Company registration number 04786731 (England and Wales)
CAIN'S AMUSEMENTS LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
CAIN'S AMUSEMENTS LTD
COMPANY INFORMATION
Directors
D Cain
F Cain
R Cain
Secretary
R Cain
Company number
04786731
Registered office
2nd Floor
32-33 Watling Street
Canterbury
Kent
United Kingdom
CT1 2AN
Auditor
Azets
2nd Floor
32-33 Watling Street
Canterbury
Kent
United Kingdom
CT1 2AN
CAIN'S AMUSEMENTS LTD
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Statement of income and retained earnings
7
Balance sheet
8
Statement of cash flows
9
Notes to the financial statements
10 - 24
CAIN'S AMUSEMENTS LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -

The directors present the strategic report for the year ended 31 December 2024.

Principal activities

The principal activity of the company is the operation of arcades.

Review of the business

The results for the year and the financial position at the year-end were considered satisfactory by the directors who expect continued growth in the foreseeable future.

Principal risks and uncertainties

The principal risks and uncertainties associated with the business are the general UK economy, changes in disposable income and the weather during key trading periods.

The company's exposure to financial risk is managed as follows:

Liquidity and cashflow risk

The company finances its operations through the generation of cash from operating activities and manages its cash requirements using cash flow forecasts and annual budgets.

Credit risk

All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are reviewed on a regualr basis and provision is made for doubtful debts when required.

Interest rate risk

The company is exposed to cash flow interest rate risk on floating rate bank overdrafts and loans.

Key performance indicators

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

| 2024 | 2023
Turnover | 7,330,313 | 6,836,599
Operating profit | 552,637 | 1,976,947
Cash at bank | 1,048,746 | 1,395,674
Average no of Ee’s | 87 | 93

Employees

The directors attach importance to maintaining effective communications and good relations with employees. They are informed of events via the notice boards throughout the operating units and through regular meetings which encourage a free flow of information and ideas.

The company supports the employment of disabled people wherever reasonably possible, both in recruitment and retention of those who become disabled during their employment.

On behalf of the board

R Cain
Director
9 December 2025
CAIN'S AMUSEMENTS LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -

The directors present their annual report and financial statements for the year ended 31 December 2024.

Results and dividends

The results for the year are set out on page 7.

Ordinary dividends were paid amounting to £303,000. The directors do not recommend payment of a final dividend.

Directors

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

D Cain
F Cain
R Cain
Statement of directors' responsibilities

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 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 then apply them consistently;

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

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.

Medium-sized companies exemption

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

CAIN'S AMUSEMENTS LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
On behalf of the board
R Cain
Director
9 December 2025
CAIN'S AMUSEMENTS LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CAIN'S AMUSEMENTS LTD
- 4 -
Opinion

We have audited the financial statements of Cain's Amusements Ltd (the 'company') for the year ended 31 December 2024 which comprise the statement of income and retained earnings, the balance sheet, the statement of cash flows 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 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 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 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 true:

- the information given in the strategic report and the directors' r eport 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.

CAIN'S AMUSEMENTS LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CAIN'S AMUSEMENTS LTD (CONTINUED)
- 5 -
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 the strategic report or the directors' r eport.

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' 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.

A further description of our responsibilities 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.

CAIN'S AMUSEMENTS LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CAIN'S AMUSEMENTS LTD (CONTINUED)
- 6 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

- Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;

- Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection;

- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;

- Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.

Because of 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.

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.

Catherine Cooper FCCA (Senior Statutory Auditor)
For and on behalf of Azets, Statutory Auditor
Chartered Accountants
2nd Floor
32-33 Watling Street
Canterbury
Kent
CT1 2AN
9 December 2025
CAIN'S AMUSEMENTS LTD
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
7,330,313
6,836,599
Cost of sales
(2,300,583)
(2,142,775)
Gross profit
5,029,730
4,693,824
Administrative expenses
(4,714,399)
(5,315,428)
Other operating income
237,306
2,598,551
Operating profit
4
552,637
1,976,947
Interest receivable and similar income
7
268
42
Interest payable and similar expenses
8
(214,267)
(227,921)
Profit before taxation
338,638
1,749,068
Tax on profit
9
6,842
(570,045)
Profit for the financial year
345,480
1,179,023
Retained earnings brought forward
3,729,249
2,553,226
Dividends
10
(303,000)
(3,000)
Retained earnings carried forward
3,771,729
3,729,249

The profit and loss account has been prepared on the basis that all operations are continuing operations.

