Company Registration No. 05493237 (England and Wales)
NIMAX THEATRES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 27 SEPTEMBER 2020
NIMAX THEATRES LIMITED
COMPANY INFORMATION
Directors
Ms L Burns OBE
Mr M Weitzenhoffer
Secretary
Mr M S Hutchinson
Company number
05493237
Registered office
11 Maiden Lane
London
WC2E 7NA
Auditor
Blinkhorns
27 Mortimer Street
London
W1T 3BL
NIMAX THEATRES LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 5
Directors' responsibilities statement
6
Independent auditor's report
7 - 8
Profit and loss account
9
Statement of comprehensive income
10
Balance sheet
11
Statement of changes in equity
12
Notes to the financial statements
13 - 25
NIMAX THEATRES LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 27 SEPTEMBER 2020
- 1 -
The directors present the strategic report and financial statements for the Period ended 27 September 2020.
Fair review of the business
The principal activity of the company continues to be the management, restoration and refurbishment of the Palace, Garrick, Duchess, Vaudeville, Apollo and Lyric theatres.
We aim to present a balanced and comprehensive review of the development and performance of our business during the period and its position at the period end. Our review is consistent with the size and non-complex nature of our business and is written in the context of the risks and uncertainties in force.
The results for the period are shown on page 8. Turnover decreased by 56% to £13 million (2019 - £30 million); Operating profit, prior to capital repayments, fell to £1 million (2019 - £8 million).
For the first half of the financial year, prior to COVID-19 the group was trading exceptionally well ahead of budget. Therefore despite trading ceasing on 16 March 2020, the business achieved a small profit.
The financial year was however completely overturned by the COVID-19 pandemic. The government closed all UK theatres on 16 March 2020 and then implemented a national lockdown on 23 March 2020. A skeleton team was retained to manage the organisation whilst the majority of staff were placed on furlough. All of the Nimax theatres remained closed for the rest of the financial year, unable to generate any further income, whilst bearing essential costs including fixed building overheads, its retained core staff and the contribution to furlough costs.
During the period of closure, steps were taken to significantly reduce all costs through discontinuing services and supplies where possible and by negotiating with suppliers for reductions in their bills. The group claimed furlough grants under the government’s Coronavirus Job Retention Scheme and benefitted from the business rates holiday. The level of refunds of advance sales was reduced by exceptional management of advance bookings by the box office and customer services teams and by continued demand for the shows, which enabled the rebooking of performances for later dates which were originally scheduled for the lockdown period. This helped to significantly reduce cash outflow and maintain business for the future.
The group continued to benefit from strong support from its bank and strengthened its financial position by negotiating a £5
million loan under the government’s Coronavirus Business Interruption Loan Scheme. The loan arrangement was completed and drawn shortly after the year end and will be reflected in next year's accounts.
Towards the end of the financial year, the group started its previously planned and committed refurbishment of the Lyric theatre and embarked on preparations for the re-opening of its theatres under social distancing rules and re-programming of shows at its theatres. The only theatre able to re-open under pilot social distancing guidelines was the Apollo in late October before being closed down briefly due to the second national lockdown in November. All six theatres managed to reopen with social distancing measures from
4
December 2020 only to be closed down by the government again with the last performance played on 15 December 2020.
Principal risks and uncertainties
The company’s principal risk lies in its ability to attract quality production in a highly competitive West End market.
The Board does not currently consider liquidity, interest rates or currency risks to be of significance.
NIMAX THEATRES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 27 SEPTEMBER 2020
- 2 -
Key performance indicators
The company considers its key performance indicators to be: -
Financial position
At the year end shareholders' funds were £38,810,853 (2019: £38,155,632 ).
Statement by the directors on performance of their statutory duties in accordance with s172(1) of the Companies Act 2006
The directors, in line with their duties under s172 of the Companies Act 2006, act individually and collectively in the way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its members and in doing so have regard, amongst other matters, to the:
- Likely consequences of any decision in the short, medium and long term
- Interests of the company's employees
- Promotion of good business relationships with suppliers, customers and others
- Impact of the company's operations on the community and the environment
- Maintenance of a reputation for high standards of business conduct
The directors' regard to these matters is embedded in their decision-making process, through the company's business strategy, culture, governance framework, management information flows and stakeholder engagement processes.
In setting the Company’s strategy, the Board takes into account the impact of relevant factors and stakeholder interests on the company's performance. The Board also identifies principal risks facing the business and sets risk management objectives.
