Rankin Photography Limited
Director's report and unaudited financial statements
For the year ended 30 April 2016
55 Loudoun Road
St John's Wood
London NW8 0DL
Company Registration No. 04334784
(England and Wales)
RANKIN PHOTOGRAPHY LIMITED
Rankin Photography Limited
COMPANY INFORMATION
Director
Mr John Rankin Waddell
Secretary
MGRWK Company Secretaries Limited
Company number
04334784
Registered office
110-114 Grafton Road
Kentish Town
London
NW5 4BA
Accountants
MGR Weston Kay LLP
55 Loudoun Road
St John's Wood
London
NW8 0DL
RANKIN PHOTOGRAPHY LIMITED
Rankin Photography Limited
CONTENTS
Page
Director's report
1
Accountants' report
2
Profit and loss account
3
Balance sheet
4 - 5
Notes to the financial statements
6 - 11
RANKIN PHOTOGRAPHY LIMITED
Rankin Photography Limited
DIRECTOR'S REPORT
FOR THE YEAR ENDED 30 APRIL 2016
- 1 -
The director presents his report and financial statements for the year ended 30 April 2016.
Principal activities
The principal activity of the company is that of photographic production.
Director
The following director has held office since 1 May 2015:
Mr John Rankin Waddell
This report has been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006.
On behalf of the board
Mr John Rankin Waddell
Director
25 January 2017
RANKIN PHOTOGRAPHY LIMITED
Rankin Photography Limited
CHARTERED ACCOUNTANTS' REPORT TO THE DIRECTOR ON THE PREPARATION OF THE UNAUDITED STATUTORY FINANCIAL STATEMENTS OF RANKIN PHOTOGRAPHY LIMITED FOR THE YEAR ENDED 30 APRIL 2016
- 2 -
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Rankin Photography Limited for the year ended 30 April 2016 set out on pages 3 to 11 from the company's accounting records and from information and explanations you have given us.
As a practising member firm of the Institute of Chartered Accountants in England and Wales, we are subject to its ethical and other professional requirements which are detailed at http://www.icaew.com/en/members/regulations-standards-and-guidance/.
This report is made solely to the Board of Directors of Rankin Photography Limited, as a body, in accordance with the terms of our engagement letter dated 6 July 2010. Our work has been undertaken solely to prepare for your approval the financial statements of Rankin Photography Limited and state those matters that we have agreed to state to the Board of Directors of Rankin Photography Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Rankin Photography Limited and its Board of Directors as a body, for our work or for this report.
It is your duty to ensure that Rankin Photography Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of Rankin Photography Limited. You consider that Rankin Photography Limited is exempt from the statutory audit requirement for the year.
We have not been instructed to carry out an audit or a review of the financial statements of Rankin Photography Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.
MGR Weston Kay LLP
Chartered Accountants
55 Loudoun Road
St John's Wood
London
NW8 0DL
25 January 2017
RANKIN PHOTOGRAPHY LIMITED
Rankin Photography Limited
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 APRIL 2016
- 3 -
2016
2015
Notes
£
£
Turnover
6,392,958
6,440,820
Cost of sales
(2,346,284)
(2,686,987)
Gross profit
4,046,674
3,753,833
Administrative expenses
(3,302,689)
(3,189,915)
Operating profit
2
743,985
563,918
Other interest receivable and similar income
3
24
101
Interest payable and similar charges
(26,093)
(12,799)
Profit on ordinary activities before taxation
717,916
551,220
Tax on profit on ordinary activities
4
(161,160)
(113,298)
Profit for the year
13
556,756
437,922
RANKIN PHOTOGRAPHY LIMITED
Rankin Photography Limited
BALANCE SHEET
AS AT
30 APRIL 2016
30 April 2016
- 4 -
2016
2015
Notes
£
£
£
£
Fixed assets
Intangible assets
5
660,001
733,334
Tangible assets
6
420,737
369,751
Investments
7
7
7
1,080,745
1,103,092
Current assets
Stocks
26,390
45,189
Debtors
8
2,874,769
2,662,331
Cash at bank and in hand
380,907
123,309
3,282,066
2,830,829
Creditors: amounts falling due within one year
9
(1,268,953)
(1,412,369)
Net current assets
2,013,113
1,418,460
Total assets less current liabilities
3,093,858
2,521,552
Creditors: amounts falling due after more than one year
10
(50,534)
(34,984)
3,043,324
2,486,568
Capital and reserves
Called up share capital
12
2
2
Profit and loss account
13
3,043,322
2,486,566
Shareholders' funds
3,043,324
2,486,568
RANKIN PHOTOGRAPHY LIMITED
Rankin Photography Limited
BALANCE SHEET (CONTINUED)
AS AT
30 APRIL 2016
30 April 2016
- 5 -
For the financial year ended 30 April 2016 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Director's responsibilities:
-
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476;
-
The director acknowledges his responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime and the Financial Reporting Standard for Smaller Entities (effective January 2015).
