ACCOUNTS - Final Accounts
ACCOUNTS - Final Accounts
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Registered number:
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
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COMPANY INFORMATION
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CONTENTS
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GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2022
The directors present the strategic report of Broadwick Group Limited ("the Company") and its subsidiaries (together "the Group") for the year ended 31 March 2021. The trading name of the Group is "Broadwick Live".
Our heritage is in music. We own and operate a portfolio of award-winning venues and entertainment brands and partner with some of the world’s most influential artists to deliver powerful programming and cultural experiences across the world. We believe in redefining spaces and how people experience culture. By breaking down traditional barriers, we curate unique narratives, reveal distinct identities and create one of a kind experiences across all of our spaces and venues. At the heart of Broadwick Live is a founding belief in the power of ‘live’ with the objective always being to inspire, connect and create massive impact through music, culture and space. With five core divisions; Entertainment, Venues, Development, Broadwick Services and Partnerships, Broadwick Live Group design, build and operate some of the world’s most exciting venue and entertainment brands.
With strong financial management, support from our investors and an active shareholder team leading the business we are poised to capitalise on multiple venue acquisitions, between 6-10 venues planned each year in the next 3 year cycle, rapidly expanding our portfolio of brands whilst increasing our working capital reserves to deliver strong growth in future years.
At the reporting date, Group turnover for the period was £35,476,894 (2021 - £3,197,552) with a gross profit margin of 37% (2021 - 32%).
In compliance with accounting standards and best practice, we have summarised below the principal risks facing the Group:
a) Commercial risk Systems and procedures are in place to identify, assess and mitigate major business risks that could impact the Group. Monitoring exposure to risk and uncertainty is an integral part of the Group’s structured management processes. Generally, the principal risks that the company faces are operational risk, competition, regulatory and legislative impacts, recruitment and retention of staff and maintenance of reputation, as well as financial risk. b) Liquidity risk The Group seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably.
The continued success and sustainability of the Group will be determined significantly by the ability to continue to grow revenues more than its costs. Therefore the level of turnover, year on year growth and gross profit margins are key performance indicators (KPIs).
The Group’s KPIs for this period are stated above under “Business review”.
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GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
The directors believe there are numerous non-financial performance indicators, but none are individually key to assessing the overall performance of the Group.
This report was approved by the board on 13 October 2022 and signed on its behalf.
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DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2022
The directors present their report and the financial statements for the year ended 31 March 2022.
The profit for the year, after taxation and minority interests, amounted to £141,490 (2021 - loss £2,364,626).
The Group did not pay any dividends in the year (2021 - £nil).
The directors who served during the year were:
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;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙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.
We continue to look at acquiring new venues that fit our portfolio strategically and represent opportunities to further strengthen our financial position.
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BROADWICK GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
Details of subsequent events are given in note 33.
Under section 487(2) of the Companies Act 2006, Sopher + Co LLP will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.
This report was approved by the board on
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BROADWICK GROUP LIMITED
We have audited the financial statements of Broadwick Group Limited (the 'parent company') and its subsidiaries (the 'Group') for the year ended 31 March 2022, which comprise the Group Statement of Comprehensive Income, the Group and company Statements of Financial Position, the Group Statement of Cash Flows, the Group and 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 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 Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The directors are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Auditors' Report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
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BROADWICK GROUP LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BROADWICK GROUP LIMITED (CONTINUED)
Other information (continued)
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.
In our opinion, based on the work undertaken in the course of the audit:
∙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.
In the light of the knowledge and understanding of the Group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
∙adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
∙the parent company 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.
As explained more fully in the Directors' Responsibilities Statement set out on page 3, 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.
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BROADWICK GROUP LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BROADWICK GROUP LIMITED (CONTINUED)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Group financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
∙the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
∙we identified the laws and regulations applicable to the Company through discussions with directors and other management, and from our commercial knowledge and experience of the entertainment sector;
∙we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the Company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental, health and safety and licensing laws;
∙we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
∙identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the Company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
∙making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;
∙considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and
∙understanding the design of the Company’s remuneration policies.
To address the risk of fraud through management bias and override of controls, we:
∙performed analytical procedures to identify any unusual or unexpected relationships;
∙tested journal entries to identify unusual transactions;
∙assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
∙investigated the rationale behind significant or unusual transactions.
