 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.
The Empire Holding Company Limited
Independent Auditor's Report to the Members of
The Empire Holding Company Limited
Adverse opinion
We have audited the financial statements of The Empire Holding Company Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023, which comprise the Consolidated Income Statement, Consolidated Statement of Comprehensive Income, Consolidated Statement of Financial Position, Statement of Financial Position, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated Statement of Cash Flows, 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 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, because of the significance of the matters described in the basis for adverse opinion section of our report, the group financial statements:
• |
do not give a true and fair view of the state of the group's and the company's affairs as at 31 December 2023 and of the group's loss for the year then ended; |
• |
have not been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• |
have not been prepared in accordance with the requirements of the Companies Act 2006. |
In our opinion, except for the effects of the matters described in the basis for adverse opinion section of our report, the financial statements:
• | give a true and fair view of the state of the group's and the company's affairs as at 31 December 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 adverse opinion
Included within the group’s other debtors are unsecured interest-free amounts due from entities under common control totalling £6,805,165 (2022: £6,737,248) which, based on conditions at the year end and prior year end respectively, are considered to be impaired.
We draw attention to note 2 in the financial statements, which refers to “Key sources of estimation uncertainty” in connection with this potential impairment which is considered likely to represent a substantial proportion of the net assets of the group. Corresponding adjustments would also be required in the elements making up the consolidated income statement, consolidated statement of changes in equity and the consolidated cash flow statement. In addition, the strategic report does not consider the effects of this impairment.
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 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 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 adverse opinion on the group financial statements.
The Empire Holding Company Limited
Independent Auditor's Report to the Members of
The Empire Holding Company Limited
Material uncertainty related to going concern
We draw attention to note 2 in the financial statements, which refers to the uncertainty regarding the group’s ability to meet its liabilities as they fall due. As stated in note 2 this indicates that a material uncertainty exists that may cast significant doubt on the group’s ability to continue as a going concern. The financial statements do not include the adjustments that would result if the group was unable 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 director’s use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.
Other information
The director is responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.
In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
As described in the basis for adverse opinion section of our report, the group financial statements do not include a diminution in value of the recoverable amount of a balance within the group’s other debtors. We have concluded that the other information is materially misstated for the same reason with respect to the amounts or other items in the annual report affected by the failure to provide for this diminution in value.
Opinion on other matters prescribed by the Companies Act 2006
Because of the significance of the matters described in the basis for adverse opinion section of our report, in our opinion, based on the work undertaken in the course of the audit:
• |
the Strategic Report has not been prepared in accordance with applicable legal requirements. |
In our opinion, based on the work undertaken in the course of the audit:
• |
the information given in the Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
• |
the Director's Report has been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
As a result of the matter described in the basis for adverse opinion section of our report, in the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have identified material misstatements in the Strategic Report but not in the Director's 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:
The Empire Holding Company Limited
Independent Auditor's Report to the Members of
The Empire Holding Company Limited
• |
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 director's remuneration specified by law are not made; or |
• |
we have not received all the information and explanations we require for our audit. |
Responsibilities of the director
As explained more fully in the Statement of Director's Responsibilities [set out on page 5], the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor 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. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Based on our understanding of the Group and the industry in which it operates, we determined that the principal risks of non-compliance with laws and regulations related to the reporting framework (FRS 102 and the Companies Act 2006) and UK corporate taxation laws, health and safety legislation, and data protection legislation. These risks were communicated to our audit team and we remained alert to any indications of non-compliance throughout our audit.
We understood how the Group is complying with relevant legislation by making enquiries of management. We also considered the results of our audit procedures and to what extent these corroborate this understanding and assessed the susceptibility of the company’s financial statements to material misstatement. This included consideration of how fraud might occur and evaluation of management’s incentives and opportunities for fraudulent manipulation of the financial statements.
We designed our audit procedures to identify any non-compliance with laws and regulations. Such procedures included, but were not limited to, inspection and understanding of legal costs; challenging assumptions and judgements made by management; identifying and testing journal entries with a focus on large or unusual transactions as determined based on our understanding of the business; and identifying and assessing the effectiveness of controls in place to prevent and detect fraud.
Owing to the inherent limitations of an audit, there remains a risk that a material misstatement may not have been detected, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance with laws and regulations and cannot be expected to detect all instances of non-compliance.
