Audio Visual Services Corporation Limite - Limited company accounts 18.2

REGISTERED NUMBER: 01133706 (England and Wales)

REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2018

FOR

AUDIO VISUAL SERVICES CORPORATION

LIMITED

Page

Company Information

1

Report of the Directors

2

to

3

Report of the Independent Auditors

4

to

5

Statement of Comprehensive Income

6

Statement of Financial Position

7

Statement of Changes in Equity

8

Notes to the Financial Statements

9

to

17

DIRECTORS:

Mr J M McIlwain

Mr P C Hill

SECRETARY:

Mrs R J Lane

REGISTERED OFFICE:

Union Business Park

Florence Way

Uxbridge

Middlesex

UB8 2LS

REGISTERED NUMBER:

01133706 (England and Wales)

AUDITORS:

Seymour Taylor Audit Limited, Statutory Auditor

57 London Road

High Wycombe

Buckinghamshire

HP11 1BS

SOLICITORS:

Berwin Leighton Paisner

Adelaide House

London Bridge

London

EC4R 9HA

The directors of Audio Visual Corporation Limited (the company) present their report and financial statements

for the year ended 31 December 2018.

RESULTS AND DIVIDENDS

The company's net profit for the year after taxation amounted to £4,835,000 (2017: £1,655,000). The directors

do not recommend a final dividend (2017 - nil).

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2018 to the date of

this report.

Mr J M McIlwain

Mr P C Hill

SMALL COMPANY PROVISIONS

This report has been prepared in accordance with the provisions applicable to companies entitled to the small

companies exemption.

Directors have also take advantage of the small companies' exemption from the requirement to prepare a

Strategic Report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing 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), including

Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of

Ireland'. 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 ought to have taken as a director in order to make himself aware of any relevant audit information and

to establish that the company's auditors are aware of that information.

AUDITORS

In accordance with section 485 of the Companies Act 2006, a resolution is to be proposed at the Annual

General Meeting to reappoint Seymour Taylor Audit Limited as auditor of the company.

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006

relating to small companies.

ON BEHALF OF THE BOARD:

Mr P C Hill - Director

27 September 2019

Opinion

We have audited the financial statements of Audio Visual Services Corporation Limited (the 'company') for the

year ended 31 December 2018 which comprise the Statement of Comprehensive Income, Statement of

Financial Position, 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 Financial Reporting

Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United

Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 December 2018 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

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.

Other information

The directors are responsible for the other information. The other information comprises the information in 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 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 the audit:

-	the information given in the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Report of the Directors has been prepared in accordance with applicable legal requirements.

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 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; or

-	the directors were not entitled to take advantage of the small companies' exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Directors.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page two, 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.

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.

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.

Elizabeth Horton FCCA ACA (Senior Statutory Auditor)

for and on behalf of Seymour Taylor Audit Limited, Statutory Auditor

57 London Road

High Wycombe

Buckinghamshire

HP11 1BS

27 September 2019

TURNOVER

3

5,836

5,676

Cost of sales

4,503

4,138

GROSS PROFIT

1,333

1,538

Administrative expenses

965

884

368

654

Other operating income

4,507

-

OPERATING PROFIT and

PROFIT BEFORE TAXATION

4,875

654

Tax on profit

8

40

(1,001

)

PROFIT FOR THE FINANCIAL YEAR

4,835

1,655

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

4,835

1,655

FIXED ASSETS

Tangible assets

9

431

446

CURRENT ASSETS

Debtors

10

2,959

2,597

Cash at bank

85

581

3,044

3,178

CREDITORS

Amounts falling due within one year

11

896

5,880

NET CURRENT ASSETS/(LIABILITIES)

2,148

(2,702

)

TOTAL ASSETS LESS CURRENT LIABILITIES

2,579

(2,256

)

CAPITAL AND RESERVES

Called up share capital

14

5,198

5,198

Retained earnings

15

(2,619

)

(7,454

)

SHAREHOLDERS' FUNDS

2,579

(2,256

)

The financial statements were approved by the Board of Directors on 27 September 2019 and were signed on its behalf by:

Mr P C Hill - Director

Called up

share

Retained

Total

capital

earnings

equity

£'000

£'000

£'000

Balance at 1 January 2017

5,198

(9,109

)

(3,911

)

Changes in equity

Total comprehensive income

-

1,655

1,655

Balance at 31 December 2017

5,198

(7,454

)

(2,256

)

Changes in equity

Total comprehensive income

-

4,835

4,835

Balance at 31 December 2018

5,198

(2,619

)

2,579

1.	STATUTORY INFORMATION

Audio Visual Services Corporation Limited is a private company, limited by shares, registered in

England and Wales. The company's registered office and principal place of business was 242-243

Gresham Road, Slough, Berkshire, SL1 4PH until 26 July 2019. The company then moved their

registered office and principal place of business to Union Business Park, Florence Way, Uxbridge,

Middlesex, UB8 2LS. The registered number is 01133706.

