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Registered number: 13307238 AK THEATRICALS LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024
AK THEATRICALS LIMITED COMPANY INFORMATION
Directors | H Arnold
| G Kalin
Registered number | 13307238
Registered office | 124 Finchley Road
| London
| NW3 5JS
Independent auditors | Nyman Libson Paul LLP
| Chartered Accountants & Statutory Auditors
| 124 Finchley Road
| London
| NW3 5JS
AK THEATRICALS LIMITED CONTENTS
| Page
Group Strategic Report | 1
Directors' Report | 2 - 3
Independent Auditors' Report | 4 - 7
Consolidated Statement of Income and Retained Earnings | 8
Consolidated Balance Sheet | 9
Company Balance Sheet | 10
Consolidated Statement of Changes in Equity | 11
Company Statement of Changes in Equity | 12
Consolidated Statement of Cash Flows | 13 - 14
Consolidated Analysis of Net Debt | 15
Notes to the Financial Statements | 16 - 37
AK THEATRICALS LIMITED GROUP STRATEGIC REPORT FOR THE YEAR ENDED 31 MARCH 2024
Introduction
The directors present their strategic report for the period ended 31 March 2024.
Business review
In the year ended 31 March 2024, the Group made further investments in theatrical productions, opened one further immersive theatrical production and continued to develop other immersive theatrical productions. The Group generated revenue from net box office sales, producer fees, royalties, producer share of profits and licensing productions, resulting in an increase in revenues, expenditure and investment in venues. The results for the year show a loss after tax of £2,743,417 (2023: £3,629,924 as restated), after theatre tax relief and minority interest, as anticipated due to the expenditure on development and marketing of the productions. Management are confident that the Group has invested in, and produced, a number of good productions which, together with plans to develop further productions that will prove popular, profitable, will generate the working capital required for the Group to continue to repay its debts as they fall due.
Principal risks and uncertainties
The Group faces competitive pressures from similar immersive theatrical productions to attract the general public and generate box office and associated revenues. The Group also faces risks that the productions in which it has invested in do not prove profitable and its investment is not recoupable. Management carefully manage this risk by using its experience and knowledge of the industry to identify productions that it considers would be popular and profitable. Management also manage the risk by carefully monitoring performance of productions to make strategic decisions in relation to continuing with, or closing a production.
Financial key performance indicators
The key performance indicators used by management in operating the business are gross box office receipts, cost of pre-production and profitability of its own productions and of those it has invested in. In the year ended 31 March 2024 a number of the productions were in their initial stages but the near 50% increase in turnover demonstrates the demand for the productions in which the Group participates. This is consistent with the financial results reported on page 8 in these consolidated financial statements. This report was approved by the board on 17 July 2026 and signed on its behalf.
G Kalin Director
Page 1
AK THEATRICALS LIMITED DIRECTORS' REPORT FOR THE YEAR ENDED 31 MARCH 2024 The directors present their report and the financial statements for the year ended 31 March 2024.
Results and dividends
The loss for the year, after taxation and minority interests, amounted to £1,758,640 (2023 - loss £3,484,774). The directors do not recommend the payment of a final dividend.
Directors
The directors who served during the year were:
H Arnold
G Kalin
Future developments
The Group’s management continues to build strong relationships within the immersive and traditional theatre sectors to ensure that the Group produces popular, high quality and profitable attractions and productions. The Group's management explore new intellectual property opportunities to diversify and expand their offering of productions and attractions. Opportunities to licence existing productions and attractions in overseas territories are investigated to further leverage the value of the intellectual property of developed attractions. The performance of attractions and productions are closely monitored, allowing management to effectively plan the duration of a run to maximise profits, minimise losses and for scheduling attractions into venues leased within the Group.
Directors' responsibilities statement
The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period. In preparing these financial statements, the directors are required to: ∙select suitable accounting policies for the Group's financial statements and then apply them consistently; ∙make judgments 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 Group 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 the Group and to 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Page 2
AK THEATRICALS LIMITED DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024
Disclosure of information to auditors
Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that: ∙so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and ∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.
Post balance sheet events
There have been no significant events affecting the Group since the year end.
Auditors
The auditors, Nyman Libson Paul LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006. This report was approved by the board on 17 July 2026 and signed on its behalf.
G Kalin Director
Page 3
AK THEATRICALS LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF AK THEATRICALS LIMITED
Disclaimer of opinion
We were engaged to audit the financial statements of AK Theatricals Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 March 2024, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Statement of Financial Position, the Company Statement of Financial Position, the Consolidated Statement of Cashflows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, 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). We do not express an opinion on the accompanying financial statements. Because of the significance of the matter described in the Basis for Disclaimer of Opinion section of our report, we have not been able to obtain appropriate audit evidence to provide a basis for an audit opinion on these financial statements.