The Board promotes a culture of upholding the highest standards of business conduct and regulatory conduct. The Board ensures these core values are communicated to the company's employees and embedded in the company's policies and procedures, employee induction and training programmes and its risk control and oversight framework.
The directors are supported in the discharge of their duties by:
- Processes which ensure the provision of timely management information and escalation through reporting lines to the Board from the company's business areas, its risk and control functions and support teams
- Proper planning for Board meetings to provide sufficient time to consider and discuss key matters and make appropriate decisions.
NIMAX THEATRES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 27 SEPTEMBER 2020
- 3 -
Stakeholders
The Board recognises that building strong and lasting relationships with our stakeholders will help us to deliver our strategy in line with our long-term values, and operate a sustainable business.
The Board regularly discusses issues concerning employees, clients, suppliers, community and environment, regulators and its shareholder, which it takes into account in its discussions and in its decision-making process. In addition to this, the Board seeks to understand the interests and views of the company’s stakeholders by engaging with them directly when required. The below summarises the key stakeholders and how engagement is successfully achieved:
Employees
Our employees contribute to a positive working culture and healthy working environment.
Employees are key to the success of our business. In addition to being a responsible employer in the overall wellbeing of our employees, we continue to engage with our team on training and development opportunities to improve our team’s productivity and our individual employees’ potential within the business. Our open and inclusive culture invites different perspectives, new ideas and opportunities for growth. We work hard to ensure employees feel welcome and are valued and recognised for their hard work.
Customers
Our producers and their shows are at the centre of our business. Our commercial and theatre operations teams build good relationships with the shows’ production teams to understand their objectives and requirements and ultimately to ensure the successful and consistent staging of the shows. We employ a robust process for planning, implementing and executing the shows which ensures a high and consistent standard of service to our producers.
The viewing audiences, whilst at our theatres, receive a high standard of service and the best possible experience from the high standard delivery of our theatre operations before, during and after the show through to the appealing range of drinks and snacks at our comfortable and convenient bars and the comfortable and attractive ambience of our theatre auditoria.
Suppliers
We continue to maintain good and longstanding relationships with our suppliers which ensures a consistent and high standard and quality of service to the business.
Ms L Burns OBE
Director
20 January 2021
NIMAX THEATRES LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 27 SEPTEMBER 2020
- 4 -
The directors present their annual report and financial statements for the Period ended 27 September 2020.
Principal activities
The principal activity of the company continues to be the management, restoration and refurbishment of the Palace, Garrick, Duchess, Vaudeville, Apollo and Lyric Theatres.
Results and dividends
The results for the Period are set out on page 9.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the Period and up to the date of signature of the financial statements were as follows:
Ms L Burns OBE
Mr M Weitzenhoffer
Disabled persons
Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.
Employee involvement
The company's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.
Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.
Auditor
Blinkhorns were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Energy and carbon report
As the company is a subsidiary, this information is reported within the parent LLP financial statements.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
NIMAX THEATRES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 27 SEPTEMBER 2020
- 5 -
On behalf of the board
Ms L Burns OBE
Director
20 January 2021
NIMAX THEATRES LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE PERIOD ENDED 27 SEPTEMBER 2020
- 6 -
The directors are responsible for preparing the annual report 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;
-
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 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.
NIMAX THEATRES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF NIMAX THEATRES LIMITED
- 7 -
Opinion
We have audited the financial statements of Nimax Theatres Limited (the 'company') for the Period ended 27 September 2020 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity and 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 FRS 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 27 September 2020 and of its profit for the Period 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.
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
Auditor's
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
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
-
the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
-
the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue
.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information. 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 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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit
:
-
the information given in the strategic report and the directors' r
eport for the financial Period for which the financial statements are prepared is consistent with the financial statements
; and
-
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
NIMAX THEATRES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF NIMAX THEATRES LIMITED
- 8 -
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 identifie
d
material misstatements in the strategic report and the directors'
r
eport
.
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 directors'
r
esponsibilities
s
tatement, 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 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.
Auditor's 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 an auditor's 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 financial statements.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's 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 auditor's 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.