The Empire Holding Company Limited
Independent Auditor's Report to the Members of
The Empire Holding Company Limited
The primary responsibility for the detection and prevention of fraud rests with those responsible for governance and management. The further removed non-compliance with laws and regulations is from the events reflected in the financial statements, the less likely the auditor will become aware of it.
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, collusion, omission, misrepresentation or forgery.
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 auditor's report.
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 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.
......................................
For and on behalf of
130 Shaftesbury Avenue
London
W1D 5AR
The Empire Holding Company Limited
Consolidated Income Statement for the Year Ended 31 December 2023
Note |
2023 |
2022 |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Administrative expenses |
( |
( |
|
Fair value movements |
- |
287,201 |
|
Other operating income |
|
|
|
Operating (loss)/profit |
( |
|
|
Other interest receivable and similar income |
|
|
|
Interest payable and similar charges |
( |
( |
|
(379,486) |
(188,605) |
||
(Loss)/profit before tax |
( |
|
|
Taxation |
|
( |
|
(Loss)/profit for the financial year |
( |
|
|
Dividends paid |
- |
( |
The Empire Holding Company Limited
Consolidated Statement of Comprehensive Income for the Year Ended 31 December 2023
2023 |
2022 |
|
(Loss)/profit for the year |
( |
|
Foreign currency translation gains/(losses) |
|
( |
Total comprehensive income for the year |
( |
|
Total comprehensive income attributable to: |
||
Owners of the company |
( |
|
Minority interests |
|
|
( |
|
The Empire Holding Company Limited
Consolidated Statement of Financial Position as at 31 December 2023
Note |
2023 |
2022 |
|
Fixed assets |
|||
Tangible assets |
|
|
|
Investments |
|
|
|
|
|
||
Current assets |
|||
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Provisions for liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
|
|
|
Profit and loss account |
|
|
|
Equity attributable to owners of the company |
|
|
|
Minority interests |
|
|
|
Total equity |
|
|
Approved and authorised by the
.........................................
Director
Company registration number: 04467117
The Empire Holding Company Limited
Statement of Financial Position as at 31 December 2023
Note |
2023 |
2022 |
|
Fixed assets |
|||
Tangible assets |
|
|
|
Investments |
|
|
|
|
|
||
Current assets |
|||
Debtors |
|
|
|
Cash at bank and in hand |
- |
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current liabilities |
( |
( |
|
Total assets less current liabilities |
|
|
|
Provisions for liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
25,682 |
25,682 |
|
Retained earnings |
695,756 |
1,409,183 |
|
Shareholders' funds |
721,438 |
1,434,865 |
The company made a loss after tax for the financial year of £713,427 (2022 - loss of £751,337).
Approved and authorised by the
......................................... |
Company registration number: 04467117
The Empire Holding Company Limited
Consolidated Statement of Changes in Equity for the Year Ended 31 December 2023
Equity attributable to the parent company
Share capital |
Profit and loss account |
Total |
Non- controlling interests |
Total equity |
|
At 1 January 2023 |
|
|
|
|
|
(Loss)/profit for the year |
- |
( |
( |
|
( |
Other comprehensive income |
- |
|
|
- |
|
Total comprehensive income |
- |
( |
( |
|
( |
Payments to non-controlling interests |
- |
- |
- |
(211,480) |
(211,480) |
Transfers |
- |
(207,252) |
(207,252) |
207,252 |
- |
At 31 December 2023 |
|
|
|
|
|
Share capital |
Profit and loss account |
Total |
Non- controlling interests |
Total equity |
|
At 1 January 2022 |
|
|
|
|
|
Profit for the year |
- |
|
|
|
|
Other comprehensive income |
- |
( |
( |
- |
( |
Total comprehensive income |
- |
|
|
|
|
Dividends |
- |
( |
( |
- |
( |
Payments to non-controlling interests |
- |
- |
- |
(226,000) |
(226,000) |
Transfers |
- |
(217,263) |
(217,263) |
217,263 |
- |
At 31 December 2022 |
|
|
|
|
|
The Empire Holding Company Limited
Statement of Changes in Equity for the Year Ended 31 December 2023
Share capital |
Retained earnings |
Total |
|
At 1 January 2023 |
|
|
|
Loss for the year |
- |
( |
( |
At 31 December 2023 |
|
|
|
Share capital |
Retained earnings |
Total |
|
At 1 January 2022 |
|
|
|
Loss for the year |
- |
( |
( |
Dividends |
- |
( |
( |
At 31 December 2022 |
25,682 |
1,409,183 |
1,434,865 |
The Empire Holding Company Limited
Consolidated Statement of Cash Flows for the Year Ended 31 December 2023
Note |
2023 |
2022 |
|
