International Arts Centre Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 01194028 (England and Wales)

Unaudited Financial Statements

for the Year Ended

31 July 2021

for

International Arts Centre Limited

Page

Company Information

1

Chartered Accountants' Report

2

Balance Sheet

3

Notes to the Financial Statements

5

DIRECTORS:

N J Allen

Mrs A Oliver

REGISTERED OFFICE:

International Arts Centre

Garden Street

Leicester

Leicestershire

LE1 3UA

REGISTERED NUMBER:

01194028 (England and Wales)

ACCOUNTANTS:

The Rowleys Partnership Ltd

Chartered Accountants

Charnwood House

Harcourt Way

Meridian Business Park

Leicester

Leicestershire

LE19 1WP

The following reproduces the text of the report prepared for the directors in respect of the company's annual unaudited financial statements. In accordance with the Companies Act 2006, the company is only required to file a Balance Sheet. Readers are cautioned that the Income Statement and certain other primary statements and the Report of the Directors are not required to be filed with the Registrar of Companies.

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of International Arts Centre Limited for the year ended 31 July 2021 which comprise the Income Statement, Balance Sheet and the related notes from the company's accounting records and from information and explanations you have given us.

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed within the ICAEW's regulations and guidance at http://www.icaew.com/en/membership/regulations-standards-and-guidance.

This report is made solely to the Board of Directors of International Arts Centre Limited, as a body, in accordance with our terms of engagement. Our work has been undertaken solely to prepare for your approval the financial statements of International Arts Centre Limited and state those matters that we have agreed to state to the Board of Directors of International Arts Centre Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than International Arts Centre Limited and its Board of Directors, as a body, for our work or for this report.

It is your duty to ensure that International Arts Centre Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and loss of International Arts Centre Limited. You consider that International Arts Centre Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the financial statements of International Arts Centre Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

The Rowleys Partnership Ltd

Chartered Accountants

Charnwood House

Harcourt Way

Meridian Business Park

Leicester

Leicestershire

LE19 1WP

31 January 2022

FIXED ASSETS

Tangible assets

4

1,484,080

1,480,519

Investments

5

20,000

39,998

1,504,080

1,520,517

CURRENT ASSETS

Stocks

2,500

2,664

Debtors

6

37,661

35,283

Cash at bank and in hand

72,357

83,142

112,518

121,089

CREDITORS

Amounts falling due within one year

7

71,236

62,595

NET CURRENT ASSETS

41,282

58,494

TOTAL ASSETS LESS CURRENT LIABILITIES

1,545,362

1,579,011

CREDITORS

Amounts falling due after more than one year

8

(498,458

)

(507,153

)

PROVISIONS FOR LIABILITIES

(129,913

)

(130,855

)

NET ASSETS

916,991

941,003

CAPITAL AND RESERVES

Called up share capital

10

100

100

Revaluation reserve

11

899,928

899,928

Retained earnings

16,963

40,975

SHAREHOLDERS' FUNDS

916,991

941,003

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 July 2021.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 July 2021 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their 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 Board of Directors and authorised for issue on 31 January 2022 and were signed on its behalf by:

N J Allen - Director

1.	STATUTORY INFORMATION

International Arts Centre Limited 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 Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

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.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets

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

Freehold property

-

Not provided (See below)

Plant and machinery

-

20% on cost

Fixtures and fittings

-

10% on cost

Computer equipment

-

33% on cost

Land and buildings are shown at valuation.

Government grants

Government grants receivable in relation to job retention scheme and retail scheme are recognised as income over the periods necessary to match them with the related costs which they are intended to compensate, on a systematic basis. Government grants are shown separately as other income.

Government grants receivable in relation to business bounce back loan scheme are recognised as income over the periods necessary to match them with the related costs which they are intended to compensate, on a systematic basis. Government grants are shown separately as other income.

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost less any provision for impairment.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss 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.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 6 (2020 - 7 ) .

