Montgomery Exhibitions Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 01242502 (England and Wales)

AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020

FOR

MONTGOMERY EXHIBITIONS LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

I R Angus

D B Angus

SECRETARY:

G M Tsangari

REGISTERED OFFICE:

9 Manchester Square

London

London

W1U 3PL

REGISTERED NUMBER:

01242502 (England and Wales)

SENIOR STATUTORY AUDITOR:

Christopher Kay

AUDITORS:

Thorne Lancaster Parker

Chartered Accountants &

Statutory Auditors

4th Floor

Venture House

27-29 Glasshouse Street

London

W1B 5DF

FIXED ASSETS

Intangible assets

5

25,482

28,314

Property, plant and equipment

6

-

-

25,482

28,314

CURRENT ASSETS

Debtors

7

106,460

149,281

Cash at bank

-

2,491

106,460

151,772

CREDITORS

Amounts falling due within one year

8

58,713

108,524

NET CURRENT ASSETS

47,747

43,248

TOTAL ASSETS LESS CURRENT LIABILITIES

73,229

71,562

CAPITAL AND RESERVES

Called up share capital

10

1

1

Share premium

249

249

Retained earnings

72,979

71,312

SHAREHOLDERS' FUNDS

73,229

71,562

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 18 March 2021 and were signed on its behalf by:

D B Angus - Director

1.	STATUTORY INFORMATION

Montgomery Exhibitions Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

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

2.	STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the company are consolidated in the financial statements of Angus Montgomery Limited. The consolidated financial statements of Angus Montgomery Limited are available from it's registered office.

Significant judgements and estimates

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including explanations of future events that are believe to be reasonable under the circumstances.

a) Critical accounting estimates and assumptions

The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below;

(i) Useful economic life of intangible assets.

The annual amortisation charge for intangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on the performance of the relevant shows. The useful economic life of intangible assets is considered to be 20 years.

Going concern

Due to the material uncertainty arising as a direct result of the disruption caused by the Covid 19 virus the directors have reviewed the Company's ability to continue as a going concern taking into account the potential impact on the Company's future cashflows. The directors have stress tested the 12-month period cashflows to 31 March 2022 by reducing sales and cash collection to a materially unusual amount.

If the company were unable to continue in operational existence for the foreseeable future, adjustments would have to be made to reduce the balance sheet values of assets to their recoverable amounts, and to provide for further liabilities that might arise, and to reclassify fixed assets and long-term liabilities as current assets and liabilities.

Revenue recognition

Revenue represents the income receivable from the organisation and management of exhibitions that occur in the financial period, net of value added tax.

Revenue is recognised at the fair value of the consideration received or receivable for sale of goods to external customers in the ordinary nature of the business. The fair value of the consideration takes into account trade discounts, settlement discounts and volume rebate.

Income and directly allocable costs arising from exhibitions are to be taken to the profit and loss account in the financial period in which the relevant exhibitions take place. Income and directly related costs arising from exhibitions to be held at a date subsequent to the balance sheet date are not taken to the profit and loss account but are treated as deferred exhibition income and deferred expenditure and included in the balance sheet as deferred exhibition income and deferred exhibition costs respectively.

Intangible assets

Intangible assets are stated at cost on acquisition less accumulated amortisation and accumulated impairment losses. Amortisation is calculated using the straight-line method to allocate the depreciable amount of the assets to their residual values over their estimated useful life as follows:

Exhibition rights - over 20 years.

Amortisation is charged as Administrative expenses in the Statement of Comprehensive Income.

The assets are reviewed for impairment if the above factors indicate that the carrying amount may be impaired.

Government grants

As part of the government's support for the impact of Covid-19 the company has made claims under the Coronavirus job retention scheme. The grant relating to revenue shall be recognised as income on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate.

Current taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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 taxation

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.

Foreign currencies

The financial statements are presented in sterling which is also the the functional currency of the company.

Transactions in currencies other than the functional currency (foreign currencies) are initially recorded at the standard exchange rate ruling for the period..

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the reporting date.

Non-monetary assets and liabilities denominated in foreign currencies are translated at the rate ruling at the date of the transaction or, if the asset or liability is measured at fair value, the rate when that fair value was determined.

All translation differences are taken to profit or loss, except to the extent that they relate to gains or losses on non-monetary items recognised in other comprehensive income, when the related translation gain or loss is also recognised in other comprehensive income.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Financial instruments

The company has chosen to adopt Section 11 of FRS 102 in respect of financial instruments as it has only basic financial instruments.

a) Basic financial assets

Trade and other debtors, loans to fellow group companies, loans to related companies, other debtors and bank balances, which are due within one year are initially recognised at transaction price and subsequently carried at amortised cost being the transaction price less any amounts settled and any impairment losses.

At the end of each reporting period basic financial assets measured at amortised cost are assessed for objective evidence of impairment. 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 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.