Cash flows from operating activities |
|||
(Loss)/profit for the year |
( |
|
|
Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
|
|
|
Changes in fair value of investment property |
- |
( |
|
Profit from disposals of investments |
( |
- |
|
Finance income |
( |
( |
|
Finance costs |
|
|
|
Income tax expense |
( |
|
|
Foreign exchange gains/losses |
|
( |
|
|
|
||
Working capital adjustments |
|||
Decrease/(increase) in trade debtors |
|
( |
|
Increase in trade creditors |
|
|
|
(Decrease)/increase in provisions |
( |
|
|
Cash generated from operations |
|
|
|
Income taxes paid |
( |
( |
|
Net cash flow from operating activities |
|
|
|
Cash flows from investing activities |
|||
Interest received |
|
|
|
Acquisitions of tangible assets |
( |
( |
|
Net cash flows from investing activities |
( |
( |
|
Cash flows from financing activities |
|||
Interest paid |
( |
( |
|
Repayment of bank borrowing |
( |
( |
|
Repayment of other borrowing |
( |
( |
|
Payments to minority interests |
( |
( |
|
Dividends paid |
- |
( |
|
Net cash flows from financing activities |
( |
( |
|
Net (decrease)/increase in cash and cash equivalents |
( |
|
|
Cash and cash equivalents at 1 January |
( |
( |
|
Effect of exchange rate fluctuations on cash held |
|
( |
|
Cash and cash equivalents at 31 December |
(385,207) |
(252,085) |
The Empire Holding Company Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
General information |
The address of its registered office is:
The principal place of business is:
28 Bedford Square
London
WC1B 3JS
The principal activity of the company was that of a property investment company whilst its subsidiaries are principally engaged as creative film design agencies.
The Empire Group of companies are known for the production of high quality promotional material design and trailers creation and this has resulted in their becoming a market leader for this work in the UK and Europe. The group also contains a subsidiary company in New York, USA, to which the same production values attach.
Accounting policies |
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except any items disclosed in the accounting policies as being shown at fair value and are presented in sterling, which is the functional currency of the entity.
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Going concern
During the year the group did not make a profit but had a positive EBITDA. In addition, at the year end date the group had net assets of £5,453,609.
The group operates in a sector where, although overall activity has reduced, its services remain in demand and the director is optimistic that this demand will continue to increase as the film industry recovers.
Unaudited management forecasts show that the group's trade has improved significantly in the year to 31 December 2024 with a positive EBITDA in the period since the year end and, based on unaudited forecasts, the director is confident that the group will trade profitably in the year to 31 December 2025 and beyond. In addition, it is noted that since the year end, the group has identified and implemented significant cost savings within rent and other administrative expenses and has taken steps to ensure cash flows are managed in various scenarios.
The Empire Holding Company Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
The group's working capital requirements are currently met via a combination of trade creditors, bank facilities, hire purchase, other creditors, and funds from related undertakings. Within group loans and borrowings due within one year of the year end are balances amounting to £4,548,805, comprised of an overdraft balance amounting to £425,609 and mortgage and loan balances totalling £4,123,196, which are technically repayable on demand. In addition within creditors due within one year are material group balances due to HMRC which are also technically repayable on demand. As such, there is uncertainty regarding the group’s ability to meet its liabilities as they fall due. However, the director and management team have produced cash flow forecasts which show these loan liabilities being repaid over the period to December 2025 and HMRC liabilities being repaid in line with payment plans currently in negotiation. The director believes that the current bank facilities will remain until new banking facilities are in place. The director and management team have been exploring refinancing the investment property held by the group and valued at £6,514,800 at the year end and have been in talks with financial institutions in connection therewith. The director also believes that in the worst case scenario, the group has significant assets that could be realised in order to repay these debts.
