REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Audited Financial Statements |
for the Year Ended 30th June 2024 |
for |
Echo Studios Limited |
REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Audited Financial Statements |
for the Year Ended 30th June 2024 |
for |
Echo Studios Limited |
Echo Studios Limited (Registered number: 03042651) |
Contents of the Financial Statements |
for the Year Ended 30th June 2024 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Statement of Comprehensive Income | 10 |
Balance Sheet | 11 |
Statement of Changes in Equity | 12 |
Cash Flow Statement | 13 |
Notes to the Cash Flow Statement | 14 |
Notes to the Financial Statements | 16 |
Echo Studios Limited |
Company Information |
for the Year Ended 30th June 2024 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Certified Accountants |
& Statutory Auditor |
Sovereign House |
155 High Street |
Aldershot |
Hampshire |
GU11 1TT |
Echo Studios Limited (Registered number: 03042651) |
Strategic Report |
for the Year Ended 30th June 2024 |
The directors present their strategic report for the year ended 30th June 2024. |
REVIEW OF BUSINESS |
The Company's principal activity continues to be that of a graphic design and retail production house. |
RESULTS AND PERFORMANCE |
The results of the Company for the year, set out on pages 10 to 24 show a profit on ordinary activities before taxation of £3,933,925 (2023: £2,870,312).The shareholders' funds of the company total £12,632,103 (2023: £9,686,608). |
The directors consider the results for the year ended 30 June 2024 to be very satisfactory. The performance reflects the quality and strength of our client base as well as our ability to adapt to the changing commercial landscape. Revenue has continued to increase and is represented by studio art-working, design, fabrication and printing and installation of graphic displays. |
BUSINESS ENVIRONMENT |
The design and print industry, particularly the retail and travel sectors, has remained a very competitive and fast evolving environment and has been impacted by global financial pressures. The company has continued to consolidate in its target markets by expanding its ranged of solutions offered to clients particularly by offering a greater range of services as well as focusing on sustainable design and technology solutions, thus the company has kept pace with new developments and changing demands of the market. |
STRATEGY |
The Company's success has, and will continue to, depend on being able to provide the best quality product by taking advantage of the most up to date equipment and technologies as well as through innovation and creativity. In addition, the Company has continued to focus on the development of sustainable solutions for its clients by offering a range of high-quality sustainable products and services that will help maintain its status as an industry market leader. The Company has also focused on consolidating new revenue streams and increasing its operational footprint which has led to a broadening of the Company's client base and geographical reach. The Company strategy is to continue to seek opportunities to expand its services to an increasingly global market with a focus on more international projects. |
KEY PERFORMANCE INDICATORS (KPI'S) |
We have made significant progress throughout the year in relation to key elements of our strategy. The Board |
monitors the progress of the company by reference to the following KPIs: |
2024 (2023) |
Net Revenue £20,517,155 (£16,927,332) |
Gross margin 71.74% (65.63%) |
In common with many businesses, the Company was affected by the impact of global factors including increases in energy prices resulting in increases in the price of many raw materials and services. Despite this, the financial performance during the year has been very robust and has continued to recover from the impact of the global financial pressures. |
Sustainability |
The Company is increasingly measuring performance by reference to KPI's linked to environmental sustainability and has made good progress in maximising the percentage of materials obtained from sustainable sources, recycling, and minimising net energy consumption and carbon emissions. |
Echo Studios Limited (Registered number: 03042651) |
Strategic Report |
for the Year Ended 30th June 2024 |
FINANCIAL INSTRUMENTS |
The company has a normal level of exposure to price, credit, liquidity and cash flow risks arising from trading activities which are conducted largely in sterling. The company does not enter into formally designated hedging arrangements. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The process of risk acceptance and risk management is addressed through robust internal policies, procedures and controls. |
The board manages cash and working capital to ensure the company has the financial strength to meet its requirements and support the growth of the business as well as manage the impact of the global business challenges. |
ON BEHALF OF THE BOARD: |
Echo Studios Limited (Registered number: 03042651) |
Report of the Directors |
for the Year Ended 30th June 2024 |
The directors present their report with the financial statements of the company for the year ended 30th June 2024. |
PRINCIPAL ACTIVITY |
The Company's principal activity continues to be that of a graphic design and retail production house. |
