AVC Live Limited - Limited company accounts 20.1
AVC Live Limited - Limited company accounts 20.1
| REGISTERED NUMBER: |
| STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
| FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 DECEMBER 2020 |
| FOR |
| AVC LIVE LIMITED |
| AVC LIVE LIMITED (REGISTERED NUMBER: 01921674) |
| CONTENTS OF THE FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 DECEMBER 2020 |
| Page |
| Company Information | 1 |
| Strategic Report | 2 | to | 4 |
| Report of the Directors | 5 | to | 6 |
| Report of the Independent Auditors | 7 | to | 10 |
| Statement of Comprehensive Income | 11 |
| Statement of Financial Position | 12 |
| Statement of Changes in Equity | 13 |
| Statement of Cash Flows | 14 |
| Notes to the Statement of Cash Flows | 15 |
| Notes to the Financial Statements | 16 | to | 27 |
| AVC LIVE LIMITED |
| COMPANY INFORMATION |
| FOR THE YEAR ENDED 31 DECEMBER 2020 |
| DIRECTORS: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| AUDITORS: |
| 57 London Road |
| High Wycombe |
| Buckinghamshire |
| HP11 1BS |
| AVC LIVE LIMITED (REGISTERED NUMBER: 01921674) |
| STRATEGIC REPORT |
| FOR THE YEAR ENDED 31 DECEMBER 2020 |
| The directors present their strategic report for the year ended 31 December 2020. |
| REVIEW OF BUSINESS |
| The company's key financial and performance indicators during the year were as follows: |
| 2020 | 2019 | Variance |
| £'000 | £'000 | % |
| Turnover | 3,397 | 16,761 | (80 | ) |
| Profit/(loss) before tax | (7,732 | ) | (685 | ) | (91 | ) |
| Shareholders' funds | 33,523 | 40,602 |
| 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 suffered a dramatic decline in revenue in the year due to the impact of the Covid-19 pandemic with legal restrictions imposed on in-person events. The company is proud of its response during the year. Client service teams worked with clients to develop existing virtual expertise to deliver fully remote events. A studio was built to allow clients to continue communicating with their employees and customers. Warehouse teams adopted new working practices in line with guidance to maintain service levels and all warehouses remained open throughout the year. |
| Business support teams in IT, finance & HR facilitated a swift move to home working and new procedures were implemented to maximise cash balances in the short term. Payments to staff were prioritised and suppliers were understanding in allowing time for circumstances to stabilise. Payment days on both debtors and creditors initially increased but have now normalised across the business. |
| Government support schemes, such as furlough in UK were utilised during the year to retain our team members. When it appeared that the UK furlough scheme was ending in Summer 2020 some redundancies were unfortunately made to resize the business for the activity levels expected in Autumn 2020. Additional funding was obtained by our parent organisation in Autumn 2020 which allowed the business to invest in retaining a very high proportion of team members relative to the prevailing activity levels. The business expects to benefit from this investment as higher activity levels return. |
| The Board reduced investment in new equipment during 2020 to prioritise resources on team members with fixed asset investment running at 5% (2019: 5%). |
| At the end of 2020, in preparation for the return to business globally, the business rebranded from a family of brands to a single master brand of Encore. In a world changed by this pandemic, the Encore brand and new icon signal a forward focus to operate under a brand that conveys the true breadth and depth of creative, production and technology services far beyond that of an audio-visual services provider. |
| The business ended 2020 with confidence and a plan for benefits to be realised as the business (re)starts from investments made in team members and work undertaken in 2020 to integrate our businesses. |
| 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. |
| AVC LIVE LIMITED (REGISTERED NUMBER: 01921674) |
| STRATEGIC REPORT |
| FOR THE YEAR ENDED 31 DECEMBER 2020 |
| PRINCIPAL RISKS AND UNCERTAINTIES |
| General economic uncertainty |
| On 23 June 2016 the United Kingdom (UK) voted to leave the European Union (EU) and on 31 January 2021 UK formally left the EU. Since this date, up to the date of signing these accounts no immediate risks have crystallised, however the directors acknowledge the uncertainty that continues to exist around the operation of new arrangements between the UK and EU. The group has pre-existing operations in EU countries to facilitate operations within EU member countries and the UK. The directors will continue to review any further 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. |