On the basis of the above, and after making enquires and taking into account the combination of those circumstances outlined above, the director believes he has a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the director continues to adopt the going concern basis in preparing the financial statements.
Summary of disclosure exemptions
The parent company satisfies the criteria of being a qualifying entity as defined in FRS 102. As such, advantage has been taken of the following reduced disclosures available under FRS 102:
(a) No cash flow statement has been presented.
(b) Disclosures in respect of financial instruments have not been presented.
(c) Disclosures in respect of key management personnel compensation in total have not been presented.
The company has taken advantage of the exemption in section 408 of the Companies Act from presenting its individual profit and loss account.
Basis of consolidation
The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 December 2023.
The Empire Holding Company Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
The results of subsidiaries acquired or disposed of during the year are included in the Income Statement from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.
The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.
Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.
Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.
Judgements
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. |
Other than those involving estimations there are no judgements that management have made in the process of applying the entity's accounting policies that have a significant effect on the amounts recognised in the financial statements. |
The Empire Holding Company Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Key sources of estimation uncertainty
Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows:
- Useful economic lives of tangible assets:
Tangible fixed assets are depreciated to their estimated residual values over their estimated useful lives. The group exercises judgement to determine these useful lives and residual values.
- Fair value of investment properties:
Investment properties are revalued to fair value. The group exercises judgement in determining fair value and the apportionment between investment and non-investment property.
- Impairment of amounts owed by entities under common control:
Included within other debtors are amounts advanced to two entities related by way of common control to provide working capital to fund the opening of cinemas. These amounts were on an informal basis and were interest-free at the year end.
The director and management team have considerable expertise and experience in this industry as a result of a successful previous cinema ventures and believe that both entities will also become successful and profitable in due course.
One of these entities is now forecast to be cash-generative and has commenced regular repayment whilst the other has secured external investment and is in the process of securing additional external investment.
As such, the company is currently negotiating formal commercial terms for repayment of these balances and as part of this has, subsequent to the year end, converted parts of these balances to preference shares.
The director has considered the recoverability of these balances on the above basis and believes that balances will be ultimately recovered and that as such no impairment provision is required.
It is noted that no such agreements to mitigate the uncertainty of recovery and hence potential impairment were in place at the year end.
Revenue recognition
The turnover shown in the profit and loss account represents amounts receivable for services supplied during the year, exclusive of Value Added Tax.
Turnover in respect of the provision of management services is recognised as services are performed when the company has a right to consideration.
Revenues from design services are normally recognised as services are performed, on a time basis when the company has a right to consideration. Occasionally design services are sold on a fixed price basis, and under these circumstances revenue is recognised according to the percentage of work performed.
If circumstances arise that may change the original estimates of revenues or extent of progress towards completion, estimates are revised. These revisions may result in increases or decreases in estimated revenues and are reflected in income in the period in which the circumstances that gave rise to the revision become known by management.
The Empire Holding Company Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Government grants
Government grants are recognised when it is reasonable to expect that the grants will be received and that all related conditions will be met, usually on submission of a valid claim for payment.
Grants of a revenue nature are credited to income so as to match them with the expenditure to which they relate.
Foreign currency transactions and balances
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the group operates and generates taxable income.
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the consolidated financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used.
Goodwill
Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
Asset class |
Amortisation method and rate |
Goodwill |
Straight line over 10 years |
The Empire Holding Company Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Tangible assets
Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Freehold property |
Straight line over 50 years |
Leasehold property |
Over the term of the lease |
Fixtures, fittings, and equipment |
10% to 25% straight line |
Investment property
Investments
Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.
For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, as estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.
For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.
Business combinations
Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.
The Empire Holding Company Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the income statement over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Provisions
Provisions are recognised when the group has an obligation at the reporting date as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
Operating leases and and finance leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease. Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Statement of Financial Position as a finance lease obligation.
Lease payments are apportioned between finance costs in the Income Statement and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
Operating lease income is recognised in profit or loss on a straight line basis over the lease term. The aggregate cost of lease incentives are recognised as a reduction to income over the lease term on a straight line basis. Costs, including depreciation, incurred in earning the lease income are recognised as an expense. Any initial direct costs incurred in negotiating and arranging the operating lease are added to the carrying amount of the lease and recognised as an expense over the lease term on the same basis as the lease income.
