Caseware UK (AP4) 2024.0.164 2024.0.164 2024-12-302024-12-30932023-12-31false81truefalsefalse 11849528 2023-12-31 2024-12-30 11849528 2022-12-31 2023-12-30 11849528 2024-12-30 11849528 2023-12-30 11849528 2022-12-31 11849528 1 2023-12-31 2024-12-30 11849528 1 2022-12-31 2023-12-30 11849528 2 2023-12-31 2024-12-30 11849528 2 2022-12-31 2023-12-30 11849528 5 2023-12-31 2024-12-30 11849528 5 2022-12-31 2023-12-30 11849528 1 2023-12-31 2024-12-30 11849528 e:Director1 2023-12-31 2024-12-30 11849528 e:Director2 2023-12-31 2024-12-30 11849528 e:Director3 2023-12-31 2024-12-30 11849528 e:RegisteredOffice 2023-12-31 2024-12-30 11849528 e:Agent1 2023-12-31 2024-12-30 11849528 d:Buildings 2023-12-31 2024-12-30 11849528 d:Buildings 2024-12-30 11849528 d:Buildings 2023-12-30 11849528 d:Buildings d:OwnedOrFreeholdAssets 2023-12-31 2024-12-30 11849528 d:Buildings d:LongLeaseholdAssets 2023-12-31 2024-12-30 11849528 d:Buildings d:LongLeaseholdAssets 2024-12-30 11849528 d:Buildings d:LongLeaseholdAssets 2023-12-30 11849528 d:OwnedOrFreeholdAssets 2023-12-31 2024-12-30 11849528 d:CurrentFinancialInstruments 2024-12-30 11849528 d:CurrentFinancialInstruments 2023-12-30 11849528 d:Non-currentFinancialInstruments 2024-12-30 11849528 d:Non-currentFinancialInstruments 2023-12-30 11849528 d:CurrentFinancialInstruments d:WithinOneYear 2024-12-30 11849528 d:CurrentFinancialInstruments d:WithinOneYear 2023-12-30 11849528 d:ReportableOperatingSegment1 2023-12-31 2024-12-30 11849528 d:ReportableOperatingSegment1 2022-12-31 2023-12-30 11849528 d:ReportableOperatingSegment2 2023-12-31 2024-12-30 11849528 d:ReportableOperatingSegment2 2022-12-31 2023-12-30 11849528 d:UKTax 2023-12-31 2024-12-30 11849528 d:UKTax 2022-12-31 2023-12-30 11849528 d:ShareCapital 2024-12-30 11849528 d:ShareCapital 2023-12-30 11849528 d:ShareCapital 2022-12-31 11849528 d:RetainedEarningsAccumulatedLosses 2023-12-31 2024-12-30 11849528 d:RetainedEarningsAccumulatedLosses 2024-12-30 11849528 d:RetainedEarningsAccumulatedLosses 2022-12-31 2023-12-30 11849528 d:RetainedEarningsAccumulatedLosses 2023-12-30 11849528 d:RetainedEarningsAccumulatedLosses 2022-12-31 11849528 e:OrdinaryShareClass1 2023-12-31 2024-12-30 11849528 e:OrdinaryShareClass1 2024-12-30 11849528 e:OrdinaryShareClass1 2023-12-30 11849528 e:FRS102 2023-12-31 2024-12-30 11849528 e:Audited 2023-12-31 2024-12-30 11849528 e:FullAccounts 2023-12-31 2024-12-30 11849528 e:PrivateLimitedCompanyLtd 2023-12-31 2024-12-30 11849528 d:WithinOneYear 2024-12-30 11849528 d:WithinOneYear 2023-12-30 11849528 d:BetweenOneFiveYears 2024-12-30 11849528 d:BetweenOneFiveYears 2023-12-30 11849528 d:MoreThanFiveYears 2024-12-30 11849528 d:MoreThanFiveYears 2023-12-30 11849528 2 2023-12-31 2024-12-30 11849528 6 2023-12-31 2024-12-30 11849528 f:PoundSterling 2023-12-31 2024-12-30 xbrli:shares iso4217:GBP xbrli:pure
     Registered no: 11849528