| Covid-19 |
| Following the outbreak of COVID-19 and the increasing economic impact of this worldwide pandemic, the directors have given consideration to the company's operations, including its going concern status. |
| The directors have concluded that there is a significant impact on the company's revenue however the company continues to be a going concern due to the funding support achieved by the ultimate parent company for its subsidiaries, which has confirmed its continuing support. |
| Emissions and energy consumption |
| Disclosure in respect of greenhouse gas emissions, energy consumption and energy efficiency has not been included within this report as the company does not exceed the thresholds to disclose. |
| SECTION 172(1) STATEMENT |
| The following disclosure describes how the directors have had regard to the matters set out in section 172(1)(a) to (f) and forms the directors' statement required under section 414CZA of The Companies Act 2006. |
| The directors consider that customers, investors, suppliers and workforce are key stakeholders and are considered in key decisions. |
| Customers |
| Our corporate culture of Purpose, Mission and Values are focussed on delivering value for our Customers. We consider delivering for our customer requirements as key to continued success. |
| Investors |
| We create value for our investors by generating strong and sustainable results. We set out KPIs in our Strategic Report. We discuss key decisions in regular meetings with management. Our investors have considered the funding requirements of the business to maintain operations during the Covid-19 pandemic when determining that no dividend be paid from the 2020 results. |
| Suppliers |
| Our suppliers are important to our business success and each supplier has a named relationship contact person within the business for communication when required. We maintain good relationships with a range of suppliers to ensure the availability and flexibility that our customers require. During the response to Covid-19 we engaged with suppliers to agree temporary adjustments to payment terms to assist the liquidity of the business. |
| AVC LIVE LIMITED (REGISTERED NUMBER: 01921674) |
| STRATEGIC REPORT |
| FOR THE YEAR ENDED 31 DECEMBER 2020 |
| SECTION 172(1) STATEMENT |
| Workforce |
| Our workforce deliver great results for our stakeholders and are considered in all key decisions. We are committed to training and workforce welfare and monitor both training hours and employee engagement regularly. We communicate regularly with our workforce including in Town Halls where all staff have the opportunity to ask questions to management and Directors. Whilst making key workforce decisions as part of the response to Covid-19, management and Directors have been available to explain and answer questions about decisions that have been taken for the good of the business overall in protecting as many jobs for as long as possible. |
| Community |
| We consider the wider needs of the communities in which we operate through a commitment to minimising our impact on the environment, upholding excellent standards of business conduct and, where possible, supporting local communities in which we operate. |
| Key Decisions |
| In dealing with the Group's response to Covid-19, there have been many decisions which have required the above factors to be considered and balanced for the long term success of the company including staffing levels, cash management practices and investment levels. The board believes that they have balanced, in good faith, the best long-term interests of stakeholders during the decision-making processes. The board appreciates the hard work and support of team members and other stakeholders in managing the business through this pandemic. |
| ON BEHALF OF THE BOARD: |
| AVC LIVE LIMITED (REGISTERED NUMBER: 01921674) |
| REPORT OF THE DIRECTORS |
| FOR THE YEAR ENDED 31 DECEMBER 2020 |
| The directors of AVC Live Limited (the company) present their report and financial statements for the year ended 31 December 2020. |
| RESULTS AND DIVIDENDS |
| The company's net loss for the year after taxation amounted to £7,078,486 (2019: £687,205). |
| DIVIDENDS |
| No dividends will be distributed for the year ended 31 December 2020. |