David Cramer FCA (Senior Statutory Auditor)
for and on behalf of Blinkhorns
20 January 2021
Statutory Auditor
27 Mortimer Street
London
W1T 3BL
NIMAX THEATRES LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE PERIOD ENDED 27 SEPTEMBER 2020
- 9 -
52 weeks
52 weeks
ended
ended
27 September
29 September
2020
2019
Notes
£
£
Turnover
3
13,282,620
29,969,821
Cost of sales
(13,372,922)
(18,826,148)
Gross (loss)/profit
(90,302)
11,143,673
Administrative expenses
(2,626,882)
(2,769,251)
Other operating income
3,384,672
74,578
Operating profit
5
667,488
8,449,000
Interest receivable and similar income
8
114,742
191,822
Interest payable and similar expenses
9
(1,933)
(4,359)
Exceptional items
4
445,541
(32,993)
Profit before taxation
1,225,838
8,603,470
Taxation
10
(570,617)
(1,813,959)
Profit for the financial Period
655,221
6,789,511
The profit and loss account has been prepared on the basis that all operations are continuing operations.
NIMAX THEATRES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 27 SEPTEMBER 2020
- 10 -
52 Weeks
52 Weeks
ended
ended
27 September
29 September
2020
2019
£
£
Profit for the Period
655,221
6,789,511
Other comprehensive income
-
-
Total comprehensive income for the Period
655,221
6,789,511
NIMAX THEATRES LIMITED
BALANCE SHEET
AS AT
27 SEPTEMBER 2020
27 September 2020
- 11 -
2020
2019
Notes
£
£
£
£
Fixed assets
Goodwill
11
850,000
1,020,000
Tangible assets
12
5,858,255
6,253,669
Investments
13
24,567,739
24,567,739
31,275,994
31,841,408
Current assets
Stocks
15
203,969
295,932
Debtors
16
6,780,020
7,724,952
Cash at bank and in hand
13,339,567
20,348,518
20,323,556
28,369,402
Creditors: amounts falling due within one year
17
(12,372,724)
(21,750,173)
Net current assets
7,950,832
6,619,229
Total assets less current liabilities
39,226,826
38,460,637
Provisions for liabilities
Deferred tax liability
18
415,973
305,005
(415,973)
(305,005)
Net assets
38,810,853
38,155,632
Capital and reserves
Called up share capital
20
1,000
1,000
Profit and loss reserves
38,809,853
38,154,632
Total equity
38,810,853
38,155,632
The financial statements were approved by the board of directors and authorised for issue on 20 January 2021 and are signed on its behalf by:
Ms L Burns OBE
Director
Company Registration No. 05493237
NIMAX THEATRES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 27 SEPTEMBER 2020
- 12 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 October 2018
1,000
31,365,121
31,366,121
Period ended 29 September 2019:
Profit and total comprehensive income for the period
-
6,789,511
6,789,511
Balance at 29 September 2019
1,000
38,154,632
38,155,632
Period ended 27 September 2020:
Profit and total comprehensive income for the period
-
655,221
655,221
Balance at 27 September 2020
1,000
38,809,853
38,810,853
NIMAX THEATRES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 27 SEPTEMBER 2020
- 13 -
1
Accounting policies
Company information
Nimax Theatres Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
11 Maiden Lane, London, WC2E 7NA.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The company's accounting period covers the 52 weeks ended 27 September 2020. The comparative period covered the 52 weeks ended 29 September 2019.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares
publicly available consolidated financial statements
, including this company,
which are
intended to give a true and fair view of the assets, liabilities,
financial position and profit or loss
of the group
.
T
he company has
therefore
taken advantage of
e
xemptions from the following disclosure requirements:
- Section 4 ‘Statement of Financial Position’: Reconciliation of the opening and closing number of shares;
- Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
-
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’
:
Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument;
basis
of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income
;
-
Section 33 ‘Related Party Disclosures’
:
Compensation for key management personnel
.
The financial statements of the company are consolidated in the financial statements of
Nimax LLP
. These consolidated financial statements are available from its registered office
at 11 Maiden Lane, London, WC2E 7NA.
1.2
Going concern
The directors have considered the effect of the Covid-19 outbreak and at the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
true
1.3
Turnover
Turnover represents amounts receivable for goods and services net of VAT and trade discounts.
1.4
Intangible fixed assets - goodwill
Acquired goodwill is written off in equal annual instalments over 20 years.
1.5
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
NIMAX THEATRES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 27 SEPTEMBER 2020
1
Accounting policies
(Continued)
- 14 -
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold buildings
2% straight line
Plant and machinery
10% straight line
Fixtures, fittings & equipment
10 - 25% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
1.6
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
The investments are assessed for impairment at each reporting date
and
any
impairment
losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company
. Control is
the power to govern the financial and operating policies of
the
entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities
.