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BROADWICK GROUP LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BROADWICK GROUP LIMITED (CONTINUED)
Auditors' responsibilities for the audit of the financial statements (continued)
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
∙agreeing financial statement disclosures to underlying supporting documentation;
∙enquiring of management as to actual and potential litigation and claims; and
∙reviewing correspondence with HMRC, relevant regulators and the Company’s legal advisors.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
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.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an 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 company and the company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants
Statutory Auditors
5 Elstree Gate
Elstree Way
Borehamwood
Hertfordshire
WD6 1JD
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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2022
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CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2022
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 13 October 2022.
The notes on pages 16 to 40 form part of these financial statements.
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COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2022
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 16 to 40 form part of these financial statements.
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2022
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COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2022
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CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2022
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CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
Broadwick Group Limited is a private limited liability company registered in England and Wales. Its registered office address is Acre House, 11/15 William Road, London, NW1 3ER and its business address is Printworks London, Surrey Quays Road, London, SE16 7PJ.
The principal activity of the Company during the period was that of a holding company. The principal activity of the Group was the development and operation of live music, corporate and ticketed events venues.
2.Accounting policies
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 Comprehensive Income in these financial statements.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the Company and its subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between Group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the statement of financial position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their book values at the acquisition date. The results of acquired operations are included in the consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
2.Accounting policies (continued)
During the period ended 31 March 2020, the business carried out capital works on 4 venues and incurred various set-up and marketing costs for these venues, which resulted in a loss for the period. The works were carried out with a view to putting on a large number of events after the reporting date with a high capacity number.
It was anticipated this would generate good profit margins and return the business to a net asset position in the following year. However, operations during the year to 31 March 2021 were heavily impacted by Covid-19 which resulted in cancellations of events during the UK lockdown. The unexpected and unprecedented global pandemic left the group unable to trade for an extended period and therefore at the reporting date the group had net current liabilities and net liabilities. Following the end of lockdown restrictions, the group re-commenced its events programme from 4th September 2021. Thanks to the end of all social distancing restrictions and the successful vaccination programme, the group received a high level of interest and scheduled extra events in the season compared to a normal year. Sales and net profit have recovered in the year to 31 March 2022 and have been strong in the first 6 months of the year ended 31 March 2023. The group continues to receive financial support from its investors, has strong cash reserves and expects its profitability to continue into the year ended 31 March 2023. The directors are therefore satisfied that the group has the ability to settle all its financial liabilities as and when they fall due for the foreseeable future and the accounts have therefore been prepared under the going concern basis. The operation of events includes beverage and merchandise sales, which are recognised at point of sale. Amounts received in advance with respect to events occurring during future periods are deferred and recognised in the period the event occurs. These amounts are shown in other creditors. Turnover in respect of promoting events is recognised over the period the services are provided. All revenue is exclusive of Value Added Tax and trade discounts.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
2.Accounting policies (continued)
The company's functional and presentational currency is £ Sterling.
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 the Statement of Comprehensive Income.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
2.Accounting policies (continued)
The Group contributes to 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 Statement of Financial Position. The assets of the plan are held separately from the Group in independently administered funds.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
2.Accounting policies (continued)
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. The useful economic life of website and brand development costs have been estimated as 10 years.
Goodwill Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the Consolidated Statement of Comprehensive Income over its useful economic life which has been estimated as 10 years.
At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives.
Depreciation is charged on the following basis:
Leasehold improvements, and plant and machinery purchased specifically for use at leased premises are depreciated straight line over the remaining life of the leases.
Other plant, machinery and equipment is depreciated as follows: Plant and machinery - 8 years straight line Fixtures and fittings - 25% reducing balance or 8 years straight line IT equipment - 3 years straight line Assets held under finance leases - over the shorter of the term of the lease and useful economic life 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.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
2.Accounting policies (continued)
costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. At each reporting date, stocks are assessed for impairment. The impairment loss is recognised immediately in the Statement of Comprehensive Income. Work in progress relates to development costs incurred in relation to events scheduled after the reporting date. Work in progress is valued at the lower of cost and net realisable value.
The Group only enters into transactions that result in basic financial instruments such as trade and other debtors, trade and other creditors, cash at bank and in hand and loans with related parties.
Trade debtors, other debtors and loans to related parties are recognised initially at the transaction price less attributable transaction costs. Trade creditors, other creditors and loans from related parties are recognised initially at transaction price plus attributable transaction costs. Subsequently they are measured at amortised cost using the effective interest method, less any impairment losses in the case of trade and other debtors, and loans to related parties. Cash is represented by cash in hand and deposits with financial institutions.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
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 directors have made the following judgments: a) Determining whether there are indicators of impairment of Company's and Group's tangible and intangible assets. Factors taken into consideration include the economic viability and expected future financial performance of the assets. b) Determining whether leases entered into by the group as a lessee are operating or finance leases. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis. The directors have made the following key estimates: b) Intangible and tangible fixed 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 on a number of factors. In re-assessing asset lives, factors such as technological innovation and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and estimated disposal values.