DIVIDENDS |
No dividends will be distributed for the year ended 30th June 2024. |
RESEARCH AND DEVELOPMENT |
This is set out in the strategic report under business environment. |
FUTURE DEVELOPMENTS |
These are set out in the strategic report under strategy. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1st July 2023 to the date of this report. |
GOING CONCERN |
No material uncertainties that may cast significant doubt about the ability of the company to continue as a going concern have been identified by the directors. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), 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 of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
Echo Studios Limited (Registered number: 03042651) |
Report of the Directors |
for the Year Ended 30th June 2024 |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
AUDITORS |
The auditors, Whiteleys, are deemed to be re-appointed under section 487(2) of the Companies Act 2006. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Echo Studios Limited |
Opinion |
We have audited the financial statements of Echo Studios Limited (the 'company') for the year ended 30th June 2024 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 30th June 2024 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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 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. |
Report of the Independent Auditors to the Members of |
Echo Studios Limited |
Opinions 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 Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
Echo Studios Limited |
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 a Report of the Auditors 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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
The extent to which the audit was considered capable of detecting irregularities including fraud |
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, |
including fraud and non-compliance with laws and regulations, was as follows: |
- | the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; |
- | we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the business sector; |
- | we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006 and taxation; |
- | we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence where available; and |
- | identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. |
We assessed the susceptibility of the company’s financial statements to material misstatement, including |
obtaining an understanding of how fraud might occur, by: |
- | making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and |
- | considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. |
To address the risk of fraud through management bias and override of controls, we: |
- | performed analytical procedures to identify any unusual or unexpected relationships; |
- | tested journal entries to identify unusual transactions; |
- | assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and |
- | investigated the rationale behind significant or unusual transactions. |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed |
procedures which included, but not were not limited to: |
- | agreeing financial statement disclosures to underlying supporting documentation; |
- | reading the minutes of meetings of those charged with governance; |
- | enquiring of management as to actual and potential litigation and claims; and |
- | reviewing correspondence with HMRC, relevant regulators, and the company’s legal advisors, where available. |
There are inherent limitations in our audit procedures described above. The more removed that laws and |
regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. |
Auditing standards also limit the audit procedures required to indentify non-compliance with laws and |
Report of the Independent Auditors to the Members of |
Echo Studios Limited |
regulations to enquiry of the directors and other management and the inspection of regulatory and legal |
correspondence, if any. |
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as |
they may involve deliberate concealment or collusion. |
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 Report of the Auditors. |
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 a Report of the Auditors 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 |
Chartered Certified Accountants |
& Statutory Auditor |
Sovereign House |
155 High Street |
Aldershot |
Hampshire |
GU11 1TT |
Echo Studios Limited (Registered number: 03042651) |
Statement of Comprehensive |
Income |
for the Year Ended 30th June 2024 |
2024 | 2023 |
Notes | £ | £ |
TURNOVER | 4 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
3,848,156 | 2,832,366 |
Other operating income | 5 |
OPERATING PROFIT |
Interest receivable and similar income |
3,934,067 | 2,870,965 |
Interest payable and similar expenses | 7 |
PROFIT BEFORE TAXATION | 8 |
Tax on profit | 9 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
Echo Studios Limited (Registered number: 03042651) |
Balance Sheet |
30th June 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 |
Tangible assets | 11 |
Investments | 12 |
CURRENT ASSETS |
Stocks | 13 |
Debtors | 14 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 15 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 19 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 20 |