4.	TANGIBLE FIXED ASSETS

Fixtures

Freehold

Plant and

and

Computer

property

machinery

fittings

equipment

Totals

£

£

£

£

£

COST OR VALUATION

At 1 August 2020

1,475,000

25,803

68,934

37,527

1,607,264

Additions

-

-

3,740

2,124

5,864

Disposals

-

-

(72

)

-

(72

)

At 31 July 2021

1,475,000

25,803

72,602

39,651

1,613,056

DEPRECIATION

At 1 August 2020

-

25,439

63,779

37,527

126,745

Charge for year

-

219

1,376

708

2,303

Eliminated on disposal

-

-

(72

)

-

(72

)

At 31 July 2021

-

25,658

65,083

38,235

128,976

NET BOOK VALUE

At 31 July 2021

1,475,000

145

7,519

1,416

1,484,080

At 31 July 2020

1,475,000

364

5,155

-

1,480,519

Cost or valuation at 31 July 2021 is represented by:

Fixtures

Freehold

Plant and

and

Computer

property

machinery

fittings

equipment

Totals

£

£

£

£

£

Valuation in 2011

199,371

-

-

-

199,371

Valuation in 2014

350,000

-

-

-

350,000

Valuation in 2019

533,102

-

-

-

533,102

Cost

392,527

25,803

72,602

39,651

530,583

1,475,000

25,803

72,602

39,651

1,613,056

If freehold land and buildings had not been revalued they would have been included at the following historical cost:

31.7.21

31.7.20

£

£

Cost

392,527

392,527

Aggregate depreciation

115,140

115,140

Freehold land and buildings were valued on an open market basis on 1 April 2020 by Andrew Granger .

The directors consider that the valuation would not have been significantly different at the balance sheet date.

5.	FIXED ASSET INVESTMENTS

Leicester

College

of

Performing

Arts Ltd

£

COST

At 1 August 2020

and 31 July 2021

39,998

PROVISIONS

Impairments

19,998

At 31 July 2021

19,998

NET BOOK VALUE

At 31 July 2021

20,000

At 31 July 2020

39,998

In accordance with accounting standards, investments are shown at an estimate of fair value. As a result of the recent pandemic, the college and school suffered due to an inability to trade for a significant period of time. Future trading is positive but at the date of these accounts an impairment provision was required.

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.7.21

31.7.20

£

£

Trade debtors

11,027

6,800

Bad debt provision

(8,451

)

(6,053

)

Amounts owed by related companies

961

961

Section 455 tax

6,523

6,523

Directors' current accounts

25,171

25,171

VAT

849

366

Prepayments

1,581

1,515

37,661

35,283

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.7.21

31.7.20

£

£

Bank loans and overdrafts

30,546

23,499

Trade creditors

6,256

3,289

Amounts owed to related companies

17,500

17,500

Social security and other taxes

1,587

1,413

Other creditors

12,592

14,194

Accrued expenses

2,755

2,700

71,236

62,595

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.7.21

31.7.20

£

£

Bank loans - 2-5 years

122,829

123,983

Bank loans more 5 yr by instal

375,629

383,170

498,458

507,153

Amounts falling due in more than five years:

Repayable by instalments

Bank loans more 5 yr by instal

375,629

383,170

9.	SECURED DEBTS

The following secured debts are included within creditors:

31.7.21

31.7.20

£

£

Bank loans

529,004

530,652

The Barclays bank loan is secured by a legal charge over freehold property at Orchard Street, Royal East Street and Garden Street, Leicester. There is also a cross guarantee and debenture between Leicester College of Performing Arts Limited and International Arts Centre Limited.

10.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

31.7.21

31.7.20

value:

£

£

100

Ordinary

£1

100

100

11.

RESERVES

Revaluatio

reserve

£

At 1 August 2020

and 31 July 2021

899,928

12.	OTHER FINANCIAL COMMITMENTS

At the balance sheet date the company had total future commitments of £2,567 (2020: £4,034).

13.	DIRECTOR'S ADVANCES, CREDITS AND GUARANTEES.

The following advances and credits to a director subsisted during the years ended 31 July 2021 and 31 July 2020:

31.7.21

31.7.20

£

£

Mrs A Oliver

Balance outstanding at start of year

25,171

25,171

Amounts repaid

-

-

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

25,171

25,171

The loan is interest free with no fixed date for repayment.

14.	GOING CONCERN

The directors have considered the going concern position in the light of the COVID-19 crisis. They have taken the necessary steps to review all costs and income and are confident that with the continued funding, they have no reason to believe that they will not be able to continue for the foreseeable future.