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Registered number: 00697555









EON PRODUCTIONS LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

 
EON PRODUCTIONS LIMITED
 
 
COMPANY INFORMATION


Directors
B Broccoli CBE 
M Wilson CBE 




Company secretary
John Roebuck



Registered number
00697555



Registered office
124 Finchley Road

London

NW3 5JS




Trading Address
Eon House
138 Piccadilly

London

W1J 7NR






Independent auditors
Nyman Libson Paul LLP
Chartered Accountants & Statutory Auditors

124 Finchley Road

London

NW3 5JS





 
EON PRODUCTIONS LIMITED
 

CONTENTS



Page
Group Strategic Report
 
1 - 2
Directors' Report
 
3 - 4
Independent Auditors' Report
 
5 - 8
Consolidated Statement of Income and Retained Earnings
 
9
Consolidated Balance Sheet
 
10
Company Balance Sheet
 
11
Consolidated Statement of Cash Flows
 
12 - 13
Consolidated Analysis of Net Debt
 
13
Notes to the Financial Statements
 
14 - 27


 
EON PRODUCTIONS LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022

Introduction
 
The directors present the group's strategic report for the year ended 31 December 2022.
The principal activity of the company and its group is film production and ancillary activities.

Business review
 
The directors consider the results of the group for the year to be in line with expectations. The results for the year were considered more than satisfactory by the directors who anticipate an increase in the net profitability of the group during periods when a film is released. This was aided by the continuation of a substantial merchandising contract agreed in 2017.
Looking forward, the directors anticipate the group to display continued growth and profitability whilst concentrating on the development of its next film towards its production.

Going concern
 
At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. The directors therefore consider that the going concern basis of accounting in preparing the financial statements remains appropriate.

Principal risks and uncertainties
 
The ongoing and usual management of the business and process of film production are subject to a number of risks. The key business risks and uncertainties affecting the group are considered to relate to the normal commercial risks involved in the production of a film to budget and the delivery of it at the required time.
The principal financial instruments of the group comprise bank balances, debtors and creditors. The main purpose of these instruments is to raise funds to finance the group's operations.
In respect of bank balances, liquidity risk is managed by actively monitoring balances and ensuring that funds are in place to meet liabilities as and when they fall due.
Debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits.
Creditors' liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.
Currency risk is managed by monitoring movements in exchange rates in an effort to reduce any negative impact of those movements.

Financial key performance indicators
 
Given the nature of the business, the directors are of the opinion that analysis using key performance indicators is not necessary for an understanding of the development, performance or position of the business. They consider the group's key financial performance indicator to be whether a film is completed in line with the production budget.

Page 1

 
EON PRODUCTIONS LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022

Other key performance indicators
 
The directors consider the group's key non-financial performance indicator to be whether a film achieves a British certification.


This report was approved by the board on 20 October 2023 and signed on its behalf.





B Broccoli CBE
Director

Page 2

 
EON PRODUCTIONS LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022

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

Directors

The directors who served during the year were:

B Broccoli CBE 
M Wilson CBE 

Directors' responsibilities statement

The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 company and the group and of the profit or loss of the group for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the group's financial statements and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and to enable them to ensure that the financial statements comply with the Companies Act 2006They are 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.

Results and dividends

The profit for the year, after taxation, amounted to £1,610,121 (2021 - £2,436,066).

The company paid interim dividends totalling £800,000 (2021: £nil) during the year.

Matters covered in the Group Strategic Report

As permitted by Paragraph 1A of Schedule 7 to the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 certain matters which are required to be disclosed in the Directors' Report have been omitted as they are included in the Strategic Report. These matters relate to financial instruments and future developments.

Page 3

 
EON PRODUCTIONS LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the company and the group's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the company and the group's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the group since the year end.

Auditors

The auditorsNyman Libson Paul LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 20 October 2023 and signed on its behalf.
 





