Tokyo Group Limited and its Subsidiaries - Limited company accounts 18.2

REGISTERED NUMBER: 06462216 (England and Wales)

GROUP STRATEGIC REPORT, REPORT OF THE DIRECTOR AND

AUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2017

FOR

TOKYO GROUP LIMITED AND ITS SUBSIDIARIES

Page

Company Information

1

Group Strategic Report

2

Report of the Director

4

Report of the Independent Auditors

6

Consolidated Statement of Comprehensive Income

8

Consolidated Balance Sheet

9

Company Balance Sheet

10

Consolidated Statement of Changes in Equity

11

Company Statement of Changes in Equity

12

Consolidated Cash Flow Statement

13

Notes to the Consolidated Financial Statements

14

DIRECTOR:

A Mellor

REGISTERED OFFICE:

1 City Road East

Manchester

M15 4PN

REGISTERED NUMBER:

06462216 (England and Wales)

AUDITORS:

KAY JOHNSON GEE LLP

CHARTERED ACCOUNTANTS AND STATUTORY AUDITORS

1 City Road East

Manchester

M15 4PN

The director presents his strategic report of the company and the group for the year ended 31st December 2017.

REVIEW OF BUSINESS

Tokyo Group is the parent company of Tokyo Industries, operators of 36 of the UKs coolest bars, music venues and

festivals. We believe music should feel personal & independent and we've never really followed that 'cookie cutter' roll

out model. Instead we chose individual venues in truly great buildings each with their own style, personality and their

own reflection of local music requirements. This deliberate process keeps us fresh, boutique and musically savvy, whilst

enjoying the back office synergy and group purchasing power of a national group.

In doing so, we chose the parent company to remain relatively silent and allow the individual brands to carry the

profile and creativity, meaning that often our venues are better known than the company structure behind them. Our

UK estate includes some of the most well known music venues in the UK, from DIGITAL Newcastle (voted 11th Best

club in the World) to FIBBERS York (one the the UKs most loved grass roots Tokyo Group is the parent company of

Tokyo Industries, operators of 36 of the UKs coolest bars, music venues and festivals. We believe music should feel

personal & independent and we've never really followed that 'cookie cutter' roll out model. Instead we chose

individual venues in truly great buildings each with their own style, personality and their own reflection of local music

requirements. This deliberate process keeps us fresh, boutique and musically savvy, whilst enjoying the back office

synergy and group purchasing power of a national group.

In doing so, we chose the parent company to remain relatively silent and allow the individual brands to carry the

profile and creativity, meaning that often our venues are better known than the company structure behind them. Our

UK estate includes some of the most well known music venues in the UK, from DIGITAL Newcastle (voted 11th Best

club in the World) to FIBBERS York (one the the UKs most loved grass roots live music venues to FACTORY251 in

Manchester (set in the former Factory Records Head office) and CHURCH Leeds (set in an incredible 1820s Church). We

also operate large format festivals from www.LostVillageFestival.com in Lincolnshire to

www.LiveFromTimesSquare.com in Newcastle. The Festival market in the UK is evolving and its something we are keen

to evolve with.

A logical expansion for the group has been international events including collaborating with Cirque du Soleil and

Michelin chief Ferran Adriá on a concept called Boogie in Wonderland at the exclusive HEART Club in Ibiza. An

immersive 'Fashion meets Art meets Food meets Music'. It is very much targeted towards a higher end of clientele on

the island and has already attracted a loyal following having operated again this year.

We continue to invest in our existing UK estate to keep our venues fresh and technologically advanced. The majority of

our UK estate is primarily student focused and we are continuingly seeing the challenging impact of increased student

fees and abolition of maintenance grants. Too often price promotions are needed to compete locally and we negotiate

robustly with suppliers in an attempt to maintain our margin. It should be recognised that our Oldham venue remains

closed. Since the installation of the new MetroLink tram system the local market has seen a substantial decline as it has

become much cheaper to travel into Manchester where there is much more choice. To stem the operating losses we

elected to close the venue last year and we continue to consider our options for this site.

We pride ourselves on operating a lean and efficient head office structure and we continue to explore new

technologies and systems that allow us to operate more effectively. We have restructured our sales and marketing

team and have decentralised the function so we can be more nimble and reactive to local markets. We have also

diverted much of our marketing spends towards online and social media to reflect the behaviours of our customers.

We regularly experiment with different types of marketing initiatives and media to ensure resources are used as

effectively as possible.

FINANCIAL RESULTS

2017

2016

Variance

Variance

£

£

£

%

Turnover

4,750,362

4,750,362

(303,486

)

(6%

)

Gross profit

3,907,423

3,907,423

(253,439

)

(6%

)

Administrative expenses

2,944,631

2,944,631

(189,175

)

(6%

)

EBITDA

1,162,792

1,162,792

218,454

19%

The group has delivered another strong set of financial results in what continues to be a challenging and competitive

market place.

