AVC Live Limited - Limited company accounts 18.2

REGISTERED NUMBER: 01921674 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2018

FOR

AVC LIVE LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

to

4

Report of the Independent Auditors

5

to

6

Statement of Comprehensive Income

7

Statement of Financial Position

8

Statement of Changes in Equity

9

Statement of Cash Flows

10

Notes to the Statement of Cash Flows

11

Notes to the Financial Statements

12

to

23

DIRECTORS:

Mr P C Hill

Mr W Markowitz

Mr M Mcilwain

SECRETARY:

Mrs R J Lane

REGISTERED OFFICE:

Union Business Park

Florence Way

Uxbridge

Middlesex

UB8 2LS

REGISTERED NUMBER:

01921674 (England and Wales)

AUDITORS:

Seymour Taylor Audit Limited, Statutory Auditor

57 London Road

High Wycombe

Buckinghamshire

HP11 1BS

The directors present their strategic report for the year ended 31 December 2018.

REVIEW OF BUSINESS

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

2018

2017

Variance

£'000

£'000

%

Turnover

16,215

11,518

41

Profit/(loss) before tax

1,615

(564

)

Shareholders' funds

39,867

21,700

84

During the year the company continued to provide the hire of audio visual equipment and services to

customers in a number of different business sectors as well as overseas. The company experienced growth

in the year with an overall increase in turnover of 41% due to further expansion of the audio visual hire

business.

The board continued to invest heavily in new equipment with fixed asset investment running at 8% (2017:

8%).

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks and uncertainties facing the company are as follows:

Competitor risks

The company has recognised competitive risks from alternative suppliers. The company seeks to differentiate

itself from competitors, providing a premium service in addition to the supply of high quality equipment. The

company constantly monitors its competitive offering and adjusts as challenges present themselves.

General economic uncertainty

On 23 June 2016 the United Kingdom (UK) voted to leave the European Union (EU) and on 29 March 2017

the UK Government invoked Article 50, providing formal notification of the UK's desire to leave the EU. At the

date of signing these accounts the directors do not foresee any immediate risks crystallising, however they

acknowledge the uncertainty that now exists. The directors will continue to review the potential impacts.

Foreign currency

Intercompany balances held in foreign currency, especially US dollars and Euros, affect the company's

performance. The company will closely monitor these risks and take action where required.

ON BEHALF OF THE BOARD:

Mr P C Hill - Director

27 September 2019

The directors of AVC Live Limited (the company) present their report and financial statements for the year

ended 31 December 2018.

RESULTS AND DIVIDENDS

The company's net profit for the year after taxation amounted to £1,423,513 (2017: loss of £479,446). The

total distribution of dividends for the year ended 31 December 2018 was £nil (2017: £nil).

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2018.

FUTURE DEVELOPMENTS

Our strategy of on-going investment in infrastructure, product development and expansion of existing markets

is aimed at maintaining continuous growth and our balance sheet is adequately resourced to support this.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2018 to the date of

this report.

Mr P C Hill

Mr W Markowitz

Mr M Mcilwain

FINANCIAL INSTRUMENTS

Details in relation to the financial risk management objectives and policies are disclosed within the strategic

report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors 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;

-	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 AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the

Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps

that he ought to have taken as a director in order to make himself aware of any relevant audit information and

to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Seymour Taylor Audit Limited, will be re-appointed in accordance with section 487(2) of the

Companies Act 2006.