| 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 2020 to the date of this report. |
| Other changes in directors holding office are as follows: |
| 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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
| AVC LIVE LIMITED (REGISTERED NUMBER: 01921674) |
| REPORT OF THE DIRECTORS |
| FOR THE YEAR ENDED 31 DECEMBER 2020 |
| AUDITORS |
| The auditors, Seymour Taylor Limited, will be re-appointed in accordance with section 487(2) of the Companies Act 2006. |
| ON BEHALF OF THE BOARD: |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| AVC LIVE LIMITED |
| Opinion |
| We have audited the financial statements of AVC Live Limited (the 'company') for the year ended 31 December 2020 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 2020 and of its loss 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 |
| 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 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. |
| 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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
| 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. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| AVC LIVE LIMITED |
| 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 five, 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. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| AVC LIVE LIMITED |
| 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. |
| The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
| Identifying and assessing potential risks related to irregularities |
| In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following: |
| - the nature of the industry and sector, control environment and business performance; |
| - results of our enquiries of management about their own identification and assessment of the risks of irregularities; |
| - any matters we identified in respect of the Company's documentation of their policies and procedures relating to: |
| - identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of noncompliance; |
| - detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; |
| - the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; |
| - the matters discussed among the audit engagement team including significant component audit teams and involving relevant internal specialists, including tax regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. |
| As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in relation to revenue deferrals. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. |
| We also obtained an understanding of the legal and regulatory frameworks that the Company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act and local tax legislation. |
| In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the Company's ability to operate or to avoid a material penalty. These included compliance with Financial Conduct Authority regulation for the UK operating segment and compliance with local legislation for the overseas operating segments. |
| Audit response to risks identified |
| As a result of performing the above, we identified revenue deferrals as a key audit matter related to the potential risk of fraud. The key audit matters section of our report explains the matter in more detail and also describes the specific procedures we performed in response to that key audit matter. Our procedures to respond to risks identified included the following: |
| - reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; |
| - enquiring of management concerning actual and potential litigation and claims; |
| - performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; |
| - obtained an understanding of provisions and held discussions with management to understand the basis of recognition or non-recognition of tax provisions; and |
| - in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| AVC LIVE LIMITED |
| We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members including internal specialists and significant component audit teams, and remained alert to any indications of fraud or noncompliance with laws and regulations throughout the audit. |
| 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. |
| for and on behalf of |
| 57 London Road |
| High Wycombe |
| Buckinghamshire |
| HP11 1BS |
| AVC LIVE LIMITED (REGISTERED NUMBER: 01921674) |
| STATEMENT OF COMPREHENSIVE INCOME |
| FOR THE YEAR ENDED 31 DECEMBER 2020 |
| 31.12.20 | 31.12.19 |
| Notes | £'000 | £'000 | £'000 | £'000 |
| TURNOVER | 3 |
| Cost of sales |
