DUSTY_TOURING_LIMITED - Accounts

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

For the financial period ended 31 August 2017 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.

The member has not required the company to obtain an audit of its financial statements for the period in question in accordance with section 476.

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

Dusty Touring Limited is a private company limited by shares incorporated in England and Wales. The registered office is 6th Floor, Blackfriars House, Parsonage, Manchester, M3 2JA.

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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

The directors have undertaken a rigorous assessment of whether the company was a going concern when the accounts were prepared, considering all available information about the future, covering a period of 12 months from the date of approval of the accounts.

In common with other theatre production companies the company has made a loss in the first periods of trading pre the opening of the production. After the period end the pre-production stage has completed and the company have started to receive income for the sale of tickets. As a result of this, funds to meet the cashflow requirements of the business are now in place and the directors do not anticipate any material overspend. The directors are not aware of any material uncertainty arising from their assessment that would cast doubt on the company's ability to continue as a going concern. The directors are therefore satisfied that the going concern assumption remains appropriate.                        

The company's accounting period was shortened to cover the pre-production period of the show, creating a period shorter than one year, covering the period from 1 March 2017 to 31 August 2017. The comparative period was longer than one year, this was due to the company being incorporated on the 11th February 2016 with an accounting period end of 28th February 2017.

The comparative and current year amounts presented in the financial statements are therefore not entirely comparable.

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Pre show ticket sales are deferred until the production takes place, at this point the turnover will be recognised as income.

Cash at bank and in hand 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.

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, 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.

Trade debtors, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.

Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.

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, 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 payments 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. Amounts 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.

Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

The tax expense represents the sum of the tax currently payable and deferred 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 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.

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.

During the current and prior period the company made no critical judgements in applying the company's accounting policies.

The average monthly number of persons (including directors) employed by the company during the period was 2 (2017 - 2).

The actual credit for the period can be reconciled to the expected credit for the period based on the profit or loss and the standard rate of tax as follows:

The company has estimated losses of £562,974 (28.02.2017: £78,454) available for carry forward against future trading profits. A deferred tax asset has not been provided as the company does not expect to make a profit in the forseeable future.

A change to the UK corporation tax rate was announced in the Chancellor’s Budget on 16 March 2016.  The change announced is to reduce the main rate to 17% from 1 April 2020.  Changes to reduce the UK corporation tax rate to 19% from 1 April 2017 and to 18% from 1 April 2020 had already been substantively enacted on 26 October 2015.

After the year end on 16 October 2017, there was a charge registered at Companies House in respect of all monies due to or becoming due to Splinter Scenery Limited. Security is held in respect of a charge over the company's current and future Theatre Tax Credit repayable to the company. The charge amounted to £78,054 and has been fully satisfied.

After the year end on 17 November 2017, there was a charge registered at Companies House in respect of all monies due to or becoming due to Grosvenor Bridging Limited. Security is held in respect of a charge over the company's current and future assets of the borrower for the term of this debenture. The charge amounts to £63,750.

During the period the company operated a loan account with it's parent company, Five Foot 2 Blonde Limited. Five Foot 2 Blonde Limited advanced £263,000 (28.02.2017: £94,780) to Dusty Touring Limited. At the balance sheet date Dusty Touring Limited owed £357,780 (28.02.2017: £94,780) to Five Foot 2 Blonde Limited and this is included within other creditors. This loan is interest free and there are no fixed repayment terms.

During the period the company operated a loan account with connected company Grosvenor Bridging Limited. Grosvenor Bridging Limited advanced £16,000 to Dusty Touring Limited and there were no repayments. After incorporating interest of £35 for the period, a balance of £16,035 (28.02.2017: £nil) was due to Grosvenor Bridging Limited at the balance sheet date and is included within other creditors.

The company was under the control of Andrew Berg by virtue of his day to day running of the business.

The company is wholly owned by Five Foot 2 Blonde Limited and Mr F Madden is the beneficial owner.