REGISTERED NUMBER:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Strategic Report, Report of the Directors and |
|
Audited Financial Statements |
|
for the Year Ended 30th June 2022 |
|
for |
|
Echo Studios Holdings Limited |
REGISTERED NUMBER:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Strategic Report, Report of the Directors and |
|
Audited Financial Statements |
|
for the Year Ended 30th June 2022 |
|
for |
|
Echo Studios Holdings Limited |
Echo Studios Holdings Limited (Registered number: 08474721) |
|
Contents of the Financial Statements |
for the Year Ended 30th June 2022 |
|
|
|
|
|
|
|
|
|
|
Page |
|
Company Information | 1 |
|
Strategic Report | 2 |
|
Report of the Directors | 4 |
|
Report of the Independent Auditors | 6 |
|
Statement of Comprehensive Income | 10 |
|
Balance Sheet | 11 |
|
Statement of Changes in Equity | 12 |
|
Cash Flow Statement | 13 |
|
Notes to the Cash Flow Statement | 14 |
|
Notes to the Financial Statements | 15 |
|
Echo Studios Holdings Limited |
|
Company Information |
for the Year Ended 30th June 2022 |
|
|
|
|
|
|
|
DIRECTORS: |
|
|
|
|
|
|
|
|
REGISTERED OFFICE: |
|
|
|
|
|
|
|
|
|
|
REGISTERED NUMBER: |
|
|
|
|
|
|
AUDITORS: |
|
Chartered Certified Accountants |
& Statutory Auditor |
Sovereign House |
155 High Street |
Aldershot |
Hampshire |
GU11 1TT |
Echo Studios Holdings Limited (Registered number: 08474721) |
|
Strategic Report |
for the Year Ended 30th June 2022 |
|
|
The directors present their strategic report for the year ended 30th June 2022. |
|
REVIEW OF BUSINESS |
The Company's principal activity continues to be that of an intermediate holding company for a graphic design and retail production house. |
|
RESULTS AND PERFORMANCE |
The results of the Company for the year, as set out on pages 10 to 22 show a profit on ordinary activities before taxation of £177,251 (2021 Profit: £140,537) . The shareholders' funds of the company total £8,444,874 (2021: £8,314,462). |
|
The directors consider the results for the year ended 30 June 2022 to be satisfactory. The revenue is represented by management fees and rent charged to its trading subsidiary. |
|
BUSINESS ENVIRONMENT |
The design and print industry, in which the subsidiary operates, particularly the retail and travel sectors have continued to recover from the impact of the global pandemic. The company and its subsidiary have, however, consolidated in its target markets by expanding its range of solutions offered to blue chip clients. The company has continued to keep pace with new developments and changing demands particularly related to providing innovative sustainable design and print solutions for our group clients. |
|
STRATEGY |
The Company's success has, and will continue to, depend on being able to provide the best quality product by taking advantage of the most up to date equipment and technologies as well as through innovation and creativity. In addition, the Group has focused on the development of sustainable solutions for its clients by offering a range of high-quality sustainable products and services that will help maintain the Group as industry market leaders. |
|
KEY PERFORMANCE INDICATORS (KPI'S) |
We have made significant progress throughout the year in relation to key elements of our Group strategy. The Board monitors the progress of the company by reference a number of KPI's across the group as reported by the trading subsidiary. |
|
Sustainability |
|
The Group is increasingly measuring performance by reference to KPI's linked to environmental sustainability and has made good progress in maximising the percentage of materials obtained from sustainable sources, recycling, and reducing net energy consumption and carbon emissions. |
|
FINANCIAL INSTRUMENTS |
The company has a normal level of exposure to price, credit, liquidity and cash flow risks arising from trading activities which are conducted largely in sterling. The company does not enter into formally designated hedging arrangements. |
|
Echo Studios Holdings Limited (Registered number: 08474721) |
|
Strategic Report |
for the Year Ended 30th June 2022 |
|
PRINCIPAL RISKS AND UNCERTAINTIES |
The process of risk acceptance and risk management is addressed through robust internal policies, procedures and controls. |
|
The board manages cash and working capital to ensure the company has the financial strength to meet its requirements and support the growth of the business as well as manage the impact of the pandemic crisis. |
|
ON BEHALF OF THE BOARD: |
|
|
|
|
|
|
|
|
|
Echo Studios Holdings Limited (Registered number: 08474721) |
|
Report of the Directors |
for the Year Ended 30th June 2022 |
|
|
The directors present their report with the financial statements of the company for the year ended 30th June 2022. |