B Broccoli CBE
Director

Page 4

 
EON PRODUCTIONS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EON PRODUCTIONS LIMITED
 

Opinion


We have audited the financial statements of Eon Productions Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2022, which comprise the group Statement of Income and Retained Earnings, the group and company Balance Sheets, the group Statement of Cash Flows and the related notes, including a summary of significant accounting policiesThe 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's affairs as at 31 December 2022 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 United Kingdom, including the Financial Reporting Council'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 or the 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.


Page 5

 
EON PRODUCTIONS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EON PRODUCTIONS LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and  our Auditors' 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.


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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group Strategic Report and the Directors' Report 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 Directors' Report.


We have nothing to report in respect of the following matters in relation to which 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 directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Page 6

 
EON PRODUCTIONS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EON PRODUCTIONS LIMITED (CONTINUED)


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 3, 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 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 directors either intend to liquidate the group or the parent company or to cease operations, or have 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 an Auditors' 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 Group financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, reading minutes of meetings of those charged with governance, enquiries with management and review of accounting estimates. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.


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 Auditors' Report.


Page 7

 
EON PRODUCTIONS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EON PRODUCTIONS LIMITED (CONTINUED)


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 2006Our 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 an Auditors' 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 company and the company's members, as a body, for our audit work, for this report, or for the opinions we have formed.





Paul Taiano (Senior Statutory Auditor)
  
for and on behalf of
Nyman Libson Paul LLP
 
Chartered Accountants
Statutory Auditors
  
124 Finchley Road
London
NW3 5JS

20 October 2023
Page 8

 
EON PRODUCTIONS LIMITED
 
 
CONSOLIDATED STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2022

2022
2021
Note
£
£

  

Turnover
 4 
15,844,403
234,651,328

Cost of sales
  
(6,107,969)
(278,379,148)

Gross profit/(loss)
  
9,736,434
(43,727,820)

Administrative expenses
  
(8,790,891)
(8,760,964)

Other operating income
 5 
112,721
3,560,376

Operating profit/(loss)
 6 
1,058,264
(48,928,408)

Amounts written off investments
  
(162,814)
(20,734)

Interest receivable and similar income
 10 
8,089
169

Interest payable and similar expenses
 11 
(2,660)
(557)

Profit/(loss) before tax
  
900,879
(48,949,530)

Tax on profit/(loss)
 12 
709,242
51,385,596

Profit after tax
  
1,610,121
2,436,066

  

  

Retained earnings at the beginning of the year
  
7,970,211
5,534,145

Profit for the year attributable to the owners of the parent
  
1,610,121
2,436,066

Dividends declared and paid
  
(800,000)
-

Retained earnings at the end of the year
  
8,780,332
7,970,211

  


The notes on pages 14 to 27 form part of these financial statements.

Page 9

 
EON PRODUCTIONS LIMITED
REGISTERED NUMBER: 00697555

CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2022

2022
2022
2021
2021
Note
£
£
£
£

Fixed assets
  

Tangible assets
 14 
229,872
226,721

  
229,872
226,721

Current assets
  

Debtors: amounts falling due within one year
 16 
6,148,415
7,810,859

Current asset investments
 17 
234,879
400,484

Cash at bank and in hand
 18 
5,206,342
2,168,981

  
11,589,636
10,380,324

Creditors: amounts falling due within one year
 19 
(3,037,041)
(2,634,699)

Net current assets
  
 
 
8,552,595
 
 
7,745,625

  

Net assets
  
8,782,467
7,972,346


Capital and reserves
  

Called up share capital 
 20 
2
2

Capital redemption reserve
  
2,133
2,133

Profit and loss account
  
8,780,332
7,970,211

  
8,782,467
7,972,346


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 20 October 2023.



B Broccoli CBE
Director

The notes on pages 14 to 27 form part of these financial statements.