Basis for disclaimer of opinion
During the year the Company made investments in creative productions and received production funding from various third parties. Management was unable to provide the executed agreements for all of the investments or production funding, consequently we were unable to obtain sufficient appropriate audit evidence to support the completeness, valuation and accounting treatment of amounts invested in creative productions and the corresponding production funding, which are material to the financial statements. In the absence of agreements, we were unable to obtain sufficient corroborative audit evidence to substantiate their assertion that the amounts invested, and the corresponding production funding, are complete, held at their fair value and subject to the creative production terms of recoupment. The Company invested material sums in a creative production. As at the balance sheet date and the date of this audit report, there remained significant uncertainty as to whether the production would open and, accordingly, whether the Company would be able to recover its investment. Management was unable to provide sufficient appropriate audit evidence to corroborate that the necessary funding had been secured by the production company to complete and open the production and, consequently, enable the Company to generate a return on its investment. We sought to perform alternative audit procedures; however, no alternative procedures were possible due to the absence of underlying documentation. Due to the significance of these matters, we were unable to determine whether any adjustments might have been necessary in respect of these balances and the related elements in the Consolidated Statement of Comprehensive Income, the Consolidated Statement of Financial Position and the Company Statement of Financial Position. The effects of these unresolved matters are both material and pervasive to the financial statements as a whole. Accordingly, we were unable to determine whether adjustments might have been necessary. These matters, individually and collectively, are pervasive to the financial statements. Accordingly, we have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion.
Going concern
In accordance with ISA (UK) 570, we are required to report on going concern. However, because of the significance of the matters described in the Basis for Disclaimer of Opinion section, we were unable to obtain sufficient appropriate audit evidence to conclude on the appropriateness of the directors’ use of the going concern basis of accounting. The directors’ responsibilities and our responsibilities relating to going concern are described in the respective sections of this report. Page 4
AK THEATRICALS LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF AK THEATRICALS LIMITED (CONTINUED)
Extent the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of noncompliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: We obtained an understanding of the Group and Parent Company and the sector in which it operates to identify laws and regulations that could be reasonably be expected to have a direct effect on the financial statements. We obtained our understanding in this regard through discussions with management, industry research, application of cumulative audit knowledge and experience of the sector. We designed our audit procedures to ensure the audit team considered whether there were any indications of non-compliance by the Group and Parent Company with those laws and regulations. These procedures included: - Enquiries of management - Review of legal/ regulatory correspondence As in all our audits, we addressed the risk of fraud arising from management override of controls by performing audit procedures which included, but not limited to, the testing of journals, reviewing accounting estimates for evidence of bias, and evaluating the rationale of any significant transactions that are unusual or outside the normal course of business. Because of the inherent limitations to 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. The 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 non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report
Other information
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual 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. Because of the significance of the matter described in the Basis for Disclaimer of Opinion section of our audit report, we are unable to determine whether a material misstatement of other information exists. Page 5
AK THEATRICALS LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF AK THEATRICALS LIMITED (CONTINUED) The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual Report. ur 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. ur responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Opinion on other matters prescribed by the Companies Act 2006
Because of the significance of the matter described in the Basis for Disclaimer of Opinion section of our audit report, we have been unable to form an opinion, based on the work undertaken in the course of the audit, whether: • the information given in the Group Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and • the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
As a result of the limitation of our work referred to above: • We were unable to determine whether adequate accounting records have been kept. • We were unable to determine whether the Parent Company financial statements are in agreement with the accounting records and returns; and • We have not obtained all the information and explanations that we considered necessary for the purpose of our audit. 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: • certain disclosures of directors' remuneration specified by law are not made.
Responsibilities of directors
As explained more fully in the Directors' Responsibilities Statement set out on page 2, 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 Group's and the parent 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 Group or the parent Company or to cease operations, or have no realistic alternative but to do so. Page 6
AK THEATRICALS LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF AK THEATRICALS LIMITED (CONTINUED)
Auditors' responsibilities for the audit of the financial statements
Our responsibility is to conduct an audit of the Group and Company’s financial statements in accordance with International Standards on Auditing (UK) and to issue an auditor’s report. However, because of the matter described in the Basis for Disclaimer of Opinion section of our report, we were not able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on these financial statements. We are independent of the Group and 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.
Use of our report
This report is made solely to the Group and 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 Group and Company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Group and Company and the Group and Company's members, as a body, for our audit work, for this report, or for the opinions we have formed. Paul Taiano (Senior Statutory Auditor) for and on behalf of Nyman Libson Paul LLP Chartered Accountants Statutory Auditors 124 Finchley Road London NW3 5JS 24 July 2026 Page 7
AK THEATRICALS LIMITED CONSOLIDATED STATEMENT OF INCOME AND RETAINED EARNINGS FOR THE YEAR ENDED 31 MARCH 2024
|  | As restated
| 2024 | 2023
Note | £ | £
Turnover |  | 11,472,342 | 7,675,920
Cost of sales |  | (12,956,772) | (8,315,914)
Gross loss |  | (1,484,430) | (639,994)
Administrative expenses |  | (2,938,620) | (2,103,143)
Other operating income |  | 819,251 | 577,240
Operating loss |  | (3,603,799) | (2,165,897)
Amounts written off investments |  | (645,937) | (2,487,159)
Interest receivable and similar income |  | 3,992 | 570
Interest payable and similar expenses |  | (125,476) | -
Loss before tax |  | (4,371,220) | (4,652,486)
Tax on loss |  | 1,627,803 | 1,022,562
Loss after tax |  | (2,743,417) | (3,629,924)
Retained earnings at the beginning of the year |  | (3,667,546) | (182,772)
|  | (3,667,546) | (182,772)
Loss for the year attributable to the owners of the parent |  | (1,758,640) | (3,484,774)
Retained earnings at the end of the year |  | (5,426,186) | (3,667,546)
Non-controlling interest at the beginning of the year |  | (249,319) | (104,169)
Profit for the year attributable to the non-controlling interest |  | (984,777) | (145,150)
Non-controlling interest at the end of the year |  | (1,234,096) | (249,319)
The notes on pages 16 to 37 form part of these financial statements.