        ARC CINEMA LIMITED

                  ANNUAL REPORT AND FINANCIAL STATEMENTS

      FOR THE YEAR ENDED 30 DECEMBER 2024


















3 Harmony Court
Strata Audit
Harmony Row
Statutory Audit Firm
Dublin 2


 
ARC CINEMA LIMITED
 

COMPANY INFORMATION


Directors
Paul Furlong 
Brian Gilligan 
Nicholas Furlong 




Registered number
11849528



Registered office
The Byron High Street

Hucknall

Nottingham

NG15 7HJ




Independent auditors
Strata Audit
Statutory Audit Firm

3 Harmony Court

Harmony Row

Dublin 2

D02 VY52




Bankers
Bank of Ireland
2 Burlington Plaza

Burlington Road

Dublin 4




Solicitors
DWF (Northern Ireland) LLP
42 Queen Street

Belfast

BT1 6HL





 
ARC CINEMA LIMITED
 

CONTENTS



Page
Strategic Report
 
 
1 - 2
Directors' Report
 
 
3 - 5
Independent Auditors' Report
 
 
6 - 8
Statement of Comprehensive Income
 
 
9
Balance Sheet
 
 
10
Statement of Changes in Equity
 
 
11
Statement of Cash Flows
 
 
12
Analysis of Net Debt
 
 
13
Notes to the Financial Statements
 
 
14 - 25


 
ARC CINEMA LIMITED
 

STRATEGIC REPORT
FOR THE YEAR ENDED 30 DECEMBER 2024

Introduction
 
The Directors present their Strategic Report on the Company for the year ended 30 December 2024. 

Principal activities
 
Arc Cinema Limited, trading as The Arc Cinema operates cinemas around the UK.
The main source of income for the Company is box office revenue. 
Admissions, is the key driver of box office revenue and this depends on the number, timing and popularity of the films available from the studios.
Admissions are also a key driver for food & beverage income and screen advertising income, from advertisements shown on our screens prior to feature presentations. 

Principal risks and uncertainties
 
The principal risks and uncertainties which could have a material impact on the Company’s performance are as follows;
1. Risk of declining footfall, either due to location or other outside elements which would reduce cinema goings in the future
2. Technology. A critical system interruption or breakdown of the IT infrastructure which would hinder our ability to deliver movie product.
3. Availability and Performance of Film Content. Lack of access to high quality, diverse and well publicised movie product 
4. Viewer Experience. The quality of products and services offered fails to meet the needs and expectations of the customer 
5. Regulatory or Data breach. 
6. Provision of high quality Cinemas. Maintaining & refurbishing existing sites to a suitable standard in addition to acquiring/refurbishing new sites in appropriate locations. 

Financial key performance indicators
 
The company monitors several key performance indicators, which all mainly pivot around admission numbers. These indicators are monitored throughout the entire Groups cinema assets in the UK and Ireland.
 
Key indicators for the company include:
1. Admissions
2. Revenue per ticket sold (box office and confectionery)
3. Occupancy rate
4. Gross margin (box office and confectionery)
5. Average spend per customer

Financial Performance and Position
 
For the year ended 31 December the company had Turnover of £6,646,570 (2023: £5,715,914) and made an operating profit of £206,829 (2023: Operating profit £564,289). Profit after tax for 2024 amounted to £208,239 (2023: Profit after tax £615,082).
The net liabilities of the Company at 31 December 2024 was £383,803 (2023: £592,042). 
In 2024 the company operated 6 cinemas to full capacity. The increased footfall has translated into a 16.3% increase in box office ticket sales from 2023 to 2024. 
During the years from incorporation to 2024 the company continued to develop cinemas in strategic locations throughout the UK.