CAIN'S AMUSEMENTS LTD
BALANCE SHEET
AS AT 31 DECEMBER 2024
31 December 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
11
17,501
22,501
Tangible assets
12
5,761,417
5,649,932
5,778,918
5,672,433
Current assets
Stocks
13
274,942
334,878
Debtors
14
1,260,472
1,109,454
Cash at bank and in hand
1,048,746
1,395,674
2,584,160
2,840,006
Creditors: amounts falling due within one year
15
(1,480,448)
(1,801,500)
Net current assets
1,103,712
1,038,506
Total assets less current liabilities
6,882,630
6,710,939
Creditors: amounts falling due after more than one year
16
(2,599,145)
(2,463,430)
Provisions for liabilities
Deferred tax liability
19
511,681
518,185
(511,681)
(518,185)
Net assets
3,771,804
3,729,324
Capital and reserves
Called up share capital
21
75
75
Profit and loss reserves
3,771,729
3,729,249
Total equity
3,771,804
3,729,324

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 9 December 2025 and are signed on its behalf by:
R Cain
Director
Company registration number 04786731 (England and Wales)
CAIN'S AMUSEMENTS LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 9 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
1,432,215
1,119,007
Interest paid
(214,267)
(227,921)
Income taxes paid
(423,125)
(140,000)
Net cash inflow from operating activities
794,823
751,086
Investing activities
Purchase of tangible fixed assets
(832,368)
(723,509)
Proceeds from disposal of tangible fixed assets
117,345
69,792
Interest received
268
42
Net cash used in investing activities
(714,755)
(653,675)
Financing activities
Repayment of borrowings
(23,961)
-
0
Repayment of bank loans
(60,371)
(270,369)
Payment of finance leases obligations
(39,664)
18,042
Dividends paid
(303,000)
(3,000)
Net cash used in financing activities
(426,996)
(255,327)
Net decrease in cash and cash equivalents
(346,928)
(157,916)
Cash and cash equivalents at beginning of year
1,395,674
1,553,590
Cash and cash equivalents at end of year
1,048,746
1,395,674
CAIN'S AMUSEMENTS LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -
1
Accounting policies
Company information

Cain's Amusements Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 2nd Floor, 32-33 Watling Street, Canterbury, Kent, United Kingdom, CT1 2AN and the company trades from 123-135 Central Parade, Herne Bay, Kent, CT6 8SS.

1.1
Accounting convention

These financial statements have been prepared 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.

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 £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

A true t the time of approving the financial statements, t he directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus t he directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.4
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life currently 20 years.

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.5
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.

CAIN'S AMUSEMENTS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 11 -

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:

Freehold land and buildings
not depreciated
Leasehold land and buildings
over the period of the lease
Arcade machines
25% reducing balance
Fixtures and fittings
25% straight line
Motor vehicles
25% straight line
Other fixed assets
5%/10% straight line

The directors consider that the residual value of freehold property is such that any provision for depreciation would not be material, and accordingly no depreciation has been recognised in respect of freehold property.

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 credited or charged to profit or loss.

1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.7
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition..

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

CAIN'S AMUSEMENTS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 12 -
1.8
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9
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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. 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.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

CAIN'S AMUSEMENTS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 13 -
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.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are s ubsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value th r ough profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.10
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.11
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

CAIN'S AMUSEMENTS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 14 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.12
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.14
Leases
As lessee

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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.

As lessor

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.

1.15
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

CAIN'S AMUSEMENTS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 15 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Carrying value of non-current assets

Depreciation is provided so as to write down the assets to their residual values over their estimated useful lives as set out in the company's accounting policy. The estimation of the useful lives of assets is based on historic performance as well as expectations about future use and therefore requires estimates and assumptions to be applied by management. The actual lives of these assets can vary depending on a variety of factors, including technological innovation, product life cycles and maintenance programmes. Useful lives are regularly reviewed and should management's assessment of useful lives shorten/increase then depreciation charges in the financial statements would increase/decrease and carrying amounts of tangible assets would change accordingly.

Judgement is applied by management when determining the residual values for tangible fixed assets. When determining the residual value management aim to assess the amount that the company would currently obtain for the disposal of the asset, if it were already of the condition expected at the end of its useful economic life. Where possible this is done with reference to external market prices.

The c ompany is required to consider, on an annual basis, whether indications of impairment relating to such assets exist and if so, perform an impairment test. In assessing whether there have been any indicators of impairment of assets, the director has considered both external and internal sources of information such as market conditions, counterparty credit ratings and experience of recoverability. There have been no indicators of impairment identified during the current financial year.