|
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of The Company's principal activity continues to be that of an intermediate holding company for a graphic design and retail production house. |
|
DIVIDENDS |
No dividends will be distributed for the year ended 30th June 2022. |
|
RESEARCH AND DEVELOPMENT |
This is set out in the strategic report under business environment. |
|
FUTURE DEVELOPMENTS |
These are set out in the strategic report under strategy. |
|
DIRECTORS |
The directors shown below have held office during the whole of the period from 1st July 2021 to the date of this report. |
|
|
|
|
|
GOING CONCERN |
No material uncertainties that may cast significant doubt about the ability of the company to continue as a going concern have been identified by the directors. |
|
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. |
Echo Studios Holdings Limited (Registered number: 08474721) |
|
Report of the Directors |
for the Year Ended 30th June 2022 |
|
|
AUDITORS |
Whiteleys are deemed to be re-appointed under section 487(2) of the Companies Act 2006. |
|
ON BEHALF OF THE BOARD: |
|
|
|
|
|
|
|
|
|
Report of the Independent Auditors to the Members of |
Echo Studios Holdings Limited |
|
|
Opinion |
We have audited the financial statements of Echo Studios Holdings Limited (the 'company') for the year ended 30th June 2022 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 30th June 2022 and of its profit 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 |
Echo Studios Holdings 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 four, 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 |
Echo Studios Holdings 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: |
|
The extent to which the audit was considered capable of detecting irregularities including fraud |
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, |
including fraud and non-compliance with laws and regulations, was as follows: |
|
- | the engagement partner ensured that the engagement team collectively had the |
appropriate competence, capabilities and skills to identify or recognise non-compliance |
with applicable laws and regulations; |
- |
we identified the laws and regulations applicable to the company through discussions with directors
and |
other management, and from our commercial knowledge and experience of the business sector; |
- | we focused on specific laws and regulations which we considered may have a direct material effect on |
the financial statements or the operations of the company, including the Companies Act 2006, taxation |
legislation and employment and health and safety legislation; |
- | we assessed the extent of compliance with the laws and regulations identified above through making |
enquiries of management and inspecting legal correspondence where available; and |
- | identified laws and regulations were communicated within the audit team regularly and the team |
remained alert to instances of non-compliance throughout the audit. |
|
We assessed the susceptibility of the company’s financial statements to material misstatement, including |
obtaining an understanding of how fraud might occur, by: |
|
- | making enquiries of management as to where they considered there was susceptibility to fraud, their |
knowledge of actual, suspected and alleged fraud; and |
- | considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and |
regulations. |
|
To address the risk of fraud through management bias and override of controls, we: |
|
- | performed analytical procedures to identify any unusual or unexpected relationships; |
- | tested journal entries to identify unusual transactions; |
- | assessed whether judgements and assumptions made in determining the accounting estimates were |
indicative of potential bias; and |
- | investigated the rationale behind significant or unusual transactions. |
|
In response to the risk of irregularities and non-compliance with laws and regulations, we designed |
procedures which included, but were not limited to: |
|
- | agreeing financial statement disclosures to underlying supporting documentation; |
- | reading the minutes of meetings of those charged with governance; |
- | enquiring of management as to actual and potential litigation and claims; and |
- | reviewing correspondence with HMRC, relevant regulators including the Health and Safety |
Executive, and the |
- | company’s legal advisors, where available. |
|
There are inherent limitations in our audit procedures described above. The more removed that laws and |
regulations are from financial transactions, the less likely it is that we would become aware of |
non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance |
