Company registration number SC343592 (Scotland)
ESSENTIAL EDINBURGH
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
ESSENTIAL EDINBURGH
COMPANY INFORMATION
Directors
Barry Blamire
Lezley Cameron
(Appointed 24 June 2025)
Anne Ledgerwood
Lynzi Leroy
Louise Maclean
Neil Miller
(Appointed 25 February 2025)
Richard Morris
Denzil Gough Onslow Skinner
Roderick Charles Smith
David Alexander Stewart
David Stewart
John Alan Thomlinson
Stephen Walker
(Appointed 25 February 2025)
Secretary
David Ian Lindgren
Company number
SC343592
Registered office
Caledonian Exchange
19a Canning Street
Edinburgh
EH3 8HE
Auditor
A.J.B Scholes Ltd
8 Walker Street
Edinburgh
EH3 7LA
Business address
90A George Street
Edinburgh
EH2 3DF
Bankers
Royal Bank of Scotland plc
36 St Andrew Square
Edinburgh
EH2 2YB
Solicitors
Lindsays WS
Caledonian Exchange
19a Canning Street
Edinburgh
EH3 8HE
ESSENTIAL EDINBURGH
CONTENTS
Page
Directors' report
1 - 5
Directors' responsibilities statement
6
Independent auditor's report
7 - 9
Statement of income and retained earnings
10
Balance sheet
11
Notes to the financial statements
12 - 16
ESSENTIAL EDINBURGH
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2025
- 1 -

The Directors of Essential Edinburgh have pleasure in presenting their report and financial statements for the year to 31 March 2025. This was the second year of our fourth term following our successful renewal ballot period in March 2023.

Essential Edinburgh’s core purpose is to manage the City Centre Business Improvement District (BID) on behalf of over six hundred and seventy businesses who are committed to providing additional collective investment for local improvements.

As in previous years most of the funding for Essential Edinburgh came from the levy paid by qualifying businesses.

Edinburgh city centre continues to outperform in many metrics against Scottish and UK comparators, constantly trending above Scottish and UK retail and hospitality figures. The last year has seen many new developments in the city with work starting on 5 new hotels within the BID area. The abundance of cranes and scaffolding is a sure sign of growth and regeneration in our city centre.

Edinburgh’s tourist market has maintained its position as the UK’s second most visited city, with numbers continuing to grow sustainably.

2024/25 saw the company continue to deliver services, events, support, and initiatives which brought significant benefits to our levy payers. As per our published business plan, these are reported across four key headings, namely Promoting, Enhancing, Protecting and Engaging.

PROMOTING

Footfall

Edinburgh city centre continues to perform strongly against Scottish and UK comparators. Footfall has continued to be strong, up 4.2% annually on Princes Street – with hospitality and retail sales continuing a positive upward curve with average sales across the twelve months up 5.4% and 1% respectively.

The city’s preeminent tourism profile is key to this as is our attractiveness as a festival and tourist city. Hotel occupancy remains high across the year.

Outdoor Seating

Following another successful year of outdoor seating, we worked closely with City of Edinburgh Council and hospitality businesses along George Street, Castle Street and St Andrew Square to coordinate outside seating areas. The areas provide much needed additional covers for businesses, and also help to create a vibrant and attractive city centre environment for the spring and summer months.

Square Cinema

Our outdoor cinema event – Square Cinema took place again in June 20 24 in St Andrew Square Garden with LNER as lead sponsor. City centre footfall was boosted with the weekend’s event, up 2% on same weekend in 20 23. Over 6,000 people enjoyed Square Cinema, with 73% coming into the city centre specifically for the event, and 65% going on to eat, drink and shop in the city centre, spending on average £69 giving a ROI of 618%.

Fringe Festival

Essential Edinburgh continued its support for Assembly Festival on George Street during August 2024, pulling the Fringe Festival footprint within the BID. Support was also provided to St James Quarter’s August activities in collaboration with the Fringe Society.

Edinburgh Cocktail Week 2024

Edinburgh Cocktail Week returned for its fourth year in October 2024. As the headline partner, we ensured participation from any interested BID bars and restaurants, making sure footfall is driven to BID area businesses.

The event footfall was up 5.4% on 2023 with over 25 k attendees. Bar sales within the BID were up 13% on average and bar sales totalled over £440k. The ten-day event has an estimated impact on the economy of £3.6 million.