ON BEHALF OF THE BOARD:

Mr P C Hill - Director

27 September 2019

Opinion

We have audited the financial statements of AVC Live Limited (the 'company') for the year ended

31 December 2018 which comprise the Statement of Comprehensive Income, Statement of Financial

Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash

Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The

financial reporting framework that has been applied in their preparation is applicable law and United Kingdom

Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard

applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 December 2018 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and

applicable law. Our responsibilities under those standards are further described in the Auditors'

responsibilities for the audit of the financial statements section of our report. We are independent of the

company in accordance with the ethical requirements that are relevant to our audit of the financial statements

in the 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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to

report to you where:

-	the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The directors are responsible for the other information. The other information comprises the information in the

Strategic Report and the Report of the Directors, but does not include the financial statements and our Report

of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent

otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and,

in doing so, consider whether the other information is materially inconsistent with the financial statements or

our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such

material inconsistencies or apparent material misstatements, we are required to determine whether there is a

material misstatement in the financial statements or a material misstatement of the other information. If,

based on the work we have performed, we conclude that there is a material misstatement of this other

information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of

the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to

report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

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

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free

from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors 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 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

Report of the Auditors.

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 a Report of the Auditors 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.

Elizabeth Horton FCCA ACA (Senior Statutory Auditor)

for and on behalf of Seymour Taylor Audit Limited, Statutory Auditor

57 London Road

High Wycombe

Buckinghamshire

HP11 1BS

27 September 2019

TURNOVER

3

16,215

14,288

Cost of sales

13,567

11,563

GROSS PROFIT

2,648

2,725

Administrative expenses

1,628

3,871

OPERATING PROFIT/(LOSS)

6

1,020

(1,146

)

Income from participating interests

623

638

1,643

(508

)

Interest payable and similar expenses

7

28

56

PROFIT/(LOSS) BEFORE TAXATION

1,615

(564

)

Tax on profit/(loss)

8

191

(84

)

PROFIT/(LOSS) FOR THE FINANCIAL YEAR

1,424

(480

)

OTHER COMPREHENSIVE INCOME

Loss on discounting of other creditors

7

81

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

7

81

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,431

(399

)

FIXED ASSETS

Tangible assets

9

2,103

1,542

Investments

10

25,422

23,361

27,525

24,903

CURRENT ASSETS

Stocks

11

55

56

Debtors: amounts falling due within one year

12

3,237

3,413

Debtors: amounts falling due after more than one year

12

19,351

17,608

Cash at bank

943

941

23,586

22,018

CREDITORS

Amounts falling due within one year

13

8,520

22,337

NET CURRENT ASSETS/(LIABILITIES)

15,066

(319

)

TOTAL ASSETS LESS CURRENT LIABILITIES

42,591

24,584

CREDITORS

Amounts falling due after more than one year

14

2,724

2,884

NET ASSETS

39,867

21,700

CAPITAL AND RESERVES

Called up share capital

17

10

10

Share premium

18

33,533

16,797

Capital redemption reserve

18

10

10

Other reserves

18

88

81

Retained earnings

18

6,226

4,802

SHAREHOLDERS' FUNDS

39,867

21,700

The financial statements were approved by the Board of Directors on 27 September 2019 and were signed on its behalf by:

Mr P C Hill - Director

Called up

share

Retained

Share

capital

earnings

premium

£'000

£'000

£'000

Balance at 1 January 2017

10

5,282

16,797

Changes in equity

Total comprehensive income

-

(480

)

-

Balance at 31 December 2017

10

4,802

16,797

Changes in equity

Issue of share capital

-

-

16,736

Total comprehensive income

-

1,424

-

Balance at 31 December 2018

10

6,226

33,533

Capital

redemption

Other

Total

reserve

reserves

equity

£'000

£'000

£'000

Balance at 1 January 2017

10

-

22,099

Changes in equity

Total comprehensive income

-

81

(399

)

Balance at 31 December 2017

10

81

21,700

Changes in equity

Issue of share capital

-

-

16,736

Total comprehensive income

-

7

1,431

Balance at 31 December 2018

10

88

39,867

Cash flows from operating activities

Cash generated from operations

1

2,763

6,599

Interest paid

(28

)

(56

)

Discounting adjustment

7

-

Tax paid

-

(393

)

Net cash from operating activities

2,742

6,150

Cash flows from investing activities

Purchase of tangible fixed assets

(1,314

)

(876

)