A financial asset is derecognised only when the contractual rights to cash flows expire or are settled, or substantially all the risks and rewards of ownership are transferred to another party, 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.

b) Basic financial liabilities and equity

Financial liabilities are classified as liabilities and equity instruments 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.

Trade creditors, other creditors and loans from fellow group and related companies are initially recognised at transaction price and subsequently carried at amortised cost, being transaction price less any amounts settled.

Bank overdrafts and invoice discounting facility are presented within creditors: amounts falling due within one year.

Other loans are initially recognised at the transaction price, including transaction costs and subsequently measured at amortised cost using the effective interest method. Interest expense is recognised on the basis of the effective interest method and is included in interest payable and other similar charges.

Basic financial liabilities are derecognised when the contractual obligation is discharged, cancelled or expired.

c) Equity instruments

The ordinary share capital of the company is classified as equity and recorded at fair value of the cash or other resources received or receivable, net of direct costs of issuing the equity instruments.

Cash and cash equivalents

Cash and cash equivalents in the balance sheet comprise cash at banks and in hand and short term deposits with an original maturity date of three months or less.

4.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 2 (2019 - 2 ) .

5.	INTANGIBLE FIXED ASSETS

Exhibition

rights

£

COST

At 1 July 2019

and 30 June 2020

56,628

AMORTISATION

At 1 July 2019

28,314

Amortisation for year

2,832

At 30 June 2020

31,146

NET BOOK VALUE

At 30 June 2020

25,482

At 30 June 2019

28,314

6.	PROPERTY, PLANT AND EQUIPMENT

Computer

equipment

£

COST

At 1 July 2019

and 30 June 2020

38,428

DEPRECIATION

At 1 July 2019

and 30 June 2020

38,428

NET BOOK VALUE

At 30 June 2020

-

At 30 June 2019

-

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Trade debtors

28,098

26,529

Amounts owed by group undertakings

54,391

28,677

Deferred tax asset

4,300

4,300

Prepayments and accrued income

19,671

89,775

106,460

149,281

Trade debtors are stated after provisions for impairment of £59,147 (2019: £58,397).

Amounts owed by group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Other creditors

8,608

13,754

Accruals and deferred income

50,105

94,770

58,713

108,524

9.	FINANCIAL INSTRUMENTS

The company has the following financial instruments:

Financial assets that are debt instruments

2020

2019

measured at amortised cost

£

£

Trade receivables

28,098

26,529

Amounts due from group undertakings

54,391

28,677

82,489

55,206

Financial liabilities that are debt instruments

2020

2019

measured at amortised cost

£

£

Other creditors

8,608

13,754

Accruals

50,105

94,770

58,713

108,524

10.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2020

2019

value:

£

£

10

Ordinary

10p

1

1

11.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Emphasis of matter

We draw your attention to the disclosures in the, directors report, notes to the financial statements and the accounting policies in relation to the material uncertainty that exists in relation to the impact of Covid 19 on the Company's ability to continue as a going concern. We have reviewed the directors assertions in relation to cashflow and forecasts over the next 12 months and consider these to be adequately disclosed in the financial statements. As such we emphasise this matter but our report is not qualified in respect of this matter.

Christopher Kay (Senior Statutory Auditor)

for and on behalf of Thorne Lancaster Parker

Date: 23 March 2021

12.	CONTINGENT LIABILITIES

The company has a composite accounting and cross-guarantee banking arrangement with fellow group companies and at the balance sheet date total amount outstanding under the arrangement was £5.66m.

13.	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.

Key Management Personnel

Mr I R Angus and Mr D B Angus are considered to be the key management personnel and the details of their remuneration is disclosed in the consolidated accounts of Angus Montgomery Limited.

14.	FRC ETHICAL STANDARD - PROVISIONS AVAILABLE FOR SMALL ENTITIES

In common with many other businesses of our size and nature we use our auditors to prepare and submit returns to the tax authorities and assist with the preparation of the financial statements.

15.	POST BALANCE SHEET EVENTS

In February 2020 a global pandemic was declared due to the Covid-19 virus. The subsequent worldwide economic disruption has the potential to impact on all sectors.

Due to the continued uncertainty around the Covid-19 pandemic, the company has had to cancel its live events for the year ended 30 June 2021 and the company has received insurance compensation for loss of earnings as a result of the event being cancelled.

The company like all companies within the live events sector has been through tough trading conditions since the 30th June 2020. However, the company along with its fellow group companies is managing its finances and getting through these tough trading conditions with the help of insurance, government grants and prudent cost control measures. The roll out of effective Covid-19 vaccines is expected to change the landscape which will result in live events happening again. In the UK this is expected to be from 17th May 2021 with limited capacity and with no restrictions from 21st June 2021.

16.	ULTIMATE CONTROLLING PARTY

Angus Montgomery Limited is the immediate and ultimate parent undertaking of Montgomery Exhibitions Limited.

The trustees of The Montgomery Trust are considered to be the ultimate controlling party as The Montgomery Trust is the controlling shareholder of Angus Montgomery Limited.