Company Registration No. 12992292 (England and Wales)
The Peripheral Productions UK Limited
Annual report and financial statements
for the period ended 23 November 2022
The Peripheral Productions UK Limited
Company information
Directors
Rebecca Leigh
Gail Egan
Secretary
Rebecca Leigh
Company number
12992292
Registered office
53 Greek Street
Second Floor
London
W1D 3DR
Independent auditor
Saffery LLP
71 Queen Victoria Street
London
EC4V 4BE
The Peripheral Productions UK Limited
Contents
Page
Strategic report
1
Directors' report
2 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 9
Statement of comprehensive income
10
Balance sheet
11
Statement of changes in equity
12
Statement of cash flows
13
Notes to the financial statements
14 - 22
The Peripheral Productions UK Limited
Strategic report
For the period ended 23 November 2022
Page 1

The directors present the strategic report for the period ended 23 November 2022.

Fair review of the business

The company made a profit of £0 during the period (31 December 2021: £0).

 

The company's net assets as at the balance sheet date are £2 (31 December 2021: £2).

Principal risks and uncertainties

The Company was incorporated on 3 November 2020 and began trading the same day.

 

The directors have reviewed the risks and resultant uncertainties facing the business as being the ability to secure future contracts.

Key performance indicators

The directors consider the company's key financial performance indicators to be whether the television show is produced in line with the agreed budget. At the period end, the estimated cost of the television show had exceeded budget due to delays in filming, however all additional costs of production to date are adequately insured and have been recovered where possible, and the company continued to be funded by the financiers.

 

The directors consider the company's key non-financial performance indicator to be whether the television programme being produced is certified as British. The programme has been awarded an Interim British High-end Television Certificate.

Section 172 Statement

The directors of The Peripheral Productions UK Limited consider that they have acted in the way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole (having regard to the stakeholders and matters set out in s172(1)(a-f) of the Act) in the decisions taken during the period ended 31 December 2021.

 

The Company is committed to being a responsible business. Our behaviour is aligned with the expectations of our people, suppliers, customers, communities and societies as a whole.

 

Our strategy focusses on creating ambitious, imaginative and relevant drama for global television markets. To do this, we need to develop and maintain strong client relations. We value all of our suppliers and contractors and are committed to developing production talent.

On behalf of the board

Rebecca Leigh
Director
6 November 2023
The Peripheral Productions UK Limited
Directors' report
For the period ended 23 November 2022
Page 2

The directors present their annual report and financial statements for the period ended 23 November 2022.

Principal activities

The principal activity of the company continued to be that of motion picture and video production.

Results and dividends

The results for the period are set out on page 10.

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

Directors

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

Rebecca Leigh
Gail Egan
Auditor

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

The Peripheral Productions UK Limited
Directors' report (continued)
For the period ended 23 November 2022
Page 3
Energy and carbon report

We have reported on all sources of GHG emissions and energy usage as required under The Large and Medium-Sized Companies and Groups (Accounts and Reports) Regulations 2008 as amended.

2022
2021
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
25,989
2,566,219
2022
2021
Emissions of CO2 equivalent
metric tonnes
metric tonnes
Scope 1 - direct emissions
- Gas combustion
-
120.00
- Fuel consumed for owned transport
6.00
506.00
6.00
626.00
Scope 2 - indirect emissions
- Electricity purchased
1.00
1.00
Scope 3 - other indirect emissions
- Fuel consumed for transport not owned by the
-
29.00
Total gross emissions
7.00
656.00
Intensity ratio
Tonnes CO2 per stage lease hire weekdays in the period (321 days)
0
2
Quantification and reporting methodology

We have followed the 2019 HM Government Environmental Reporting Guidelines. We have also used the GHG Reporting Protocol – Corporate Standard and have used the 2020 UK Government’s Conversion Factors for Company Reporting.

Intensity measurement

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per stage lease hire weekdays in the period, the most appropriate measure for the company's principal activity of motion picture production.

The Peripheral Productions UK Limited
Directors' report (continued)
For the period ended 23 November 2022
Page 4
Measures taken to improve energy efficiency

The firm is committed to making careful assessments of its levels of energy and to reducing the impact of carbon dioxide emissions on the environment. The principal measures taken in the period to increase energy efficiency have been using eco rechargeable generators for set lighting packages, using energy efficient LED set lighting when possible over tungsten, making best efforts for rental cars to be hybrid or electric, using charter flights to combine crew and equipment in one flight and reduce emissions, and encouraging work from home whenever possible to reduce commute carbon footprint. The production has also been discussing tree planting possibilities.

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 company’s auditor 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 company’s auditor is aware of that information.

Going Concern

It is the intention of the directors to close the company once all assets and liabilities have been settled and as a consequence the accounts have not been prepared on a going concern basis. There is no difference in the carrying value of assets and liabilities of the company and their break up value.