Purchase of fixed asset investments

(2,061

)

(23,361

)

Sale of tangible fixed assets

12

5

Interest received

623

638

Net cash from investing activities

(2,740

)

(23,594

)

Cash flows from financing activities

Loans received from group companies

-

17,669

Net cash from financing activities

-

17,669

Increase in cash and cash equivalents

2

225

Cash and cash equivalents at beginning of year

2

941

716

Cash and cash equivalents at end of year

2

943

941

1.	RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2018

2017

£'000

£'000

Profit/(loss) before taxation

1,615

(564

)

Depreciation charges

741

649

Profit on disposal of fixed assets

-

(7

)

Finance costs

28

56

Finance income

(623

)

(638

)

1,761

(504

)

Decrease/(increase) in stocks

1

(13

)

(Increase)/decrease in trade and other debtors

(1,757

)

1,068

Increase in trade and other creditors

2,758

6,048

Cash generated from operations

2,763

6,599

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in

respect of these Statement of Financial Position amounts:

Year ended 31 December 2018

31.12.18

1.1.18

£'000

£'000

Cash and cash equivalents

943

941

Year ended 31 December 2017

31.12.17

1.1.17

£'000

£'000

Cash and cash equivalents

941

716

1.	STATUTORY INFORMATION

AVC Live Limited is a private company, limited by shares, registered in England and Wales. The

company's registered office and principal place of business was 242-243 Gresham Road, Slough,

Berkshire, SL1 4PH until 26 July 2019. The company then moved their registered office and principal

place of business to Union Business Park, Florence Way, Uxbridge, Middlesex, UB8 2LS. The

registered number is 01921674.

The principal activity of the company during the year was that of event management and hire of audio

visual equipment and services.

The financial statements are presented in the currency of the primary economic environment in which

the entity operates (its functional currency), as such, the results and statement of financial position are

presented in Sterling (£   ). Monetary amounts in these financial statements are rounded to the

nearest thousand unless otherwise stated.

The significant accounting policies applied in the preparation of these financial statements are set out

below. These policies have been consistently applied to all years presented unless otherwise stated.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with applicable United Kingdom

accounting standards, including Financial Reporting Standard 102 - 'The Financial Reporting Standard

applicable in the United Kingdom and Republic of Ireland' ('FRS 102'), and with the Companies Act

2006. The financial statements have been prepared on the historical cost basis except for the

modification to a fair value basis for certain items as specified in the accounting policies below and in

accordance with applicable accounting standards.

The financial statements have been prepared on a going concern basis. Although at the year end date,

the statement of financial position shows the company had net current assets of £15,066,000, this

includes an intercompany debtor, due in more than one year of £19,267,000, as disclosed in note 12.

However, the company is able to rely on the support of other group companies and therefore the

directors believe it is appropriate for the financial statements to be prepared on this basis.

Preparation of consolidated financial statements

The financial statements contain information about AVC Live Limited as an individual company and do

not contain consolidated financial information as the parent of a group. The company is exempt under

Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial

statements as it and its subsidiary undertaking are included by full consolidation in the consolidated

financial statements of its parent, AVSC Europe Limited, Union Business Park, Florence Way,

Uxbridge, Middlesex, UB8 2LS.

Turnover

Revenue is recognised to the extent that the company obtains right to consideration in exchange for its

performance. Revenue is measured at the fair value of the consideration received, excluding

discounts, rebates, VAT and other sales tax or duty. Revenue is recognised as follows:

Rendering of services

Customers hire equipment for a specific period of time. Orders are taken at the beginning of the hire period with income being recognised at the end of the hire period or on a monthly basis for hire periods longer than a month.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Short leasehold

-

over the lease term

Plant and machinery

-

straight line - 50% and straight line - 25%

Motor vehicles

-

straight line - 25%

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for

obsolete and slow moving items.