The principal activity of the company during the year was that of the provision of audiovisual, video,

sound and special equipment hire and sales services in hotels.

The financial statements are presented in the currency of the primary economic environment in which

the entity operates (its functional currency), as such, the results and statement of financial position are

presented in Sterling (£   ). Monetary amounts in these financial statements are rounded to the

nearest thousand unless otherwise stated.

The significant accounting policies applied in the preparation of these financial statements are set out

below. These policies have been consistently applied to all years presented unless otherwise stated.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with applicable United Kingdom

accounting standards, including Financial Reporting Standard 102 - 'The Financial Reporting Standard

applicable in the United Kingdom and Republic of Ireland' ('FRS 102'), and with the Companies Act

2006. The financial statements have been prepared on the historical cost basis.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemption in preparing these financial

statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and

Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows.

Revenue recognition

Revenue is recognised to the extent that the company obtains right to consideration in exchange for its

performance. Revenue is measured at the fair value of the consideration received, excluding

discounts, rebates, VAT and other sales tax or duty. Revenue is recognised as follows:

Rendering of services

Customers hire equipment for a specific period of time. Orders are taken at the beginning of the hire period with income being recognised at the end of the hire period or on a monthly basis for hire periods longer than a month.

Tangible fixed assets

All tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment

losses. Such costs include costs directly attributable to making the asset capable of operating as

intended.

Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost of each

asset evenly over its expected useful life, as follows:

Leasehold improvements - over the term of the lease

Plant and machinery - 4 to 5 years

Fixtures and fittings - 3 to 5 years

The carrying values of tangible fixed assets are reviewed for impairment when events or changes in

circumstances indicate the carrying value may not be recoverable.

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 tax is recognised at the amount of tax payable using the tax rates and laws that have been

enacted or substantively enacted by the statement of financial position date.

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at

the statement of financial position 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.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at

the statement of financial position date. Transactions in foreign currencies are translated into sterling

at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account

in arriving at the operating result.

Operating lease agreements

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the

period of the lease.

Assets held under operating leases are leases where substantially all of the risks and rewards of

ownership of the assets remain with the lessor.

Pensions

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.

Financial instruments

The company has applied the provision of Section 11 'Basic Financial Instruments' and Section 12

'Other Financial Instrument Issues' of FRS 102 to all of its financial instruments.

Financial instruments are classified and accounted for, according to the substance of the contractual

arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument

is any contract that evidences a residual interest in the assets of the company after deducting all of its

liabilities.

Where the contractual obligations of financial instruments (including share capital) are equivalent to a

similar debt instrument, those financial instruments are classed as financial liabilities. Financial

liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to

financial liabilities are included in the profit and loss account. Finance costs are calculated so as to

produce a constant rate of return on the outstanding liability.

Where the contractual terms of share capital do not have any terms meeting the definition of a

financial liability then this is classed as an equity instrument. Dividends and distributions relating to

equity instruments are debited direct to equity.

Impairment of financial assets

At each period end date, the company reviews the carrying amounts of its financial assets to determine

whether there is any indication that those assets have suffered an impairment loss. If any such

indication exists, the recoverable amount of the asset is estimated in order to determine the extent of

the impairment loss (if any).

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying

amount is reduced to its recoverable amount, with the impairment recognised immediately in the

statement of income and retained earnings.

Critical accounting estimates and judgements

In the application of the company's accounting policies, the directors are required to make judgements,

estimates and assumptions about the carrying amounts of assets and liabilities that are not readily

apparent from other sources. The estimates and associated assumptions are based on historical

experience and other factors that are considered relevant. Actual results may differ from these

estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting

estimates are recognised in the period in which the estimate is revised, if the revision affects only that

period, or in the period of the revision and future periods if the revision affects both current and future

periods.

The areas for which estimation has been applied are considered to be in calculating depreciation and

the useful economic life of assets. Although these areas are subject to judgement, they are not

considered to be subject to significant estimation.