It should be noted that Tokyo Group represents only 4 venues (3 trading) of the overall trading estate and further

results can be viewed via the statutory accounts filed under their separate operating companies Tokyo Industries

(Ultimate) Ltd, FAC251 Ltd, Tokyo Industries (Lincoln York Hull) Ltd, Tokyo Industries (Bradford) Ltd, Tokyo Industries

(Leeds) Ltd, Stein Bierkeller Ltd, Brewhaus Ltd & Tiki-O (Bradford) Ltd.

This operating companies turnover is £4.4m which represents a decrease of £303k (6%) decrease year-on-year. One of

the main reasons for the drop in turnover is that we changed our business model for Boogie in Wonderland in Ibiza

from an fully service delivery to a management model with the club covering costs but maintaining admission income

to minimise financial risk & local currency impact. This has been a resounding success and allowed us to maintain a

high profile presence on the island without the requisite cost base. Despite the overall drop in events for the group

(22% due in part to Ibiza) average attendances per session were 795 versus 680 which represent a substantial increase

of 17%. Spends per head were increased by 1% to £11.74 versus £11.67 in the previous year. This is largely attributable

to Digital Newcastle which continues to dominate the local market despite increased competition.

Overall Gross profit margin was 82% versus prior year of 82%. Direct costs and overheads continue to be well

controlled with the majority of areas recognising savings year-on-year despite the impact of the national minimum

wage and business rates hikes. This is further illustrated by the 6% decrease in administrative expenses year-on-year

which is entirely attributable to headcount savings in the area of operations & marketing.

EBITDA was £1.38m versus a profit of £1.16m in prior year. This was primarily due to overhead savings, improved

trading performance at Digital Newcastle and the new financial structure for our Boogie in Wonderland project.

We continue to focus on some exciting international developments for the forthcoming year including a live music &

events space in Los Angeles and a Croatian private island resort 'Obonjan Island'. It remains a firm objective of ours to

further diversify the group so we are not entirely invested in one particular territory or industry.

Aaron Mellor, the Groups Managing Director, is pleased with the results and continues to look for further opportunities

to expand the estate should the right opportunities present themselves. Aaron Mellor comments "These are exciting

times for our industry, as music and entertainment become a more 'on-demand' service we need to give guests a more

immersive production led experience, this is something we are really enjoying and our new 2018 projects are some of

the best works we have ever created".

ON BEHALF OF THE BOARD:

A Mellor - Director

11th September 2018

The director presents his report with the financial statements of the company and the group for the year ended

31st December 2017.

DIVIDENDS

The directors recommend that no final dividends be paid.

The total distribution of dividends for the year ended 31st December 2017 will be nil (2016 - £100,000).

DIRECTOR

A Mellor held office during the whole of the period from 1st January 2017 to the date of this report.

DISCLOSURE IN THE STRATEGIC REPORT

The Company has chosen, in accordance with Section 414 C(ii) of the Companies Act 2006, and as noted in this

Directors’ report, to include certain matters in its Strategic report that would otherwise be required to be disclosed in

this Directors’ report.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial

statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director

has 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 director must not

approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the

company and the group and of the profit or loss of the group for that period. In preparing these financial statements,

the director is 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 director is responsible for keeping adequate accounting records that are sufficient to show and explain the

company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the

company and the group and enable him to ensure that the financial statements comply with the Companies Act 2006.

He is also responsible for safeguarding the assets of the company and the group 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 director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act

2006) of which the group's auditors are unaware, and he 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 group's auditors are

aware of that information.

AUDITORS

Under section 487(2) of the Companies Act 2006 KAY JOHNSON GEE LLP, will be deemed to have been reappointed as

auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for

filing the accounts with the registrar, whichever is earlier.

ON BEHALF OF THE BOARD:

A Mellor - Director

11th September 2018

Opinion

We have audited the financial statements of Tokyo Group Limited and its Subsidiaries (the 'parent company') and its

subsidiaries (the 'group') for the year ended 31st December 2017 which comprise the Consolidated Statement of

Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in

Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement 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 group's and of the parent company affairs as at 31st December 2017 and of the group's 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 group 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 director's use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the director has not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the group'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 director is responsible for the other information. The other information comprises the information in the Group

Strategic Report and the Report of the Director, 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 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, 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.

Opinion 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 Group Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Director have 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 group and the parent company and its environment obtained in

the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of

the Director.