Page 1

 
ARC CINEMA LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2024


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




___________________________
Paul Furlong
Director

Date: 8 August 2025

Page 2

 
ARC CINEMA LIMITED
 

 
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 DECEMBER 2024

The directors present their report and the financial statements for the year ended 30 December 2024.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and 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 for the Company's financial statements and then apply them consistently;

make judgments 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;

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

Principal activity

The principal activity of the company is the operation of cinema assets in the United Kingdom.

Results and dividends

The profit for the year, after taxation, amounted to £208,239 (2023 - £615,082).


The directors do not recommend the payment of a dividend for the year ended 30 December 2024.

Page 3

 
ARC CINEMA LIMITED
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2024


Directors

The directors who served during the year were:

Paul Furlong 
Brian Gilligan 
Nicholas Furlong 

The directors who held office at 30 December 2024 had interests in the shares (or options to acquire shares) of the company and group companies at the beginning and the end of the financial year, as follows:
Paul Furlong -  ‘A’ Ordinary shares of €0.15 each in Annick Unlimited Company, No. of shares: 165,614,106
   ‘B’ Preference shares of €0.15 each in Annick Unlimited Company, No. of shares: 53,333,333
Nicholas Furlong -  ‘A’ Ordinary shares of €0.15 each in Annick Unlimited Company, No. of shares: 165,614,106
   ‘B’ Preference shares of €0.15 each in Annick Unlimited Company, No. of shares: 53,333,333

Political contributions

There were no political donations during the year.

Future developments

The directors do not envisage any significant change in the company’s operations or investment plans in the foreseeable future other than the increase in level of trading activity. 

Research and development activities

The company did not engage in any research and development expenditure during the financial year ended 30 December 2024.

Matters covered in the Strategic Report

The company has included these matters in the strategic report at the start of these financial statements.

Disclosure of information to auditors

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

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

Post balance sheet events

There were no material post balance sheet events.

Auditors

The auditorsStrata Auditwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

Page 4

 
ARC CINEMA LIMITED
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2024

This report was approved by the board on 8 August 2025 and signed on its behalf.
 


Paul Furlong
Director

Page 5

 
ARC CINEMA LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ARC CINEMA LIMITED
 

Opinion


We have audited the financial statements of Arc Cinema Limited (the 'Company') for the year ended 30 December 2024, which comprise the Statement of Comprehensive Income, the Analysis of Net Debt, the Balance Sheet, the Statement of Cash Flows, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 30 December 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 United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


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.


Page 6

 
ARC CINEMA LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ARC CINEMA LIMITED (CONTINUED)


Other information


The other information comprises the information included in the annual report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the annual reportOur opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


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 Directors' Responsibilities Statement set out on page 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


Page 7

 
ARC CINEMA LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ARC CINEMA LIMITED (CONTINUED)


Auditors' responsibilities for the audit of the financial statements
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We obtained an understanding of the company, controls, legal and regulatory frameworks, laws and regulations and assessed the susceptibility of the company's financial statements to material misstatement from irregularities, including fraud, are instances of non-compliance with laws and regulations.
Based on the understanding we designed our audit procedures to detecting irregularities, including fraud. Testing undertaken included making enquiries of management, journal entry testing, review of bank letters, board minutes, reviewing financial statement disclosures and testing the supporting documentation to assess compliance with applicable laws and regulations. These procedures were designed to provide reasonable assurance that the financial statements were free from fraud or error.


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


Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.





Celine Donnelly (Senior Statutory Auditor)
  
for and on behalf of
Strata Audit
 
Statutory Audit Firm
  
3 Harmony Court
Harmony Row
Dublin 2
D02 VY52

8 August 2025
Page 8

 
ARC CINEMA LIMITED
 

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 DECEMBER 2024

2024
2023
Note
£
£

  

Turnover
  
6,646,570
5,715,914

Cost of sales
  
(2,322,395)
(1,997,896)

Gross profit
  
4,324,175
3,718,018

Administrative expenses
  
(4,300,359)
(3,012,707)

Other operating income
  
183,013
(141,022)

Operating profit
  
206,829
564,289

Interest receivable and similar income
  
1,053,035
420,375

Interest payable and similar expenses
  
(1,051,625)
(420,375)

Profit before tax
  
208,239
564,289

Tax on profit
  
-
50,793

Profit for the financial year
  
208,239
615,082

There were no recognised gains and losses for 2024 or 2023 other than those included in the statement of comprehensive income.

