Registration number: 01768567

Parkway Entertainment Company Limited

Contents

Strategic Report	1 to 2
Directors' Report	3
Statement of Directors' Responsibilities	4
Independent Auditor's Report	5 to 7
Profit and Loss Account	8
Balance Sheet	9
Statement of Changes in Equity	10
Statement of Cash Flows	11
Notes to the Financial Statements	12 to 21

Parkway Entertainment Company Limited

Strategic Report for the Year Ended 31 March 2025

The directors present their strategic report for the year ended 31 March 2025.

Principal activity

The principal activity of the company is that of cinema proprietors.

Fair review of the business

The directors are pleased with the year end results for 2025 in what has been another challenging year. Turnover has grown from £5.9m to £6.2m. The directors have concentrated on margins during the course of the year which has seen gross profit margin increase to 66%.

The turnover growth achieved is positive in a challenging market. The volume and quality of new cinematic releases continue to be an issue for the worldwide cinema industry. Distributors continue to allow short cinema releases or opt for release direct to streaming platforms. Whilst this creates a challenge, the directors have successfully mitigated against some of the impact by enhancing the food and drink offering and the overall cinema experience to generate further revenue.

As a result of a profitable year, net assets have increased from £2.27m to £2.38m.

We feel the company is in a strong position for the future. The company is expected to grow again in 2026 with a stronger film offering in the coming years.

The company's key financial and other performance indicators during the year were as follows:

Financial KPIs	Unit	2025	2024
Turnover	£000	6,214	5,896
Turnover growth	%	5	44
Gross Profit	£000	4,112	3,679
Gross Profit Margin	%	66	62
Operating profit/(loss)	£000	281	118

Principal risks and uncertainties

As with any business, the company faces risks and uncertainties in the course of its day to day operations. The successful management of risk is essential to enable the company to deliver its strategic objectives.

Noted below is a summary of the company’s principal risks and uncertainties.

Control of each of these is critical to the ongoing success of the company. As such, their management is primarily the responsibility of the directors.

The principal risk facing the business is a reduction in attendance levels. This is affected by factors including competition, film production and film release. The Company mitigates this risk through our strategies to create the best possible guest experience, drive attendance and loyalty, as well as strategically managing a direct relationship between attendance levels, film costs and fixed costs.

Workforce risk, if the availability of employees is insufficient to meet demand, this could lead to a reduction on screening, thereby reducing profitability and return on capital employed.

Parkway Entertainment Company Limited

Strategic Report for the Year Ended 31 March 2025

Approved and authorised by the Board on 28 November 2025 and signed on its behalf by:
 

Mr R J Parkes Director

Parkway Entertainment Company Limited

Directors' Report for the Year Ended 31 March 2025

The directors present their report and the financial statements for the year ended 31 March 2025.

Directors of the company

The directors who held office during the year were as follows:

Mrs D M Parkes

Mr R J Parkes

Mr G D Parkes

Results and dividends

The results for the year are set out on page 8.

Dividends were paid amounting to £68,108. The directors do not recommend payment of a further final dividend.

Financial instruments

Objectives and policies

The directors take the management of risk very seriously and as such have policies and procedures in place which have been authorised by the board. At board level regular meetings are held where current management accounts are available to highlight any financial risks to be dealt with.

Price risk, credit risk, liquidity risk and cash flow risk

The business's principal financial instruments comprise bank balances, bank loans, trade debtors and trade creditors. The main purpose of these instruments is to finance the business's operations. In respect of bank balances, the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of overdrafts at floating rates of interest.

Credit risk associated with bank loans is mitigated through ensuring sufficient bank balances are available to cover repayments as they fall due. Trade creditors' liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Approved by the Board on 28 November 2025 and signed on its behalf by:

Mr R J Parkes
Director

Parkway Entertainment Company Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

•	select suitable accounting policies and apply them consistently;

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

•	state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

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

The 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.