ESSENTIAL EDINBURGH
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 2 -
Edinburgh's Christmas and Hogmanay
The total attendance of over 2.8million to Edinburgh's Christmas attractions shows strong representation from international visitors demonstrating the international appeal which not only boosts the local economy but also enhances Scotland's global tourism profile.
In the annual audience survey over 70% of visitors from outwith the city cited Edinburgh's Christmas as the primary reason for travelling to Edinburgh, staying an average of 1.85 nights. Over 90% of respondents were satisfied to extremely satisfied with their experience with over 95% agreeing that Edinburgh's Christmas is a valuable and iconic part of Edinburgh's winter identity, bringing a festive spirit to the city. 90% also said they are more likely to return to Edinburgh during the festive season because of their experience. The average spend was £537 across eating out, attractions, retail and in bars and pubs.
We invested in supporting activity with the ice rink on George Street and the use of St Andrew Square for the Christmas maze and the popular Santa's Stories.
Eat Out Edinburgh 2025
We worked closely with our hospitality business to deliver the fourth year of our media and social media campaign, aimed at attracting residents and visitors to eat out across the BID area. The PR campaign was hugely successful getting 29 pieces of media coverage, with over 12 million views. We had 35% uplift total paid impressions on Facebook & Instagram. Over 445K website users interacted via the website. There were over 30,000 bookings made for Eat Out Edinburgh offerings – 51 offers in total. Edinburgh hospitality sales increased year-on-year by 14.6% for March 2025 with retail sales up 2.4% year on year.
The average spend was £160 per booking by consumers, with 60% using two or more Eat Out Edinburgh offers. 75% of consumers who came for Eat Out Edinburgh also went shopping in the city centre, spending an average of £135 per person with 65% of consumers coming into the city centre specifically for Eat Out Edinburgh.
China Ready
As a founding partner in the China Ready programme, we continue to support their work. Edinburgh's official RED, Weibo, WeChat and Douyin channels are valuable assets for local businesses. As of 24th March 2025, the initiative had generated over 152,550 combined followers with over 400.4 million content views.
We promoted Edinburgh's city centre across the city's official Chinese channels, tailoring content to engage Chinese audiences. Key features included Eat Out Edinburgh, Square Cinema, food & drink and retail recommendations, Edinburgh's Christmas and Hogmanay celebrations.
ETAG / Forever Edinburgh
Essential Edinburgh continues to support the work of the Edinburgh Tourism Action Group and financially supports the role of the Programme Manager for the Edinburgh Visitor Economy Partnership. As part of both the operational advisory group on Tourism and the Strategic Implementation Group we represent members views at the key industry forums. Over the course of the year there has been much discussion on the Visitor Levy (Scotland) bill as well as the ongoing delivery of the 2030 Tourism strategy.
ENHANCING
Clean Team
Our ‘Clean Team' continued to work tirelessly throughout the year, offering an emergency call out service, (up 16%) removing graffiti and flyposting, as well as their daily rounds. From 6am to 8pm they deliver an excellent service to our levy payers, receiving excellent feedback.
During the year the clean team tackled a huge 133% increase in graffiti, removed 9% more flyposting and cleaned up 131% more environmental and hazardous waste including drugs. They removed 47.7 tonnes of litter from the streets and basements, cleaning 55% more from basements than the year before. Following the purchasing of new gumbusting equipment 5,000sq meters of pavement was cleaned.
Change Waste Recycling
A quarter of all BID businesses benefit from our favourable group-buying rate with Change Waste Recycling. In total, they collected 2741 tonnes of waste with a recycling rate of 58%. A total of 1300.07 tonnes of carbon was diverted from landfill benefitting both individual levy-payers and the environment.
ESSENTIAL EDINBURGH
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 3 -
St Andrew Square Garden
We continue to manage St Andrew Square Garden, keeping it in excellent condition all year round. In the last year we have continued to improve and enhance the Garden and our annual planned maintenance to ensure the Garden is kept in pristine condition all year round has included returfing around all the pathways and high-impact footfall areas.
Seasonal Planting
We have managed the maintenance of the planters throughout the city centre, refreshing them seasonally.
Christmas Lights
From late November through to early January we situated our four new, and larger, Christmas Light trees along George Street, with our original light trees installed in the east and west ends of the BID, bringing bright focal points at ground level to enhance the ambience and appeal. Along with new lights on Rose Street, this represents a significant new investment following our successful renewal.