In the opinion of the directors, the analysis of turnover by class of business would be seriously prejudicial to the interests of the Group.
All turnover arose within the United Kingdom.
Page 22
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
Page 23
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
Page 24
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
Page 25
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
11.Taxation (continued)
A subsidiary of the group has paid contributions of £1,000,000 towards development costs incurred by one of its landlords. The subsidiary is entitled to claim capital allowances on these contributions, however at the time the financial statements were approved the information had not yet been made available by the landlord to allow the subsidiary to calculate the amount that can be claimed.
At the reporting date, subsidiary undertakings of the group had tax losses of £4,632,334 (2021 - £4,293,999 available to carry forward and be utilised against future taxable trading profits. A deferred tax asset has been recognised in relation to these losses.
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 Comprehensive Income in these financial statements. The profit after tax of the parent company for the year was £0 (2021 - £NIL).
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
Page 27
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
13.Intangible assets (continued)
Page 28
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
Page 29
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
14.Tangible fixed assets (continued)
Page 30
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
Page 31
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
Subsidiary undertakings (continued)
Page 32
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
Page 33
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
Other loans are secured by a fixed and floating charge over the assets of the Group.
Obligations under finance leases and hire purchase contracts are secured on the assets concerned.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
Page 35
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
Page 36
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
Share premium account
shares issued exceeds the shares par values.
Profit and loss account
Page 37
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
One of the group's landlords was contracted to carry out capital works at a venue leased by the group, on the group's behalf. In the group's previous year's financial statements the capital works paid by the landlord on the group's behalf were capitalised as tangible fixed assets and a liability was recognised on the Statement of Financial Position.
It has been agreed between the parties that despite the legal form of the contract, the ownership of the assets was always intended to be retained by the landlord. Both parties have agreed to follow the substance over the legal form in their financial accounting, as is required by FRS102. Accordingly, a prior year adjustment has been made to derecognise the fixed assets and the liability. The impact on the 2021 comparatives are as follows: Adjustment 1 - derecognition of the fixed assets and loan liability Plant and machinery costs have been reduced by £203,974, leasehold improvement costs have been reduced by £529,740, other loans due in more than 1 year have reduced by £382,047 and other loans due within 1 year have reduced by £351,667. Adjustment 2 - reversal of depreciation on the derecognised fixed assets Plant and machinery accumulated depreciation brought forward as at 01 April 2020 has been reduced by £25,661 and the depreciation charge for the year ended 31 March 2021 has been reduced by £62,220. Leasehold improvements accumulated depreciation brought forward as at 01 April 2020 has been reduced by £124,098 and the depreciation charge for the year ended 31 March 2021 has been reduced by £167,888. Adjustment 3 - reclassification of an early loan repayment A loan repayment of £41,667 was made in the year ended 31 March 2021 and refunded in the year ended 31 March 2022. In the financial statements for the year ended 31 March 2021 the payment was offset against the loan liability. As the loan liability has been derecognised, the loan repayment has been reclassified as an other debtor. Net impact The opening position at 01 April 2020 has been updated with the profit and loss reserves increasing by £149,759 as a result of reversing the accumulated depreciation brought forward as at 01 April 2020. The loss for the year ended 31 March 2021 has reduced by £230,108 as a result of reversing the depreciation charge for the year. The opening position at 01 April 2021 has been updated accordingly, with the profit and loss reserves increasing by £379,867.
Page 38
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
All companies within the group are guarantors for a loan of £2,610,913 (2021 - £3,300,000) provided to Broadwick Group Limited. The loan is secured by a fixed and floating charge over the assets of the group.
On 12 October 2020 Broadwick Group Limited purchased the entire share capital of Venue Lab Ltd and agreed to pay certain monies for the acquisition over a period of time. £2,000,000 (2021 - £2,500,000) was outstanding at the reporting date. All companies within the group have provided a guarantee for this liability by way of a fixed and floating charge over the assets of the group.
The Group contributes to 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 £138,588 (2021 - £12,302). £13,904 (2021 - £nil) was payable to the fund at the reporting date.
Page 39
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
In the opinion of the directors the Group does not have a controlling party.
Page 40
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