Page 8
AK THEATRICALS LIMITED REGISTERED NUMBER: 13307238 CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2024
|  |  |  | As restated
|  | 2024 |  | 2023
Note |  | £ |  | £
Fixed assets |  |  |  |  |
Intangible assets | 12 |  | 130,850 |  | 168,529
Tangible assets | 13 |  | 5,229,677 |  | 2,291,645
Investments | 14 |  | 17 |  | 625,939
|  |  | 5,360,544 |  | 3,086,113
Current assets |  |  |  |  |
Stocks | 15 | 6,756,110 |  | 5,251,572 |
Debtors: amounts falling due within one year | 16 | 7,159,340 |  | 3,174,855 |
Current asset investments | 17 | 18,058,961 |  | 16,746,366 |
Cash at bank and in hand | 18 | 2,567,130 |  | 1,219,556 |
|  | 34,541,541 |  | 26,392,349 |
Creditors: amounts falling due within one year | 19 | (46,562,267) |  | (33,395,227) |
Net current liabilities |  |  | (12,020,726) |  | (7,002,878)
Total assets less current liabilities |  |  | (6,660,182) |  | (3,916,765)
Provisions for liabilities |  |  |  |  |
Net assets excluding pension asset |  |  | (6,660,182) |  | (3,916,765)
Net liabilities |  |  | (6,660,182) |  | (3,916,765)
Capital and reserves |  |  |  |  |
Called up share capital | 22 |  | 100 |  | 100
Profit and loss account | 23 |  | (5,426,186) |  | (3,667,546)
Equity attributable to owners of the parent Company |  |  | (5,426,086) |  | (3,667,446)
Non-controlling interests |  |  | (1,234,096) |  | (249,319)
|  |  | (6,660,182) |  | (3,916,765)
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 17 July 2026.
G Kalin | H Arnold
Director | Director
The notes on pages 16 to 37 form part of these financial statements. Page 9
AK THEATRICALS LIMITED REGISTERED NUMBER: 13307238 COMPANY BALANCE SHEET AS AT 31 MARCH 2024
|  | 2024 |  | 2023
Note |  | £ |  | £
Fixed assets |  |  |  |  |
Investments |  |  | 20 |  | 646,042
|  |  | 20 |  | 646,042
Current assets |  |  |  |  |
Debtors: amounts falling due within one year |  | 2,909,091 |  | 1,020,722 |
Current asset investments |  | 1,818,491 |  | - |
Cash at bank and in hand |  | 62,742 |  | 22,344 |
|  | 4,790,324 |  | 1,043,066 |
Creditors: amounts falling due within one year |  | (6,831,066) |  | (4,036,028) |
Net current liabilities |  |  | (2,040,742) |  | (2,992,962)
Total assets less current liabilities |  |  | (2,040,722) |  | (2,346,920)
Net assets excluding pension asset |  |  | (2,040,722) |  | (2,346,920)
Net liabilities |  |  | (2,040,722) |  | (2,346,920)
Capital and reserves |  |  |  |  |
Called up share capital |  |  | 100 |  | 100
Profit and loss account brought forward |  | (2,347,020) |  | 26,154 |
Profit/(loss) for the year |  | 306,198 |  | (2,373,174) |
Profit and loss account carried forward |  |  | (2,040,822) |  | (2,347,020)
|  |  | (2,040,722) |  | (2,346,920)
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 17 July 2026.
G Kalin | H Arnold
Director | Director
The notes on pages 16 to 37 form part of these financial statements. Page 10
AK THEATRICALS LIMITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 MARCH 2024
| Called up share capital | Profit and loss account | Equity attributable to owners of parent Company | Non-controlling interests | Total equity
| £ | £ | £ | £ | £
At 1 April 2022 | 100 | (182,772) | (182,672) | (104,169) | (286,841)
Comprehensive income for the year |  |  |  |  |
Loss for the year | - | (3,484,774) | (3,484,774) | (145,150) | (3,629,924)
At 1 April 2023 | 100 | (3,667,546) | (3,667,446) | (249,319) | (3,916,765)
Comprehensive income for the year |  |  |  |  |
Loss for the year | - | (1,758,640) | (1,758,640) | (984,777) | (2,743,417)
At 31 March 2024 | 100 | (5,426,186) | (5,426,086) | (1,234,096) | (6,660,182)
| The notes on pages 16 to 37 form part of these financial statements.
Page 11
AK THEATRICALS LIMITED COMPANY STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 MARCH 2024
| Called up share capital | Profit and loss account | Total equity
| £ | £ | £
At 1 April 2022 | 100 | 26,154 | 26,254
Comprehensive income for the year |  |  |
Loss for the year | - | (2,373,174) | (2,373,174)
At 1 April 2023 | 100 | (2,347,020) | (2,346,920)
Comprehensive income for the year |  |  |
Profit for the year | - | 306,198 | 306,198
At 31 March 2024 | 100 | (2,040,822) | (2,040,722)
| The notes on pages 16 to 37 form part of these financial statements.
