Somesuch Industries Limited
Annual Report and Financial Statements
For the year ended 31 December 2022
Company Registration No. 10645792 (England and Wales)
Somesuch Industries Limited
Company Information
Directors
S A Campbell
T J Nash
Company number
10645792
Registered office
Charlotte Building
17 Gresse Street
London
W1T 1QL
Auditor
Moore Kingston Smith LLP
Charlotte Building
17 Gresse Street
London
W1T 1QL
Business address
4 Wilkes Street
London
United Kingdom
E1 6QF
Somesuch Industries Limited
Contents
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 30
Somesuch Industries Limited
Strategic Report
For the year ended 31 December 2022
Page 1

The directors present the strategic report for the year ended 31 December 2022.

Fair review of the business

The directors are somewhat pleased to report that in the year ended 31 December 2022 the business proved resilient to the economic challenges facing businesses globally, and managed to sustain reasonable turnover and profits.

The group's results for the year saw a decrease in turnover from £21.0m to £20.1m and a decrease in profit before tax from £1.38m to £0.2m.

Principal risks and uncertainties

The principal business risks affecting the group are considered to relate to the economy and political uncertainty in the UK where the group operates. Other risks include financial pressures on clients and advertising agencies, the ongoing uncertainty with regards to Brexit, the Russia-Ukraine war, and evolving business practices to combat the climate emergency.

 

In light of these, the directors have taken the following steps:

 

- Adherence to industry-approved sustainability protocol on all shoots

- Carbon offsetting for shoots and for flights to support forestry and wildlife projects throughout the UK

- Close management of cash to ensure payment is made upon receipt of goods or services

- Forged new working relationships with high quality / low-cost shoot centres outside of Ukraine

 

In the event that revenues are significantly impacted for a longer period then the group will consider cost cutting measures in order to ensure the long-term viability of the business.

However, the group has sufficient cash reserves as at the date of approval of the financial statements to enable it to continue to meet its liabilities as they fall due for at least the next twelve months.

 

At the end of the financial year the directors feel the group is well placed to meet these challenges, underpinned by a strong balance sheet including net assets of £2.8m (2021: £2.7m) and cash balances of over £0.8m (2021: £0.8m).

 

Somesuch Industries Limited
Strategic Report (Continued)
For the year ended 31 December 2022
Page 2
Key performance indicators

The Directors review KPIs throughout the year as part of the normal management process. The key performance indicators monitored by the directors are those that best demonstrate the financial performance and strength of the group. Specifically, we look at year on year trends in the profit and loss account, in turnover and gross profit margin.

 

As with most businesses, the financial uncertainty from Brexit and the Russian-Ukraine war has led to a slight decrease in the group’s key performance indicators compared to the prior year. Whilst gross profit margin remained the same, the operating profit margin decreased. This was driven largely by investment in new office space, new talent and an increase in travel costs post-Pandemic.

 

The KPIs for the year ended 31 December 2022 are:

 

2022             2021

 

Turnover            £20.18m         £21.05m

 

Gross profit             £3.79m            £3.92m

 

Gross profit margin        19%            19%

                

Operating profit margin        1%            7%

                

The economic climate has remained challenging in the months that have followed year end, and so the group remains vigilant and open to cost cutting measures should they be necessary to ensure the long-term viability of the business.

On behalf of the board

S Campbell
Director
28 September 2023
Somesuch Industries Limited
Directors' Report
For the year ended 31 December 2022
Page 3

The directors present their annual report and financial statements for the year ended 31 December 2022.

Principal activities

The principal activity of the company and group continued to be that of the production of television commercials.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

S A Campbell
T J Nash
Results and dividends

The results for the year are set out on page 9.

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

Auditor

The auditor, Moore Kingston Smith LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the group is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the group is aware of that information.

On behalf of the board
S Campbell
Director
28 September 2023
Somesuch Industries Limited
Directors' Responsibilities Statement
For the year ended 31 December 2022
Page 4

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Somesuch Industries Limited
Independent Auditor's Report
To the Members of Somesuch Industries Limited
Page 5
Opinion

We have audited the financial statements of Somesuch Industries Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2022 which comprise the Group Statement of Comprehensive Income, the Group Balance Sheet, the Company Balance Sheet, the Group Statement of Changes in Equity, the Company Statement of Changes in Equity, the Group Statement of Cash Flows and notes to the financial statements, including 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:

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company 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

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

 

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 course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. 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.