For assets carried at fair value, management recognise the need to undertake revaluations with sufficient regularity to ensure that the carrying amount does not differ significantly from its fair. The fair value of land and buildings is routinely determined by professionally qualified valuers. Furthermore, management regularly review local property trends to ensure that the carrying amounts of such assets are materially accurate.

Deferred taxation

The c ompany makes provision for anticipated tax consequences based on the likelihood of whether additional taxes may arise. Where applicable, t he c ompany recognises deferred tax assets to the extent to which it expects to be able to utilise the balances against future taxable profits.

Stock

Management apply judgement is assessing the net realisable value of each stock line at the reporting date. Consideration has been given by the directors to the level of provision against stocks. In determining the provision required, the directors have used guidance from independent valuation tools and their knowledge of the industry and current market outlooks.

CAIN'S AMUSEMENTS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 16 -
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Arcade
6,453,096
6,041,314
Snack bar and shop
697,215
746,565
Other
180,002
48,720
7,330,313
6,836,599
2024
2023
£
£
Other revenue
Interest income
268
42

All turnover is generated in the United Kingdom.

4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
16,160
17,500
Depreciation of owned tangible fixed assets
632,714
586,537
Profit on disposal of tangible fixed assets
(29,176)
(46,569)
Amortisation of intangible assets
5,000
80,000
Operating lease charges
360,660
352,986
5
Employees

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

2024
2023
Number
Number
Employees
87
93

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
2,219,680
1,993,090
Social security costs
194,775
154,724
Pension costs
43,869
720,114
2,458,324
2,867,928
CAIN'S AMUSEMENTS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 17 -
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
135,260
121,283
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
128
42
Other interest income
140
-
0
Total income
268
42
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
128
42
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
205,778
219,839
Other finance costs:
Interest on finance leases and hire purchase contracts
8,489
8,082
214,267
227,921
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
-
0
477,620
Adjustments in respect of prior periods
(338)
(594)
Total current tax
(338)
477,026
Deferred tax
Origination and reversal of timing differences
(6,504)
93,019
Total tax (credit)/charge
(6,842)
570,045
CAIN'S AMUSEMENTS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
9
Taxation
(Continued)
- 18 -

The actual (credit)/charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
338,638
1,749,068
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
84,660
437,267
Tax effect of expenses that are not deductible in determining taxable profit
(83,752)
75,905
Unutilised tax losses carried forward
41,903
-
0
Adjustments in respect of prior years
(338)
(594)
Effect of change in corporation tax rate
-
0
(30,042)
Permanent capital allowances in excess of depreciation
(42,811)
(5,510)
Deferred tax movement
(6,504)
93,019
Taxation (credit)/charge for the year
(6,842)
570,045
10
Dividends
2024
2023
£
£
Interim paid
303,000
3,000
11
Intangible fixed assets
Goodwill
£
Cost
At 1 January 2024 and 31 December 2024
1,600,001
Amortisation and impairment
At 1 January 2024
1,577,500
Amortisation charged for the year
5,000
At 31 December 2024
1,582,500
Carrying amount
At 31 December 2024
17,501
At 31 December 2023
22,501

More information on impairment movements in the year is given in note .

CAIN'S AMUSEMENTS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 19 -
12
Tangible fixed assets
Freehold land and buildings
Leasehold land and buildings
Arcade machines
Fixtures and fittings
Motor vehicles
Other fixed assets
Total
£
£
£
£
£
£
£
Cost
At 1 January 2024
3,665,102
158,928
5,257,331
1,088,834
246,353
434,712
10,851,260
Additions
-
0
6,397
601,329
201,145
1,500
21,997
832,368
Disposals
-
0
-
0
(322,638)
(16,235)
-
0
-
0
(338,873)
At 31 December 2024
3,665,102
165,325
5,536,022
1,273,744
247,853
456,709
11,344,755
Depreciation and impairment
At 1 January 2024
-
0
117,488
3,758,245
946,383
101,829
277,383
5,201,328
Depreciation charged in the year
-
0
23,919
420,450
115,027
58,249
15,069
632,714
Eliminated in respect of disposals
-
0
-
0
(234,694)
(16,010)
-
0
-
0
(250,704)
At 31 December 2024
-
0
141,407
3,944,001
1,045,400
160,078
292,452
5,583,338
Carrying amount
At 31 December 2024
3,665,102
23,918
1,592,021
228,344
87,775
164,257
5,761,417
At 31 December 2023
3,665,102
41,440
1,499,086
142,451
144,524
157,329
5,649,932
CAIN'S AMUSEMENTS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
12
Tangible fixed assets
(Continued)
- 20 -