Retained earnings | 21 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
Echo Studios Limited (Registered number: 03042651) |
Statement of Changes in Equity |
for the Year Ended 30th June 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1st July 2022 |
Changes in equity |
Total comprehensive income | - |
Balance at 30th June 2023 |
Changes in equity |
Total comprehensive income | - |
Balance at 30th June 2024 |
Echo Studios Limited (Registered number: 03042651) |
Cash Flow Statement |
for the Year Ended 30th June 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( |
) |
Interest element of hire purchase or finance lease rental payments paid |
( |
) |
( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of intangible fixed assets | ( |
) | ( |
) |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Purchase of fixed asset investments | (130,857 | ) | - |
Sale of tangible fixed assets |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Loan to/(from) group undertaking | ( |
) | ( |
) |
Capital repayments in year | ( |
) |
Amount withdrawn by directors | 49,026 | (39,160 | ) |
Net cash from financing activities | ( |
) | ( |
) |
Increase in cash and cash equivalents |
Cash and cash equivalents at beginning of year |
2 |
2,082,542 |
1,543,702 |
Cash and cash equivalents at end of year |
2 |
Echo Studios Limited (Registered number: 03042651) |
Notes to the Cash Flow Statement |
for the Year Ended 30th June 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Profit before taxation |
Depreciation charges |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Finance costs | 142 | 653 |
Finance income | (82,307 | ) | (31,664 | ) |
4,165,781 | 3,056,188 |
Decrease/(increase) in stocks | ( |
) |
Increase in trade and other debtors | ( |
) | ( |
) |
Increase in trade and other creditors |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 30th June 2024 |
30.6.24 | 1.7.23 |
£ | £ |
Cash and cash equivalents | 3,325,780 | 3,475,938 |
Bank overdrafts | ( |
) | ( |
) |
2,912,691 | 2,082,542 |
Year ended 30th June 2023 |
30.6.23 | 1.7.22 |
£ | £ |
Cash and cash equivalents | 3,475,938 | 2,314,416 |
Bank overdrafts | ( |
) | ( |
) |
2,082,542 | 1,543,702 |
Echo Studios Limited (Registered number: 03042651) |
Notes to the Cash Flow Statement |
for the Year Ended 30th June 2024 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.7.23 | Cash flow | At 30.6.24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 3,475,938 | (150,158 | ) | 3,325,780 |
Bank overdrafts | (1,393,396 | ) | 980,307 | (413,089 | ) |
2,082,542 | 2,912,691 |
Total | 2,082,542 | 830,149 | 2,912,691 |
Echo Studios Limited (Registered number: 03042651) |
Notes to the Financial Statements |
for the Year Ended 30th June 2024 |
1. | STATUTORY INFORMATION |
Echo Studios Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
The principal place of business of the company is Echo House, Red Lion Business Park, Surbiton, Surrey KT6 7RD. |
2. | STATEMENT OF COMPLIANCE |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Going concern |
As set out in the strategic report, the directors believe that the company is well placed to manage its business risks successfully. |
Accordingly, they have a firm expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the financial statements. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for services rendered, stated net of discounts and of Value Added Tax. |
The company recognises revenue when the amount of revenue can be measured reliably, when it is probable that future economic benefits will flow to the entity and the costs incurred in respect of the transaction can be measured reliably. |
A provision is included for any non-completed contracts at the year end. Income is also accrued for any contracts completed at the year end but not invoiced until the new accounting year. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Computer software will be amortised evenly over its estimated useful life of five years once the asset is available for use. |
Echo Studios Limited (Registered number: 03042651) |
Notes to the Financial Statements - continued |
for the Year Ended 30th June 2024 |
3. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Tangible fixed assets are carried at cost less accumulated depreciation and accumulated impairment losses. |
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over their estimated useful lives as follows: |
Plant and machinery | - | 15% on cost |
Fixtures and fittings | - | 25% on cost |
Motor vehicles | - | 25% on cost |
Computer equipment | - | 15% / 25% on cost |
Leasehold improvements | - | Straight line over the term of the lease. |
On disposal, the difference between the net disposal proceeds and the carrying amount of the item sold is recognised in profit or loss. |
Stocks |
Stocks are measured at the lower of cost and selling price less cost to complete and sell. |
Cost is calculated on a first in, first out basis and includes all costs of purchase, costs of conversion and other costs incurred in bringing the stocks to their present location and condition. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Research and development |
Expenditure on research and development is written off in the year in which it is incurred. |
Echo Studios Limited (Registered number: 03042651) |