Parkway Entertainment Company Limited

Independent Auditor's Report to the Members of Parkway Entertainment Company Limited

Opinion

We have audited the financial statements of Parkway Entertainment Company Limited (the 'company') for the year ended 31 March 2025, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion 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 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 auditor 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 director's 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 original financial statements were authorised for issue.

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

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Parkway Entertainment Company Limited

Independent Auditor's Report to the Members of Parkway Entertainment Company Limited

Opinion on other matter 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

•	the Strategic Report and 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 our 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 and the Directors' Report.

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

•	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
•	the financial statements are not in agreement with the accounting records and returns; or
•	certain disclosures of directors' remuneration specified by law are not made; or
•	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities [set out on page 4], 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.

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 design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.

Parkway Entertainment Company Limited

Independent Auditor's Report to the Members of Parkway Entertainment Company Limited

	Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to tax legislation in the United Kingdom and employee legislation, and we considered the extent to which non- compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the financial statements such as the Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to increase revenue or reduce expenditure and management bias in accounting estimates. Audit procedures performed by the engagement team included:
•	Review of the financial statement disclosures to underlying supporting documentation;
•	Enquiry of management and those charged with governance around actual and potential fraud and non-compliance with laws and regulations;
•	Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, testing accounting estimates (because of the risk of management bias), and evaluating the business rationale of significant transactions outside the normal course of business;
•	Enquiry of the entity's tax and compliance functions to identify any instances of non-compliance with laws and regulations.
	There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non- compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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

Use of our report

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

Robert Smith BSc FCA (Senior Statutory Auditor)
For and on behalf of RNS Chartered Accountants, Statutory Auditor
 50-54 Oswald Road
Scunthorpe
North Lincolnshire
DN15 7PQ

28 November 2025

Parkway Entertainment Company Limited

Profit and Loss Account for the Year Ended 31 March 2025

	Note	2025 £	2024 £
Turnover	3	6,213,882	5,895,574
Cost of sales		(2,101,667)	(2,216,662)
Gross profit		4,112,215	3,678,912
Administrative expenses		(3,831,362)	(3,560,413)
Operating profit	4	280,853	118,499
Other interest receivable and similar income	5	48,026	22,929
Interest payable and similar expenses	6	(60,360)	(51,542)
		(12,334)	(28,613)
Profit before tax		268,519	89,886
Tax on profit	10	(83,656)	(38,992)
Profit for the financial year		184,863	50,894

The above results were derived from continuing operations.

The company has no recognised gains or losses for the year other than the results above.

Parkway Entertainment Company Limited

(Registration number: 01768567)
Balance Sheet as at 31 March 2025

	Note	2025 £	2024 £
Fixed assets
Tangible assets	11	3,070,145	3,471,253
Current assets
Stocks	12	66,986	54,822
Debtors	13	1,464,607	1,198,687
Cash at bank and in hand	14	1,192,775	899,146
		2,724,368	2,152,655
Creditors: Amounts falling due within one year	15	(865,831)	(716,471)
Net current assets		1,858,537	1,436,184
Total assets less current liabilities		4,928,682	4,907,437
Creditors: Amounts falling due after more than one year	15	(2,315,785)	(2,494,951)
Provisions for liabilities	16	(225,495)	(141,839)
Net assets		2,387,402	2,270,647
Capital and reserves
Called up share capital	18	205	205
Retained earnings		2,387,197	2,270,442
Shareholders' funds		2,387,402	2,270,647

Approved and authorised by the Board on 28 November 2025 and signed on its behalf by:
 

Mr R J Parkes Director

Parkway Entertainment Company Limited

Statement of Changes in Equity for the Year Ended 31 March 2025

	Share capital £	Retained earnings £	Total £
At 1 April 2024	205	2,270,442	2,270,647
Profit for the year	-	184,863	184,863
Dividends	-	(68,108)	(68,108)
At 31 March 2025	205	2,387,197	2,387,402