Page 12
AK THEATRICALS LIMITED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2024
|  |  |  | As restated
|  |  | 2024 | 2023
|  |  | £ | £
Cash flows from operating activities |  |
Loss for the financial year | (2,743,417) | (3,629,924)
Adjustments for: |  |
Amortisation of intangible assets | 17,679 | 17,679
Depreciation of tangible assets | 506,493 | 267,628
Impairments of current asset investments | 2,613,148 | 8,150,271
Amounts written off other loans | (3,859,631) | (9,454,046)
Interest paid | 125,476 | -
Interest received | (3,992) | (570)
Taxation charge | (1,627,803) | (1,022,562)
(Increase) in stocks | (1,504,538) | (1,293,807)
(Increase) in debtors | (3,172,612) | (1,262,294)
(Increase)/decrease in amounts owed by associates | (80,000) | -
Increase in creditors | 7,846,727 | 1,883,262
Increase in amounts owed to associates | 1,182,480 | 3,372,500
Corporation tax received | 895,927 | -
Impairment of fixed asset investments | 625,937 | 2,487,159
Impairment of goodwill | 20,000 | -
Net cash generated from operating activities | 841,874 | (484,704)
Cash flows from investing activities |  |
Purchase of intangible fixed assets | - | (19,804)
Purchase of tangible fixed assets | (3,444,521) | (1,644,464)
Purchase of unlisted and other investments | (15) | -
Purchase of short-term unlisted investments | (13,876,474) | (19,429,182)
Repayment of short-term unlisted investments | 9,950,731 | 2,163,423
Purchase of fixed asset investments | - | (966,715)
Interest received | 3,992 | 570
Net cash from investing activities | (7,366,287) | (19,896,172)
Cash flows from financing activities |  |
Other new loans | 13,037,723 | 20,105,885
Repayment of other loans | (5,040,260) | (1,999,406)
Interest paid | (125,476) | -
Net cash used in financing activities | 7,871,987 | 18,106,479
Net increase/(decrease) in cash and cash equivalents | 1,347,574 | (2,274,397)
Cash and cash equivalents at beginning of year | 1,219,556 | 3,493,953
Page 13
AK THEATRICALS LIMITED CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024
|  |  | As restated
|  | 2024 | 2023
|  | £ | £
Cash and cash equivalents at the end of year | 2,567,130 | 1,219,556
Cash and cash equivalents at the end of year comprise: |  |
Cash at bank and in hand | 2,567,130 | 1,219,556
| 2,567,130 | 1,219,556
The notes on pages 16 to 37 form part of these financial statements.
Page 14
AK THEATRICALS LIMITED CONSOLIDATED ANALYSIS OF NET DEBT FOR THE YEAR ENDED 31 MARCH 2024
| At 1 April 2023 | Cash flows | Other non-cash changes | At 31 March 2024
| £ | £ | £ | £
Cash at bank and in hand | 1,219,556 | 1,347,574 | - | 2,567,130
Debt due within 1 year | (23,731,306) | (7,997,464) | 3,859,631 | (27,869,139)
| (22,511,750) | (6,649,890) | 3,859,631 | (25,302,009)
The notes on pages 16 to 37 form part of these financial statements.
Page 15
AK THEATRICALS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024
1. | General information
AK Theatricals Limited ('the Company') is a private limited by shares and is incorporated in England. The address is its registered office is 124 Finchley Road, London, England, NW3 5JS. 2.Accounting policies
| 2.1 | Basis of preparation of financial statements
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006. The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3). The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Income and Retained Earnings in these financial statements. The following principal accounting policies have been applied:
| 2.2 | Basis of consolidation
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between wholly owned group companies are therefore eliminated in full. The consolidated financial statements incorporate the results of business combinations using the purchase method. In the balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the consolidated statement of income and retained earnings from the date on which control is obtained. They are deconsolidated from the date control ceases.
| 2.3 | Going concern
At the balance sheet date, the Group had net liabilities of £6,660,182 (2023: £3,916,765 as restated). The Group meets its day to day working capital requirements through production funding, which is not repayable and only recoupable from net revenues generated by the relevant productions and funding from a company with a 50% shareholding in the Company. In view of the terms and quantum of the production funding, the directors have a reasonable expectation that the Company and the Group have adequate resources to continue in operational existence for at least twelve months from the date of approval of these financial statements. The directors therefore consider it appropriate to adopt the going concern basis in preparing the Company's financial statements. Page 16
AK THEATRICALS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 2.Accounting policies (continued)
| 2.4 | Foreign currency translation
Functional and presentation currency The Company's functional and presentational currency is GBP. Transactions and balances Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions. At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined. Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges. Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Consolidated Statement of Income and Retained Earnings within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'. Page 17
AK THEATRICALS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 2.Accounting policies (continued)
| 2.5 | Revenue
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised: Production revenue comprises the Group's share, as producer, of admissions receipts and merchandise sales net of relevant commissions and banking charges. Production revenue is recognised in the period to which the attendance occurs. Bar and merchandise income comprises sale of food, drink and merchandise at the theatre and is recognised at the point of sale. Licence fee income comprises fees receivable for licencing productions to overseas territories and is recognised when contractually due. Royalty income comprises royalties receivable relating to immersive and theatre production services and are recorded in the period in which the revenue is contractually due. Profit shares receivable from theatrical productions are recorded on notification from the production's producer that the production has made sufficient profit and a distribution will be made in accordance with the contractual terms. Non returnable production funding comprises production investments from third party investors that are irrecoupable under the terms of the investment agreements and is recognised in the period in which it is determined that the production investment will not be recouped.