| GROSS (LOSS)/PROFIT | ( |
) |
| Administrative expenses |
| (5,661 | ) | (2,329 | ) |
| Other operating income |
| OPERATING LOSS | 6 | ( |
) | ( |
) |
| Income from shares in group undertakings |
| Income from participating interests |
| Interest receivable and similar income |
| 645 | 1,644 |
| (3,381 | ) | (685 | ) |
| Amounts written off investments | 7 | 4,351 | - |
| LOSS BEFORE TAXATION | ( |
) | ( |
) |
| Tax on loss | 8 | ( |
) |
| LOSS FOR THE FINANCIAL YEAR | ( |
) | ( |
) |
| OTHER COMPREHENSIVE INCOME |
| Loss on discounting of other creditors | ( |
) |
| Income tax relating to other comprehensive income |
| OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
( |
) |
| TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
( |
) |
( |
) |
| AVC LIVE LIMITED (REGISTERED NUMBER: 01921674) |
| STATEMENT OF FINANCIAL POSITION |
| 31 DECEMBER 2020 |
| 31.12.20 | 31.12.19 |
| Notes | £'000 | £'000 | £'000 | £'000 |
| FIXED ASSETS |
| Tangible assets | 9 |
| Investments | 10 |
| CURRENT ASSETS |
| Stocks | 11 |
| Debtors: amounts falling due within one year |
12 |
| Debtors: amounts falling due after more than one year |
12 |
| Cash at bank |
| CREDITORS |
| Amounts falling due within one year | 13 |
| NET CURRENT ASSETS |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| CAPITAL AND RESERVES |
| Called up share capital | 16 |
| Share premium | 17 |
| Capital redemption reserve | 17 |
| Retained earnings | 17 | ( |
) |
| SHAREHOLDERS' FUNDS |
| The financial statements were approved by the Board of Directors and authorised for issue on |
| AVC LIVE LIMITED (REGISTERED NUMBER: 01921674) |
| STATEMENT OF CHANGES IN EQUITY |
| FOR THE YEAR ENDED 31 DECEMBER 2020 |
| Called up |
| share | Retained | Share |
| capital | earnings | premium |
| £'000 | £'000 | £'000 |
| Balance at 1 January 2019 |
| Changes in equity |
| Issue of share capital | - |
| Total comprehensive income | - | ( |
) | - |
| Balance at 31 December 2019 |
| Changes in equity |
| Total comprehensive income | - | ( |
) | - |
| Balance at 31 December 2020 | ( |
) |
| Capital |
| redemption | Other | Total |
| reserve | reserves | equity |
| £'000 | £'000 | £'000 |
| Balance at 1 January 2019 |
| Changes in equity |
| Issue of share capital | - | - |
| Total comprehensive income | ( |
) | ( |
) |
| Balance at 31 December 2019 |
| Changes in equity |
| Total comprehensive income | ( |
) |
| Balance at 31 December 2020 |
| AVC LIVE LIMITED (REGISTERED NUMBER: 01921674) |
| STATEMENT OF CASH FLOWS |
| FOR THE YEAR ENDED 31 DECEMBER 2020 |
| 31.12.20 | 31.12.19 |
| Notes | £'000 | £'000 |
| Cash flows from operating activities |
| Cash generated from operations | 1 | ( |
) |
| Discounting adjustment | ( |
) |
| Tax paid |
| Net cash from operating activities | ( |
) |
| Cash flows from investing activities |
| Purchase of tangible fixed assets | ( |
) | ( |
) |
| Purchase of fixed asset investments | - | (1,242 | ) |
| Sale of tangible fixed assets |
| Impairment of investment |
| Interest received |
| Dividends received |
| Net cash from investing activities | ( |
) |
| Cash flows from financing activities |
| Share issue |
| Net cash from financing activities |
| (Decrease)/increase in cash and cash equivalents | ( |
) |
| Cash and cash equivalents at beginning of year |
2 |
943 |
| Cash and cash equivalents at end of year |
2 |
150 |
1,126 |
| AVC LIVE LIMITED (REGISTERED NUMBER: 01921674) |
| NOTES TO THE STATEMENT OF CASH FLOWS |
| FOR THE YEAR ENDED 31 DECEMBER 2020 |
| 1. | RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
| 31.12.20 | 31.12.19 |
| £'000 | £'000 |
| Loss before taxation | ( |
) | ( |
) |
| Depreciation charges |
| Loss on disposal of fixed assets |
| Finance income | (645 | ) | (1,644 | ) |
| (7,355 | ) | (1,405 | ) |
| Increase in stocks | ( |
) |
| Decrease/(increase) in trade and other debtors | ( |
) |
| Increase in trade and other creditors |
| Cash generated from operations | ( |
) |
| 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 2020 |
| 31.12.20 | 1.1.20 |
| £'000 | £'000 |
| Cash and cash equivalents | 150 | 1,126 |
| Year ended 31 December 2019 |
| 31.12.19 | 1.1.19 |
| £'000 | £'000 |
| Cash and cash equivalents | 1,126 | 943 |
| 3. | ANALYSIS OF CHANGES IN NET FUNDS |
| At 1.1.20 | Cash flow | At 31.12.20 |
| £'000 | £'000 | £'000 |
| Net cash |
| Cash at bank | 1,126 | (976 | ) | 150 |
| 1,126 | ( |
) | 150 |
| Total | 1,126 | (976 | ) | 150 |
| AVC LIVE LIMITED (REGISTERED NUMBER: 01921674) |
| NOTES TO THE FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 DECEMBER 2020 |
