REGISTERED NUMBER:
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Audited Financial Statements |
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for the Year Ended 31 March 2021 |
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for |
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Underbelly Ltd |
REGISTERED NUMBER:
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Audited Financial Statements |
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for the Year Ended 31 March 2021 |
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for |
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Underbelly Ltd |
Underbelly Ltd (Registered number: 04206540) |
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Contents of the Financial Statements |
for the Year Ended 31 March 2021 |
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Page |
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Company Information | 1 |
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Balance Sheet | 2 |
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Notes to the Financial Statements | 3 |
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Underbelly Ltd |
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Company Information |
for the Year Ended 31 March 2021 |
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DIRECTORS: |
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SECRETARY: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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SENIOR STATUTORY AUDITOR: |
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AUDITORS: |
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Kevan Pilling House |
1 Myrtle Street |
Bolton |
Lancashire |
BL1 3AH |
Underbelly Ltd (Registered number: 04206540) |
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Balance Sheet |
31 March 2021 |
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2021 | 2020 |
Notes | £ | £ |
FIXED ASSETS |
Tangible assets | 4 |
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Investments | 5 |
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CURRENT ASSETS |
Debtors | 6 |
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Cash at bank | ( |
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CREDITORS |
Amounts falling due within one year | 7 | ( |
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NET CURRENT LIABILITIES | ( |
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TOTAL ASSETS LESS CURRENT
LIABILITIES |
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CREDITORS |
Amounts falling due after more than one
year |
8 |
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( |
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PROVISIONS FOR LIABILITIES |
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( |
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NET LIABILITIES | ( |
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CAPITAL AND RESERVES |
Called up share capital |
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Revaluation reserve | 9 |
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Retained earnings | ( |
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SHAREHOLDERS' FUNDS | ( |
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In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered. |
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The financial statements were approved by the Board of Directors and authorised for issue on
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Underbelly Ltd (Registered number: 04206540) |
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Notes to the Financial Statements |
for the Year Ended 31 March 2021 |
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1. | STATUTORY INFORMATION |
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Underbelly Ltd is a
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2. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
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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. |
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Significant judgements and estimates |
Significant judgement has been applied in regards to Depreciation, Accrued Income and Prepayments, Accruals and Deferred Income. |
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Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
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Tangible fixed assets |
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Plant and machinery etc | - |
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Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost. |
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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. |
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Current or deferred taxation assets and liabilities are not discounted. |
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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. |
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Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
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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. |
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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. |
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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. |
Underbelly Ltd (Registered number: 04206540) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 March 2021 |
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2. | ACCOUNTING POLICIES - continued |
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Going concern |
At the time of approving the accounts the directors have a reasonable expectation that the company has adequate resources to continue to operate for the foreseeable future for the following reasons: |
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The company has been able to access significant funding under the Coronavirus Business Interruption Loan scheme. |
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The company has received several non-repayable grants from various Government backed support schemes. |
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The company has received grants in relation to the job support scheme. |
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The directors and other individuals have injected significant amounts into the business by way of long-term loans. |
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Agreements are in place with some suppliers to defer payments until event are able to be run at levels similar to those seen pre-COVID. |
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The company has had some meaningful, but due to ongoing restrictions smaller, profit making events during the year. |
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For 2021/2022 the company has run some larger events at several prestigious sites. |
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The company is working in line with the UK and the Scottish Governments' roadmaps to deliver events in and around the UK. |
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Cash flow forecasts produced by management show positive cash returns and an ability to meet funding requirements. |
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The directors therefore continue to adopt the going concern basis of accounting in preparing the financial statements. |
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3. | EMPLOYEES AND DIRECTORS |
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The average number of employees during the year was
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Underbelly Ltd (Registered number: 04206540) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 March 2021 |
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4. | TANGIBLE FIXED ASSETS |
Plant and |
machinery |
etc |
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COST |
At 1 April 2020 |
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Additions |
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Disposals | ( |
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At 31 March 2021 |
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DEPRECIATION |
At 1 April 2020 |
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Charge for year |
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Eliminated on disposal | ( |
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At 31 March 2021 |
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NET BOOK VALUE |
At 31 March 2021 |
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At 31 March 2020 |
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5. | FIXED ASSET INVESTMENTS |
Shares in |
group |
undertakings |
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COST OR VALUATION |
At 1 April 2020 |
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Additions |
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Revaluations |
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At 31 March 2021 |
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NET BOOK VALUE |