Somesuch Industries Limited
Independent Auditor's Report (Continued)
To the Members of Somesuch Industries Limited
Page 6

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

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 Strategic Report and the Directors' Report.

 

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:

 

Responsibilities of directors

As explained more fully in the Directors' Responsibilities Statement, the directors are 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 directors determine is 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 directors are responsible for assessing the group's and 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 directors either intend to liquidate the group or parent company or to cease operations, or have no realistic alternative but to do so.

Somesuch Industries Limited
Independent Auditor's Report (Continued)
To the Members of Somesuch Industries Limited
Page 7
Auditor's 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 an auditor's report 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.

 

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

 

 

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

 

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

Somesuch Industries Limited
Independent Auditor's Report (Continued)
To the Members of Somesuch Industries Limited
Page 8

Use of our report

This report is made solely to the group’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 group’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the group and the group’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Joanna Cosgrove
Senior Statutory Auditor
for and on behalf of Moore Kingston Smith LLP
3 October 2023
Chartered Accountants
Statutory Auditor
Charlotte Building
17 Gresse Street
London
W1T 1QL
Somesuch Industries Limited
Group Statement of Comprehensive Income
For the year ended 31 December 2022
Page 9
2022
2021
Notes
£
£
Turnover
3
20,183,308
21,049,590
Cost of sales
(16,391,575)
(17,125,409)
Gross profit
3,791,733
3,924,181
Administrative expenses
(3,636,260)
(2,576,060)
Other operating income
46,482
27,780
Operating profit
5
201,955
1,375,901
Interest receivable and similar income
8
320
46
Profit before taxation
202,275
1,375,947
Tax on profit
9
(67,196)
(262,838)
Profit and total comprehensive income for the financial year
135,079
1,113,109
Profit and total comprehensive income for the financial year is all attributable to the owners of the parent company.
Somesuch Industries Limited
Group Balance Sheet
As at 31 December 2022
Page 10
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
10
540,968
36,331
Current assets
Work in progress
13
215,630
3,000
Debtors
14
4,238,659
4,616,830
Cash at bank and in hand
879,861
843,804
5,334,150
5,463,634
Creditors: amounts falling due within one year
15
(2,986,555)
(2,838,507)
Net current assets
2,347,595
2,625,127
Total assets less current liabilities
2,888,563
2,661,458
Provisions for liabilities
16
(92,026)
-
Net assets
2,796,537
2,661,458
Capital and reserves
Called up share capital
18
7,800
7,800
Profit and loss reserves
2,788,737
2,653,658
Total equity
2,796,537
2,661,458
The financial statements were approved by the board of directors and authorised for issue on 28 September 2023 and are signed on its behalf by:
28 September 2023
S Campbell
Director
Somesuch Industries Limited
Company Balance Sheet
As at 31 December 2022
31 December 2022
Page 11
2022
2021
Notes
£
£
£
£
Fixed assets
Investments
11
7,800
7,800
Capital and reserves
Called up share capital
18
7,800
7,800

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £0 (2021 - £300,000 profit).