Page 10

 
EON PRODUCTIONS LIMITED
REGISTERED NUMBER: 00697555

COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2022

2022
2022
2021
2021
Note
£
£
£
£

Fixed assets
  

Tangible fixed assets
 14 
229,872
226,721

Investments
 15 
300
300

  
230,172
227,021

Current assets
  

Debtors: amounts falling due within one year
 16 
5,641,446
8,300,559

Current asset investments
 17 
234,879
400,484

Cash at bank and in hand
 18 
5,061,065
1,541,498

  
10,937,390
10,242,541

Creditors: amounts falling due within one year
 19 
(2,432,595)
(2,544,716)

Net current assets
  
 
 
8,504,795
 
 
7,697,825

  

  

Net assets
  
8,734,967
7,924,846


Capital and reserves
  

Called up share capital 
 20 
2
2

Capital redemption reserve
  
2,133
2,133

Profit and loss account brought forward
  
7,922,711
5,534,145

Profit for the year
  
1,610,121
2,388,566

Other changes in the profit and loss account

  

(800,000)
-

Profit and loss account carried forward
  
8,732,832
7,922,711

  
8,734,967
7,924,846


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 20 October 2023.



B Broccoli CBE
Director

The notes on pages 14 to 27 form part of these financial statements.

Page 11

 
EON PRODUCTIONS LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2022

2022
2021
£
£

Cash flows from operating activities

Profit for the financial year
1,610,121
2,436,066

Adjustments for:

Depreciation of tangible assets
58,342
57,489

Impairment of unlisted investments
162,814
20,734

Loss on disposal of tangible assets
-
30,392

Government grants
-
(44,509)

Interest paid
2,660
557

Interest received
(8,089)
(169)

Taxation charge
(709,242)
(51,385,596)

Decrease in stocks
-
214,644,467

Decrease in debtors
2,792,249
6,795,091

Increase/(decrease) in creditors
425,731
(224,256,374)

Corporation tax (paid)/received
(446,612)
51,620,436

Net cash generated from operating activities

3,887,974
(81,416)


Cash flows from investing activities

Purchase of tangible fixed assets
(61,493)
(50,410)

Purchase of short-term unlisted investments
(23,250)
(270,734)

Sale of short-term unlisted investments
26,041
-

Government grants received
-
44,509

Interest received
8,089
169

Net cash from investing activities

(50,613)
(276,466)

Cash flows from financing activities

Dividends paid
(800,000)
-

Interest paid
-
(557)

Net cash used in financing activities
(800,000)
(557)

Net increase/(decrease) in cash and cash equivalents
3,037,361
(358,439)

Cash and cash equivalents at beginning of year
2,168,981
2,527,420

Cash and cash equivalents at the end of year
5,206,342
2,168,981

Page 12

 
EON PRODUCTIONS LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022


2022
2021

£
£


 
 
 
 
 
 
Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
5,206,342
2,168,981

5,206,342
2,168,981



CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2022




At 1 January 2022
Cash flows
At 31 December 2022
£

£

£

Cash at bank and in hand

2,168,981

3,037,361

5,206,342


2,168,981
3,037,361
5,206,342



The notes on page 14 to 28  form part of these financial statements.

Page 13

 
EON PRODUCTIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

1.


General information

Eon Productions Limited is a private company limited by shares incorporated in England and Wales. The address of its registered office is 124 Finchley Road, London, NW3 5JS and the address of its principal place of business is Eon House, 138 Piccadilly, London, W1J 7NR.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires group management to exercise judgement in applying the group's accounting policies (see note 3).

The company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Income and Retained Earnings in these financial statements.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the company and its own subsidiaries ("the group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Income and Retained Earnings from the date on which control is obtained. They are deconsolidated from the date control ceases.
In accordance with the transitional exemption available in FRS 102, the group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being 01 January 2015.

Page 14

 
EON PRODUCTIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.3

Foreign currency translation

Functional and presentation currency
The company's functional and presentational currency is GBP.
Transactions and balances
The individual financial statements of each group entity are presented in the currency of the primary economic environment in which the entity operates. These, and the results and financial position reported in the Consolidated Financial Statements, are presented in Sterling (£).
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction. Exchange differences are recognised in the Consolidated Statement of Income and Retained Earnings in the period in which they arise.
Exchange differences on production costs have been offset against production advances on the balance sheet. Other exchange gains and losses are recognised in the Consolidated Statement of Income and Retained Earnings.