In partnership with Unique Events, we invested in enhanced winter lighting in St Andrew Square to make it look and feel as festive as possible.
PROTECTING
BID Cop
Our flagship partnership with Police Scotland continues to strengthen and make our city centre an even safer environment. PC Ehssan Sanii has made a significant impact by supporting our levy-payers. In this reporting year he either visited, met with, called or emailed 334 individual levy-paying businesses, totalling 1,504 interactions.
Reported crime for Edinburgh City Centre is up 6.8% compared to last year while detected (or solved) crime for Edinburgh City Centre was up 7.8% on the previous year.
Check Out
New 24/7 system leading to an increase in participating retailers with 1,450 circulations since launch in 2024/5. We have also initiated a new shop radio scheme in partnership with Police Scotland, providing over 70 radios to retailers - this has already produced some excellent results.
Cyrenians
Our partnership with the Cyrenians, supporting the homeless and begging community, has continued throughout the reporting period. Our funding provides two case workers as part of the Navigator Project, enabling skilled practitioners to work on the streets with the aim of ensuring that help and advice is on hand to support people who are living a street based life.
The strength of this work is the partnership that exists between the key providers of support in the city – our work directly with Police Scotland and The Cyrenians, and with partners and agencies across the city.
ENGAGING
Business Engagement Managers
Throughout the year Essential Edinburgh have worked on behalf of levy payers to engage on their behalf with many exciting projects and developments in the city.
Work is continuing in regard to the redevelopment of George Street with final decisions imminent. We have continued to lobby for a clear and workable operational plan, especially for the use of the street by taxis and coaches.
We have continued to work closely and proactively with new developments both in the planning and construction phase, and it was pleasing to see new hotel developments underway in St Andrew Square and on Princes Street. The Jenners, Clayton, Point A, Ruby and Zedwell developments have all been started with the Righ Developments project on Hanover and Rose Street to follow. We continue to be vocal on the need for a mixed use approach to the city centre, supporting appropriate developments as they arise.
ESSENTIAL EDINBURGH
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 4 -
We have worked with many partners to continue to press for business rates reform. There is a huge discrepancy between the rates payable for city centre businesses compared to out of town centres and smaller city centre areas. The business rates have reached a point where they are a true barrier to potential occupants in the city centre or is a business cost which is unsustainable in the longer term. We have joined as founding members of High Streets UK to support lobbying on issues such as business rates, crime and tax free shopping. This has had a major detrimental impact on business across the BID area with over £20m of lost revenue. As we start the road to recovery this will have a long term impact on tourist numbers and spend.
We have continued to lobby the City of Edinburgh Council to support change of use applications across the BID area. It is imperative that all these are considered to support new entrants to the city centre as well as repurposing former retail units if needed. We support the maintenance of a balanced mix of uses but we must reflect economic realities and trends.
We continue to chair the partnership group for St Andrew Square to discuss the key issues needed to maintain it as a high-quality open space in the city centre. We successfully lobbied for the removal of the start/finish point for tour buses from the north side of the Square on behalf of the owners.
Our partnership with FUSE has supported employment opportunities and recruitment for levy payers within the BID area. FUSE have engaged with 131 levy-paying businesses to support recruitment and training within the BID area.
We have continued to play important roles on many city-wide working groups supporting our members. These include ETAG, Edinburgh Chamber of Commerce, Edinburgh Economic Forum, Forever Edinburgh and the Strategic Implementation Group for Tourism.
The Business Engagement Managers had 1,519 individual interactions (visit, email, meeting, phone call) with 645 individual levy-payers.
CORPORATE/FINANCIAL
Our partnership with Costa Coffee to run the coffee pavilion in St Andrew Square continues to provide a high quality service whilst providing an income stream supporting the maintenance within the Garden.
The financial year end results show a surplus for the year, primarily attributed to the collection of levy that was outstanding from previous years. With our income relatively fixed and costs increasing year on year, a conscious effort is being made to secure new income streams to support investment back into the BID area.
A number of Directors resigned during the year due to new professional appointments and retirements and we would like to thank them for their contribution to the company in recent years.
Principal activities