with laws and regulations to enquiry of the directors and other management and the inspection of |
Report of the Independent Auditors to the Members of |
Echo Studios Holdings Limited |
|
regulatory and legal correspondence, if any. |
|
Material misstatements that arise due to fraud can be harder to detect than those that arise from error |
as they may involve deliberate concealment or collusion. |
|
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our 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
|
Chartered Certified Accountants |
& Statutory Auditor |
Sovereign House |
155 High Street |
Aldershot |
Hampshire |
GU11 1TT |
|
|
Echo Studios Holdings Limited (Registered number: 08474721) |
|
Statement of Comprehensive |
Income |
for the Year Ended 30th June 2022 |
|
2022 | 2021 |
Notes | £ | £ |
|
TURNOVER |
|
|
|
Administrative expenses |
|
|
OPERATING PROFIT |
|
|
|
Interest receivable and similar income |
|
|
PROFIT BEFORE TAXATION | 5 |
|
|
|
Tax on profit | 6 |
|
|
PROFIT FOR THE FINANCIAL YEAR |
|
|
|
OTHER COMPREHENSIVE INCOME |
Notional interest on restated loan | ( |
) | ( |
) |
Income tax relating to other
comprehensive income |
|
|
OTHER COMPREHENSIVE INCOME
FOR THE YEAR, NET OF INCOME TAX |
( |
) |
( |
) |
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR |
|
|
Echo Studios Holdings Limited (Registered number: 08474721) |
|
Balance Sheet |
30th June 2022 |
|
2022 | 2021 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 8 |
|
|
Investments | 9 |
|
|
|
|
|
CURRENT ASSETS |
Debtors | 10 |
|
|
Cash at bank |
|
|
|
|
CREDITORS |
Amounts falling due within one year | 11 |
|
|
NET CURRENT ASSETS |
|
|
TOTAL ASSETS LESS CURRENT
LIABILITIES |
|
|
|
CREDITORS |
Amounts falling due after more than one
year |
12 |
|
( |
) |
|
PROVISIONS FOR LIABILITIES | 13 | ( |
) | ( |
) |
NET ASSETS |
|
|
|
CAPITAL AND RESERVES |
Called up share capital | 14 |
|
|
Capital redemption reserve | 15 |
|
|
Other reserves | 15 |
|
|
Retained earnings | 15 |
|
|
SHAREHOLDERS' FUNDS |
|
|
|
The financial statements were approved by the Board of Directors and authorised for issue on
|
|
|
|
|
|
|
|
Echo Studios Holdings Limited (Registered number: 08474721) |
|
Statement of Changes in Equity |
for the Year Ended 30th June 2022 |
|
Called up | Capital |
share | Retained | redemption | Other | Total |
capital | earnings | reserve | reserves | equity |
£ | £ | £ | £ | £ |
|
Balance at 1st July 2020 |
|
|
|
|
|
|
Changes in equity |
Dividends | - | ( |
) | - | - | ( |
) |
Total comprehensive income | - |
|
|
( |
) |
|
Balance at 30th June 2021 |
|
|
|
|
|
|
Changes in equity |
Total comprehensive income | - |
|
|
( |
) |
|
Balance at 30th June 2022 |
|
|
|
|
|
Echo Studios Holdings Limited (Registered number: 08474721) |
|
Cash Flow Statement |
for the Year Ended 30th June 2022 |
|
2022 | 2021 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
|
|
Tax paid | ( |
) | ( |
) |
Net cash from operating activities |
|
|
|
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) |
|
Sale of fixed asset investments |
|
|
Interest received |
|
|
Net cash from investing activities | ( |
) |
|
|
Cash flows from financing activities |
Loan to/(from) from group undertaking | ( |
) |
|
Equity dividends paid |
|
( |
) |
Net cash from financing activities | ( |
) |
|
|
(Decrease)/increase in cash and cash equivalents | ( |
) |
|
Cash and cash equivalents at
beginning of year |
2 |
|
989,154 |
|
Cash and cash equivalents at end of
year |
2 |
256,432 |
1,093,369 |
Echo Studios Holdings Limited (Registered number: 08474721) |
|
Notes to the Cash Flow Statement |
for the Year Ended 30th June 2022 |
|
|
1. |
RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS |
2022 | 2021 |
£ | £ |
Profit before taxation |
|
|
Depreciation charges |
|
|
Capital contribution-restatement of DLA | (10,994 | ) | (29,879 | ) |
Finance income | (270 | ) | (106 | ) |
451,816 | 445,410 |
Decrease in trade and other debtors |
|
|
Decrease in trade and other creditors | ( |
) | ( |
) |
Cash generated from operations |
|
|
|
2. | CASH AND CASH EQUIVALENTS |
|
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
|
Year ended 30th June 2022 |
30.6.22 | 1.7.21 |
£ | £ |
Cash and cash equivalents | 256,432 | 1,093,369 |
Year ended 30th June 2021 |
30.6.21 | 1.7.20 |
£ | £ |
Cash and cash equivalents | 1,093,369 | 989,154 |
|
|
3. | ANALYSIS OF CHANGES IN NET FUNDS |
|
At 1.7.21 | Cash flow | At 30.6.22 |
£ | £ | £ |
Net cash |
Cash at bank | 1,093,369 | (836,937 | ) | 256,432 |
1,093,369 | ( |
) | 256,432 |
Total | 1,093,369 | (836,937 | ) | 256,432 |
Echo Studios Holdings Limited (Registered number: 08474721) |
|
Notes to the Financial Statements |
for the Year Ended 30th June 2022 |