Approved by the Board for issue on 25 January 2017
Mr John Rankin Waddell
Director
Company Registration No. 04334784
RANKIN PHOTOGRAPHY LIMITED
Rankin Photography Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2016
- 6 -
1
Accounting policies
1.1
Accounting convention
The financial statements are prepared under the historical cost convention and in accordance with the Financial Reporting Standard for Smaller Entities (effective January 2015).
1.2
Turnover
Turnover represents amounts receivable for photographic production services and print sales net of VAT.
1.3
Goodwill
Acquired goodwill is written off in equal annual instalments over its estimated useful economic life.
1.4
Tangible fixed assets and depreciation
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:
Plant and machinery
25% reducing balance
Motor vehicles
25% reducing balance
1.5
Investments
Fixed asset investments are stated at cost less provision for diminution in value.
1.6
Foreign currency translation
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are taken to profit and loss account.
1.7
Group accounts
The financial statements present information about the company as an individual undertaking and not about its group. The company and its subsidiary undertakings comprise a small-sized group. The company has therefore taken advantage of the exemptions provided by section 399 of the Companies Act 2006 not to prepare group accounts.
2
Operating profit
2016
2015
£
£
Operating profit is stated after charging:
Amortisation of intangible assets
73,333
73,333
Depreciation of tangible assets
112,822
106,897
Director's remuneration
20,068
20,000
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2015 - 0).
RANKIN PHOTOGRAPHY LIMITED
Rankin Photography Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2016
- 7 -
3
Investment income
2016
2015
£
£
Other interest
24
101
4
Taxation
2016
2015
£
£
Domestic current year tax
U.K. corporation tax
161,160
124,203
Adjustment for prior years
-
(11,234)
161,160
112,969
Foreign corporation tax
Foreign corporation tax
-
329
Total current tax
161,160
113,298
161,160
113,298
5
Intangible fixed assets
Goodwill
£
Cost
At 1 May 2015 & at 30 April 2016
1,100,000
Amortisation
At 1 May 2015
366,666
Charge for the year
73,333
At 30 April 2016
439,999
Net book value
At 30 April 2016
660,001
At 30 April 2015
733,334
RANKIN PHOTOGRAPHY LIMITED
Rankin Photography Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2016
- 8 -
6
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 May 2015
700,268
Additions
163,808
At 30 April 2016
864,076
Depreciation
At 1 May 2015
330,517
Charge for the year
112,822
At 30 April 2016
443,339
Net book value
At 30 April 2016
420,737
At 30 April 2015
369,751
The net book value of tangible fixed assets includes £258,401 (2015 - £118,056) in respect of assets held under finance leases or hire purchase contracts. The depreciation charge in respect of such assets amounted to £62,580 (2015 - £39,829) for the year.
RANKIN PHOTOGRAPHY LIMITED
Rankin Photography Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2016
- 9 -
7
Fixed asset investments
Shares in group undertakings and participating interests
£
Cost
At 1 May 2015 & at 30 April 2016
7
Net book value
At 30 April 2016
7
At 30 April 2015
7
Holdings of more than 20%
The company holds more than 20% of the share capital of the following companies:
Company
Country of registration or
Shares held
incorporation
Class
%
Subsidiary undertakings
Rankin Photography, Inc
USA
Common stock
100.00
Hunger Publishing Limited
UK
Ordinary shares
100.00
The aggregate amount of capital and reserves and the results of these undertakings for the last relevant financial year were as follows:
Capital and reserves
Profit/(loss) for the year
2016
2016
Principal activity
£
£
Rankin Photography, Inc
Photographic gallery and studio
-
-
Hunger Publishing Limited
Magazine publishing
(1,032,997)
34,808
8
Debtors
2016
2015
£
£
Trade debtors
1,163,080
930,871
Amounts owed by group undertakings and undertakings in which the company has a participating interest
1,086,316
1,120,217
Other debtors
625,373
611,243
2,874,769
2,662,331
RANKIN PHOTOGRAPHY LIMITED
Rankin Photography Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2016
- 10 -
9
Creditors: amounts falling due within one year
2016
2015
£
£
Bank loans and overdrafts
-
365,308
Net obligations under finance leases
83,792
92,942
Trade creditors
689,470
721,493
Taxation and social security
236,999
181,768
Other creditors
258,692
50,858
1,268,953
1,412,369
The bank overdraft is secured by
a fixed and floating charge over the assets of the company.