Taxation

Tax on the profit or loss for the year comprises current and deferred tax. Tax is recognised in the profit

and loss account except to the extent that it relates to items recognised directly in equity or other

comprehensive income, in which case it is recognised directly in equity or other comprehensive

income.

Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using

tax rates enacted or substantively enacted at the balance sheet date, and any adjustment to tax

payable in respect of previous years.

Deferred tax is provided on timing differences which arise from the inclusion of income and expenses

in tax assessments in periods different from those in which they are recognised in the financial

statements. Differences between accumulated depreciation and tax allowances for the cost of a fixed

asset, if and when all conditions for retaining the tax allowances have been met, are not provided for.

Deferred tax is not recognised on permanent differences arising because certain types of income or

expense are non-taxable or are disallowable for tax or because certain tax charges or allowances are

greater or smaller than the corresponding income or expense.

Deferred tax is measured at the tax rate that is expected to apply to the reversal of the related

difference, using tax rates enacted or substantively enacted at the balance sheet date. Deferred tax

balances are not discounted.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that is it probable

that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at

the statement of financial position date. Transactions in foreign currencies are translated into sterling

at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account

in arriving at the operating result.

Operating lease commitments

Rentals applicable to operating leases, where substantially all of the benefits and risks of ownership

remain with the lessor, are charged against profits on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the

company's pension scheme are charged to profit or loss in the period to which they relate.

Operating lease incentives

The company from time to time receives incentives to enter into new lease agreements. These

incentives may take the form of an up-front cash payment ("reverse premium") or the initial period of

the lease may be rent free or at a reduced rent.

In accordance with the standard accounting treatment for operating lease incentives, the benefits

receivable by the company are deducted from the rental costs and are allocated on a straight line basis

over the full lease term.

Financial instruments

The company has applied the provision of Section 11 'Basic Financial Instruments' and Section 12

'Other Financial Instrument Issues' of FRS 102 to all of its financial instruments.

Financial instruments are classified and accounted for, according to the substance of the contractual

arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument

is any contract that evidences a residual interest in the assets of the company after deducting all of its

liabilities.

Where the contractual obligations of financial instruments (including share capital) are equivalent to a

similar debt instrument, those financial instruments are classed as financial liabilities. Financial

liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to

financial liabilities are included in the profit and loss account. Finance costs are calculated so as to

produce a constant rate of return on the outstanding liability.

Where the contractual terms of share capital do not have any terms meeting the definition of a

financial liability then this is classed as an equity instrument. Dividends and distributions relating to

equity instruments are debited direct to equity.

Impairment of financial assets

At each period end date, the company reviews the carrying amounts of its financial 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).

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying

amount is reduced to its recoverable amount, with the impairment recognised immediately in the

statement of income and retained earnings.

Investments

Investments that are not publicly traded, and whose fair value cannot otherwise be measured reliably,

are held as fixed assets and stated at cost less any provision for impairment in value.

The carrying values of investments are reviewed for impairment in periods if events or changes in

circumstances indicate the carrying value may not be recoverable.

Critical accounting estimates and judgements

In the application of the company's accounting policies, the directors are required to make judgements,

estimates and assumptions about the carrying amounts 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 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, if the revision affects only that

period, or in the period of the revision and future periods if the revision affects both current and future

periods.

The areas for which estimation has been applied are considered to be in calculating impairments.

Although these areas are subject to judgement, they are not considered to be subject to significant

estimation.

3.

TURNOVER

The turnover and profit (2017 - loss) before taxation are attributable to the one principal activity of the

company.

An analysis of turnover by geographical market is given below:

2018

2017

as restated

£'000

£'000

United Kingdom

15,137

13,602

Europe

810

61

Rest of world

268

625

16,215

14,288

The prior year reanalysis in the year ended 31 December 2017 relates to the grossing up of sales

commissions between turnover and cost of sales.

The effect of the correction, has been to increase turnover by £2,769,538 and increase cost of sales by

£2,769,538. There has been no change to the gross profit figure reported.