On behalf of the board
Rebecca Leigh
Director
6 November 2023
The Peripheral Productions UK Limited
Directors' responsibilities statement
For the period ended 23 November 2022
Page 5

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 company and of the profit or loss of the company 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 company’s transactions and disclose with reasonable accuracy at any time the financial position of the 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Peripheral Productions UK Limited
Independent auditor's report
To the members of The Peripheral Productions UK Limited
Page 6
Opinion

We have audited the financial statements of The Peripheral Productions UK Limited (the 'company') for the period ended 23 November 2022 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the 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 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.

Emphasis of matter

We draw attention to Note 1.3 of the financial statements, which explains that the directors intend to liquidate the company and therefore do not consider it to be appropriate to adopt the going concern basis of accounting in preparing the financial statements. Accordingly the financial statements have been prepared on a basis other than going concern as described in Note 1.3. Our opinion is not modified in respect of this matter.

The Peripheral Productions UK Limited
Independent auditor's report (continued)
To the members of The Peripheral Productions UK Limited
Page 7

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the 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:

 

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 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 company or to cease operations, or have no realistic alternative but to do so.

The Peripheral Productions UK Limited
Independent auditor's report (continued)
To the members of The Peripheral Productions UK Limited
Page 8
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.

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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.

 

Identifying and assessing risks related to irregularities:

We assessed the susceptibility of the company’s financial statements to material misstatement and how fraud might occur, including through discussions with the directors, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the company by discussions with directors and by updating our understanding of the sector in which the company operates.

 

Laws and regulations of direct significance in the context of the company include The Companies Act 2006 and UK Tax legislation.

 

Audit response to risks identified:

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the company's records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the company's policies and procedures for compliance with laws and regulations with members of management responsible for compliance.

During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

The Peripheral Productions UK Limited
Independent auditor's report (continued)
To the members of The Peripheral Productions UK Limited
Page 9

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. Also, 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.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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

Nigel Walde
Senior Statutory Auditor
For and on behalf of Saffery LLP
9 November 2023
Chartered Accountants
Statutory Auditors
71 Queen Victoria Street
London
EC4V 4BE
The Peripheral Productions UK Limited
Statement of comprehensive income
For the period ended 23 November 2022
Page 10
Period
Period
ended
ended
23 November
31 December
2022
2021
Notes
£
£
Turnover
3
29,258,801
83,575,311
Cost of sales
(30,286,547)
(99,918,827)
Gross loss
(1,027,746)
(16,343,516)
Administrative expenses
(136,455)
(18,166)
Loss before taxation
(1,164,201)
(16,361,682)
Tax on loss
6
1,164,201
16,361,682
Profit for the financial period
-
0
-
0
The Peripheral Productions UK Limited
Balance sheet
As at 23 November 2022
Page 11
2022
2021
Notes
£
£
£
£
Current assets
Debtors
7
17,710,076
16,849,009
Cash at bank and in hand
2,746,935
22,565,162
20,457,011
39,414,171
Creditors: amounts falling due within one year
8
(20,457,009)
(39,414,169)
Net current assets
2
2
Capital and reserves
-
-
Called up share capital
10
2
2
The financial statements were approved by the board of directors and authorised for issue on 6 November 2023 and are signed on its behalf by:
Rebecca  Leigh
Director
Company Registration No. 12992292 (England and Wales)
The Peripheral Productions UK Limited
Statement of changes in equity
For the period ended 23 November 2022
Page 12
Share capital
Notes
£
Balance at 3 November 2020
-
0
Period ended 31 December 2021:
Profit and total comprehensive income for the period
-
Issue of share capital
10
2
Balance at 31 December 2021
2
Period ended 23 November 2022:
Profit and total comprehensive income for the period
-
Balance at 23 November 2022
2
The Peripheral Productions UK Limited
Statement of cash flows
For the period ended 23 November 2022
Page 13
2022
2021
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
(19,818,227)
22,565,160
Financing activities
Proceeds from issue of shares
-
0
2
Net cash (used in)/generated from financing activities
-
2
Net (decrease)/increase in cash and cash equivalents
(19,818,227)
22,565,162
Cash and cash equivalents at beginning of period
22,565,162
-
0
Cash and cash equivalents at end of period
2,746,935
22,565,162
The Peripheral Productions UK Limited
Notes to the financial statements
For the period ended 23 November 2022
Page 14
1
Accounting policies
Company information

The Peripheral Productions UK Limited is a private company limited by shares incorporated in England and Wales. The registered office is 53 Greek Street, Second Floor, London, W1D 3DR.

1.1
Reporting period

The company has a 11 month accounting period from 1 January 2022 to 23 November 2023 to align with the production schedule of the programme being produced. The prior period of accounts was 13 months.

1.2
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. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

1.3
Going concern

The directors do not believe it is necessary to keep the company open and trading for at least 12true months from the approval of the 23 November 2022 financial statements. As a result, the financial statements have been prepared on a break up basis.

1.4
Turnover

In respect of long-term contracts for ongoing services, turnover represents the value of work done in the period, including estimates for amounts not invoiced. Value of work done in respect of long-term contracts and contracts for ongoing services is determined by reference to the stage of completion.

 

The "percentage of completion" method is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the period in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable that they will be recovered.

1.5
Cash and cash equivalents

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.