| 2.6 | Interest income
Interest income is recognised in profit or loss using the effective interest method.
| 2.7 | Finance costs
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
| 2.8 | Borrowing costs
All borrowing costs are recognised in profit or loss in the year in which they are incurred. Page 18
AK THEATRICALS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 2.Accounting policies (continued)
| 2.9 | Pensions
Defined contribution pension plan The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations. The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Group in independently administered funds.
| 2.10 | Taxation
Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively. The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate income.
| 2.11 | Intangible assets
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
| 2.12 | Tangible fixed assets
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Page 19
AK THEATRICALS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 2.Accounting policies (continued)
| 2.12 | Tangible fixed assets (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method. Depreciation is provided on the following basis:
|  |  |  | Long-term leasehold property | - | straight-line over the term of the lease
|  |  |  | Plant and machinery | - | straight-line over 3-5 years
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss. Assets under cponstruction are transferred into the relevant class of asset on completion and are depreciated from the date on which they are brought into use.
| 2.13 | Valuation of investments
Investments in subsidiaries are measured at cost less accumulated impairment.
| 2.14 | Associates and joint ventures
An entity is treated as a joint venture where the Group is a party to a contractual agreement with one or more parties from outside the Group to undertake an economic activity that is subject to joint control. An entity is treated as an associated undertaking where the Group exercises significant influence in that it has the power to participate in the operating and financial policy decisions. In the consolidated accounts, interests in associated undertakings are accounted for using the equity method of accounting. Under this method an equity investment is initially recognised at the transaction price (including transaction costs) and is subsequently adjusted to reflect the investors share of the profit or loss, other comprehensive income and equity of the associate. The Consolidated Statement of Income and Retained Earnings includes the Group's share of the operating results, interest, pre-tax results and attributable taxation of such undertakings applying accounting policies consistent with those of the Group. In the Consolidated Balance Sheet, the interests in associated undertakings are shown as the Group's share of the identifiable net assets, including any unamortised premium paid on acquisition. Any premium on acquisition is dealt with in accordance with the goodwill policy.
| 2.15 | Stocks
Stocks comprise goods for sale and production costs, which are recorded as a current asset. Production costs are amortised to the Statement of Income and Retained Earnings over the period in which the rights to the production are being exploited by the Company on an anticipated revenue basis. Page 20
AK THEATRICALS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 2.Accounting policies (continued)
| 2.16 | Debtors
Short-term debtors are measured at transaction price, less any impairment.
| 2.17 | Cash and cash equivalents
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.
| 2.18 | Creditors
Short-term creditors are measured at the transaction price.
| 2.19 | Financial instruments
The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments. Financial instruments are recognised in the Group's Balance Sheet when the Group becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. Basic financial assets Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments. Other financial assets Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment. Impairment of financial assets At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss. Page 21
AK THEATRICALS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 2.Accounting policies (continued)
| 2.19 | Financial instruments (continued)
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate. If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss. Basic financial liabilities Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Group after the deduction of all its liabilities. Basic financial liabilities, which include trade and other creditors, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial. Debt instruments are subsequently carried at their amortised cost using the effective interest rate method. Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial. Derecognition of financial instruments Derecognition of financial assets Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Group will continue to recognise the value of the portion of the risks and rewards retained. Derecognition of financial liabilities Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled. Page 22
AK THEATRICALS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024
3. | Judgments in applying accounting policies and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilites as at the reporting date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. Accruals The Group makes an estimate of accruals at the year end based on invoices received after the year end and work undertaken which has not been invoiced based on quotations or estimates of amounts that may be due for payment . Tangible assets Tangible assets are depreciated over their useful lives taking into account residual values where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending upon a number of factors. In re-assessing the assets' lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Impairment of fixed and current asset investments The Group makes an estimate of the fair value of fixed and current asset investments. When assessing impairment, management considers the best estimate of the funds the Group would receive for the asset if it were to be sold and the fair value of the future economic benefits that will flow to the entity from holding the investments. Impairment of debtors The Group makes an estimate of the recoverable value of trade and other debtors. When assessing impairment, management considers factors including the current credit rating of the debtor, the ageing profile and historical experience. Impairment of pre-production costs carried forward as stocks The Group makes an estimate of the recoverable value of pre-production costs carried forward as work in progress. When assessing impairment, management considers factors including the forecasted running profits generated by the relevant production. Page 23
AK THEATRICALS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024
4. | Turnover
| An analysis of turnover by class of business is as follows:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Production revenue | 7,069,971 | 4,951,954
| Producer fees and services | 514,153 | 167,400
| Food and beverage | 1,109,335 | 928,586
| Retail and photography | 345,749 | 109,585
| Royalties receivable | 1,958,147 | 345,577
| Licence fees receivable | 333,375 | 1,150,000
| Other income | 141,612 | 22,818
|  | 11,472,342 | 7,675,920
Analysis of turnover by country of destination:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| United Kingdom | 11,472,342 | 7,675,920
|  | 11,472,342 | 7,675,920
5. | Other operating income
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Other operating income | 819,251 | 577,240
|  | 819,251 | 577,240
6. | Operating loss
| The operating loss is stated after charging:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Exchange differences | 24,623 | 3,223
| Other operating lease rentals | 1,890,506 | 1,091,573
Page 24
AK THEATRICALS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024
7. | Auditors' remuneration
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements | 40,000 | 35,000
8. | Employees
| Staff costs, including directors' remuneration, were as follows:
|  | Group | Group | Company | Company
|  | 2024 | 2023 | 2024 | 2023
|  | £ | £ | £ | £
| Wages and salaries | 3,333,728 | 2,812,843 | - | -
| Social security costs | 308,787 | 272,343 | - | -
| Cost of defined contribution scheme | 46,895 | 40,742 | - | -
|  | 3,689,410 | 3,125,928 | - | -
| The directors of the Company are recognised as being the key management personnel of the Company. It is these individuals who together hold joint responsibility for planning, directing and controlling the activities of the Company.