The principal activity of the company continued to be that of the promotion and facilitation of the development and improvement of the centre of the c ity of Edinburgh.

The company is limited by guarantee and is governed by its Memorandum and Articles of Association. Every member of the company undertakes to contribute such amount not exceeding £1 should the company be wound up.

The company is limited by guarantee and therefore the directors have no beneficial or non-beneficial interest in the company.

ESSENTIAL EDINBURGH
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 5 -
Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Barry Blamire
Derek Brownlee
(Resigned 27 March 2025)
Lezley Cameron
(Appointed 24 June 2025)
Caoimhe Duignan
(Resigned 24 June 2025)
Anne Ledgerwood
Lynzi Leroy
Louise Maclean
Jane Meagher
(Resigned 5 December 2024)
Neil Miller
(Appointed 25 February 2025)
Richard Morris
Denzil Gough Onslow Skinner
Kieran Jp Quinn
(Resigned 17 October 2024)
Roderick Charles Smith
David Alexander Stewart
David Stewart
John Alan Thomlinson
Stephen Walker
(Appointed 25 February 2025)
Auditor

In accordance with the company's articles, a resolution proposing that A.J.B Scholes Ltd be re appointed as auditor of the company will be put at a General Meeting.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

On behalf of the board
Roderick Charles Smith
Director
23 September 2025
ESSENTIAL EDINBURGH
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2025
- 6 -

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and Section 1A of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice applicable to small entities). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the surplus or deficit of the company for that period. In preparing these financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;

- make judgements and accounting estimates that are reasonable and prudent;

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

ESSENTIAL EDINBURGH
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ESSENTIAL EDINBURGH
- 7 -
Opinion

We have audited the financial statements of Essential Edinburgh (the 'company') for the year ended 31 March 2025 which comprise the statement of income and retained earnings, the balance sheet, and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

- give a true and fair view of the state of the company's affairs as at 31 March 2025 and of its surplus 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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

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

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

- the information given in the directors' r eport for the financial year for which the financial statements are prepared is consistent with the financial statements; and

- the directors' report has been prepared in accordance with applicable legal requirements.

ESSENTIAL EDINBURGH
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ESSENTIAL EDINBURGH (CONTINUED)
- 8 -
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 identifie d material misstatements in 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; or

- the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the director s' r eport and from the requirement to prepare a strategic report.

Responsibilities of directors

As explained more fully in the directors' r esponsibilities s tatement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

To the extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identify and assess the risks of material misstatement in the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

- the nature of the industry and sector, and control environment;

- results of our enquiries of management;

- any matters we identified having obtained and reviewed the company's documentation of their policies and procedures relating to:

  - identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;

  - detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;

  - the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations.

- the matters discussed among the audit engagement team.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and irregularities. Income and expenditure recognition, recoverability of BID levy fees due and bad debt provisions were key areas of focus. In common with all audits under ISA's (UK), we are also required to perform specific procedures to respond to the risk of management override.

ESSENTIAL EDINBURGH
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ESSENTIAL EDINBURGH (CONTINUED)
- 9 -

We also obtained an understanding of the legal and regulatory framework that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements, such as tax legislation and relevant companies acts.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty. These include laws and regulations pertaining to employment regulations; and health and safety legislation.

In addition to the above, our procedures to respond to risks identified included the following:

- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

- enquiring of management concerning actual potential litigation and claims;

- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

- reading minutes of meetings of those charged with governance; and

- in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

Due to the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal control.

A further description of our responsibilities for the audit is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

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

Ivan Houston
Senior Statutory Auditor
For and on behalf of A.J.B Scholes Ltd
3 November 2025
Chartered Accountants
Statutory Auditor
8 Walker Street
Edinburgh
EH3 7LA
A.J.B Scholes Ltd is eligible for appointment as auditor of the company under section 1212 of the Companies Act 2006.
ESSENTIAL EDINBURGH
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 MARCH 2025
- 10 -
2025
2024
Notes
£
£
Income
1,182,030
1,232,839
Cost of sales
(756,614)
(772,058)
Gross surplus
425,416
460,781
Administrative expenses
(424,349)
(461,709)
Other operating income
5,000
-
0
Operating surplus/(deficit)
3
6,067
(928)
Interest receivable and similar income
15,859
1,778
Surplus before taxation
21,926
850
Taxation
-
0
-
0
Surplus for the financial year
21,926
850
Retained earnings brought forward
342,446
341,596
Retained earnings carried forward
364,372
342,446
The notes on pages 12 to 17 form part of these financial statements.
ESSENTIAL EDINBURGH
BALANCE SHEET
AS AT
31 MARCH 2025
31 March 2025
- 11 -
2025
2024
Notes
£
£
£
£
Fixed assets
Tangible assets
5
2,165
3,443
Current assets
Debtors
6
143,707
112,744
Cash at bank and in hand
414,913
408,811
558,620
521,555
Creditors: amounts falling due within one year
7
(196,413)
(182,552)
Net current assets
362,207
339,003
Total assets less current liabilities
364,372
342,446
Reserves
Income and expenditure account
364,372
342,446

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with the provisions of Section 1A 'Small Entities' of Financial Reporting Standard 102.