1.7
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit)
in
prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
NIMAX THEATRES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 27 SEPTEMBER 2020
1
Accounting policies
(Continued)
- 15 -
1.8
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.9
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.10
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
NIMAX THEATRES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 27 SEPTEMBER 2020
1
Accounting policies
(Continued)
- 16 -
Impairment of financial assets
Financial assets, other than those
held
at
fair value through profit and loss
, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.
If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when
the company
transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from
fellow group companies and preference shares that are classified as debt, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities. Trade creditors are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts,
are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are
s
ubsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as
being measured at
fair value th
r
ough profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
NIMAX THEATRES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 27 SEPTEMBER 2020
1
Accounting policies
(Continued)
- 17 -
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations
expire or are discharged or cancelled.
1.11
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.12
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the
company
has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.13
Employee benefits
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.15
Leases
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
NIMAX THEATRES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 27 SEPTEMBER 2020
1
Accounting policies
(Continued)
- 18 -
1.16
Government grants
Government grants are recognised at the fair value of the asset receive
d
or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
Government grants relating to turnover are recognised as income over the periods when the related costs are incurred
. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.
1.17
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation
in the period
are included in profit or loss.
1.18
Payments received on account
Ticket sales collected on behalf of producers are paid out in the week following the performance, and are treated as payments received on account in the balance sheet.
A high proportion of the payments received on account relate to the advance sales to the very popular Harry Potter show.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount 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 to be 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2020
2019
£
£
Turnover analysed by class of business
Theatre management
13,282,620
29,969,821
NIMAX THEATRES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 27 SEPTEMBER 2020
3
Turnover and other revenue
(Continued)
- 19 -
2020
2019
£
£
Other significant revenue
Interest income
114,742
191,822
Rental income
58,682
74,578
Grants received
3,325,990
2020
2019
£
£
Turnover analysed by geographical market
United Kingdom
13,282,620
29,969,821
4
Exceptional costs/(income)
2020
2019
£
£
Exceptional items
(445,541)
32,993
The exceptional items relate to the Apollo Theatre works and insurance claim and additional costs relating to the COVID-19 pandemic.
5
Operating profit
2020
2019
Operating profit for the period is stated after charging/(crediting):
£
£
Exchange differences apart from those arising on financial instruments measured at fair value through profit or loss
(16)
(41)
Government grants
(3,325,990)
Depreciation of owned tangible fixed assets
537,249
522,351
Amortisation of intangible assets
170,000
170,000
6
Auditor's remuneration
2020
2019
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
39,237
52,000
For other services
Accountancy and taxation compliance services
18,776
10,026
NIMAX THEATRES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 27 SEPTEMBER 2020
- 20 -
7
Employees
The average monthly number of persons (including directors) employed by the company during the Period was:
2020
2019
Number
Number
333
342
Their aggregate remuneration comprised:
2020
2019
£
£
Wages and salaries
9,158,669
10,639,982
Social security costs
808,993
990,231
Pension costs
186,681
192,225
10,154,343
11,822,438
8
Interest receivable and similar income
2020
2019
£
£
Interest income
Interest on bank deposits
82,213
129,783
Other interest income
32,529
62,039
Total income
114,742
191,822
9
Interest payable and similar expenses
2020
2019
£
£
Interest on bank overdrafts and loans
55
2
Other interest
1,878
4,357
1,933
4,359
10
Taxation
2020
2019
£
£
Current tax
UK corporation tax on profits for the current period
459,649
1,785,275
NIMAX THEATRES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 27 SEPTEMBER 2020
10
Taxation
2020
2019
£
£
(Continued)
- 21 -
Deferred tax
Origination and reversal of timing differences
110,968
28,684
Total tax charge
570,617
1,813,959