| The average monthly number of employees, including the directors, during the year was as follows:
|  |  |  |  | 2024 | 2023
|  |  |  |  | Number | Number
| Staff (Group) | 133 | 118
| Directors | 2 | 2
|  | 135 | 120
9. | Interest receivable
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Other interest receivable | 3,992 | 570
|  | 3,992 | 570
Page 25
AK THEATRICALS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024
10. | Interest payable and similar expenses
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Other loan interest payable | 125,476 | -
|  | 125,476 | -
11. | Taxation
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Corporation tax |  |
| Current tax on profits for the year | (1,604,866) | (1,022,562)
| Adjustments in respect of previous periods | (22,937) | -
|  | (1,627,803) | (1,022,562)
| Total current tax | (1,627,803) | (1,022,562)
| Deferred tax |  |
| Total deferred tax | - | -
| Tax on loss | (1,627,803) | (1,022,562)
Page 26
AK THEATRICALS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 11.Taxation (continued)
| Factors affecting tax charge for the year
| The tax assessed for the year is lower than (2023 - lower than) the standard rate of corporation tax in the UK of 25% (2023 - 19%). The differences are explained below:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Loss on ordinary activities before tax | (4,371,220) | (4,652,486)
| Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 19%) | (1,092,805) | (883,972)
| Effects of: |  |
| Impairment of tangible fixed asset investments | 161,509 | 472,560
| Expenses not deductible for tax purposes, other than goodwill amortisation and impairment | 41,998 | 1,265
| Capital allowances for year in excess of depreciation | (132,267) | (148,648)
| Utilisation of tax losses | (360,013) | (6,528)
| Unutilised tax losses | 1,157,428 | 868,862
| Theatrical production tax profit adjustment | (634,792) | (735,180)
| Enhanced losses surrendered for theatre tax relief | 858,942 | 431,749
| Theatre tax relief | (1,567,039) | (1,022,670)
| Adjustment in respect of prior year | (22,937) | -
| Other differences leading to an increase (decrease) in the tax charge | (37,827) | -
| Total tax charge for the year | (1,627,803) | (1,022,562)
Page 27
AK THEATRICALS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024
12. | Intangible assets
| Group
|  | Intellectual Property | Goodwill | Total
|  | £ | £ | £
| Cost |  |  |
| At 1 April 2023 | 176,788 | 20,000 | 196,788
| At 31 March 2024 | 176,788 | 20,000 | 196,788
| Amortisation |  |  |
| At 1 April 2023 | 28,259 | - | 28,259
| Charge for the year on owned assets | 17,679 | 20,000 | 37,679
| At 31 March 2024 | 45,938 | 20,000 | 65,938
| Net book value |  |  |
| At 31 March 2024 | 130,850 | - | 130,850
| At 31 March 2023 | 148,529 | 20,000 | 168,529
Page 28
AK THEATRICALS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024
13. | Tangible fixed assets
| Group
|  | Long-term leasehold property | Plant and machinery | Assets under construction | Total
|  | £ | £ | £ | £
| Cost or valuation |  |  |  |
| At 1 April 2023 | 565,703 | 1,722,414 | 371,015 | 2,659,132
| Additions | 1,500 | 718,447 | 2,724,574 | 3,444,521
| At 31 March 2024 | 567,203 | 2,440,861 | 3,095,589 | 6,103,653
| Depreciation |  |  |  |
| At 1 April 2023 | 38,417 | 329,070 | - | 367,487
| Charge for the year on owned assets | 43,390 | 463,099 | - | 506,489
| At 31 March 2024 | 81,807 | 792,169 | - | 873,976
| Net book value |  |  |  |
| At 31 March 2024 | 485,396 | 1,648,692 | 3,095,589 | 5,229,677
| At 31 March 2023 | 527,286 | 1,393,344 | 371,015 | 2,291,645
| The net book value of land and buildings may be further analysed as follows:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Long leasehold | 485,396 | 527,286
|  | 485,396 | 527,286
Page 29
AK THEATRICALS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024
14. | Fixed asset investments
| Group
|  | Investments in associates | Unlisted investments | Total
|  | £ | £ | £
| Cost or valuation |  |  |
| At 1 April 2023 | 3,113,098 | - | 3,113,098
| Additions | - | 15 | 15
| At 31 March 2024 | 3,113,098 | 15 | 3,113,113
| Impairment |  |  |
| At 1 April 2023 | 2,487,159 | - | 2,487,159
| Charge for the period | 625,937 | - | 625,937
| At 31 March 2024 | 3,113,096 | - | 3,113,096
| Net book value |  |  |
| At 31 March 2024 | 2 | 15 | 17
| At 31 March 2023 | 625,939 | - | 625,939
Page 30
AK THEATRICALS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024
| Company
|  | Investments in subsidiary companies | Investments in associates | Unlisted investments | Total
|  | £ | £ | £ | £
| Cost or valuation |  |  |  |
| At 1 April 2023 | 20,103 | 3,113,098 | - | 3,133,201
