LEASE CASE STUDY - International Artistes Ltd

THE CLIENT
Established in 1945, International Artistes is widely acknowledged as one of the most successful talent management & agency companies in the UK. The company's diverse client base includes numerous high profile entertainers and actors, as well as many of the UK's top writers producers and directors in television film and theatre. The company has also co-produced a number of highly successful musicals, notably "Buddy - The Buddy Holly Story" and "Jolson" both in London and worldwide.
www.inart.co.uk

THE PROJECT
In September 2003, International Artistes became part of the Qdos Entertainment Group. As part of a general corporate "freshen up", they decided to refurbish their offices in High Holborn, London WC1. This involved upgrading the data cabling and Cat 2 lighting systems, installing glass partitioning and screening, and completely replacing all the office furniture and storage.

Project Value : £57,000 + VAT
Project Date : Q4 2004

THE FINANCE PACKAGE
As a result of the group restructure the client had a relatively short term cash flow issue, so they wanted to spread the cost of the project over a 2 year period and then own the assets outright.

Plus Finance arranged a 24 month hire purchase agreement which gave International Artistes automatic ownership at the end of the agreement. The company had historic losses to carry forward, so tax savings were less important than spreading the cost. By going down the hire purchase route the assets were capitalised on their balance sheet and then depreciated at 25% per annum on a reducing balance basis.