 
2.4

Revenue

Turnover is measured as the fair value of the consideration received or receivable, net of value added tax. Turnover includes revenue earned from film production, recharged costs and from the sale of merchandise.
Film production
A production fee is earned during the production of each feature film and is recognised evenly over the entire production period. Once the production of the feature film has been completed, the film is sold for a price equal to the total cost of production less the amount received in respect of UK Film Tax Credits.
Recharged costs
Certain administrative costs are recharged in line with an approved contract on a quarterly basis.
Merchandising income
The company operates as a licensing agent in respect of the group's merchandising deals. The company receives the gross merchandising receipts from its worldwide agents before deducting and paying out the various amounts owed to participants in line with their contracted rates.

 
2.5

Operating leases: the group as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

 
2.6

Government grants

Grants are accounted under the accruals model as permitted by FRS 102.
Grants of a revenue nature are recognised in the Consolidated Statement of Income and Retained Earnings in the same period as the related expenditure.

Page 15

 
EON PRODUCTIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.7

Taxation

Tax is recognised in profit or loss. The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company and the group operate and generate income.
The element of tax that is recoverable is based on relievable losses arising in the year as the result of film tax relief legislation. Relievable losses differ from net losses as reported in the profit and loss account because they include an additional deduction relating to qualifying film development expenditure and exclude items of income or expense that are taxable or deductible in other years, as well as items that are never taxable or deductible.

 
2.8

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives.

Depreciation is provided on the following basis:

Plant and equipment
-
15%
on written down value
Motor vehicles
-
25%
on written down value
Fixtures and fittings
-
10%
and 16.67% on cost
Computer equipment
-
50%
on cost

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.9

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Investments in unlisted group shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Consolidated Statement of Income and Retained Earnings for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

 
2.10

Debtors

Short term debtors are measured at transaction price, less any impairment.

Page 16

 
EON PRODUCTIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.11

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.

 
2.12

Creditors

Short term creditors are measured at the transaction price.

 
2.13

Financial instruments

The group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from third parties, loans to or from related parties and investments in non-puttable ordinary shares.
Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received.
Investments in non-derivative instruments that are equity to the issuer are measured:
•   at fair value with changes recognised in the Consolidated Statement of Income and Retained   Earnings if the shares are publicly traded or their fair value can otherwise be measured      reliably;
•   at cost less impairment for all other investments.

 
2.14

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 17

 
EON PRODUCTIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilites as at the reporting date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates.
The following are the group's key sources of estimation uncertainty:
Tangible assets
Tangible assets are depreciated over their useful lives taking into account residual values where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending upon a number of factors. In re-assessing the assets' lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account.
Investments
At each reporting date the investments are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected investment is estimated and compared with its carrying amount. If the estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in the Consolidated Statement of Income and Retained Earnings.
Due to the unpredictable nature of the recoverability of investments, an impairment loss may subsequently reverse. If so, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, without going in excess of the amount which would have been determined had no impairment loss been recognised in prior years. A reversal of an impairment loss is recognised immediately in the Consolidated Statement of Income and Retained Earnings.
Debtors
The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment, management considers factors including the ageing profile and historical experience of each debtor.
Accruals
The company makes an estimate of accruals at the year end based on invoices received after the year end and work undertaken which has not been invoiced based on quotations or estimates of amounts that may be due for payment.


4.


Turnover

In the opinion of the directors, it would seriously prejudice the company's interests to disclose the turnover by each class and provide a geographical analysis.

Page 18

 
EON PRODUCTIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

5.


Other operating income

2022
2021
£
£

CJRS claims receivable
-
44,509

Management fees and sundry income
112,721
103,145

Other operating income
-
3,412,722

112,721
3,560,376



6.


Operating profit/(loss)

The operating profit/(loss) is stated after charging:

2022
2021
£
£

Exchange differences
(71,960)
48,636

Other operating lease rentals
343,640
312,400


7.