| Additions | - | - | 15 | 15
| At 31 March 2024 | 20,103 | 3,113,098 | 15 | 3,133,216
| Impairment |  |  |  |
| At 1 April 2023 | - | 2,487,159 | - | 2,487,159
| Charge for the period | 20,100 | 625,937 | - | 646,037
| At 31 March 2024 | 20,100 | 3,113,096 | - | 3,133,196
| Net book value |  |  |  |
| At 31 March 2024 | 3 | 2 | 15 | 20
| At 31 March 2023 | 20,103 | 625,939 | - | 646,042
Page 31
AK THEATRICALS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024
| Subsidiary undertakings
| The following were subsidiary undertakings of the Company:
| Name | Registered office | Class of shares | Holding
| AK Theatricals Investments Limited | 124 Finchley Road, London NW3 5JS | Ordinary | 100%
| The Path Entertainment Group Limited | 124 Finchley Road, London NW3 5JS | Ordinary | 67%
| Gamepath Entertainment Limited * | 124 Finchley Road, London NW3 5JS | Ordinary | 67%
| Showpath Entertainment Limited * | 124 Finchley Road, London NW3 5JS | Ordinary | 67%
| Gamepath (Monopoly) Limited ** | 124 Finchley Road, London NW3 5JS | Ordinary | 67%
| Gamepath Paddington Ldn Limited ** | 124 Finchley Road, London NW3 5JS | Ordinary | 67%
| Gamepath Saw Ldn Limited ** | 124 Finchley Road, London NW3 5JS | Ordinary | 67%
| Showpath Spongebob Limited *** | 124 Finchley Road, London NW3 5JS | Ordinary | 67%
| Showpath Dirty Dancing UK Limited *** | 124 Finchley Road, London NW3 5JS | Ordinary | 67%
| Showpath D & D Ldn Limited *** | 124 Finchley Road, London NW3 5JS | Ordinary | 67%
Page 32
AK THEATRICALS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Subsidiary undertakings (continued)
| The aggregate of the share capital and reserves as at 31 March 2024 and the profit or loss for the year ended on that date for the subsidiary undertakings were as follows:
| Name | Aggregate of share capital and reserves | Profit/(Loss)
|  | £ | £
| AK Theatricals Investments Limited | (917,170) | (95,385)
| The Path Entertainment Group Limited | (2,083,174) | (1,244,283)
| Gamepath Entertainment Limited * | 391,890 | 232,474
| Showpath Entertainment Limited * | 52,518 | 31,867
| Gamepath (Monopoly) Limited ** | (1,853,491) | (1,793,734)
| Gamepath Paddington Ldn Limited ** | (210,498) | (181,136)
| Gamepath Saw Ldn Limited ** | 1 | -
| Showpath Spongebob Limited *** | 1 | -
| Showpath Dirty Dancing UK Limited *** | 1 | -
| Showpath D & D Ldn Limited *** | 1 | -
| AK Theatricals Investments Limited is exempt from the requirement relating to the audit of their individual financial statements for the year ended 31 March 2024 by virtue of Section 479A of the Companies Act 2006. The parent company, AK Theatricals Limited, guarantees any liabilities of the subsidiary. * These companies are held by The Path Entertainment Group Limited ** These companies are held by Gamepath Entertainment Limited *** These companies are held by Showpath Entertainment Limited
15. | Stocks
|  | Group | Group
|  | 2024 | 2023
|  | £ | £
| Production costs | 6,640,456 | 5,205,179
| Bar and catering stock | 115,654 | 46,393
|  | 6,756,110 | 5,251,572
Page 33
AK THEATRICALS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024
16. | Debtors
|  | Group | Group As restated | Company | Company As restated
|  | 2024 | 2023 | 2024 | 2023
|  | £ | £ | £ | £
| Trade debtors | 431,988 | 93,059 | - | -
| Amounts owed by group undertakings | - | - | 2,029,998 | 818,997
| Amounts owed by joint ventures and associated undertakings | 180,000 | 100,000 | - | -
| Other debtors | 2,672,413 | 1,220,358 | 781,675 | 201,675
| Called up share capital not paid | 50 | 50 | 50 | 50
| Prepayments and accrued income | 2,120,555 | 738,927 | 97,368 | -
| Tax recoverable | 1,754,334 | 1,022,461 | - | -
|  | 7,159,340 | 3,174,855 | 2,909,091 | 1,020,722
17. | Current asset investments
|  | Group | Group As restated | Company | Company As restated
|  | 2024 | 2023 | 2024 | 2023
|  | £ | £ | £ | £
| Unlisted investments | 18,058,961 | 16,746,366 | 1,818,491 | -
|  | 18,058,961 | 16,746,366 | 1,818,491 | -
18. | Cash and cash equivalents
|  | Group | Group | Company | Company
|  | 2024 | 2023 | 2024 | 2023
|  | £ | £ | £ | £
| Cash at bank and in hand | 2,567,130 | 1,219,556 | 62,742 | 22,344
|  | 2,567,130 | 1,219,556 | 62,742 | 22,344
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AK THEATRICALS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024
19. | Creditors: Amounts falling due within one year
|  | Group | Group As restated | Company | Company As restated
|  | 2024 | 2023 | 2024 | 2023
|  | £ | £ | £ | £
| Other loans | 27,869,139 | 23,731,306 | 1,818,506 | -
| Trade creditors | 2,108,597 | 797,595 | - | -
| Amounts owed to group undertakings | - | - | 243,855 | -