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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of director's remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page four, the director is 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 director determines 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 director is responsible for assessing the group's and the parent 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 director either intends to liquidate the group or the parent company or to cease

operations, or has 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.

Roger Blaskey (Senior Statutory Auditor)

for and on behalf of KAY JOHNSON GEE LLP

CHARTERED ACCOUNTANTS AND STATUTORY AUDITORS

1 City Road East

Manchester

M15 4PN

11th September 2018

TURNOVER

3

4,426,876

4,750,362

Cost of sales

792,892

842,939

GROSS PROFIT

3,633,984

3,907,423

Administrative expenses

2,855,457

3,183,117

778,527

724,306

Other operating income

200,000

200,000

OPERATING PROFIT

5

978,527

924,306

Interest receivable and similar income

590

1,472

979,117

925,778

Interest payable and similar expenses

6

60,916

105,612

PROFIT BEFORE TAXATION

918,201

820,166

Tax on profit

7

191,092

255,172

PROFIT FOR THE FINANCIAL YEAR

727,109

564,994

FIXED ASSETS

Intangible assets

10

58,104

124,065

Tangible assets

11

3,920,215

4,049,100

Investments

12

-

-

3,978,319

4,173,165

CURRENT ASSETS

Stocks

13

73,061

92,012

Debtors

14

3,587,219

1,828,792

Cash at bank and in hand

3,213,593

2,493,338

6,873,873

4,414,142

CREDITORS

Amounts falling due within one year

15

7,981,925

3,574,066

NET CURRENT (LIABILITIES)/ASSETS

(1,108,052

)

840,076

TOTAL ASSETS LESS CURRENT LIABILITIES

2,870,267

5,013,241

CREDITORS

Amounts falling due after more than one year

16

-

(2,850,000

)

PROVISIONS FOR LIABILITIES

20

(108,508

)

(128,591

)

NET ASSETS

2,761,759

2,034,650

CAPITAL AND RESERVES

Called up share capital

21

50

50

Retained earnings

22

2,761,709

2,034,600

SHAREHOLDERS' FUNDS

2,761,759

2,034,650

The financial statements were approved and authorised for issue by the director on 11th September 2018 and were

signed by:

A Mellor - Director

FIXED ASSETS

Intangible assets

10

-

-

Tangible assets

11

217,905

217,714

Investments

12

999,222

999,222

1,217,127

1,216,936

CURRENT ASSETS

Debtors

14

9,358,989

8,091,264

Cash at bank

993,704

904,213

10,352,693

8,995,477

CREDITORS

Amounts falling due within one year

15

7,755,231

3,755,070

NET CURRENT ASSETS

2,597,462

5,240,407

TOTAL ASSETS LESS CURRENT LIABILITIES

3,814,589

6,457,343

CREDITORS

Amounts falling due after more than one year

16

-

(2,850,000

)

PROVISIONS FOR LIABILITIES

20

(16,559

)

(34,175

)

NET ASSETS

3,798,030

3,573,168

CAPITAL AND RESERVES

Called up share capital

21

50

50

Retained earnings

22

3,797,980

3,573,118

SHAREHOLDERS' FUNDS

3,798,030

3,573,168

Company's profit for the financial year

224,862

81,358

The financial statements were approved and authorised for issue by the director on 11th September 2018 and were signed by:

A Mellor - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1st January 2016

50

1,569,606

1,569,656

Changes in equity

Profit for the year

-

564,994

564,994

Total comprehensive income

-

564,994

564,994

Dividends

-

(100,000

)

(100,000

)

Balance at 31st December 2016

50

2,034,600

2,034,650

Changes in equity

Profit for the year

-

727,109

727,109

Total comprehensive income

-

727,109

727,109

Balance at 31st December 2017

50

2,761,709

2,761,759

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1st January 2016

50

3,591,760

3,591,810

Changes in equity

Profit for the year

-

81,358

81,358

Total comprehensive income

-

81,358

81,358

Dividends

-

(100,000

)

(100,000

)

Balance at 31st December 2016

50

3,573,118

3,573,168

Changes in equity

Profit for the year

-

224,862

224,862

Total comprehensive income

-

224,862

224,862

Balance at 31st December 2017

50

3,797,980

3,798,030

Cash flows from operating activities

Cash generated from operations

25

281,398

1,524,628

Interest paid

(60,916

)

(105,612

)

Tax paid

(178,057

)

(207,420

)

Net cash from operating activities

42,425

1,211,596

Cash flows from investing activities

Purchase of tangible fixed assets

(119,164

)

(271,225

)

Sale of tangible fixed assets

-

4,289

Interest received

590

1,472

Net cash from investing activities

(118,574

)

(265,464

)

Cash flows from financing activities

Loan repayments in year

(300,000

)

(300,000

)

Amount introduced by directors

1,096,404

162,326

Equity dividends paid

-

(100,000

)

Net cash from financing activities

796,404

(237,674

)

Increase in cash and cash equivalents

720,255

708,458

Cash and cash equivalents at beginning of year

26

2,493,338

1,784,880

Cash and cash equivalents at end of year

26

3,213,593

2,493,338

1.	STATUTORY INFORMATION

Tokyo Group Limited is a private company limited by share capital, incorporated in England and Wales,

registration number 06462216. The address of the registered office is 1 City Road East, Manchester, M15 4PN.