Notes to the Financial Statements - continued |
for the Year Ended 30th June 2024 |
3. | ACCOUNTING POLICIES - continued |
Foreign currency translation |
Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. |
At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss. |
Hire purchase and leasing commitments |
A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. |
The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. |
Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. |
Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. |
Operating lease payments are recognised as an expense on a straight line basis over the lease term. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
Echo Studios Limited (Registered number: 03042651) |
Notes to the Financial Statements - continued |
for the Year Ended 30th June 2024 |
3. | ACCOUNTING POLICIES - continued |
Financial instruments |
The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares. |
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in profit or loss. |
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract. |
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and the best estimate, which is an approximation, of the amount that the company would receive for the asset if it were to be sold at the reporting date. |
Financial assets and liabilities are offset and the net amount reported in the statement of financial position when there is an 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. |
Impairment of non-financial assets |
At each reporting date non-financial assets not carried at fair value, like goodwill and plant, property and equipment, are reviewed to determine whether there is an indication that an asset may be impaired. If there is an indication of possible impairment, the recoverable amount of any asset or group of related assets, which is the higher of value in use and the fair value less cost to sell, is estimated and compared with its carrying amount. If the recoverable amount is lower, the carrying amount of the asset is reduced to its recoverable amount and an impairment loss is recognised immediately in profit or loss. |
Stocks are also assessed for impairment at each reporting date. The carrying amount of each item of stock, or group of similar items, is compared with its selling price less costs to complete and sell. If an item of stock or group of similar items is impaired, its carrying amount is reduced to selling price less costs to complete and sell, and an impairment loss is recognised immediately in profit or loss. |
If an impairment loss is subsequently reversed, the carrying amount of the asset or group of related assets is increased to the revised estimate of its recoverable amount, but not to exceed the amount that would have been determined had no impairment loss been recognised for the asset or group of related assets in prior periods. A reversal of an impairment loss is recognised immediately in profit or loss. |
Echo Studios Limited (Registered number: 03042651) |
Notes to the Financial Statements - continued |
for the Year Ended 30th June 2024 |
3. | ACCOUNTING POLICIES - continued |
Related parties |
For the purposes of these financial statements, a party is considered to be related to the company if: |
(i) the party has the ability, directly or indirectly, through one or more intermediaries, to control the company or exercise significant influence over the company in making financial and operating policy decisions, or has joint control over the company. |
(ii) the company and the party are subject to common control; |
(iii) the party is a member of key management personnel of the company, or a close family member of such an individual, or is in an entity under the control, joint control or significant influence of such individuals. |
Close family members of an individual are those family members who may be expected to influence, or be influenced by, that individual in their dealings with the entity. |
4. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
5. | OTHER OPERATING INCOME |
2024 | 2023 |
£ | £ |
Other income | 3,604 | 6,935 |
6. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2024 | 2023 |
Office and administration | 18 | 11 |
Production and design | 164 | 149 |
2024 | 2023 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
Echo Studios Limited (Registered number: 03042651) |
Notes to the Financial Statements - continued |
for the Year Ended 30th June 2024 |
6. | EMPLOYEES AND DIRECTORS - continued |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
Information regarding the highest paid director is as follows: |
2024 | 2023 |
£ | £ |
Emoluments etc |
Pension contributions to money purchase schemes |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Other interest payable |
Hire purchase & loan interest |
8. | PROFIT BEFORE TAXATION |
The profit is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Depreciation - owned assets |
Depreciation - assets on hire purchase contracts or finance leases |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Auditors remuneration - audit |
Auditors remuneration - other |
Foreign exchange differences |
9. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax |
Tax on profit |
Echo Studios Limited (Registered number: 03042651) |
Notes to the Financial Statements - continued |