| 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 is 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. |
| Going concern |
| Following the outbreak of COVID-19 and the increasing economic impact of this worldwide pandemic, the directors have scrutinised and reviewed budgets and forecasts to assess the effect on the Company. |
| Since early 2020, the consequences of the COVID-19 outspread have materially and adversely affected the supply and demand for the Company's primary products and therefore, its operating results have been negatively impacted. |
| The directors have taken up Government schemes to reduce the economic impact of the current pandemic by uptake of the Coronavirus Job Retention Scheme to retain as many team members as possible. The extensive vaccine roll-out in the Company's main markets during 2021 has reduced the restrictions imposed on travel and in-person events and provided confidence to customers to meet again. Revenue has increased during 2021 and the period to November 2021 has seen an increase in revenue. |
| Following a review of the Company's performance for 2020 and 2021 to date and stress testing of forecasts for the rest of 2021 and through 2022, the directors believe that worst period of the pandemic has passed. However, due to the possibility of further variants of Covid-19 being identified and further restrictions being imposed, it is uncertain whether, and when, the group will return to sustained profitability and positive cash flows from operations. These uncertainties cast significant doubt on the group's ability to continue as a going concern. |
| Given the uncertainty around the development of COVID-19, there is doubt when the company will be able to return to normal market trading conditions, however, the Company continues to be a going concern on the basis that it is supported by its parent company who will address its financing requirements through debt and equity financings, assets sales, and rights offerings to existing shareholders. |
| AVC LIVE LIMITED (REGISTERED NUMBER: 01921674) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2020 |
| 2. | ACCOUNTING POLICIES - continued |
| 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 |
| Short leasehold | - |
| Plant and machinery | - |
| Motor vehicles | - |
| Government grants |
| The company receives government grants in respect of the Coronavirus Job Retention Scheme. |
| These grants are recognised at the fair value of the asset received or receivable when there is a reasonable assurance that the company will comply with conditions attaching to them and the grants will be received, using the accrual model. |
| Stocks |
| Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
| AVC LIVE LIMITED (REGISTERED NUMBER: 01921674) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2020 |
| 2. | ACCOUNTING POLICIES - continued |
| 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. |
| AVC LIVE LIMITED (REGISTERED NUMBER: 01921674) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2020 |
| 2. | ACCOUNTING POLICIES - continued |
| 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. |
| AVC LIVE LIMITED (REGISTERED NUMBER: 01921674) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2020 |
| 3. | TURNOVER |
| The turnover and loss before taxation are attributable to the one principal activity of the company. |
| An analysis of turnover by geographical market is given below: |
| 2020 | 2019 |
| £'000 | £'000 |
| United Kingdom | 3,399 | 15,536 |
| Europe | - | 980 |
| Rest of world | - | 244 |
| 3,399 | 16,760 |
| 4. | EMPLOYEES AND DIRECTORS |
| 31.12.20 | 31.12.19 |
| £'000 | £'000 |
| Wages and salaries |
| Social security costs |
| Other pension costs |
| The average number of employees during the year was as follows: |
| 31.12.20 | 31.12.19 |
| Administration | 7 | 9 |
| Production | 115 | 131 |
| Remuneration of key management personnel |
| The remuneration of key management personnel is as follows. |
| 2020 | 2019 |
| £'000 | £'000 |
| Aggregate compensation | 209 | 485 |
| 5. | DIRECTORS' EMOLUMENTS |
| 31.12.20 | 31.12.19 |
| £ | £ |
| Directors' remuneration |
| Directors' pension contributions to money purchase schemes |
| The number of directors to whom retirement benefits were accruing was as follows: |
| Money purchase schemes |
| AVC LIVE LIMITED (REGISTERED NUMBER: 01921674) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2020 |
| 6. | OPERATING LOSS |
| The operating loss is stated after charging: |
| 31.12.20 | 31.12.19 |
