Video Europe Ltd - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 01097889 (England and Wales)

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30TH APRIL 2022

FOR

VIDEO EUROPE LTD

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTOR:

S F Green

SECRETARY:

M R Marner

REGISTERED OFFICE:

Studio 3, Ground Floor Battersea Studios

82 Silverthorne Road

London

SW8 3HE

REGISTERED NUMBER:

01097889 (England and Wales)

ACCOUNTANTS:

ESW Chartered Accountants

162-164 High Street

Rayleigh

Essex

SS6 7BS

FIXED ASSETS

Intangible assets

4

-

-

Tangible assets

5

17,037,418

22,020,675

17,037,418

22,020,675

CURRENT ASSETS

Debtors

6

5,325,124

3,042,378

Investments

7

-

227,993

Cash at bank

329,596

372,249

5,654,720

3,642,620

CREDITORS

Amounts falling due within one year

8

(7,083,973

)

(7,612,633

)

NET CURRENT LIABILITIES

(1,429,253

)

(3,970,013

)

TOTAL ASSETS LESS CURRENT LIABILITIES

15,608,165

18,050,662

CREDITORS

Amounts falling due after more than one year

9

(13,762,826

)

(17,922,628

)

PROVISIONS FOR LIABILITIES

12

(761,386

)

(570,699

)

NET ASSETS/(LIABILITIES)

1,083,953

(442,665

)

CAPITAL AND RESERVES

Called up share capital

13

576,511

576,511

Share premium

21,461

21,461

Revaluation reserve

781,790

1,145,483

Capital redemption reserve

82,867

82,867

Retained earnings

(378,676

)

(2,268,987

)

SHAREHOLDERS' FUNDS

1,083,953

(442,665

)

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30th April 2022.

The members have not required the company to obtain an audit of its financial statements for the year ended 30th April 2022 in accordance with Section 476 of the Companies Act 2006.

The director acknowledges his responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the director and authorised for issue on 16th June 2022 and were signed by:

S F Green - Director

1.	STATUTORY INFORMATION

Video Europe Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

Turnover

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

Turnover from the hire of equipment is recognised over the period to which the hire relates.

Goodwill

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

Tangible fixed assets

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

Improvements to property

-

in accordance with the property

Plant and machinery

-

20% on reducing balance

Fixtures and fittings

-

20% on cost

Motor vehicles

-

25% on cost and 25% on reducing balance

Computer equipment

-

33% on reducing balance

Impairment of fixed assets

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

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

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

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

Taxation

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

Deferred tax

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

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

Foreign currencies

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

Retirement benefits

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

Financial instruments

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

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

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

Basic financial assets

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

Classification of financial liabilities

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

Basic financial liabilities

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

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

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

Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs.

Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

Government grants

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

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable . A grant received before the recognition criteria are satisfied is recognised as a liability.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 20 (2021 - 36 ) .

4.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1st May 2021

and 30th April 2022

112,500

AMORTISATION

At 1st May 2021

and 30th April 2022

112,500

NET BOOK VALUE

At 30th April 2022

-

At 30th April 2021

-

5.	TANGIBLE FIXED ASSETS

Improvements

Fixtures

to

Plant and

and

property

machinery

fittings

£

£

£

COST OR VALUATION

At 1st May 2021

317,157

37,962,994

937,827

Additions

-

1,226,048

55,806

Disposals

-

(1,374,120

)

-

At 30th April 2022

317,157

37,814,922

993,633

DEPRECIATION

At 1st May 2021

282,430

17,884,254

701,427

Charge for year

6,948

4,151,494

126,832

Eliminated on disposal

-

(901,411

)

-

At 30th April 2022

289,378

21,134,337

828,259

NET BOOK VALUE

At 30th April 2022

27,779

16,680,585

165,374

At 30th April 2021

34,727

20,078,740

236,400

Motor

Computer

vehicles

equipment

Totals

£

£

£

COST OR VALUATION

At 1st May 2021

3,874,160

-

43,092,138

Additions

-

8,239

1,290,093

Disposals

(3,486,561

)

-

(4,860,681

)

At 30th April 2022

387,599

8,239

39,521,550

DEPRECIATION

At 1st May 2021

2,203,352

-

21,071,463

Charge for year

414,911

1,648

4,701,833

Eliminated on disposal

(2,387,753

)

-

(3,289,164

)

At 30th April 2022

230,510

1,648

22,484,132

NET BOOK VALUE

At 30th April 2022

157,089

6,591

17,037,418

At 30th April 2021

1,670,808

-

22,020,675

Cost or valuation at 30th April 2022 is represented by:

Improvements

Fixtures

to

Plant and

and

property

machinery

fittings

£

£

£

Valuation in 2021

-

781,790

-

Cost

317,157

37,033,132

993,633

317,157

37,814,922

993,633

Motor

Computer

vehicles

equipment

Totals

£

£

£

Valuation in 2021

-

-

781,790

Cost

387,599

8,239

38,739,760

387,599

8,239

39,521,550

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Trade debtors

3,352,698

1,680,912

Other debtors

1,972,426

1,361,466

5,325,124

3,042,378

7.	CURRENT ASSET INVESTMENTS

2022

2021

£

£

Other

-

227,993

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Bank loans and overdrafts

264,760

24,319

Hire purchase contracts (see note 10)

4,326,765

4,577,390

Trade creditors

1,356,002

2,429,705

Taxation and social security

868,100

258,445

Other creditors

268,346

322,774

7,083,973

7,612,633

9.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2022

2021

£

£

Bank loans

1,750,000

1,750,000

Hire purchase contracts (see note 10)

12,012,826

16,172,628

13,762,826

17,922,628

10.	LEASING AGREEMENTS

Minimum lease payments under hire purchase fall due as follows:

2022

2021

£

£

Net obligations repayable:

Within one year

4,326,765

4,577,390

Between one and five years

12,012,826

16,172,628

16,339,591

20,750,018

11.	SECURED DEBTS

The following secured debts are included within creditors:

2022

2021

£

£

Bank overdrafts

264,760

24,319

Hire purchase contracts

16,339,591

20,750,018

16,604,351

20,774,337

The debts are secured through various fixed and floating charges over certain assets held by the company.

12.	PROVISIONS FOR LIABILITIES

2022

2021

£

£

Deferred tax

761,386

570,699

Deferred

tax

£

Balance at 1st May 2021

570,699

Accelerated capital allowances

190,687

Balance at 30th April 2022

761,386

13.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2022

2021

value:

£

£

510,000

Preference

£1

510,000

510,000

Allotted and issued:

Number:

Class:

Nominal

2022

2021

value:

£

£

63,185

Ordinary

£1

63,185

63,185

3,326

Ordinary-A

£1

3,326

3,326

66,511

66,511

14.	DIRECTOR'S ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to a director subsisted during the years ended 30th April 2022 and 30th April 2021:

2022

2021

£

£

S F Green

Balance outstanding at start of year

53,817

25,117

Amounts advanced

277,243

28,700

Amounts repaid

-

-

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

331,060

53,817

15.	RELATED PARTY DISCLOSURES

At the balance sheet date the non-director-shareholders owed £128,287 (2021: £29,808) to the company.

16.	ULTIMATE CONTROLLING PARTY

The controlling party is OCD Holdings Limited.

S Green is the ultimate controlling party by virtue of his 48.5% shareholding.