|
|
1. | STATUTORY INFORMATION |
|
Echo Studios Holdings Limited is a
|
|
The presentation currency of the financial statements is the Pound Sterling (£). |
|
|
The principal place of business of the company is Echo House, Red Lion Business Park, Surbiton, Surrey KT6 7RD. |
|
2. | STATEMENT OF COMPLIANCE |
|
|
|
3. | ACCOUNTING POLICIES |
|
Basis of preparing the financial statements |
|
|
Going concern |
As set out in the strategic report, the directors believe that the company and its subsidiary are well placed to manage its business risks successfully. |
|
Accordingly, they have a firm expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the financial statements. |
|
Turnover |
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for management charges and rental income, stated net of Value Added Tax. |
|
The company recognises revenue when the amount of revenue can be measured reliably, when it is |
probable that future economic benefits will flow to the entity and when specific criteria have been met |
for each of the company’s activities described above. |
|
Tangible fixed assets |
Tangible fixed assets are carried at cost less accumulated depreciation and accumulated impairment losses. |
|
Depreciation is calculated so as to write off the cost or valuation of all tangible assets, other than freehold land less their residual value, over their estimated useful lives as follows: |
|
Freehold property | - | 2% on cost |
Plant and machinery | - | 15% on cost |
Fixtures and fittings | - | 25% on cost |
|
On disposal, the difference between the net disposal proceeds and the carrying amount of the item sold is recognised in profit or loss. |
|
Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost. |
|
Echo Studios Holdings Limited (Registered number: 08474721) |
|
Notes to the Financial Statements - continued |
for the Year Ended 30th June 2022 |
|
|
3. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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. |
|
Financial instruments |
The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares. |
|
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in profit or loss. |
|
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract. |
|
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and the best estimate, which is an approximation, of the amount that the company would receive for the asset if it were to be sold at the reporting date. |
|
Financial assets and liabilities are offset and the net amount reported in the statement of financial position when there is an 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. |
Echo Studios Holdings Limited (Registered number: 08474721) |
|
Notes to the Financial Statements - continued |
for the Year Ended 30th June 2022 |
|
|
3. | ACCOUNTING POLICIES - continued |
|
Impairment of non-financial assets |
At each reporting date non-financial assets not carried at fair value, like goodwill and plant, property and equipment, are reviewed to determine whether there is an indication that an asset may be impaired. If there is an indication of possible impairment, the recoverable amount of any asset or group of related assets, which is the higher of value in use and the fair value less cost to sell, is estimated and compared with its carrying amount. If the recoverable amount is lower, the carrying amount of the asset is reduced to its recoverable amount and an impairment loss is recognised immediately in profit or loss. |
|
If an impairment loss is subsequently reversed, the carrying amount of the asset or group of related assets is increased to the revised estimate of its recoverable amount, but not to exceed the amount that would have been determined had no impairment loss been recognised for the asset or group of related assets in prior periods. A reversal of an impairment loss is recognised immediately in profit or loss. |
|
Investments |
Unlisted investments are recognised at cost. |
|
4. | EMPLOYEES AND DIRECTORS |
|
|
5. | PROFIT BEFORE TAXATION |
|
The profit is stated after charging: |
|
2022 | 2021 |
£ | £ |
Depreciation - owned assets |
|
|
Auditors remuneration - audit |
|
|
|
6. | TAXATION |
|
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2022 | 2021 |
£ | £ |
Current tax: |
UK corporation tax |
|
|
|
Deferred tax |
|
( |
) |
Tax on profit |
|
|
Echo Studios Holdings Limited (Registered number: 08474721) |
|
Notes to the Financial Statements - continued |
for the Year Ended 30th June 2022 |
|
|
6. | TAXATION - continued |
|
Reconciliation of total tax 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: |
|
2022 | 2021 |
£ | £ |
Profit before tax |
|
|
Profit multiplied by the standard rate of corporation tax in the UK of
|
|