There was no other comprehensive income for 2024 (2023:£NIL).

The notes on pages 14 to 25 form part of these financial statements.

Page 9

 
ARC CINEMA LIMITED
REGISTERED NUMBER: 11849528

BALANCE SHEET
AS AT 30 DECEMBER 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 12 
15,915,289
10,050,678

Investments
 13 
345,000
345,000

  
16,260,289
10,395,678

Current assets
  

Stocks
 14 
95,574
74,808

Debtors: amounts falling due after more than one year
 15 
14,159,375
13,007,750

Debtors: amounts falling due within one year
 15 
1,554,416
1,481,307

Cash at bank and in hand
 16 
966,555
567,655

  
16,775,920
15,131,520

Creditors: amounts falling due within one year
 17 
(33,420,012)
(26,119,240)

Net current liabilities
  
 
 
(16,644,092)
 
 
(10,987,720)

Total assets less current liabilities
  
(383,803)
(592,042)

  

Net liabilities
  
(383,803)
(592,042)


Capital and reserves
  

Called up share capital 
 18 
100
100

Profit and loss account
  
(383,903)
(592,142)

  
(383,803)
(592,042)


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 

___________________________
Paul Furlong
Director

Date: 8 August 2025

The notes on pages 14 to 25 form part of these financial statements.

Page 10

 
ARC CINEMA LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 DECEMBER 2024


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 December 2022
100
(1,207,224)
(1,207,124)



Profit for the year
-
615,082
615,082



At 31 December 2023
100
(592,142)
(592,042)



Profit for the year
-
208,239
208,239


At 30 December 2024
100
(383,903)
(383,803)


The notes on pages 14 to 25 form part of these financial statements.

Page 11

 
ARC CINEMA LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 DECEMBER 2024

2024
2023
£
£

Cash flows from operating activities

Profit for the financial year
208,239
615,082

Adjustments for:

Depreciation of tangible assets
1,014,298
57,205

Government grants
(183,013)
141,022

Interest paid
1,051,625
420,375

Interest received
(1,053,035)
(420,375)

Taxation charge
-
(50,793)

(Increase)/decrease in stocks
(20,766)
227,386

(Increase) in debtors
(134,281)
(140,168)

Decrease/(increase) in amounts owed by groups
61,172
(730,995)

(Increase) in amounts owed by joint ventures
(1,151,625)
(6,920,375)

Increase in creditors
3,882,025
359,393

Increase in amounts owed to groups
3,417,076
6,311,002

Corporation tax received
22,147
50,793

Net cash generated from operating activities

7,113,862
(80,448)


Cash flows from investing activities

Purchase of tangible fixed assets
(6,927,184)
(173,971)

Sale of tangible fixed assets
26,128
-

Government grants received
183,013
(141,022)

Interest received
1,053,035
420,375

Net cash from investing activities

(5,665,008)
105,382

Cash flows from financing activities

Interest paid
(1,051,625)
(420,375)

Net cash used in financing activities
(1,051,625)
(420,375)

Net increase/(decrease) in cash and cash equivalents
397,229
(395,441)

Cash and cash equivalents at beginning of year
565,304
960,745

Cash and cash equivalents at the end of year
962,533
565,304


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
966,555
567,655

Bank overdrafts
(4,022)
(2,351)

962,533
565,304


The notes on pages 14 to 25 form part of these financial statements.