At 31 March 2021 |
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At 31 March 2020 |
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Cost or valuation at 31 March 2021 is represented by: |
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Shares in |
group |
undertakings |
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Valuation in 2021 | 154,829 |
Cost | 34,724 |
189,553 |
Underbelly Ltd (Registered number: 04206540) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 March 2021 |
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6. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2021 | 2020 |
£ | £ |
Trade debtors |
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Other debtors |
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Included in the above is a balance due from Underbelly Asia Ltd, a company registered in Hong Kong and a wholly owned subsidiary of Underbelly Ltd, of £436,186 (2020: £423,400). |
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The movement on the balance represents interest charged at the year end of 3.02% |
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At 31 March 2021 Underbelly Asia Ltd did not have sufficient funds to repay this balance. |
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There is a strong appetite for Underbelly shows across Asia and the Pacific region; during September 2021 the company operated a very successful run of La Clique in Singapore. Underbelly is in advanced stage negotiations to run a second tour of this show in Singapore, in addition to runs in Australia/New Zealand and Hong Kong. The timing of such events is of course subject to local COVID restrictions. Due to operational limitations as a result of the pandemic, the Singapore run in 2021 was operated directly by Underbelly Ltd, however future runs will be operated through Underbelly Asia Ltd wherever possible. |
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The directors therefore expect positive future cash flows from the operations of Underbelly Asia Ltd and that the amounts will be paid in full. |
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There is a further balance due from By Popular Demand Promotions Ltd, the majority shareholder in Underbelly Ltd, which acts as a holding company of £323,360 (2020: £313,881). |
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Interest of 3.02% has been charged on the balance held at the year end. |
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Currently By Popular Demand Promotions Ltd does not have sufficient reserves to settle the outstanding amount. |
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The balance is expected to be settled via dividends from Underbelly Ltd future profits in line with any conditions imposed by bank borrowings. |
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7. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2021 | 2020 |
£ | £ |
Bank loans and overdrafts |
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Trade creditors |
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Taxation and social security |
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Other creditors |
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8. |
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR |
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Creditors of more than one year include the following amounts: |
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Amounts due to suppliers of £542,931 (2020: £494,180) |
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Long-term bank loans 1 -2 years of £459,868 (2020: £126,992) |
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Long-term bank loans 2-5 years of £1,393,333 (2020: £NIL) |
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Other long-term loans of £600,000 (2020: £0) |
Underbelly Ltd (Registered number: 04206540) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 March 2021 |
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9. | RESERVES |
Revaluation |
reserve |
£ |
Reserve transfer | 154,829 |
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At 31 March 2021 |
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10. | DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006 |
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The Report of the Auditors was unqualified. |
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We, as auditors. draw your attention to the following matters in light of the effects and ongoing uncertainty relating to the COVID-19 pandemic. |
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The going concern note in Note 2 Accounting Policies. |
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The post balance sheet events note in Note 14 Post Balance Sheet Events. |
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for and on behalf of
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11. | OTHER FINANCIAL COMMITMENTS |
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The company has the following material lease commitments: |
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Annual rental lease of their head office of £210,000. |
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The company entered into an informal arrangement in 2019 to procure infrastructure equipment with a value of £712,000 over a 3 year period. |
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The agreement is with a long-standing supplier and the company is able to cancel this arrangement with no financial penalty. |
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Consequently the assets have been recognised to the value of that which has been paid up to the financial year end in the accounts. |
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12. | RELATED PARTY DISCLOSURES |
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During the year there were the following transactions with related parties: |
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Dividends were paid to the parent company of £NIL (2020: £300,000) |
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There is an amount due from the parent company of £323,360 (2020: £313,881). |
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Interest has been charged on the amounts loan to the parent company of £9,498 (2020: £13,872). |
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Interest has been charged on amounts loaned to Underbelly Asia Ltd, a wholly owned subsidiary, of £12,787 (2020: £36,025). |
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The directors extended borrowing to the company of £600,000 (2020: £NIL) |
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Interest has been charged on the amounts loaned from the directors of £18,120 (2020: £NIL) |
Underbelly Ltd (Registered number: 04206540) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 March 2021 |
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13. | FRC ETHICAL STANDARD - PROVISIONS AVAILABLE FOR SMALL ENTITIES |
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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. |
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14. | POST BALANCE SHEET EVENTS |
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The COVID-19 pandemic continued through the 12 months following the date of these accounts, which impacted trading for the year ending 31 March 2022. |
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Despite the closures and restrictions in place, the company successfully operated a range of events in the remainder of 2021, including Underbelly Festival, London Wonderground, West End Live, Christmas in Leicester Square, Christmas in Trafalgar Square, Edinburgh's Christmas, and had a small presence at Edinburgh's Fringe. |
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In addition, there was a successful tour of La Clique in Singapore in September 2021 and co-production of the critically acclaimed West End revival of Cabaret, which has been nominated for 11 Olivier Awards, and which opened in November 2021. |
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The company has also been commissioned to programme and produce the live entertainment at the Dubai Expo 2020 in January to March 2022. |
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Management are projecting a healthy profit for the year ending 31 March 2022 as a result of these events and ongoing government support. |
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The pipeline of events for 2022 is very strong, and management are projecting a return to a net asset position by 31 March 2023. This is of course subject to there being no further restrictions and forced cancellations in the next 12 months as a result of COVID-19. |
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15. | ULTIMATE CONTROLLING PARTY |
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Mr C Wood and Mr E Bartlam are managing directors and majority shareholders through their holding company By Popular Demand Promotions Ltd, a company registered in England and Wales, registered office 4th Floor, 36-38 Hatton Garden, London, EC1N 8EB. |