3.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

2018

2017

£'000

£'000

United Kingdom

5,786

5,564

Europe

27

88

Rest of the World

23

24

5,836

5,676

4.	EMPLOYEES AND DIRECTORS

2018

2017

£'000

£'000

Wages and salaries

1,724

1,539

Social security costs

175

160

Other pension costs

47

41

1,946

1,740

The average number of employees during the year was as follows:

2018

2017

Office and management

14

14

Sales and servicing

43

42

57

56

Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2018

2017

£'000

£'000

Aggregate compensation

118

58

5.	DIRECTORS' EMOLUMENTS

2018

2017

£

£

Directors' remuneration

-

-

Pension contribution

-

-

-

-

Two directors received no remuneration for their services in respect of the company in the current

year. These directors' remuneration is borne by other companies within the Group. For one of these

directors, their time spent on the activities of the company is negligible. The second director is

remunerated through another Group company for any time spent on this company.

6.	OPERATING PROFIT

The operating loss is stated after charging:

2018

2017

£'000

£'000

Depreciation - owned assets

258

187

Loss on disposal of fixed assets

-

10

Auditors' remuneration

26

19

Foreign exchange differences

18

14

Operating leases - land and buildings

132

93

Other operating leases

2

11

7.	EXCEPTIONAL ITEMS

During the year ended 31 December 2018 AVSC Europe Limited, a fellow group company, waived an

amount payable of £4,506,759. This balance is reflected in the statement of comprehensive income as

other operating income.

8.

TAXATION

Analysis of the tax charge/(credit)

The tax charge/(credit) on the profit for the year was as follows:

2018

2017

£'000

£'000

Deferred tax

40

(1,001

)

Tax on profit

40

(1,001

)

UK corporation tax has been charged at 19% (2017 - 19.25%).

Reconciliation of total tax charge/(credit) included in profit and loss

The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The

difference is explained below:

2018

2017

£'000

£'000

Profit before tax

4,875

654

Profit multiplied by the standard rate of corporation tax in the UK of 19% (2017 - 19.250%)

926

126

Effects of:

Expenses not deductible for tax purposes

10

3

Capital allowances in excess of depreciation

(18

)

(45

)

Tax losses utilised

(62

)

(84

)

Deferred tax movement

40

(1,001

)

Income from participating interests

(856

)

-

Total tax charge/(credit)

40

(1,001

)

Factors that may affect future tax charges

Deferred tax assets are recognised only to the extent that the directors consider that it is more likely

than not that there will be suitable taxable profits from which the future reversal of the underlying timing

differences can be deducted.

The corporation tax main rate in the UK is currently at 19% and this is planned to reduce to 17% from

1 April 2020. As a result of the change, the relevant deferred tax balances have been measured using

the rate expected to apply on the reversal of the timing difference.

There are no expiry dates in respect of the above timing differences and unused tax losses.

9.	TANGIBLE FIXED ASSETS

Improvements

Fixtures

to

Plant and

and

property

machinery

fittings

Totals

£'000

£'000

£'000

£'000

COST

At 1 January 2018

223

958

172

1,353

Additions

2

227

14

243

At 31 December 2018

225

1,185

186

1,596

DEPRECIATION

At 1 January 2018

162

587

158

907

Charge for year

27

220

11

258

At 31 December 2018

189

807

169

1,165

NET BOOK VALUE

At 31 December 2018

36

378

17

431

At 31 December 2017

61

371

14

446

10.

DEBTORS

2018

2017

£'000

£'000

Amounts falling due within one year:

Trade debtors

1,422

1,006

Amounts owed by group undertakings

456

456

Other debtors

2

20

Deferred tax asset

57

113

Prepayments and accrued income

78

75

2,015

1,670

Amounts falling due after more than one year:

Deferred tax asset

905

888

Prepayments and accrued income

39

39

944

927

Aggregate amounts

2,959

2,597

11.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2018

2017

£'000

£'000

Trade creditors

217

271

Amounts owed to group undertakings

215

5,316

Social security and other taxes

97

58

VAT

203

117

Accruals and deferred income

164

118

896

5,880

12.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

2018

2017

£'000

£'000

Within one year

139

117

Between one and five years

33

147

172

264

13.	DEFERRED TAX

£'000

Balance at 1 January 2018

(1,001

)

Tax losses utilised

20

Capital allowances in excess

of depreciation

19

Balance at 31 December 2018

(962

)

14.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2018

2017

value:

£'000

£'000

5,198,100

Ordinary

£1

5,198

5,198

15.

RESERVES

Called-up share capital - This represents the nominal value of shares that have been issued.

Retained earnings - This distributable reserve records retained earnings and accumulated losses.

16.	PENSION COMMITMENTS

The company operates a defined contribution pension scheme. The pension costs charged to the

income statement represent contributions payable by the company to the fund in the year and

amounted to £47,456 (2017: £40,880).