|
|
Effects of: |
Adjust closing deferred tax to average rate | 3,519 | (46,363 | ) |
Fixed asset differences | (1,352 | ) | 49,964 |
Total tax charge | 35,845 | 30,303 |
|
Tax effects relating to effects of other comprehensive income |
|
2022 |
Gross | Tax | Net |
£ | £ | £ |
Notional interest on restated loan | ( |
) | - | (10,994 | ) |
|
2021 |
Gross | Tax | Net |
£ | £ | £ |
Notional interest on restated loan | ( |
) | - | (29,879 | ) |
|
7. | DIVIDENDS |
2022 | 2021 |
£ | £ |
Ordinary-A shares of £1.00 each |
Interim |
|
|
Echo Studios Holdings Limited (Registered number: 08474721) |
|
Notes to the Financial Statements - continued |
for the Year Ended 30th June 2022 |
|
|
8. | TANGIBLE FIXED ASSETS |
Fixtures |
Freehold | Plant and | and |
property | machinery | fittings | Totals |
£ | £ | £ | £ |
COST |
At 1st July 2021 |
|
|
|
|
Additions |
|
|
|
|
At 30th June 2022 |
|
|
|
|
DEPRECIATION |
At 1st July 2021 |
|
|
|
|
Charge for year |
|
|
|
|
At 30th June 2022 |
|
|
|
|
NET BOOK VALUE |
At 30th June 2022 |
|
|
|
|
At 30th June 2021 |
|
|
|
|
|
Included in cost of land and buildings is freehold land of £ 1,016,180 (2021 - £ 1,016,180 ) which is not depreciated. |
|
9. | FIXED ASSET INVESTMENTS |
Shares in |
group | Unlisted |
undertakings | investments | Totals |
£ | £ | £ |
COST |
At 1st July 2021 |
and 30th June 2022 |
|
|
5,840,000 |
NET BOOK VALUE |
At 30th June 2022 |
|
|
5,840,000 |
At 30th June 2021 |
|
|
5,840,000 |
|
The company's investments at the Balance Sheet date in the share capital of companies include the following: |
|
|
Registered office: Sovereign House, 155 High Street, Aldershot, Hampshire GU11 1TT |
Nature of business:
|
% |
Class of shares: | holding |
|
|
2022 | 2021 |
£ | £ |
Aggregate capital and reserves |
|
|
Profit for the year |
|
|
Echo Studios Holdings Limited (Registered number: 08474721) |
|
Notes to the Financial Statements - continued |
for the Year Ended 30th June 2022 |
|
|
10. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2022 | 2021 |
£ | £ |
Amounts owed by group undertakings |
|
|
Prepayments and accrued income |
|
|
|
|
|
11. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2022 | 2021 |
£ | £ |
Trade creditors |
|
|
Other creditors | 34,429 | 350,645 |
Amounts owed to group undertakings |
|
|
Corporation tax |
|
|
VAT | 19,686 | 23,324 |
Accruals and deferred income |
|
|
|
|
|
12. |
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR |
2022 | 2021 |
£ | £ |
Other creditors |
|
|
|
13. | PROVISIONS FOR LIABILITIES |
2022 | 2021 |
£ | £ |
Deferred tax |
Accelerated capital allowances |
|
|
|
Deferred |
tax |
£ |
Balance at 1st July 2021 |
|
Charge to Statement of Comprehensive Income during year |
|
Balance at 30th June 2022 |
|
|
14. | CALLED UP SHARE CAPITAL |
|
|
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2022 | 2021 |
value: | £ | £ |
|
Ordinary-A | £1.00 | 1,000,000 | 1,000,000 |
|
The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the company. All ordinary shares rank equally with regard to the company's residual assets. |
Echo Studios Holdings Limited (Registered number: 08474721) |
|
Notes to the Financial Statements - continued |
for the Year Ended 30th June 2022 |
|
|
15. | RESERVES |
Capital |
Retained | redemption | Other |
earnings | reserve | reserves | Totals |
£ | £ | £ | £ |
|
At 1st July 2021 |
|
|
|
7,314,462 |
Profit for the year |
|
|
Capital contribution - |
restatement of loan to present |
value | - | - | (10,994 | ) | (10,994 | ) |
At 30th June 2022 |
|
|
|
7,444,874 |
|
Other reserves - This is the capital contribution reserve which represents a capital contribution arising on a loan received from the shareholders at a below-market rate of interest. |
|
Capital redemption reserve - This reserve is a non-distributable reserve and represents the nominal value of shares purchased and cancelled. |
|
Retained earnings reserve - This reserve represents retained earnings available for distribution. |
|
16. | CONTINGENT LIABILITIES |
|
Together with its fellow group companies, the company has provided guarantees and security in support of group borrowings from Barclays Bank plc and P Cardwell. |
|
The security provided comprises fixed and floating charges over all property and undertaking of the business. |
|
17. | RELATED PARTY DISCLOSURES |
|
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
|
Echo Studios Holdings Limited is a wholly owned subsidiary of Echo House Limited, which prepares group financial statements. Its registered office is at Griffin House, 135 High Street, Crawley, West Sussex, United Kingdom, RH10 1DQ. |
|
The company's key management personnel are considered to be the directors. |
|
The ultimate controlling party is M D Cardwell. |