Dividends
Dividend distribution to the group’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
The Empire Holding Company Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Turnover |
The analysis of the group's Turnover for the year from continuing operations is as follows:
2023 |
2022 |
|
Rendering of services |
|
|
Other operating income |
The analysis of the group's other operating income for the year is as follows:
2023 |
2022 |
|
Miscellaneous other operating income |
|
|
Operating (loss)/profit |
Arrived at after charging/(crediting)
2023 |
2022 |
|
Depreciation expense |
|
|
Operating lease expense - rent of property |
|
|
Operating lease expense - hire of equipment |
|
|
Foreign exchange variances |
94,678 |
(242,783) |
Other interest receivable and similar income |
2023 |
2022 |
|
Other finance income |
|
|
The Empire Holding Company Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Interest payable and similar expenses |
2023 |
2022 |
|
Interest on bank overdrafts and borrowings |
|
|
Interest on obligations under finance leases and hire purchase contracts |
|
|
Interest expense on other finance liabilities |
|
|
|
|
Staff costs |
The aggregate payroll costs (including director's remuneration) were as follows:
2023 |
2022 |
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs, defined contribution scheme |
|
|
Other employee expense |
- |
|
|
|
The average number of persons employed by the group (including the director) during the year, analysed by category was as follows:
2023 |
2022 |
|
Production |
|
|
Administration and support |
|
|
Management staff |
|
|
|
|
Director's remuneration |
The director's remuneration for the year was as follows:
2023 |
2022 |
|
Remuneration |
- |
|
During the year the number of directors who were accruing benefits under company pension plans was as follows:
2023 |
2022 |
|
Defined contribution plans |
|
|
The Empire Holding Company Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Auditor's remuneration |
2023 |
2022 |
|
Audit of these financial statements |
36,000 |
36,000 |
Taxation |
Tax charged/(credited) in the income statement
2023 |
2022 |
|
Current taxation |
||
UK corporation tax |
|
|
UK corporation tax adjustment to prior periods |
- |
|
35,802 |
129,028 |
|
Effect of foreign taxes |
( |
( |
Total current income tax |
( |
|
Deferred taxation |
||
Arising from origination and reversal of timing differences |
( |
|
Tax (receipt)/expense in the income statement |
( |
|
The Empire Holding Company Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2022 - lower than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
2023 |
2022 |
|
(Loss)/profit before tax |
( |
|
Corporation tax at standard rate |
( |
|
Effect of fair value movement not subject to corporation taxation |
- |
( |
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
Effect of tax losses |
|
|
Effect of foreign taxes |
( |
( |
Increase from effect of deferred taxation |
( |
|
Over-provision of foreign taxes in previous periods |
( |
|
Tax increase/(decrease) from effect of capital allowances and depreciation |
|
( |
Total tax (credit)/charge |
( |
|
Deferred tax
Group
Deferred tax assets and liabilities
2023 |
Asset |
Liability |
Timing differences between capital allowances and depreciation |
- |
( |
Revaluation of investment property |
- |
|
- |
|
2022 |
Asset |
Liability |
Timing differences between capital allowances and depreciation |
- |
|
Revaluation of investment property |
- |
|
- |
|
The Empire Holding Company Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Company
Deferred tax assets and liabilities
2023 |
Asset |
Liability |
Timing differences between capital allowances and depreciation |
- |
( |
Revaluation of investment property |
- |
|
- |
|
2022 |
Asset |
Liability |
Timing differences between capital allowances and depreciation |
- |
|
Revaluation of investment property |
- |
|
- |
|
Intangible assets |
Group
Negative goodwill |
Total |
|
Cost or valuation |
||
At 1 January 2023 |
( |
( |
At 31 December 2023 |
( |
( |
Amortisation |
||
At 1 January 2023 |
( |
( |
At 31 December 2023 |
( |
( |
Carrying amount |
||
At 31 December 2023 |
- |
- |
At 31 December 2022 |
- |
- |
Company
The company has no intangible assets.