for the Year Ended 30th June 2024 |
9. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
R&D enhanced expenditure | - | (45,030 | ) |
Group relief | (30,735 | ) | (20,856 | ) |
Fixed asset differences | 11,438 | 28,392 |
Total tax charge | 988,430 | 568,774 |
10. | INTANGIBLE FIXED ASSETS |
Computer |
software |
£ |
COST |
At 1st July 2023 |
Additions |
Impairments | (34,000 | ) |
At 30th June 2024 |
AMORTISATION |
At 1st July 2023 |
and 30th June 2024 |
NET BOOK VALUE |
At 30th June 2024 |
At 30th June 2023 |
Echo Studios Limited (Registered number: 03042651) |
Notes to the Financial Statements - continued |
for the Year Ended 30th June 2024 |
11. | TANGIBLE FIXED ASSETS |
Improvements | Fixtures |
to | Plant and | and |
property | machinery | fittings |
£ | £ | £ |
COST |
At 1st July 2023 |
Additions |
Disposals |
At 30th June 2024 |
DEPRECIATION |
At 1st July 2023 |
Charge for year |
Eliminated on disposal |
At 30th June 2024 |
NET BOOK VALUE |
At 30th June 2024 |
At 30th June 2023 |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
At 1st July 2023 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) |
At 30th June 2024 |
DEPRECIATION |
At 1st July 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) |
At 30th June 2024 |
NET BOOK VALUE |
At 30th June 2024 |
At 30th June 2023 |
Echo Studios Limited (Registered number: 03042651) |
Notes to the Financial Statements - continued |
for the Year Ended 30th June 2024 |
12. | FIXED ASSET INVESTMENTS |
Investments (neither listed nor unlisted) were as follows: |
2024 | 2023 |
£ | £ |
Fine arts | 130,857 | - |
13. | STOCKS |
2024 | 2023 |
£ | £ |
Stocks |
The company has allowed a floating charge over the company’s assets, including stocks as security for the bank. |
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Trade debtors |
Amounts owed by group undertakings |
Other debtors |
Directors' current accounts | 560 | 47,967 |
Prepayments and accrued income |
The company has allowed a floating charge over the company’s assets, including debtors as security for the bank. |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Bank loans and overdrafts (see note 16) |
Trade creditors |
Other creditors | 30,650 | 23,516 |
Corporation tax |
Social security and other taxes |
Directors' current accounts | 1,619 | - |
Accruals and deferred income |
The bank has a fixed and floating charge over the company’s assets to secure the invoice discounting loan and overdraft. |
Echo Studios Limited (Registered number: 03042651) |
Notes to the Financial Statements - continued |
for the Year Ended 30th June 2024 |
16. | LOANS |
An analysis of the maturity of loans is given below: |
2024 | 2023 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts |
17. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2024 | 2023 |
£ | £ |
Within one year |
Between one and five years |
18. | SECURED DEBTS |
The following secured debts are included within creditors: |
2024 | 2023 |
£ | £ |
Invoice discounting loan | 413,089 | 1,393,396 |
Bank overdrafts are secured by a fixed and floating charge dated 6 March 1997 over the company's assets. |
The invoice discounting loan is secured by a charge dated 27 June 2011 over the company's trade debtors. |
19. | PROVISIONS FOR LIABILITIES |
2024 | 2023 |
£ | £ |
Deferred tax |
Accelerated capital allowances |
Deferred |
tax |
£ |
Balance at 1st July 2023 |
Charge to Statement of Comprehensive Income during year |
Balance at 30th June 2024 |
Echo Studios Limited (Registered number: 03042651) |
Notes to the Financial Statements - continued |
for the Year Ended 30th June 2024 |
20. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary | £1 | 100 | 100 |
The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the company. All ordinary shares rank equally with regard to the company's residual assets. |
21. | RESERVES |
Retained |
earnings |
£ |
At 1st July 2023 |
Profit for the year |
At 30th June 2024 |
Retained earnings reserve - This reserve represents retained earnings available for distribution. |
22. | CONTINGENT LIABILITIES |
Together with its fellow group companies, the company has provided guarantees and security in support of group borrowings from Barclays Bank PLC. |
The security provided comprises fixed and floating charges over all property and undertaking of the business. |
23. | RELATED PARTY DISCLOSURES |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Echo Studios Limited is a wholly owned subsidiary of Echo Studios Holdings Limited, which in turn is a wholly owned subsidiary of Echo House Limited, which prepares group financial statements. Its registered office is at Griffin House, 135 High Street, Crawley, West Sussex, United Kingdom, RH10 1DQ. |
The company's key management personnel are considered to be the directors. Their compensation during the year is disclosed in note 6 to the accounts. |
The controlling party is Echo Studios Holdings Limited. |
The ultimate controlling party is M D Cardwell. |
Echo Studios Limited (Registered number: 03042651) |
Notes to the Financial Statements - continued |
for the Year Ended 30th June 2024 |
24. | FINANCIAL INSTRUMENTS |
Carrying amount of financial assets and liabilities: |
2024 | 2023 |
£ | £ |
Financial assets measured at amortised cost | 7,291,592 | 7,216,593 |
Financial liabilities measured at amortised cost | 1,164,165 | 2,259,982 |