Auditors' remuneration

During the year, the group obtained the following services from the company's auditors:


2022
2021
£
£

Fees payable to the company's auditors for the audit of the consolidated and parent company's financial statements

35,000
35,000

Page 19

 
EON PRODUCTIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

8.


Employees

Staff costs, including directors' remuneration, were as follows:


Group
Group
Company
Company
2022
2021
2022
2021
£
£
£
£


Wages and salaries
5,962,395
5,765,373
5,962,395
5,765,373

Social security costs
837,088
753,519
837,088
753,519

6,799,483
6,518,892
6,799,483
6,518,892


The average monthly number of employees, including the directors, during the year was as follows:



Group
Group
Company
Company
        2022
        2021
        2022
        2021
            No.
            No.
            No.
            No.









Administration
19
22
16
19


9.


Directors' remuneration

2022
2021
£
£

Directors' emoluments
3,733,179
3,359,744

3,733,179
3,359,744


The highest paid director received remuneration of £2,096,365 (2021 - £1,875,707).

The total remuneration of the key management personnel of Eon Productions Limited and its group were £4,944,835 (2021: £4,629,588).


10.


Interest receivable

2022
2021
£
£


Other interest receivable
8,089
169

Page 20

 
EON PRODUCTIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

11.


Interest payable and similar expenses

2022
2021
£
£


Other interest payable
2,660
557


12.


Taxation


2022
2021
£
£

Corporation tax


Current tax on profits for the year
(708,183)
(51,385,596)

Adjustments in respect of previous periods
(1,059)
-


(709,242)
(51,385,596)


Double taxation relief
(86,613)
(43,048)


(795,855)
(51,428,644)

Foreign tax


Foreign tax on income for the year
86,613
43,048

86,613
43,048

Total current tax
(709,242)
(51,385,596)
Page 21

 
EON PRODUCTIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
 
12.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2021 - lower than) the standard rate of corporation tax in the UK of 19% (2021 - 19%). The differences are explained below:

2022
2021
£
£


Profit/(loss) on ordinary activities before tax
900,879
(48,949,530)


Profit/(loss) on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2021 - 19%)
171,167
(9,300,411)

Effects of:


Expenses not deductible for tax purposes
10,932
34,268

Depreciation for year in excess of capital allowances
(6,075)
4,717

Adjustments to tax charge in respect of prior periods
(1,059)
-

Amounts written off investments
30,935
3,939

Enhanced losses arising from film tax credits
(858,652)
(39,464,572)

Difference between the rate of corporation tax and the rate of relief under film tax credit
(271,153)
(12,468,328)

Unrelieved tax losses carried forward
214,663
9,804,791

Total tax charge for the year
(709,242)
(51,385,596)


13.


Dividends

2022
2021
£
£


Interim dividends
800,000
-

Page 22

 
EON PRODUCTIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

14.


Tangible fixed assets

Group and Company






Motor vehicles
Office equipment
Computer equipment
Total

£
£
£
£



Cost


At 1 January 2022
16,500
1,688,583
223,226
1,928,309


Additions
-
47,569
13,924
61,493



At 31 December 2022

16,500
1,736,152
237,150
1,989,802



Depreciation


At 1 January 2022
16,500
1,472,425
212,663
1,701,588


Charge for the year on owned assets
-
40,817
17,525
58,342



At 31 December 2022

16,500
1,513,242
230,188
1,759,930



Net book value



At 31 December 2022
-
222,910
6,962
229,872



At 31 December 2021
-
216,158
10,563
226,721

Page 23

 
EON PRODUCTIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

15.