The Empire Holding Company Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Tangible assets |
Group
Freehold property |
Investment property |
Leasehold property |
Fixtures, fittings, and equipment |
Total |
|
Cost or valuation |
|||||
At 1 January 2023 |
|
|
|
|
|
Additions |
- |
- |
- |
|
|
Foreign exchange movements |
- |
- |
( |
( |
( |
At 31 December 2023 |
|
|
|
|
|
Depreciation |
|||||
At 1 January 2023 |
|
- |
|
|
|
Charge for the year |
|
- |
|
|
|
Foreign exchange movements |
- |
- |
( |
( |
( |
At 31 December 2023 |
|
- |
|
|
|
Carrying amount |
|||||
At 31 December 2023 |
|
|
|
|
|
At 31 December 2022 |
|
|
|
|
|
The full investment property was valued on 24 October 2022 at an amount of £6,514,800 by Colliers, Chartered Surveyors who are independent of the group and have experience valuing similar properties. The property has been valued on a Market Value basis. The valuation of the property meeting the definition of investment property on a group basis has been reassessed by the director at 31 December 2023, who, having considered rental yields, believes that the property should continue to be valued at an amount of £6,514,800 at this date.
Included within the net book value of £5,798,304 is an amount of £71,857 (2022: £92,914) relating to assets held under finance lease agreements. The depreciation charged to the financial statements in the year in respect of such assets amounted to £24,135 (2022: £32,861).
The Empire Holding Company Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Company
Investment property |
Fixtures and fittings |
Plant and machinery |
Total |
|
Cost or valuation |
||||
At 1 January 2023 |
|
|
|
|
At 31 December 2023 |
|
|
|
|
Depreciation |
||||
At 1 January 2023 |
- |
|
|
|
Charge for the year |
- |
- |
|
|
At 31 December 2023 |
- |
|
|
|
Carrying amount |
||||
At 31 December 2023 |
|
- |
- |
|
At 31 December 2022 |
|
- |
|
|
The full investment property was valued on 24 October 2022 at an amount of £6,514,800 by Colliers, Chartered Surveyors who are independent of the group and have experience valuing similar properties. The property has been valued on a Market Value basis. The valuation of the property meeting the definition of investment property on a group basis has been reassessed by the director at 31 December 2023, who, having considered rental yields, believes that the property should continue to be valued at an amount of £6,514,800 at this date.
The Empire Holding Company Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Investments |
Group
2023 |
|
Artwork |
|
At 1 January 2023 and 31 December 2023 |
|
Company
2023 |
2022 |
|
Investments in subsidiaries |
|
|
Subsidiaries |
£ |
Cost or valuation |
|
At 1 January 2023 and 31 December 2023 |
|
Disposals |
( |
At 1 January 2023 and 31 December 2023 |
|
Provision |
|
At 1 January 2023 and 31 December 2023 |
(116,959) |
Carrying amount |
|
At 31 December 2023 |
|
At 31 December 2022 |
|
The amount of impairment loss in respect of investments in subsidiaries recognised in the profit and loss in the company's income statement for the year was £Nil (2022: £116,959).
The Empire Holding Company Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Details of undertakings
Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
2023 |
2022 |
|||
Subsidiary undertakings |
||||
|
130 Shaftesbury Avenue, 2nd Floor, London, W1D 5EU |
|
|
|
|
28 Bedford Square, London, United Kingdom, WC1B 3JS |
|
|
|
|
204 Elizabeth St # 3, New York, NY 10012, USA |
|
|
|
At 31 December 2023 the above holding by The Empire Holding Company Limited in Empire Digital Limited (formerly The Empire ESOP Trustee Company Limited) was indirect by way of The Empire Design Company Limited.
The remaining 2% holding in The Empire Design Company Limited is in a separate class of share. The declaration of a dividend on one class of share does not entitle holders of any other class of share to any right to any declaration of a dividend thereon.
All companies were included for consolidation purposes.
Debtors |
Group |
Company |
|||
2023 |
2022 |
2023 |
2022 |
|
Trade debtors |
|
|
- |
- |
Other debtors |
|
|
|
|
Prepayments and accrued income |
|
|
- |
|
|
|
|
|
Included within the group's other debtors is an amount of £90,000 (2022: £90,000) due in greater than one year in respect of rent deposits.