Page 12

 
ARC CINEMA LIMITED
 

ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 30 DECEMBER 2024




At 31 December 2023
Cash flows
At 30 December 2024
£

£

£

Cash at bank and in hand

567,655

398,900

966,555

Bank overdrafts

(2,351)

(1,671)

(4,022)


565,304
397,229
962,533

The notes on pages 14 to 25 form part of these financial statements.

Page 13

 
ARC CINEMA LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 DECEMBER 2024

1.


General information

Arc Cinema Limited (the “company”) is a private company limited by shares, incorporated and tax resident in the United Kingdom under company registration number 11849528. The company was incorporated on 27 February 2019.
The address of the company's registered office is High Street, Hucknall, Nottingham, NG15 7HJ.
The principal activity of the company is the operation of cinema assets in the United Kingdom.
Arc Cinema Limited’s immediate parent and controlling party at 30 December 2024 was Melcorpo Solutions Limited a company incorporated in the United Kingdom under company registration number 14490802 with its registered office at 31 Howcroft Crescent, London, England, N3 1PA.
The company's ultimate parent and ultimate controlling party at 30 December 2024 was Annick Unlimited, a company incorporated in the Isle of Man under company registration number 020499V with its registered office at Suite 1, 4th Floor Exchange House, 54-58 Athol Street, Douglas, IM1 1JD, Isle of Man. 
Annick Unlimited prepares group financial statements and is both the smallest and the largest group for which group financial statements are drawn up and of which the company is a member.
These financial statements are the company’s separate financial statements for the financial year ending 30 December 2024.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The members have agreed to the preparation of abridged accounts for this accounting period in accordance with Section 444(2A) of the Companies Act 2006.

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

The following principal accounting policies have been applied:

 
2.2

Going concern

The company meets its working capital requirements through its existing cash facilities and financing from other group companies. The company’s forecasts and projections, taking account of reasonably possible changes in trading and investment performance, show that the company should be able to operate within the level of its current facilities. After making enquiries, and after considering the financial support that has been pledged to the company by Annick Unlimited Company, its ultimate parent, for a period of at least twelve months from the date these financial statements are issued, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future.

Page 14

 
ARC CINEMA LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 DECEMBER 2024

2.Accounting policies (continued)

 
2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

For the company, turnover comprises revenue arising from the sale of cinema tickets and confectionery in respect of the cinemas. 
Turnover is measured at the fair value of the consideration received or receivable and represents the amount receivable for goods supplied or services rendered, net of returns, discounts and rebates allowed by the company and value added taxes.
Sale of cinema tickets and confectionery 
The company owns two cinemas and operates one leasehold cinema. Ticket and confectionery sales in the cinemas are recognised from the leasehold on sale to the customer, which is considered the point of delivery. These sales are usually by cash, credit or debit card. The two freehold cinemas were not in commercial use by year end.

  
2.4

Employee benefits

Short term employee benefits, including wages and salaries, paid holiday arrangements and other similar non-monetary benefits, are recognised as an expense in the financial year in which employees render the related service. An expense is recognised in the profit and loss account when the company has a present legal or constructive obligation to make payments under the plan as a result of past events and a reliable estimate of the obligation can be made.

 
2.5

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

Page 15

 
ARC CINEMA LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 DECEMBER 2024

2.Accounting policies (continued)

 
2.6

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of Comprehensive Income in the same period as the related expenditure.

 
2.7

Interest income

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

 
2.8

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.9

Borrowing costs

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

 
2.10

Taxation

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

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


 
2.11

Tangible fixed assets

(i) Land and Buildings
Land and buildings include freehold cinemas and associated fit out and are carried at cost less accumulated depreciation and accumulated impairment losses.
(ii) Leasehold Improvements
Leasehold improvements include a leasehold cinema and are carried at cost less accumulated depreciation and accumulated impairment losses.