The Peripheral Productions UK Limited
Notes to the financial statements (continued)
For the period ended 23 November 2022
1
Accounting policies (continued)
Page 15
1.6
Financial instruments

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

 

Financial assets and liabilities are offset, with 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.

Basic financial assets

Basic financial assets, which include debtors, 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.

The Peripheral Productions UK Limited
Notes to the financial statements (continued)
For the period ended 23 November 2022
1
Accounting policies (continued)
Page 16
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 company 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 company after deducting all of its liabilities.

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.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

The Peripheral Productions UK Limited
Notes to the financial statements (continued)
For the period ended 23 November 2022
1
Accounting policies (continued)
Page 17
1.7
Equity instruments

Equity instruments issued by the company 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 company.

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

1.8
Taxation

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

Current tax

The tax currently recoverable is based on relievable losses arising in the period as the result of high-end television tax relief legislation. Relievable losses differ from net losses as reported in the statement of comprehensive income 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 periods, as well as items that are never taxable or deductible. The company’s tax position 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. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income. Deferred tax assets and liabilities are offset when the company has 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.

1.9
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense.

 

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.

The Peripheral Productions UK Limited
Notes to the financial statements (continued)
For the period ended 23 November 2022
1
Accounting policies (continued)
Page 18
1.10
Retirement benefits

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

1.11
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions where practicable, else at the average rate over the period in which the transactions were incurred. 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.

2
Critical accounting judgements and key sources of estimation uncertainty

In the application of the company’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.

Tax credit estimate

The directors believe the key accounting estimate within the financial statements for the Company is the valuation of the high-end television tax credit available. The estimate is based on the assessment of the value of qualifying expenditure as per HMRC legislations and guidance plus assessment of the qualification of the underlying production as eligible for the tax relief.

3
Turnover
2022
2021
£
£
Turnover analysed by class of business
Sale of television rights
29,258,801
83,575,311
The Peripheral Productions UK Limited
Notes to the financial statements (continued)
For the period ended 23 November 2022
3
Turnover (continued)
Page 19
2022
2021
£
£
Turnover analysed by geographical market
United States of America
29,258,801
83,575,311
4
Operating loss
2022
2021
Operating loss for the period is stated after charging/(crediting):
£
£
Exchange losses/(gains)
115,455
(3,434)
Fees payable to the company's auditor for the audit of the company's financial statements
17,000
16,500
5
Employees

The average monthly number of persons employed by the company during the period was:

2022
2021
Number
Number
Production staff
4
107

Their aggregate remuneration comprised:

2022
2021
£
£
Wages and salaries
93,449
9,696,312
Social security costs
11,138
1,129,030
Pension costs
642
66,800
105,229
10,892,142

None of the directors received any emoluments in respect of their services to the Company. The directors are employed and remunerated by another company.

The Peripheral Productions UK Limited
Notes to the financial statements (continued)
For the period ended 23 November 2022
Page 20
6
Taxation
2022
2021
£
£
Current tax
UK corporation tax on profits for the current period
(1,164,201)
(16,361,682)

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

2022
2021
£
£
Loss before taxation
(1,164,201)
(16,361,682)
Expected tax credit based on the standard rate of corporation tax in the UK of 19.00% (2021: 19.00%)
(221,198)
(3,108,720)
Enhanced losses arising from the film tax credit
(1,901,803)
(11,390,662)
Difference between the rate of corporation tax and the rate of relief under the film tax credit
(279,408)
(3,926,804)
Losses carried forward
1,238,208
2,064,504
Taxation credit for the period
(1,164,201)
(16,361,682)
7
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
104,034
31,843
Corporation tax recoverable
17,525,882
16,361,682
Other debtors
80,160
43,152
Prepayments and accrued income
-
0
412,332
17,710,076
16,849,009
The Peripheral Productions UK Limited
Notes to the financial statements (continued)
For the period ended 23 November 2022
Page 21
8
Creditors: amounts falling due within one year
2022
2021
£
£
Trade creditors
23,826
-
0
Other creditors
20,189,909
39,294,821
Accruals and deferred income
243,274
119,348
20,457,009
39,414,169
9
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
642
66,800

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

10
Share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
2 Ordinary shares of £1 each of £1 each
2
2
2
2
12
Financial commitments, guarantees and contingent liabilities

A fixed charge and a negative pledge over all of the undertakings of the company was created on 26 May 2021 and is held by Big Indie Alpha, Inc. The charge was satisfied post year end on the 31 May 2023.

13
Ultimate controlling party

The Company is under the joint control of Rebecca Leigh and Gail Egan, both of whom are directors of the Company.

The Peripheral Productions UK Limited
Notes to the financial statements (continued)
For the period ended 23 November 2022
Page 22
14
Related party transactions

During the year, Potboiler Productions Limited, a company under common directorship of Gail Egan, invoiced production costs of £25,000 (2021: £210,000) to the Company. The Peripheral Productions UK Limited also paid £25,000 (2021: £210,000) to Potboiler Productions Limited.

 

As at the period end, the outstanding balance with Potboiler Productions Limited was £Nil.

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