The actual charge for the Period can be reconciled to the expected charge for the Period based on the profit or loss and the standard rate of tax as follows:
2020
2019
£
£
Profit before taxation
1,225,838
8,603,470
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2019: 19.00%)
232,909
1,634,659
Tax effect of expenses that are not deductible in determining taxable profit
124,404
188,358
Permanent capital allowances in excess of depreciation
(93,113)
(52,525)
Under/(over) provided in prior years
195,449
Deferred tax adjustments in respect of prior years
110,968
Other adjustments
43,467
Taxation charge for the period
570,617
1,813,959
11
Intangible fixed assets
Goodwill
£
Cost
At 30 September 2019 and 27 September 2020
3,400,000
Amortisation and impairment
At 30 September 2019
2,380,000
Amortisation charged for the Period
170,000
At 27 September 2020
2,550,000
Carrying amount
At 27 September 2020
850,000
At 29 September 2019
1,020,000
NIMAX THEATRES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 27 SEPTEMBER 2020
- 22 -
12
Tangible fixed assets
Freehold buildings
Plant and machinery
Fixtures, fittings & equipment
Total
£
£
£
£
Cost
At 30 September 2019
2,884,110
3,261,024
2,206,438
8,351,572
Additions
19,928
122,159
142,087
Disposals
(8,160)
(8,160)
At 27 September 2020
2,884,110
3,280,952
2,320,437
8,485,499
Depreciation and impairment
At 30 September 2019
168,329
1,097,091
832,483
2,097,903
Depreciation charged in the Period
29,083
255,319
252,847
537,249
Eliminated in respect of disposals
(7,908)
(7,908)
At 27 September 2020
197,412
1,352,410
1,077,422
2,627,244
Carrying amount
At 27 September 2020
2,686,698
1,928,542
1,243,015
5,858,255
At 29 September 2019
2,715,781
2,163,933
1,373,955
6,253,669
13
Fixed asset investments
2020
2019
£
£
Unlisted investments
24,567,739
24,567,739
Movements in fixed asset investments
Investments other than loans
£
Cost or valuation
At 30 September 2019 & 27 September 2020
24,567,739
Carrying amount
At 27 September 2020
24,567,739
At 29 September 2019
24,567,739
NIMAX THEATRES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 27 SEPTEMBER 2020
- 23 -
14
Subsidiaries
Details of the company's subsidiaries at 27 September 2020 are as follows:
Name of undertaking and country of
Nature of business
Class of
% Held
incorporation or residency
shareholding
Direct
Indirect
Palace Theatre London Limited
England and Wales
Theatre owners and ancillary activities
Ordinary shares
100.00
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Profit/(Loss)
Capital and Reserves
£
£
Palace Theatre London Limited
-
24,006,100
15
Stocks
2020
2019
£
£
Finished goods and goods for resale
203,969
295,932
16
Debtors
2020
2019
Amounts falling due within one year:
£
£
Trade debtors
859,665
3,401,438
Amounts owed by group undertakings
1,201,838
1,172,071
Other debtors
3,729,683
2,631,055
Prepayments and accrued income
988,834
520,388
6,780,020
7,724,952
17
Creditors: amounts falling due within one year
2020
2019
£
£
Payments received on account
4,086,989
10,747,603
Trade creditors
1,513,218
2,540,301
Amounts owed to group undertakings
4,358,513
4,358,513
Corporation tax
383,214
914,057
Other taxation and social security
313,690
492,197
Other creditors
422,566
735,396
Accruals and deferred income
1,294,534
1,962,106
12,372,724
21,750,173
NIMAX THEATRES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 27 SEPTEMBER 2020
- 24 -
18
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2020
2019
Balances:
£
£
Accelerated capital allowances
415,973
305,005
19
Retirement benefit schemes
2020
2019
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
186,681
192,225
The company operates a defined contribution pension scheme for all qualifying employees.
The assets of the scheme are held separately from those of the company in an independently administered fund.
20
Share capital
2020
2019
2020
2019
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of £1 each
500
500
500
500
Ordinary B shares of £1 each
500
500
500
500
1,000
1,000
1,000
1,000
21
Events after the reporting date
The directors have considered the effect of the Covid-19 outbreak, that spread throughout the world during 2020, on the company’s activities.
This outbreak has caused a significant disruption to the company’s business prior to the date of approval of these financial statements. This is due to the closure of all of the theatres.
The extent and financial effect of any continuing disruption still remains uncertain.
NIMAX THEATRES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 27 SEPTEMBER 2020
- 25 -
22
Related party transactions
During the period the company incurred costs of £250,000 (2019: £791,400) in respect of legal and theatre production services from a company controlled by one of the directors.
During the period the company loaned £1,000,000 (2019: £1,803,146) to a company controlled by one of the directors. The balance outstanding at the year end was £2,803,146 (2019: £1,803,146) and is included in other debtors.
2020-09-27
2019-09-30
false
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Mr M Weitzenhoffer
Mr M S Hutchinson
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