The Empire Holding Company Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Cash and cash equivalents |
Group |
Company |
|||
2023 |
2022 |
2023 |
2022 |
|
Cash on hand |
|
|
- |
- |
Cash at bank |
|
|
- |
|
|
|
- |
|
|
Bank overdrafts |
( |
( |
- |
- |
Cash and cash equivalents in statement of cash flows |
(385,207) |
(252,085) |
- |
972 |
Creditors |
Group |
Company |
||||
Note |
2023 |
2022 |
2023 |
2022 |
|
Due within one year |
|||||
Loans and borrowings |
|
|
|
|
|
Trade creditors |
|
|
- |
|
|
Amounts due to group undertakings |
- |
- |
|
|
|
Social security and other taxes |
|
|
- |
- |
|
Other payables |
|
|
|
|
|
Accruals and deferred income |
|
|
|
|
|
Corporation tax liability |
480,816 |
325,873 |
180,514 |
7,888 |
|
|
|
|
|
||
Due after one year |
|||||
Loans and borrowings |
|
|
- |
- |
The Empire Holding Company Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Deferred tax and other provisions |
Group
Deferred tax |
Dilapidations provisions |
Total |
|
At 1 January 2023 |
|
|
|
Increase (decrease) in existing provisions |
( |
( |
( |
At 31 December 2023 |
|
- |
|
|
Company
Deferred tax |
Total |
|
At 1 January 2023 |
|
|
Increase (decrease) in existing provisions |
|
|
At 31 December 2023 |
|
|
|
Pension and other schemes |
Defined contribution pension scheme
The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £
Share capital |
Allotted, called up and fully paid shares
2023 |
2022 |
|||
No. |
£ |
No. |
£ |
|
|
|
25,682 |
|
25,682 |
The Empire Holding Company Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Reserves |
Profit and loss account - This reserve records retained earnings and accumulated losses.
Company
At 31 December 2023 the profit and loss account includes an amount of £945,327 (2022: £945,327) which is non-distributable.
Loans and borrowings |
Group |
Company |
|||
2023 |
2022 |
2023 |
2022 |
|
Current loans and borrowings |
||||
Bank borrowings |
|
|
|
|
Bank overdrafts |
|
|
- |
- |
Finance lease agreements |
|
|
- |
- |
|
|
|
|
Group |
Company |
|||
2023 |
2022 |
2023 |
2022 |
|
Non-current loans and borrowings |
||||
Finance lease agreements |
|
|
- |
- |
Bank loans carry interest at 2.50% per annum plus base rate and 2.53% per annum fixed rate.
The loan with interest at 2.50% per annum plus base rate is secured first by a fixed charge fixed charge over the investment property of the company and by a fixed and floating charge over the assets of the company, its subsidiaries, and related undertakings, as disclosed below.
The loan with interest at 2.53% per annum fixed rate is secured by a limited guarantee given by the Secretary of State for Business, Energy and Industrial Strategy. This loan is also secured by a fixed and floating charge over the assets of the company, its subsidiaries, and related undertakings, as disclosed below.
The bank loans and overdrafts of The Empire Design Company Limited, The Empire Holding Company Limited, and one company under common control are secured by cross guarantee and debenture over the assets of the three aforementioned companies.
Bank loans are stated net of unamortised issue costs of £7,896 (2022: £9,852). The company originally incurred total issue costs of £25,200 (2022: £25,200) in respect of raising loan finance for funding purposes. These costs together with the interest rate expense are allocated to profit or loss over the term of the facilities at a constant rate on the carrying amount. During the year an amount of £1,956 (2022: £3,529) was recognised in profit or loss.
Included within bank borrowings under non-current loans and borrowings is an amount of £Nil due in more than 5 years (2022: £Nil).
Liabilities under finance lease agreements are secured on the assets concerned.
The Empire Holding Company Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Obligations under leases and hire purchase contracts |
Group
Finance lease agreements
The total of future minimum lease and hire purchase payments is as follows:
2023 |
2022 |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
|
|
Operating leases
The total of future minimum lease payments is as follows:
2023 |
2022 |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
Later than five years |
|
- |
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
The above lease commitments relate to properties utilised by The Empire Holding Company Limited, The Empire Design Company Limited, and a company under common control.
Company
The company has no lease agreements.