| £'000 | £'000 |
| Motor van leasing |
| Depreciation - owned assets |
| Loss on disposal of fixed assets |
| Auditors' remuneration |
| Auditors' remuneration for non audit work |
| Foreign exchange differences |
| Operating lease rentals - land and buildings |
| 7. | AMOUNTS WRITTEN OFF INVESTMENTS |
| 31.12.20 | 31.12.19 |
| £'000 | £'000 |
| Impairment of investments | 4,351 | - |
| As a result of the effect of the pandemic on the subsidiaries of AVC Live Limited, the directors have reviewed the investment values for impairment and have made provision for the decrease in value. |
| 8. | TAXATION |
| Analysis of the tax (credit)/charge |
| The tax (credit)/charge on the loss for the year was as follows: |
| 31.12.20 | 31.12.19 |
| £'000 | £'000 |
| Deferred tax | ( |
) |
| Tax on loss | ( |
) |
| UK corporation tax was charged at 19%) in 2019. |
| AVC LIVE LIMITED (REGISTERED NUMBER: 01921674) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2020 |
| 8. | TAXATION - continued |
| Reconciliation of total tax (credit)/charge included in profit and loss |
| The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
| 31.12.20 | 31.12.19 |
| £'000 | £'000 |
| Loss before tax | ( |
) | ( |
) |
| Loss multiplied by the standard rate of corporation tax in the UK of |
( |
) |
( |
) |
| Effects of: |
| Expenses not deductible for tax purposes |
| Income not taxable for tax purposes | ( |
) |
| Capital allowances in excess of depreciation | ( |
) | - |
| Depreciation in excess of capital allowances | - |
| Group Loss relief |
| Deferred tax movement | ( |
) |
| Over/under provision in current year |
| Over/under provision in prior year |
| Losses carried forward |
| Other timing differences |
| Total tax (credit)/charge | (653 | ) | 2 |
| Tax effects relating to effects of other comprehensive income |
| There were no tax effects for the year ended 31 December 2020. |
| 31.12.19 |
| Gross | Tax | Net |
| £'000 | £'000 | £'000 |
| Loss on discounting of other creditors | ( |
) | - | (88 | ) |
| Factors that may affect future tax |
| The standard rate of corporation tax prevailing during the period was 19%. |
| During March 2021, it was announced in the Budget 2021 that corporation tax will increase to 25% with effect from 1 April 2023 for companies with taxable profits in excess of £250,000. For companies where taxable profits are £50,000 or less, the rate of corporation tax will remain at 19%. |
| The relevant deferred tax balances have been measured using the rate expected to apply on the reversal of the timing difference. |
| There are no expiry dates in respect of the above timing differences and unused tax losses. |
| AVC LIVE LIMITED (REGISTERED NUMBER: 01921674) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2020 |
| 9. | TANGIBLE FIXED ASSETS |
| Short | Plant and | Motor |
| leasehold | machinery | vehicles | Totals |
| £'000 | £'000 | £'000 | £'000 |
| COST |
| At 1 January 2020 |
| Additions |
| Disposals | ( |
) | ( |
) |
| At 31 December 2020 |
| DEPRECIATION |
| At 1 January 2020 |
| Charge for year |
| Eliminated on disposal | ( |
) | ( |
) |
| At 31 December 2020 |
| NET BOOK VALUE |
| At 31 December 2020 |
| At 31 December 2019 |
| 10. | FIXED ASSET INVESTMENTS |
| Shares in |
| group |
| undertakings |
| £'000 |
| COST |
| At 1 January 2020 |
| and 31 December 2020 |
| PROVISIONS |
| Impairments | 4,351 |
| At 31 December 2020 | 4,351 |
| NET BOOK VALUE |
| At 31 December 2020 |
| At 31 December 2019 |
| The company's investments at the Statement of Financial Position date in the share capital of companies include the following: |
| Registered office: Union Business Park, Florence Way, Uxbridge, Middlesex, UB8 2LS |
| Nature of business: |
| % |
| Class of shares: | holding |
| Audio Visual Communications Limited has been dormant since incorporation. |
| AVC LIVE LIMITED (REGISTERED NUMBER: 01921674) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2020 |
| 10. | FIXED ASSET INVESTMENTS - continued |
| Registered office: Unit 2 North End Building, Two Crown Business Park, Station Road, Old Dalby, Melton Mowbray, Leicestershire, LE14 3NQ |
| Nature of business: |
| % |
| Class of shares: | holding |
| Registered office: 171-173 Gray's Inn Road, London, WC1X 8UE |
| Nature of business: |
| % |
| Class of shares: | holding |
| Registered office: P.O. Box 3085, Road Town, Tortola, British Virgin Islands |
| Nature of business: |
| % |
| Class of shares: | holding |
| Registered office: P.O Box 74503, Dubai, UAE |
| Nature of business: |
| % |