The financial statements were approved by the board of directors and authorised for issue on 28 September 2023 and are signed on its behalf by:
28 September 2023
S Campbell
Director
Company Registration No. 10645792
Somesuch Industries Limited
Group Statement of Changes in Equity
For the year ended 31 December 2022
Page 12
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2021
7,800
1,840,549
1,848,349
Year ended 31 December 2021:
Profit and total comprehensive income for the year
-
1,113,109
1,113,109
Dividends
-
(300,000)
(300,000)
Balance at 31 December 2021
7,800
2,653,658
2,661,458
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
135,079
135,079
Balance at 31 December 2022
7,800
2,788,737
2,796,537
Somesuch Industries Limited
Company Statement of Changes in Equity
For the year ended 31 December 2022
Page 13
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2021
7,800
-
0
7,800
Year ended 31 December 2021:
Profit and total comprehensive income for the year
-
300,000
300,000
Dividends
-
(300,000)
(300,000)
Balance at 31 December 2021
7,800
-
0
7,800
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
-
Balance at 31 December 2022
7,800
-
0
7,800
Somesuch Industries Limited
Group Statement of Cash Flows
For the year ended 31 December 2022
Page 14
2022
2021
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
22
1,177,948
(478,857)
Income taxes paid
(222,545)
(113,385)
Net cash inflow/(outflow) from operating activities
955,403
(592,242)
Investing activities
Purchase of tangible fixed assets
(543,462)
(19,014)
Interest received
320
46
Net cash used in investing activities
(543,142)
(18,968)
Financing activities
Loans issued to shareholders
(376,204)
Dividends paid to equity shareholders
-
(300,000)
Net cash used in financing activities
(376,204)
(300,000)
Net increase/(decrease) in cash and cash equivalents
36,057
(911,210)
Cash and cash equivalents at beginning of year
843,804
1,755,014
Cash and cash equivalents at end of year
879,861
843,804
Somesuch Industries Limited
Notes to the Financial Statements
For the year ended 31 December 2022
Page 15
1
Accounting policies
Company information

Somesuch Industries Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Charlotte Building, 17 Gresse Street, London, W1T 1QL.

 

The group consists of Somesuch Industries Limited and all of its subsidiaries.

1.1
Accounting convention

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.

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

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

Somesuch Industries Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
1
Accounting policies
(Continued)
Page 16
1.2
Basis of consolidation

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

The consolidated group financial statements consist of the financial statements of the parent company Somesuch Industries Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 December 2022. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

Somesuch Industries Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
1
Accounting policies
(Continued)
Page 17
1.3
Going concern

The directors have prepared cash flow projections for a period of 12 months from the date of approval of these financial statements, which indicate that the company and group will continue to generate sufficient cash to meet liabilities as they fall due based on existing financing facilities. The directors will continue to monitor the trading conditions in the industry, and in the event income is impacted significantly they will consider cost cutting measures in order to ensure the long term viability of the business.

 

The directors have also received sufficient confirmation and assurances that the related party loan will continue to be repaid during the next 12 months to enable the company and group to continue to trade and to meet its liabilities as they fall due. Consequently, the directors are confident that the group will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements and therefore have prepared the financial statements on a going concern basis.

1.4
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes.

Revenue is recognised in respect of the production of commercials from the point at which the company and group has obtained the right to consideration in return for performance. This is considered to be when all necessary approvals during the process of pre-production have been obtained from the commissioning agency and normally equates to the date at which shooting of the production commences. No profit element is recognised until the group is able to estimate the profit on the production reliably.

1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold improvements
Over the term of the lease
Fixtures, fittings & equipment
20% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.6
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

Somesuch Industries Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
1
Accounting policies
(Continued)
Page 18
1.7
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.8
Work in progress

Work in progress is recognised as costs that have been incurred during the year, where the revenue is to be recognised in the following period as per the revenue recognition policy. Work-in-progress is stated at the lower of the costs incurred and the estimated amount that is going to be charged as revenue in the following period.

1.9
Cash at bank and in hand

Cash and cash equivalents 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.

1.10
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

Somesuch Industries Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
1
Accounting policies
(Continued)
Page 19
Basic financial assets

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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

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 group after deducting all of its liabilities.

Somesuch Industries Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
1
Accounting policies
(Continued)
Page 20
Basic financial 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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.11
Equity instruments

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

1.12
Taxation

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

Current 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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

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 if, and only if, there is 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.

Somesuch Industries Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
1
Accounting policies
(Continued)
Page 21
1.13
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.14
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.15
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

1.16
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

Somesuch Industries Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
Page 22
2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Revenue Recognition

Significant management judgement is required in determining the point at which revenue should be recognised. Revenue is recognised in respect of each production from the point at which the group has obtained the right to consideration in return for performance. This is considered to be when all necessary approvals during the process of pre-production have been obtained from the commissioning agency and normally equates to the date at which shooting commences. No profit element is recognised until the group is able to estimate the profit on the production reliably. In arriving at this point of recognition, management have considered the liabilities and amounts that would be due if at different points of the contract, the project were to be pulled.