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

At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

Page 16

 
ARC CINEMA LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 DECEMBER 2024

2.Accounting policies (continued)


2.11
Tangible fixed assets (continued)

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

Depreciation is provided on the following basis:

Land and Buildings
-
50 years
Leasehold Improvements
-
5 - 20 years

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

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

 
2.12

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Investments in unlisted Company shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Statement of Comprehensive Income for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

Investments in listed company shares are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in profit or loss for the period.

 
2.13

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.14

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.15

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

Page 17

 
ARC CINEMA LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 DECEMBER 2024

2.Accounting policies (continued)

 
2.16

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.17

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Company's Balance Sheet when the Company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

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

Impairment of financial assets

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss. 

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

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

Basic financial liabilities

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

Page 18

 
ARC CINEMA LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 DECEMBER 2024

2.Accounting policies (continued)


2.17
Financial instruments (continued)

Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

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

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


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

Estimates and judgements made in the process of preparing the entity financial statements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
(a) Critical judgement in applying the entity’s accounting policies
There were no judgements, apart from those involving estimates, made by the directors which had a significant effect on the amounts recognised in the entity financial statements.
(b) Critical accounting estimates and assumptions
The directors make estimates and assumptions concerning the future in the process of preparing the entity financial statements. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.
Useful economic lives of tangible fixed assets
The annual depreciation on tangible fixed assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reviewed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 8 for the carrying amount of the tangible fixed assets, and note 2.11 for the useful economic lives for each class of tangible fixed assets.
Going concern
The directors have reviewed the forecasts for the company and have concluded that with the ongoing support of the ultimate parent, the company will continue in operation for a period of at least twelve months from the date of approving the financial statements, and that the going concern basis of accounting is appropriate.

Page 19

 
ARC CINEMA LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 DECEMBER 2024

4.


Turnover

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


2024
2023
£
£

Cinema income
6,397,571
5,455,241

Carpark, advertising & other
248,999
260,673

6,646,570
5,715,914


All turnover arose within the United Kingdom.


5.


Other operating income

2024
2023
£
£

Government grants receivable
183,013
(141,022)

183,013
(141,022)


The company availed of various property development and support grants. The property development grant has been recognised over the useful life of the property assets. The support grants have been fully recognised in these financial statements as the year in which the grants were provided.


6.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Other operating lease rentals
454,161
430,375


7.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:


2024
2023
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
5,000
5,000

Page 20

 
ARC CINEMA LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 DECEMBER 2024

8.


Employees

Staff costs were as follows:


2024
2023
£
£

Wages and salaries
1,154,699
959,756

Social security costs
89,314
68,720

1,244,013
1,028,476


The average monthly number of employees, including directors, during the year was 93 (2023 - 81).


9.


Interest receivable

2024
2023
£
£


Interest receivable from group companies
1,053,035
420,375

1,053,035
420,375


10.


Interest payable and similar expenses

2024
2023
£
£


Loans from group undertakings
1,051,625
420,375

1,051,625
420,375


11.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
-
(50,793)


-
(50,793)


Total current tax
-
(50,793)

Deferred tax

Total deferred tax
-
-


-
(50,793)
Page 21

 
ARC CINEMA LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 DECEMBER 2024
 
11.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is the same as (2023 - the same as) the standard rate of corporation tax in the UK of 25% (2023 - 25%) as set out below:

2024
2023
£
£


Profit on ordinary activities before tax
208,239
564,289


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 25%)
52,060
141,072

Effects of:


Capital allowances for year in excess of depreciation
-
(141,072)

Unrelieved tax losses carried forward
(52,060)
(50,793)

Total tax charge for the year
-
(50,793)


12.


Tangible fixed assets





Land and buildings
Leasehold Improvements
Total

£
£
£



Cost or valuation


At 31 December 2023
5,296,957
7,793,882
13,090,839


Additions
9,329
6,917,855
6,927,184


Disposals
(43,781)
(85,777)
(129,558)



At 30 December 2024

5,262,505
14,625,960
19,888,465



Depreciation


At 31 December 2023
1,055,724
1,984,437
3,040,161


Charge for the year 
363,948
672,497
1,036,445


Disposals
(60,928)
(42,502)
(103,430)



At 30 December 2024

1,358,744
2,614,432
3,973,176



Net book value



At 30 December 2024
3,903,761
12,011,528
15,915,289



At 30 December 2023
4,241,233
5,809,445
10,050,678

Page 22

 
ARC CINEMA LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 DECEMBER 2024

13.