The principal place of business is Suite 12, 2nd Floor, UCB House, 3 George Street, Watford, WD18 0BX.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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" and the Companies Act 2006. The

financial statements have been prepared under the historical cost convention.

The financial statements consolidate the accounts of Tokyo Group Limited and all of its subsidiary undertakings.

The results of subsidiaries acquired during the year are included from the effective acquisition date.

Related party exemption

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.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the

financial statements.

Significant judgements and estimates

In the application of the Group's accounting policies, management is required to make judgements, estimates

and assumptions about the carrying value of assets and liabilities that are not readily apparent from other

sources. The estimates and underlying 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 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.

Turnover

Turnover represents amounts recognised by the company in respect of goods and services supplied, exclusive

of Value Added Tax and trade discounts. Revenue principally consists of food, drink, admission charges, retro

discounts, management charges, which are recognised at the point of which the goods or services are provided,

rental income which is recognised on a straight line basis over the lease term, machine income, where net

takings are recognised as earned and retro income, which is measured at the fair value of the consideration

received or receivable.

Goodwill

Goodwill arising on the acquisition of subsidiary undertakings and businesses, representing any excess of the

fair value of the consideration given over the fair value of the identifiable assets and liabilities acquired, is

capitalised and written off on a straight line basis over its useful economic life, which is 10 years. Provision is

made for any impairment.

Negative goodwill is similarly included in the balance sheet and is credited to the profit or loss account in the

periods in which the acquired non-monetary assets are recovered through depreciation or sale. Negative

goodwill in excess of the fair values of the non-monetary assets acquired is credited to the profit or loss account

in the periods expected to benefit.

Tangible fixed assets

Tangible fixed assets are stated at cost or valuation less accumulated depreciation and accumulated

impairment losses.

Where parts of an item of tangible fixed assets have different useful lives, they are accounted for as separate

items of tangible fixed assets, for example land is treated separately from buildings.

The group assesses at each reporting date whether tangible fixed assets are impaired.

Depreciation on tangible fixed assets is charged to the profit and loss so as to write off their value, over their

estimated useful lives, using the following methods:

Long leasehold

-

2% straight line

Fixtures and fittings

-

15% straight line

Motor vehicles

-

25% straight line

Computer equipment

-

15% straight line

Depreciation methods, useful lives and residual values are reviewed if there is an indication of a significant

change since the last annual reporting date in the pattern by which the company expects to consume an asset's

future economic benefits.

Stocks

Stocks are stated at the lower of cost and net realisable value. Costs are based on the method most appropriate

to the type of inventory class, but usually on a first-in-first-out basis. Net realisable value is based on the

estimated selling price less any estimated completion or selling costs.

When stocks are sold, the carrying amount of these stocks are recognised as an expense in the period in which

the related revenue is recognised. The amount of any write-down in stocks to net realisable value and all losses

of stocks are recognised as an expense in the period in which the write-down or loss occurs. The amount of any

reversal of any write-down of stocks is recognised as a reduction in the amount of stocks recognised as an

expense in the period in which the reversal occurs.

Financial instruments

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

arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contact

that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated 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 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.

Hire purchase and leasing commitments

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

lease.

Trade and other debtors/creditors

Trade and other debtors are recognised initially at transaction price less attributable transaction costs. Trade

and other creditors are recognised initially at transaction price plus attributable transaction costs. Subsequent

to initial recognition they are measured at amortised cost using the effective interest method, less any

impairment losses in the case of trade debtors.

Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and in hand.

3.

TURNOVER

The turnover and profit before taxation are attributable to the principal activities of the group.

An analysis of turnover by class of business is given below:

2017

2016

£

£

Sale of goods

2,817,700

2,958,847

Admissions

828,817

1,031,592

Management charges

75,000

247,000

Cloakroom charges

20,708

22,419

Machine income

1,819

1,239

Retro income

682,832

489,265

4,426,876

4,750,362

An analysis of turnover by geographical market is given below:

2017

2016

£

£

United Kingdom

4,389,015

4,553,747

Europe

37,861

196,615

4,426,876

4,750,362