The financial statements were approved by the board of directors and authorised for issue on 23 September 2025 and are signed on its behalf by:
Roderick Charles Smith
Director
Company Registration No. SC343592
The notes on pages 12 to 17 form part of these financial statements.
ESSENTIAL EDINBURGH
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
- 12 -
1
Accounting policies
Company information

Essential Edinburgh is a private company limited by guarantee incorporated in Scotland. The registered office is Caledonian Exchange, 19a Canning Street, Edinburgh, EH3 8HE.

The principal activity of the company continued to be that of the promotion and facilitation of the development and improvement of the centre of the c ity of Edinburgh.

1.1
Accounting convention

These financial statements have been prepared under the historic cost convention and in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary a mounts in these financial statements are rounded to the nearest £.

1.2
Going concern

The Accounts for the year ended 31 March 2025 have been prepared on a going concern basis. The company does not require an overdraft facility for the continuing operation of the business and as at 31 March 2025 the company has net current assets of £362,207. The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. As a result the directors are satisfied that it is appropriate to adopt the going concern basis of accounting.true

1.3
Income and expenditure

Income and expenses are included in the financial statements as they become receivable or due and are exclusive of VAT where applicable. All income is recognised in the period in which it relates and in line with the related costs that have been incurred as appropriate. Income received in the period but relating to future periods is recognised as deferred income on the balance sheet.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Operating equipment
20% straight line basis
Fixtures & fittings
20% straight line basis
Office equipment
20% straight line basis

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of Income and Retained Earnings.

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

1.5
Cash at bank and in hand

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks.

ESSENTIAL EDINBURGH
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 13 -
1.6
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

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

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Classification of financial liabilities

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

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future paymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

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

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. A m ounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

1.7
Retirement benefits

The company operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the year they are payable.

1.8
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease s asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

ESSENTIAL EDINBURGH
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 14 -
1.9
Government grants

Government grants are recognised at the fair value of the asset receive d or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

Government grants relating to turnover are recognised as income over the periods when the related costs are incurred. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.

1.10

Cashflow statement

The financial statements do not include a cash flow statement because the company, as a small reporting entity, is exempt from the requirements to prepare such a statement under FRS102.

2
Judgements and key sources of estimation uncertainty

The preparation of the financial statements in compliance with section 1A of FRS102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the company's accounting policies. The accounting judgements or significant estimates deemed to be required in preparing these accounts relate to the depreciation rates used. The directors are satisfied that the depreciation rates used are appropriate for each class of asset.

3
Operating surplus/(deficit)
2025
2024
Operating surplus/(deficit) for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
6,500
5,500
4
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2025
2024
Number
Number
Core
7
7
ESSENTIAL EDINBURGH
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 15 -
5
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 April 2024
26,685
Disposals
(15,040)
At 31 March 2025
11,645
Depreciation and impairment
At 1 April 2024
23,242
Depreciation charged in the year
1,278
Eliminated in respect of disposals
(15,040)
At 31 March 2025
9,480
Carrying amount
At 31 March 2025
2,165
At 31 March 2024
3,443
6
Debtors
2025
2024
Amounts falling due within one year:
£
£
Trade debtors
53,202
16,644
Other debtors
90,505
96,100
143,707
112,744
7
Creditors: amounts falling due within one year
2025
2024
£
£
Trade creditors
68,132
76,928
Taxation and social security
4,982
8,737
Other creditors
123,299
96,887
196,413
182,552
8
Members' liability

The company is limited by guarantee, not having a share capital and consequently the liability of members is limited, subject to an undertaking by each member to contribute to the net assets or liabilities of the company on winding up such amounts as may be required not exceeding £1.

ESSENTIAL EDINBURGH
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 16 -
9
Contingent liabilities - lease dilapidations

The company occupies leased premises at 90 George Street, Edinburgh under an agreement expiring in 2028. Under the terms of the lease, the company will be required to pay dilapidation costs should they arise at the end of this lease. At the reporting date, no reliable estimate of the potential costs is available, and no provision has been recognised.

10
Operating lease commitments
Lessee

Land and buildings

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

2025
2024
£
£
97,859
121,727
11
Related party transactions

Several Directors of Essential Edinburgh are shareholders or Directors of businesses within the BID area. Whilst Essential Edinburgh does not trade directly with these businesses, the businesses do pay the levy which is managed and collected by City of Edinburgh Council on behalf of Essential Edinburgh. As a result, they receive indirect benefits from the services provided by Essential Edinburgh. All levy payers pay the same market rate, and no benefits are directly attributable to individual businesses.

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