Dividends |
2023 |
2022 |
|||
£ |
£ |
|||
Dividends on ordinary shares |
- |
211,000 |
The Empire Holding Company Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Financial commitments, guarantees and contingencies |
Group
The group has given a cross guarantee in respect of bank borrowings of a company under common control. At 31 December 2023 the potential liability was £Nil (2022: £Nil). This guarantee is supported by a fixed and floating charge over the assets and undertakings of the company and a right of set off between the group's debit and credit balances.
Company
The total amount of financial commitments, guarantees and contingencies not included in the statement of financial position is £6,436,513 (2022: £7,179,924), including lease commitments of £1,423,472 (2022: £1,693,625), bank cross guarantees of £4,141,359 (2022: £4,070,601), supplier cross guarantees of £510,000 (2022: £1,255,562) and VAT cross guarantees totalling £361,682 (2022: £160,136).
Related party transactions |
Group
During the year the group paid management charges of £197,955 (2022: £21,996), received management charges of £Nil (2022: £87,800) and received rental income of £202,500 (2022: £202,500) from companies under common control.
Included within other debtors is an amount of £7,346,084 (2022: £7,721,604) due from and included within other creditors is an amount of £2,174,382 (2022: £2,175,775) due to companies under common control. Of these balances, subsequent to 31 December 2023, balances amounting to £3,000,000 were converted to non-voting preference share capital in these entities under common control.
A director has given a personal guarantee in respect of bank loans limited to £90,000.
During the year an amount of £56,400 (2022: £56,400) was paid to a close family member of a director in respect of interior design services provided to the group.
Included within other debtors is an amount of £105,096 (2022: £197,496) due from key management personnel.
During the year remuneration of £56,018 (2022: £62,833) was paid to and interest of £4,683 (2022: £4,191) was received from key management personnel. During the year subsidiary undertakings paid dividends of £211,480 (2022: £226,000) to key management personnel.
The Empire Holding Company Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Company
In accordance with FRS 102 paragraph 33.1A, exemption is taken not to disclose transactions in the year between wholly owned group undertakings where 100% of the voting rights are controlled within the group.
During the year the company received rental income of £236,160 (2021: £236,160) from subsidiary undertakings.
Included within other creditors is an amount of £10,000 (2022: £10,000) due to subsidiary undertakings.
Included within accruals and deferred income is an amount of £59,040 (2022: £59,499) due to subsidiary undertakings.
Included within other debtors is an amount of £7,317,482 (2022: £7,598,711) due from companies under common control. Of these balances, subsequent to 31 December 2023, balances amounting to £3,000,000 were converted to non-voting preference share capital in these entities under common control.
Included within other creditors is an amount of £270,000 (2022: £523,788) due to companies under common control.
A director has given a personal guarantee in respect of the bank loans limited to £90,000.
During the year an amount of £56,400 (2022: £56,400) was paid to a close family member of a director in respect of interior design services provided to the company.
Director's advances, credits, and guarantees
Included within debtors is a balance of £615,370 (2022: £543,401) due from a director. During the year advances of £71,973 and repayments of £4 were made. Interest of £11,911 (2022: £8,195) has been charged and there are no set terms in place.
Financial instruments |
Group
The group has £Nil (2022: £Nil) financial assets or financial liabilities measured at fair value through profit or loss.
Non adjusting events after the financial period |
|
The Empire Holding Company Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Analysis of changes in net debt |
Group
Cash flows |
Non cash changes |
Non cash changes |
|||
At 1 January 2023 |
Financing cash flows |
New finance lease and hire purchase agreements |
Foreign exchange movements |
At 31 December 2023 |
|
Cash and cash equivalents |
|||||
Cash |
194,558 |
(225,366) |
- |
71,210 |
40,402 |
Overdrafts |
(446,643) |
21,034 |
- |
- |
(425,609) |
(252,085) |
(204,332) |
- |
71,210 |
(385,207) |
|
Borrowings |
|||||
Short term borrowings |
(4,070,371) |
(52,825) |
- |
- |
(4,123,196) |
Finance lease and hire purchase liabilities |
(78,952) |
41,498 |
(34,925) |
1,318 |
(71,061) |
(4,149,323) |
(11,327) |
(34,925) |
1,318 |
(4,194,257) |
|
|
|||||
( |
( |
( |
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( |