COMPANY REGISTRATION NUMBER:
12707590
Pulse Films London 2 Limited |
|
Filleted Financial Statements |
|
Pulse Films London 2 Limited |
|
Statement of Financial Position |
|
31 December 2022
|
31 Dec 22 |
21 Jan 22 |
Note |
£ |
£ |
|
|
|
Current assets
Debtors |
6 |
6,318,997 |
10,510,684 |
Cash at bank and in hand |
380,388 |
736,512 |
|
------------ |
------------- |
|
6,699,385 |
11,247,196 |
|
|
|
|
Creditors: amounts falling due within one year |
7 |
(
6,699,384) |
(
11,247,195) |
|
------------ |
------------- |
Net current assets |
1 |
1 |
|
---- |
---- |
Total assets less current liabilities |
1 |
1 |
|
---- |
---- |
Net assets |
1 |
1 |
|
---- |
---- |
|
|
|
|
Capital and reserves
Called up share capital |
1 |
1 |
|
---- |
---- |
Shareholders funds |
1 |
1 |
|
---- |
---- |
|
|
|
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
In accordance with section 444 of the Companies Act 2006, the statement of income and retained earnings has not been delivered.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
These financial statements were approved by the
board of directors
and authorised for issue on
18 October 2023
, and are signed on behalf of the board by:
Company registration number:
12707590
Pulse Films London 2 Limited |
|
Notes to the Financial Statements |
|
Period from 22 January 2022 to 31 December 2022
1.
General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Stapleton House, 29-33 Scrutton Street, London, EC2A 4HU, England.
2.
Statement of compliance
These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3.
Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of the transaction. Exchange differences are taken into account in arriving at the operating profit.
Going concern
After making enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the financial have been prepared on a going concern basis. A detailed budget and cashflow have been prepared for the production and delivery of the television series. Funds to meet the cashflow requirements are contractually in place and the directors do not anticipate any material overspend. The directors are therefore satisfied that the going concern assumption remains appropriate.
Comparatives
The accounts cover the period from 22 January 2022 to 31 December 2022. The comparatives cover the period from 1 March 2021 to 21 January 2022 and as such the comparatives are not entirely comparable.
The accounting period has been shortened to ensure that the accounting period and tax credit claim is conterminous.
Disclosure exemptions
The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. Its financial statements are consolidated into the financial statements of Pulse Films Ltd which can be obtained from 110-122 New North Place, London, England, EC2A 4JA. As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102: (a) Disclosures in respect of each class of share capital have not been presented. (b) Disclosures in respect of financial instruments have not been presented.
Judgements and key sources of estimation uncertainty
Accruals are estimated by reference to purchase orders raised at the period end and estimates to complete. Payments received on account are estimated by reference to percentage of completion of the television production, as noted in "Turnover" below.
Turnover
Turnover relates to the production of the television series entitled "Gangs of London 2". It represents the value of the work done in the period, including estimates of amounts not invoiced and is stated after trade discounts, other taxes and net of VAT. Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that expenses recognised are recoverable.
Taxation
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Financial instruments
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Intra-group borrowings are debt instruments and are initially measured at present value of the future cash flows and subsequently at amortised cost using an effective interest method.
4.
Employees
The company has been incorporated to produce a high-end television series entitled "Gangs of London 2". In common with the film and television industry the majority of crew are hired on short term contracts for the duration of principal photography or are self-employed.
None of the Directors received any form of remuneration.
5.
Tax on loss
Major components of tax income
|
Period from |
Period from |
|
22 Jan 22 to |
1 Mar 21 to |
|
31 Dec 22 |
21 Jan 22 |
|
£ |
£ |
|
|
|
Current tax:
UK current tax income |
(
2,214,458) |
(
7,406,343) |
|
------------ |
------------ |
Tax on loss |
(
2,214,458) |
(
7,406,343) |
|
------------ |
------------ |
|
|
|
Reconciliation of tax income
The tax assessed on the loss on ordinary activities for the period is lower than (2022: lower than) the
standard rate of corporation tax in the UK
of
19
% (2022:
19
%).
|
Period from |
Period from |
|
22 Jan 22 to |
1 Mar 21 to |
|
31 Dec 22 |
21 Jan 22 |
|
£ |
£ |
Loss on ordinary activities before taxation |
(
2,214,458) |
(
7,406,343) |
|
------------ |
------------ |
High-end television tax relief |
(2,214,458) |
(7,406,343)
|
|
------------ |
------------ |
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|
|
6.
Debtors
|
31 Dec 22 |
21 Jan 22 |
|
£ |
£ |
Trade debtors |
– |
2,768,083 |
Amounts owed by group undertakings |
– |
2,362 |
Prepayments and accrued income |
3,986,313 |
– |
VAT recoverable |
|
|
Corporation tax recoverable |
|
|
Other debtors |
48,078 |
304,005 |
|
------------ |
------------- |
|
6,318,997 |
10,510,684 |
|
------------ |
------------- |
|
|
|
7.
Creditors:
amounts falling due within one year
|
31 Dec 22 |
21 Jan 22 |
|
£ |
£ |
Trade creditors |
138,414 |
719,349 |
Amounts owed to group undertakings |
4,256,656 |
346,308 |
Accruals and deferred income |
1,721,653 |
2,012,019 |
Social security and other taxes |
– |
11,980 |
Production loan |
|
|
Other creditors |
– |
168,535 |
|
------------ |
------------- |
|
6,699,384 |
11,247,195 |
|
------------ |
------------- |
|
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The loan has been secured against the anticipated future high-end television tax credit.
8.
Contingent liabilities
Charges have been made against the television series in favour of the following parties to secure their interests in the copyright of and title to the television series: Sky Studios Limited Starzplay US, LLC Barclays Bank PLC Amc TV Studios LLC
9.
Summary audit opinion
The auditor's report for the period dated
19 October 2023
was
unqualified
.
The senior statutory auditor was
Stephen Joberns
, for and on behalf of
Shipleys LLP
.
10.
Related party transactions
As a wholly-owned subsidiary of Pulse Films Limited (note 10), whose financial statements are publicly available, the Company has taken advantage of the exemption under FRS 102 Paragraph 33.1A on the basis that disclosure need not be given regarding related party transactions with other wholly-owned subsidiaries of the group. No further transactions with related parties were undertaken such as are required to be disclosed under FRS 102.
11.
Controlling party
The immediate controlling party is Pulse Films Limited, a company incorporated in England and Wales. The smallest group in which the results of the company are consolidated is that headed by Pulse Films Limited. Financial statements for Pulse Films Limited are publicly available and can be obtained from 110-122 New North Place, London, EC2A 4JA. The ultimate controlling party and the largest group in which the results of the company are consolidated is Vice Group Holding Inc., a company incorporated in USA.