Cinelab London Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 06701466 (England and Wales)

Financial Statements

for the Year Ended 31 December 2017

for

CINELAB LONDON LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

Directors:

Mr A J Bull

Mr J Mahtani

Mr J R Cree

Registered office:

305 Regents Park Road

Finchley

London

N3 1DP

Registered number:

06701466 (England and Wales)

Accountants:

Haines Watts

Chartered Accountants

305 Regents Park Road

Finchley

London

N3 1DP

Fixed assets

Tangible assets

4

1,518,052

1,449,953

Current assets

Stocks

5

55,036

101,682

Debtors

6

296,606

541,515

Cash at bank and in hand

216,360

60,291

568,002

703,488

Creditors

Amounts falling due within one year

7

1,284,697

964,433

Net current liabilities

(716,695

)

(260,945

)

Total assets less current liabilities

801,357

1,189,008

Creditors

Amounts falling due after more than one year

8

(95,051

)

(74,414

)

Provisions for liabilities

12

(219,486

)

(223,156

)

Net assets

486,820

891,438

Capital and reserves

Called up share capital

13

1,000

1,000

Revaluation reserve

14

762,882

762,882

Retained earnings

(277,062

)

127,556

Shareholders' funds

486,820

891,438

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2017.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2017 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 of Part 15 of the Companies Act 2006 relating to small companies.

In accordance with Section 444 of the Companies Act 2006, the Profit and Loss Account has not been delivered.

The financial statements were approved by the Board of Directors on 16 August 2018 and were signed on its behalf by:

Mr J R Cree - Director

1.	Statutory information

Cinelab London 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.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	Accounting policies

Basis of preparing the financial statements

These financial statements have been prepared in accordance with the provisions of Section 1A "Small Entities" of Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" 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 company has net current liabilities of £716,695 (2016 : £260,945) and relies on the support of its directors

and shareholders to ensure it meets its liabilities as they fall due. On this basis, the directors consider it

appropriate to prepare the financial statements on the going concern basis. The financial statements do not

include any adjustments that would result from a withdrawal of this support by the directors and shareholders.

Key source of estimation, uncertainty and judgement

The preparation of financial statements in conformity with generally accepted accounting practice requires

management to make estimates and judgement that affect the reported amounts of assets and liabilities as well

as the disclosure of contingent assets and liabilities at the balance sheet date and the reported amounts of

revenues and expenses during the reporting period.

There is estimation uncertainty in calculating depreciation. A full line by line review of fixed assets is carried out

by management regularly. Whilst every attempt is made to ensure that the depreciation policy is as accurate as

possible, there remains a risk that the policy does not match the useful life of the assets.

There is estimation uncertainty in calculating deferred tax. A full line by line review of deferred tax is carried out

by management regularly. Whilst every attempt is made to ensure that the deferred tax is accurate as possible,

there remains a risk that the provisions do not match the actual tax liability when asset is disposed off.

There is estimation uncertainty in calculating bad debt provisions. A full line by line review of trade debtors is

carried out at the end of each month. Whilst every attempt is made to ensure that the bad debt provisions are

as accurate as possible, there remains a risk that the provisions do not match the level of debts which

ultimately prove to be uncollectable.

There is estimation uncertainty in calculating stock provisions. A full line by line review of stock is carried out at

the end of each month. Whilst every attempt is made to ensure that the stock provisions are as accurate as

possible, there remains a risk that the provisions do not match the level of stock which ultimately prove to be

obsolete.

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 or, if held under a finance lease, over the lease term, whichever is the shorter.

Short leasehold

-

over the length of the lease

Plant and machinery

-

Straight line over 20 years

Fixtures and fittings

-

25% on reducing balance

Computer equipment

-

25% on reducing balance

Stocks

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

slow moving items.

Financial instruments

Financial assets and financial liabilities are recognised in the balance sheet when the company becomes a

party to the contractual provisions of the instrument.

Trade and other debtors and creditors are classified as basic financial instruments and measured at initial

recognition at transaction price. Debtors and creditors are subsequently measured at amortised cost using the

effective interest rate method. A provision is established when there is objective evidence that the company will

not be able to collect all amounts due.

Cash and cash equivalents are classified as basic financial instruments and comprise cash in hand and at bank

and bank overdrafts which are integral part of the company’s cash management.

Financial liabilities and equity instruments issued by the company are classified in accordance with the

substance of the contractual arrangements entered into and the definitions of a financial liability and an equity

instrument. An equity instrument is any contract that evidences a residual interest in the assets of the company

after deducting all of its liabilities. Equity instruments issued by the company are recorded at the proceeds

received, net of direct issue costs.