| Class of shares: | holding |
| Registered office: P.O Box 390658, Dubai, UAE |
| Nature of business: |
| % |
| Class of shares: | holding |
| 11. | STOCKS |
| 31.12.20 | 31.12.19 |
| £'000 | £'000 |
| Stocks |
| 12. | DEBTORS |
| 31.12.20 | 31.12.19 |
| £'000 | £'000 |
| Amounts falling due within one year: |
| Trade debtors |
| Amounts owed by group undertakings |
| Other debtors |
| Corporation tax |
| Prepayments and accrued income |
| AVC LIVE LIMITED (REGISTERED NUMBER: 01921674) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2020 |
| 12. | DEBTORS - continued |
| 31.12.20 | 31.12.19 |
| £'000 | £'000 |
| Amounts falling due after more than one year: |
| Amounts owed by group undertakings |
| Other debtors |
| Deferred tax asset | 737 | 82 |
| Aggregate amounts |
| Amounts owed by group undertakings classified as over one year includes a promissory note due from Audio Visual Services Corporation GmbH. Interest is due annually at 3.5% per annum and the principal amount of $22,161,626 is repayable on 30 June 2036. |
| 13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 31.12.20 | 31.12.19 |
| £'000 | £'000 |
| Trade creditors |
| Amounts owed to group undertakings |
| Social security and other taxes |
| VAT | 273 | 521 |
| Other creditors |
| Accruals and deferred income |
| 14. | LEASING AGREEMENTS |
| Minimum lease payments under non-cancellable operating leases fall due as follows: |
| 31.12.20 | 31.12.19 |
| £'000 | £'000 |
| Within one year |
| Between one and five years |
| In more than five years |
| 15. | DEFERRED TAX |
| £'000 |
| Balance at 1 January 2020 | ( |
) |
| Depreciation in excess of |
| capital allowances | (85 | ) |
| Recognition of losses | (572 | ) |
| Other timing differences | 1 |
| Balance at 31 December 2020 | ( |
) |
| AVC LIVE LIMITED (REGISTERED NUMBER: 01921674) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2020 |
| 16. | CALLED UP SHARE CAPITAL |
| Allotted, issued and fully paid: |
| Number: | Class: | Nominal | 31.12.20 | 31.12.19 |
| value: | £'000 | £'000 |
| Ordinary | £1 | 10 | 10 |
| This share issue was fully paid in a non-cash consideration settled against the amounts owed to group undertakings. |
| 17. | RESERVES |
| Called-up share capital - This represents the nominal value of shares that have been issued. |
| Retained earnings - This distributable reserve records retained earnings and accumulated losses. |
| Capital redemption reserve - This reserve records the nominal value of shares repurchased by the company. |
| Share premium - The amount received in excess of the nominal value of the shares. |
| Other reserves - This reserve records the value of adjustments on long term creditors which have been discounted to their net present value and are to reverse by the end of the discounted period. |
| 18. | PENSION COMMITMENTS |
| The company operates a defined contribution scheme with contributions paid in the accounting period charged to the profit and loss account. The pension cost charge represents contributions payable by the company to the fund and amounted to £97,110 (2019 - £124,204). |
| The balance due at 31 December 2021 was £13,300 (2019 £19,629). |
| 19. | RELATED PARTY DISCLOSURES |
| 31.12.20 | 31.12.19 |
| £'000 | £'000 |
| Amount due to related party |
| 31.12.20 | 31.12.19 |
| £'000 | £'000 |
| Sales |
| Purchases |
| Amount due from related party |
| Amount due to related party |
| AVC LIVE LIMITED (REGISTERED NUMBER: 01921674) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2020 |
| 19. | RELATED PARTY DISCLOSURES - continued |
| 31.12.20 | 31.12.19 |
| £'000 | £'000 |
| Amount due from related party |
| Amount due to related party |
| 20. | ULTIMATE CONTROLLING PARTY |
| The company's immediate parent company is AVSC Europe Limited, a company incorporated in the United Kingdom. The smallest group in whose the financial statements the company is consolidated as at 31 December 2020 is AVSC Europe Limited. |
| Copies of the consolidated financial statements for AVSC Europe Limited can be obtained from the registered office address: |
| Union Business Park |
| Florence Way |
| Uxbridge |
| Middlesex |
| UB8 2LS |
| The company's ultimate holding company is Encore Global LP (previously PSAV Group LP), a company incorporated in the United States of America. Encore Global LP is the largest group in which the financial statements are consolidated as at 31 December 2020. |
| Encore Global LP is controlled by The Blackstone Group LP, an investment company incorporated in the United States of America. |