| Amounts owed to associates | 7,054,980 | 5,872,500 | 4,655,000 | 3,990,000
| Corporation tax | 1,190 | 1,190 | 1,190 | 1,190
| Other taxation and social security | 833,782 | 335,116 | 36,015 | 5,838
| Other creditors | 4,677,174 | 97,172 | - | -
| Accruals and deferred income | 4,017,405 | 2,560,348 | 76,500 | 39,000
|  | 46,562,267 | 33,395,227 | 6,831,066 | 4,036,028
20. | Financial instruments
|  | Group | Group | Company | Company
|  | 2024 | 2023 | 2024 | 2023
|  | £ | £ | £ | £
| Financial assets |  |  |  |
| Financial assets measured at fair value through profit or loss | 20,712,624 | 17,711,100 | 4,630,164 | 1,020,672
| Financial liabilities |  |  |  |
| Other financial liabilities measured at fair value through profit or loss | 37,032,716 | 30,401,401 | 5,898,854 | 3,990,048
| Financial assets measured at fair value through profit or loss comprise trade debtors, group debtors, other debtors and investments in theatrical productions.
| Other financial liabilities measured at fair value through profit and loss comprise trade creditors, theatrical production funding creditors and group creditors.
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AK THEATRICALS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024
21. | Deferred taxation
22. | Share capital
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
|  | Allotted, called up and fully paid |  |
|  | 50 (2023 - 50) Ordinary A shares of £1.00 each | 50 | 50
|  | 50 (2023 - 50) Ordinary B shares of £1.00 each | 50 | 50
|  |  | 100 | 100
23. | Reserves
Profit and loss account Retained earnings represents accumulated comprehensive income for the year and prior periods less dividends paid.
24. | Capital commitments
| At 31 March 2024 the Group and Company had capital commitments as follows:
|  | Group | Group
|  | 2024 | 2023
|  | £ | £
| Contracted for but not provided in these financial statements | 187,205 | 2,115,994
|  | 187,205 | 2,115,994
25. | Pension commitments
The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £46,895 (2023 - £40,742). Contributions totalling £9,649 (2023 - £9,339) were payable to the fund at the balance sheet date and are included in creditors. Page 36
AK THEATRICALS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024
26. | Commitments under operating leases
| At 31 March 2024 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
|  | Group | Group
|  | 2024 | 2023
|  | £ | £
| Not later than 1 year | 1,890,000 | 890,000
| Later than 1 year and not later than 5 years | 7,320,000 | 3,320,000
| Later than 5 years | 14,296,840 | 6,555,333
|  | 23,506,840 | 10,765,333
27. | Related party transactions
| During the year, fees totalling £37,505 (2023: £11,895) were payable by the Group to companies in which a director has a material interest. At the balance sheet date, creditors include £nil (2023: £nil) due in respect of these fees. Also during the year, fees totalling £nil (2023: £2,652) were payable to companies in which a director has a material interest. At the balance sheet date, debtors include £nil (2023: £nil) receivable in respect of these fees. During the year, the Group received funding totalling £1,182,482 (2023: £3,372,500) from a company with a 50% shareholding in Group. At the balance sheet date, creditors include £7,054,980 (2023: £5,872,498) due to the company. During the year, the Group provided production funding totalling £919,750 (2023: £3,721,750) to subsidiary companies not within the wholly owned Group. Also during the year a provision of £829,397 (2023: £1,447,258) was made against the recoupable production funding. At the balance sheet date, debtors include £6,006,845 (2023: £4,406,492) due from these companies. During the year, the Group provided production funding totalling £1,510,000 (2023: £5,348,000) to companies with a common director and in which the company has a non controlling shareholding. At the balance sheet date, debtors include £7,68,675 (2023: £6,176,675) due from these companies. During the year, the Group recouped production funding totalling £212,750 (2023: made production funding totalling £2,400,000) from companies with a common director and in which the company has a non controlling shareholding. Also during the year a provision of £470,000 (2023: £2,860,000) was made against the recoupable production funding advanced. During the period producer fees and royalties totalling £14,203 (2023: £30,534) were receivable from the these companies. At the balance sheet date, debtors include £585,550 (2023: £1,268,300) due from these companies.
28. | Controlling party
In the opinion of the directors there is no ultimate controlling party.
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