Taxation

Taxation 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 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

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those

held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance

leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital

element of the future payments is treated as a liability.

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 20 (2016 - 24 ) .

4.	Tangible fixed assets

Fixtures

Short

Plant and

and

Computer

leasehold

machinery

fittings

equipment

Totals

£

£

£

£

£

Cost or valuation

At 1 January 2017

416,234

1,227,769

6,232

10,941

1,661,176

Additions

109,338

72,990

2,505

21,663

206,496

At 31 December 2017

525,572

1,300,759

8,737

32,604

1,867,672

Depreciation

At 1 January 2017

82,061

119,914

3,756

5,492

211,223

Charge for year

65,644

64,730

1,245

6,778

138,397

At 31 December 2017

147,705

184,644

5,001

12,270

349,620

Net book value

At 31 December 2017

377,867

1,116,115

3,736

20,334

1,518,052

At 31 December 2016

334,173

1,107,855

2,476

5,449

1,449,953

Cost or valuation at 31 December 2017 is represented by:

Fixtures

Short

Plant and

and

Computer

leasehold

machinery

fittings

equipment

Totals

£

£

£

£

£

Valuation in 2014

-

468,463

-

-

468,463

Valuation in 2015

-

294,418

-

-

294,418

Cost

525,572

537,878

8,737

32,604

1,104,791

525,572

1,300,759

8,737

32,604

1,867,672

Plant and machinery was valued by an independent valuation expert on 30 September 2015 and by the

directors on 31 December 2017.

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Plant and

machinery

£

Cost or valuation

At 1 January 2017

860,964

Transfer to ownership

(664,614

)

At 31 December 2017

196,350

Depreciation

At 1 January 2017

76,696

Charge for year

43,049

Transfer to ownership

(89,042

)

At 31 December 2017

30,703

Net book value

At 31 December 2017

165,647

At 31 December 2016

784,268

5.

Stocks

2017

2016

£

£

Stocks

55,036

101,682

6.

Debtors: amounts falling due within one year

2017

2016

£

£

Trade debtors

234,280

262,360

Other debtors

62,326

279,155

296,606

541,515

7.

Creditors: amounts falling due within one year

2017

2016

£

£

Bank loans and overdrafts (see note 9)

39,814

34,732

Hire purchase contracts (see note 10)

37,500

123,447

Trade creditors

181,547

194,393

Taxation and social security

123,978

314,398

Other creditors

901,858

297,463

1,284,697

964,433

8.

Creditors: amounts falling due after more than one year

2017

2016

£

£

Bank loans (see note 9)

64,495

6,358

Hire purchase contracts (see note 10)

30,556

68,056

95,051

74,414

9.

Loans

An analysis of the maturity of loans is given below:

2017

2016

£

£

Amounts falling due within one year or on demand:

bank loan 1 - under 1yr

39,814

34,732

Amounts falling due between one and two years:

Bank loans - 1-2 years

64,495

6,358

10.	Leasing agreements

Minimum lease payments fall due as follows:

Hire purchase contracts

2017

2016

£

£

Net obligations repayable:

Within one year

37,500

123,447

Between one and five years

30,556

68,056

68,056

191,503

Non-cancellable

operating leases

2017

2016

£

£

Within one year

120,487

116,000

Between one and five years

469,235

580,000

589,722

696,000

11.	Secured debts

The following secured debts are included within creditors:

2017

2016

£

£

Bank loans

104,309

41,090

Hire purchase contracts

68,056

191,503

Other creditors

-

20,791

172,365

253,384

The bank loan is secured by way of fixed and floating charges created on 10 March 2014 in favour of HSBC

Bank Plc

Hire purchase contracts and Other creditors are secured by way of fixed and floating charges in favour of Close

Brothers Limited. The charges are also secured by way of legal assignment on contract monies.

12.	Provisions for liabilities

2017

2016

£

£

Deferred tax

219,486

223,156

Deferred tax

£

Balance at 1 January 2017

223,156

Released during the year

(3,670

)

Balance at 31 December 2017

219,486

13.	Called up share capital

Allotted, issued and fully paid:

Number:

Class:

Nominal

2017

2016

value:

£

£

1,000

Ordinary

£1

1,000

1,000

14.

Reserves

Revaluation

reserve

£

At 1 January 2017

and 31 December 2017

762,882

15.	Related party disclosures

Included in Other creditors is an amount of £522,801 (2016 : £86,680 owed by) owed to a related company.

The companies are related by virtue of Cinelab London Limited being a subsidiary of the related company. All

transactions and balances arose on an arms length basis in the normal course of business.