Fixed asset investments

Group





Unlisted investments

£



Cost


At 1 January 2022
500,000



At 31 December 2022
500,000



Impairment


At 1 January 2022
500,000



At 31 December 2022

500,000



Net book value



At 31 December 2022
-



At 31 December 2021
-

Page 24

 
EON PRODUCTIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
Company





Investments in subsidiary companies
Unlisted investments
Total

£
£
£



Cost


At 1 January 2022
300
500,000
500,300



At 31 December 2022

300
500,000
500,300



Impairment


At 1 January 2022
-
500,000
500,000



At 31 December 2022

-
500,000
500,000



Net book value



At 31 December 2022
300
-
300



At 31 December 2021
300
-
300


Subsidiary undertakings


The following were subsidiary undertakings of the company:

Name

Registered office

Principal activity

Class of shares

Holding

B24 Limited
England and Wales
Film production
Ordinary
100
B25 Limited
England and Wales
Film production
Ordinary
100
Frozen Film Company Limited
England and Wales
Dormant
Ordinary
100

The aggregate of the share capital and reserves as at 31 December 2022 and the profit or loss for the year ended on that date for the subsidiary undertakings were as follows:

Name
Aggregate of share capital and reserves
Profit/(Loss)
£
£

B24 Limited
100
-

B25 Limited
47,600
-

Frozen Film Company Limited
100
-


16.


Debtors

Page 25

 
EON PRODUCTIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
Group
Group
Company
Company
2022
2021
2022
2021
£
£
£
£


Trade debtors
196,685
651,915
196,685
651,915

Amounts owed by group undertakings
-
-
628,396
510,316

Other debtors
4,008,140
5,378,237
4,002,580
5,357,621

Prepayments and accrued income
813,785
1,780,707
813,785
1,780,707

Tax recoverable
1,129,805
-
-
-

6,148,415
7,810,859
5,641,446
8,300,559



17.


Current asset investments

Group
Group
Company
Company
2022
2021
2022
2021
£
£
£
£

Unlisted investments
234,879
400,484
234,879
400,484



18.


Cash and cash equivalents

Group
Group
Company
Company
2022
2021
2022
2021
£
£
£
£

Cash at bank and in hand
5,206,342
2,168,981
5,061,065
1,541,498



19.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2022
2021
2022
2021
£
£
£
£

Trade creditors
1,036,746
1,351,632
1,036,266
1,351,632

Corporation tax
217,778
241,167
217,778
241,167

Other taxation and social security
384,564
314,287
384,564
314,287

Other creditors
1,333,252
678,813
729,286
588,830

Accruals
64,701
48,800
64,701
48,800

3,037,041
2,634,699
2,432,595
2,544,716


Page 26

 
EON PRODUCTIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

20.


Share capital

2022
2021
£
£
Allotted, called up and fully paid



201 (2021 - 201) Ordinary shares of £0.01 each
2
2



21.


Commitments under operating leases

At 31 December 2022 the group and the company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
Company
Company
2022
2021
2022
2021
£
£
£
£

Not later than 1 year
343,640
371,126
343,640
371,126

Later than 1 year and not later than 5 years
200,457
544,097
200,457
544,097

544,097
915,223
544,097
915,223

22.


Related party transactions

Turnover includes £8,125,544 (2021: £7,285,594) arising from transactions with a company whose directors are closely connected with the directors of Eon Productions Limited. The amount due from that company at the balance sheet date was £3,795,078 (2021: 5,237,738).
The company has also received film production advances from the same company whose directors are closely connected with the directors of Eon Productions Limited. During the year Eon Productions Limited sold its latest film to this company for £698,408 (2021: £221,474,676) and at the balance sheet date the company had net production advances of £628,396 (2021: £510,316) remaining. 
Eon Productions Limited paid rent and service charge totalling £430,877 (2021: £424,218) to a company whose directors are closely connected with the directors of Eon Productions Limited. Eon Productions Limited received management and other fees totalling £34,364 (2021: £34,364) from the company.
Eon Productions Limited has a cross guarantee with the bankers of its subsidiary companies, B24 Limited and B25 Limited.
The group is exempt from disclosing related party transactions which occur between other companies that are wholly owned within the group.


23.


Controlling party

The company is under the control of Barbara Broccoli CBE and Michael Wilson CBE by virtue of their shareholdings.

 
Page 27