Trade debtors recoverability

The group makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience.

3
Turnover and other revenue
2022
2021
£
£
Turnover analysed by class of business
Production services
20,183,308
21,049,590
2022
2021
£
£
Turnover analysed by geographical market
United Kingdom
18,578,907
16,960,582
United States of America
328,081
1,632,822
European Union
1,276,320
2,456,186
20,183,308
21,049,590
Somesuch Industries Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
3
Turnover and other revenue
(Continued)
Page 23
2022
2021
£
£
Other revenue
Interest income
320
46
Grants received
-
12,000
4
Auditor's remuneration
2022
2021
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
5,000
4,150
Audit of the financial statements of the company's subsidiaries
39,000
31,500
44,000
35,650
5
Operating profit
2022
2021
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange gains
(46,595)
(113,487)
Government grants
-
(12,000)
Depreciation of owned tangible fixed assets
38,825
20,851
Operating lease charges
215,397
142,953
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2022
2021
2022
2021
Number
Number
Number
Number
26
22
2
2
Somesuch Industries Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
6
Employees
(Continued)
Page 24

Their aggregate remuneration comprised:

Group
Company
2022
2021
2022
2021
£
£
£
£
Wages and salaries
2,119,677
1,764,158
-
0
-
0
Social security costs
250,904
164,112
-
-
Pension costs
61,210
40,975
-
0
-
0
2,431,791
1,969,245
-
0
-
0
7
Directors' remuneration
2022
2021
£
£
Remuneration for qualifying services
24,000
27,525
Company pension contributions to defined contribution schemes
24,000
1,358
48,000
28,883
8
Interest receivable and similar income
2022
2021
£
£
Interest income
Interest on bank deposits
320
46

Investment income includes the following:

Interest on financial assets not measured at fair value through profit or loss
320
46
9
Taxation
2022
2021
£
£
Current tax
UK corporation tax on profits for the current period
-
0
262,838
Deferred tax
Origination and reversal of timing differences
67,196
-
0
Total tax charge
67,196
262,838
Somesuch Industries Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
9
Taxation
(Continued)
Page 25

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

2022
2021
£
£
Profit before taxation
202,275
1,375,947
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2021: 19.00%)
38,432
261,430
Tax effect of expenses that are not deductible in determining taxable profit
13,134
2,248
Unutilised tax losses carried forward
(2,590)
-
0
Effect of change in corporation tax rate
21,965
-
Depreciation on assets not qualifying for tax allowances
-
0
3,962
Provisions tax adjustment
-
0
65
Capital allowances
(3,745)
(4,867)
Taxation charge
67,196
262,838
10
Tangible fixed assets
Group
Leasehold
Improvements
Fixtures, fittings & equipment
Total
£
£
£
Cost
At 1 January 2022
-
0
334,813
334,813
Additions
519,176
24,286
543,462
Disposals
-
0
(72,575)
(72,575)
At 31 December 2022
519,176
286,524
805,700
Depreciation and impairment
At 1 January 2022
-
0
298,482
298,482
Depreciation charged in the year
24,723
14,102
38,825
Eliminated in respect of disposals
-
0
(72,575)
(72,575)
At 31 December 2022
24,723
240,009
264,732
Carrying amount
At 31 December 2022
494,453
46,515
540,968
At 31 December 2021
-
0
36,331
36,331
The company had no tangible fixed assets at 31 December 2022 or 31 December 2021.
Somesuch Industries Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
Page 26
11
Fixed asset investments
Group
Company
2022
2021
2022
2021
Notes
£
£
£
£
Investments in subsidiaries
12
-
0
-
0
7,800
7,800
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2022 and 31 December 2022
7,800
Carrying amount
At 31 December 2022
7,800
At 31 December 2021
7,800
12
Subsidiaries

Details of the company's subsidiaries at 31 December 2022 are as follows:

Name of undertaking
Registered
Nature of business
Class of
% Held
office
shares held
Direct
Indirect
Note
Somesuch & Co Limited
1
TV production
Ordinary
100.00
0

1: Charlotte Building, 17 Gresse Street, London, W1T 1QL

13
Work in progress
Group
Company
2022
2021
2022
2021
£
£
£
£
Work in progress
215,630
3,000
-
-
Somesuch Industries Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
Page 27
14
Debtors
Group
Company
2022
2021
2022
2021
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,288,249
1,551,439
-
0
-
0
Corporation tax recoverable
26,844
-
0
-
0
-
0
Other debtors
2,272,128
2,021,836
-
0
-
0
Prepayments and accrued income
626,608
1,043,555
-
0
-
0
4,213,829
4,616,830
-
-
Amounts falling due after more than one year:
Deferred tax asset (note 16)
24,830
-
0
-
0
-
0
Total debtors
4,238,659
4,616,830
-
-
15
Creditors: amounts falling due within one year
Group
Company
2022
2021
2022
2021
£
£
£
£
Trade creditors
494,250
1,108,886
-
0
-
0
Corporation tax payable
-
0
195,701
-
0
-
0
Other taxation and social security
517,772
324,994
-
-
Other creditors
22,573
16,383
-
0
-
0
Accruals and deferred income
1,951,960
1,192,543
-
0
-
0
2,986,555
2,838,507
-
0
-
0
16
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
Assets
Assets
2022
2021
2022
2021
Group
£
£
£
£
Accelerated capital allowances
92,026
-
21,338
-
Tax losses
-
-
3,492
-
92,026
-
24,830
-
Somesuch Industries Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
16
Deferred taxation
(Continued)
Page 28
The company has no deferred tax assets or liabilities.
Group
Company
2022
2022
Movements in the year:
£
£
Liability at 1 January 2022
-
-
Charge to profit or loss
67,196
-
Liability at 31 December 2022
67,196
-
17
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
61,210
40,975

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

18
Share capital
Group and company
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A Shares of £1 each
2,800
2,800
2,800
2,800
Ordinary B Shares of £1 each
2,800
2,800
2,800
2,800
Ordinary C Shares of £1 each
2,200
2,200
2,200
2,200
7,800
7,800
7,800
7,800

The holders of the ordinary A, B, and C shares have full voting rights and all shares rank pari passu in all aspects with each of the other classes. The holders of the shares shall have the right to receive dividends, but the directors are empowered to declare different amounts of dividend in respect of each class of shares. The directors may decide to pay interim dividends on any of the shares to the exclusion of the other classes of shares then in existence in the company's capital. Insofar as a greater amount of dividends shall have been paid per share during any time in respect of the holder of one class.

Somesuch Industries Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
Page 29
19
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2022
2021
2022
2021
£
£
£
£
Within one year
182,272
166,799
-
-
Between two and five years
697,708
288,597
-
-
In over five years
136,944
-
-
-
1,016,924
455,396
-
-
20
Controlling party

As at 31 December 2021, there was no single ultimate controlling party.

21
Related party transactions

During the year sales of £295,460 (2021: £1,082,597 ) and purchases of £3,048,029 (2021: £1,216,220 ) were made from Somesuch Inc, a related party by virtue of common control. At the year end a debtor of £1,643,452 (2021: £1,696,462) was owed from Somesuch Inc.

22
Cash generated from group operations
2022
2021
£
£
Profit for the year after tax
135,079
1,113,109
Adjustments for:
Taxation charged
67,196
262,838
Investment income
(320)
(46)
Depreciation and impairment of tangible fixed assets
38,825
20,851
Movements in working capital:
(Increase)/decrease in work in progress
(212,630)
236,537
Decrease/(increase) in debtors
806,049
(641,906)
Increase/(decrease) in creditors
343,749
(1,470,240)
Cash generated from/(absorbed by) operations
1,177,948
(478,857)
Somesuch Industries Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
Page 30
23
Analysis of changes in net funds - group
1 January 2022
Cash flows
31 December 2022
£
£
£
Cash at bank and in hand
843,804
36,057
879,861
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