Fixed asset investments





Unlisted investments

£



Cost or valuation


At 31 December 2023
345,000



At 30 December 2024
345,000





14.


Stocks

2024
2023
£
£

Cinema consumables, confectionery and goods for resale
95,574
74,808

95,574
74,808


The replacement cost of stock did not differ significantly from the amounts shown above.


15.


Debtors

2024
2023
£
£

Due after more than one year

Due from participating interests
14,159,375
13,007,750

14,159,375
13,007,750


2024
2023
£
£

Due within one year

Trade debtors
84,620
73,077

Amounts owed by group undertakings
1,178,317
1,239,489

Other debtors
215,847
39,201

Prepayments and accrued income
75,632
129,540

1,554,416
1,481,307


Page 23

 
ARC CINEMA LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 DECEMBER 2024

16.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
966,555
567,655

Less: bank overdrafts
(4,022)
(2,351)

962,533
565,304



17.


Creditors: Amounts falling due within one year

2024
2023
£
£

Bank overdrafts
4,022
2,351

Trade creditors
656,576
360,792

Amounts owed to group undertakings
25,054,161
21,637,085

Other taxation and social security
39,944
176,335

Other creditors
30,811
19,522

Accruals and deferred grant income
7,634,498
3,923,155

33,420,012
26,119,240


Tax and social insurance are repayable at various dates after year end in accordance with applicable statutory provisions.
Trade creditors are payable at various dates in the three months after the end of the financial period in accordance with the creditors’ usual and customary terms.
Amounts due to related group undertakings are unsecured, interest free and repayable on demand.


18.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



100 (2023 - 100) Ordinary shares of £1.00 each
100
100



19.


Capital commitments

At 30 December 2024, the company has no capital or other commitments.

Page 24

 
ARC CINEMA LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 DECEMBER 2024

20.


Commitments under operating leases

At 30 December 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2024
2023
£
£


Not later than 1 year
724,687
377,083

Later than 1 year and not later than 5 years
4,578,711
1,741,667

Later than 5 years
7,001,424
1,937,500

12,304,822
4,056,250


21.


Charges

The company has provided security to Northern Bank Ltd. for a loan facility made available under a facility agreement.


22.


Related party transactions

Arc Cinema Limited is a wholly owned subsidiary of Melcorpo Solutions Limited. Transactions with Melcorpo Solutions Limited and with other wholly owned subsidiary companies of Melcorpo Solutions Limited are not disclosed as the company has availed the exemption available under FRS 102 33.1A.
Arc Cinema Limited enetered into a joint venture (JV) arrangement with Magmel Limited. As part of this JV, Arc Cinema Limited lent a sum of £12,205,000 to the JV with an interest rate of 7.5%.
Director's did not receive remuneration during the period ended 30 December 2024.
There were no other related party transactions during the year.


23.


Post balance sheet events

There have been no events since the end of the financial period requiring disclosure or adjustment in these financial statements.


24.


Controlling party

At 30 December 2024, the immediate parent undertaking of the company is Melcorpo Solutions Limited a company incorporated in the United Kingdom under company registration number 14490802 with its registered office at 31 Howcroft Crescent, London, England, N3 1PA.
The ultimate parent undertaking of the smallest and largest group of undertakings for which group financial statements are drawn up, and of which the company is a member is Annick Unlimited, a company incorporated in the Isle of Man under company registration number 020499V with its registered office at Suite 1, 4th Floor Exchange House, 54-58 Athol Street, Douglas, IM1 1JD, Isle of Man.
The ultimate controlling party is the shareholders of Annick Unlimited.


Page 25