10
Creditors: amounts falling due after more than one year
2016
2015
£
£
Net obligations under finance leases
50,534
34,984
11
Pension costs
Defined contribution
2016
2015
£
£
Contributions payable by the company for the year
4,657
-
12
Share capital
2016
2015
£
£
Allotted, called up and fully paid
2 Ordinary shares of £1 each
2
2
RANKIN PHOTOGRAPHY LIMITED
Rankin Photography Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2016
- 11 -
13
Statement of movements on profit and loss account
Profit
and loss
account
£
Balance at 1 May 2015
2,486,566
Profit for the year
556,756
Balance at 30 April 2016
3,043,322
14
Financial commitments
At 30 April 2016 the company was committed to making the following payments under non-cancellable operating leases in the year to 30 April 2017:
2016
2015
£
£
Operating leases which expire:
Between two and five years
27,300
-
In over five years
-
27,300
27,300
27,300
15
Control
The company is controlled by Mr J R Waddell by virtue of his 100% shareholding which has remained unchanged since the previous year.
16
Related party transactions
During the year the company recharged costs totaling £
578,084
(201
5
: £
662,261
) to
J R
Waddell trading as Rankin Photography, the director. The company also paid rent to the director of £
264,000
(
2015
: £264,000).
The director also advanced various loans to the company and paid various expenses on behalf of the company. As at 30 April 201
6
J R
Waddell trading as Rankin Photography
owed
the
company
£
478,760
(
2015
:
£467,754) which was cleared after the year end
.
During the year Hunger Publishing Limited, a subsidiary of Rankin Photography Limited
repaid
loans of £
172,385 to
(
2015
:
borrowed
£
614,347 from
)
the company and recharged marketing costs of £480,594 (2015: £619,079) to the company.
As at 30 April 201
6
the subsidiary owed the company £
1,086,316
(
2015
: £1
,120,217
).
The director J R Waddell is also a director of Waddell Limited and has a significant shareholding in the group that owns Waddell Limited.
Included in trade debtors is £
24,240 (2015: £96,690)
owed to the company
by
Waddell Limited.
Included in trade creditors is £21,712 (2015: £21,712) owed by the company to Waddell Limited.
Rankin Photography Limited
Management information
For the year ended 30 April 2016
RANKIN PHOTOGRAPHY LIMITED
Rankin Photography Limited
SCHEDULE OF ADMINISTRATIVE EXPENSES
FOR THE YEAR ENDED 30 APRIL 2016
2016
2015
£
£
Administrative expenses
Wages and salaries
1,261,952
1,153,378
Directors' remuneration
20,000
20,000
Employer's N.I. contributions
126,723
115,884
Directors' pension costs
68
-
Staff pension costs
4,589
-
Staff training
-
528
Recruitment costs
37,457
31,060
Rent
295,731
286,148
Rates and service charges
122,857
92,251
Insurance
96,532
60,375
Storage costs
72,031
59,328
Archiving costs
5,102
6,633
Light and heat
31,311
29,053
Cleaning
35,183
43,186
Repairs and maintenance
58,386
59,909
Printing, postage, stationery and couriers
37,433
56,092
Advertising
64,277
18,625
Exhibition costs
38,887
13,008
Recharged marketing contribution
480,594
619,079
Telephone
50,524
38,477
Computer running costs
154,547
154,240
Motor running expenses
46,849
42,958
Travelling expenses
14,575
7,422
Entertaining
13,742
18,850
Legal and professional fees
7,410
4,595
Consultancy fees
20,202
23,356
Accountancy
7,695
23,524
Bank charges
19,043
17,616
Profit on foreign currency
(35,443)
(21,489)
Staff welfare
24,845
12,074
Sundry expenses
3,432
6,385
Charitable donations
-
3,780
Depreciation on intangible assets
73,333
73,333
Depreciation on plant and machinery
112,822
106,897
Loss on disposal of fixed assets
-
13,360
3,302,689
3,189,915
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