The carrying value of land and buildings comprises:

2024
2023
£
£
Freehold
3,665,102
3,665,102
Short leasehold
23,918
41,440
3,689,020
3,706,542
13
Stocks
2024
2023
£
£
Finished goods and goods for resale
274,942
334,878
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
164,722
93,935
Other debtors
938,073
854,486
Prepayments and accrued income
157,677
161,033
1,260,472
1,109,454
15
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
17
95,577
276,315
Obligations under finance leases
18
64,706
40,261
Other borrowings
17
21,582
125,000
Trade creditors
675,872
418,381
Corporation tax
-
0
423,463
Other taxation and social security
282,673
228,601
Other creditors
79,002
166,406
Accruals and deferred income
261,036
123,073
1,480,448
1,801,500

Bank loans are secured by a debenture, a legal charge over the Company's freehold property and by a supported guarantee from D Cain, R Cain and F Cain limited to £1,557,000.

Assets held under finance leases and hire purchase contracts of £96,230 (2023: £135,894) are secured on the assets which they finance.

CAIN'S AMUSEMENTS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 21 -
16
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
17
2,488,164
2,367,797
Obligations under finance leases
18
31,524
95,633
Other borrowings
17
79,457
-
0
2,599,145
2,463,430

17
Loans and overdrafts
2024
2023
£
£
Bank loans
2,583,741
2,644,112
Other loans
101,039
125,000
2,684,780
2,769,112
Payable within one year
117,159
401,315
Payable after one year
2,567,621
2,367,797

The long-term loans are secured by a debenture, a legal charge over the Company's freehold property and by a supported guarantee from D Cain, R Cain and F Cain limited to £1,557,000.

All loans are repayable within 5 years at fixed interest rates.

18
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
64,706
40,261
In two to five years
31,524
95,633
96,230
135,894

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

These amounts are included within other creditors.

CAIN'S AMUSEMENTS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 22 -
19
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
511,681
518,185
2024
Movements in the year:
£
Liability at 1 January 2024
518,185
Credit to profit or loss
(6,504)
Liability at 31 December 2024
511,681
20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
43,869
720,114

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

21
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
75
75
75
75
22
Operating lease commitments
As lessee

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

2024
2023
£
£
Within 1 year
285,320
285,320
Years 2-5
1,095,824
1,141,280
After 5 years
96,045
336,691
1,477,189
1,763,291
CAIN'S AMUSEMENTS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
22
Operating lease commitments
(Continued)
- 23 -
23
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2024
2023
£
£
Aggregate compensation
435,218
189,894
Transactions with related parties

During the year the company entered into the following transactions with related parties:

Purchases
Purchases
2024
2023
£
£
Entities over which the entity has control, joint control or significant influence
246,934
217,683
2024
2023
Amounts due to related parties
£
£
Entities over which the entity has control, joint control or significant influence
127,246
253,101

The following amounts were outstanding at the reporting end date:

2024
2023
Amounts due from related parties
£
£
Entities over which the entity has control, joint control or significant influence
916,316
826,990
CAIN'S AMUSEMENTS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 24 -
24
Cash generated from operations
2024
2023
£
£
Profit after taxation
345,480
1,179,023
Adjustments for:
Taxation (credited)/charged
(6,842)
570,045
Finance costs
214,267
227,921
Investment income
(268)
(42)
Gain on disposal of tangible fixed assets
(29,176)
(46,569)
Amortisation and impairment of intangible assets
5,000
80,000
Depreciation and impairment of tangible fixed assets
632,714
586,537
Movements in working capital:
Decrease/(increase) in stocks
59,936
(21,644)
Increase in debtors
(151,018)
(729,916)
Increase/(decrease) in creditors
362,122
(726,348)
Cash generated from operations
1,432,215
1,119,007
25
Analysis of changes in net debt
1 January 2024
Cash flows
31 December 2024
£
£
£
Cash at bank and in hand
1,395,674
(346,928)
1,048,746
Borrowings excluding overdrafts
(2,769,112)
84,332
(2,684,780)
Lease liabilities
(135,894)
39,664
(96,230)
(1,509,332)
(222,932)
(1,732,264)
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