Registered number: 10979220
BRUTAL OCTOBER LIMITED
FINANCIAL STATEMENTS
INFORMATION FOR FILING WITH THE REGISTRAR
FOR THE PERIOD ENDED 31 MARCH 2023
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BRUTAL OCTOBER LIMITED
REGISTERED NUMBER: 10979220
STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2023
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The company has opted not to file the statement of income and retained earnings in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 6 March 2024.
The notes on pages 2 to 7 form part of these financial statements.
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BRUTAL OCTOBER LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2023
Brutal October Limited (the "company") is a private company limited by shares, incorporated under the UK Companies Act 2006 and domiciled in England.
The address of the company's registered office and principal place of business is Benwell Studios, 11 - 13 Benwell Road, London, N7 7BL.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of 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 conformity with Financial Reporting Standard 102 requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the company's accounting policies (see note 3).
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Functional and presentational currency
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Items included in the financial statements of the company are measured using the currency of the primary economic environment in which the company operates (the "functional currency").
The functional currency of the company, and the currency in which the financial statements are presented (the "presentational currency"), is 'Pounds Sterling' (£) rounded to the nearest single unit of currency.
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Foreign currency translation
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Foreign currencies are translated into the functional (and presentational) currency using exchange rates prevailing at the date of the respective transaction or valuation where items are re-measured.
Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at financial period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the profit and loss account as part of total comprehensive income.
The company meets its day-to-day working capital requirements through the utilisation of its own funds and its bank facilities.
After reviewing the company's forecast and projection, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The directors expect the company to be in existence for the foreseeable future in a dormant state. The company, therefore, continues to adopt the going concern basis in preparing its financial statements.
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BRUTAL OCTOBER LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2023
2.Accounting policies (continued)
Turnover comprises revenues receivable by the company during the financial reporting period in respect of the supply of television programming production services.
Revenues in respect of production services comprise fees and other pre-sales receivable, exclusive of Value Added Tax, in exchange for the provision of a contract for services; with recognition made by reference to the stage of completion of contract activity as at the balance sheet date. Where it is probable that the total costs on a contract will exceed total contract revenue, the expected loss is immediately recognised as an expense in profit or loss.
The company does not expect to have any contracts where the period between the transfer of the contracted services and related payment exceeds one year. As a consequence, the company does not adjust any of the transaction prices for the time value of money.
Production tax credits are incentives provided to creative industries designed to promote culturally relevant productions in the UK, to incentivise investment into UK productions that would otherwise take place outside the UK, and to support the necessary critical mass of infrastructure and skills in the UK for both today and in the longer term.
Production tax credits are reported within other operating income and not taxation on the grounds that such tax credits are deemed to be working capital in nature for they arise, albeit not as a direct result, in the course of normal operational activities.
The tax expense for the financial reporting period comprises current and deferred taxation and is recognised in profit or loss.
Current taxation is calculated using tax rates and on the basis of tax laws enacted or substantively enacted at the balance sheet date in the countries where the company operates and generates taxable income. The directors of the company periodically evaluate positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation and will establish provisions, where appropriate, on the basis of amounts expected to be payable to the respective tax authorities.
Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their respective carrying amounts in the financial statements.
Deferred tax is calculated using tax rates and on the basis of tax laws enacted or substantively enacted at the balance sheet date and are expected to apply when the related deferred tax asset/liability is realised/settled.
Deferred tax assets are recognised only to the extent that it is sufficiently probable that future taxable profits will be available against which the temporary differences can be utilised. Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the respective deferred tax assets and liabilities relate to current taxation levied by the same tax authority.
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BRUTAL OCTOBER LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2023
2.Accounting policies (continued)
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Provisions for liabilities
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Provisions are made where an event has taken place that gives the company a legal or constructive obligation that probably requires settlement by a transfer of an economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to the statement of comprehensive income in the year that the company becomes aware of the obligation, and are measured at the best estimate at the statement of financial position date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the statement of financial position.
Exceptional items are transactions that fall within the ordinary activities of the company but are presented separately due to their size or incidence.
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.
The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities; with said financial assets and liabilities classified in accordance with the substance of the underlying contractual obligations rather than its legal form.
Financial assets and liabilities are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or the financial asset is transferred along with substantially all the risks and rewards of ownership of the asset to another party. Financial liabilities are derecognised only when the company’s obligations are discharged, cancelled or expired.
The measurement of specific financial assets, financial liabilities, and equity held by the company is as outlined below:
Debtors and creditors
Debtors, excluding deferred taxation assets (see note 2.7), and creditors deemed to be short term in nature are initially measured at transaction price (i.e fair value) and subsequently held, at transaction price less provision for impairment of assets. The company held no debtors and/or creditors deemed not to be short term in nature during the current or preceding financial reporting periods.
Cash and cash equivalents
Cash balances are reported by the company as being financial instruments classified as short term receivables and are represented by cash in hand and deposits with financial institutions repayable
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BRUTAL OCTOBER LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2023
2.Accounting policies (continued)
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Financial instruments (continued)
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without penalty on notice of not more than 24 hours and subject to an insignificant risk of changes in value. Cash and cash equivalents are held at floating interest rates linked to UK bank rates.
Equity
Ordinary share capital, shown in equity, is initially measured at transaction price. There were no costs directly attributable to Ordinary share capital issued by the company.
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Judgments in applying accounting policies and key sources of estimation uncertainty
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In the opinion of the directors, there were no areas of judgment in applying the principal accounting policies, outlined in note 2 of these financial statements, towards the preparation of these financial statements that may be considered as having a significant risk of causing a material adjustment to the carrying amount of assets and/or liabilities carried forward as at the balance sheet date whereby which the actual future outcome observed may differ from that originally determined and reported.
In preparing the company's financial statements, the directors may make estimates and assumptions concerning events that have transpired, or were ongoing, during the financial reporting period and continued after the balance sheet date. The resulting accounting estimates will, by definition, seldom equal the related actual results. In the opinion of the directors, there were no estimates and/or assumptions made towards the preparation of these financial statements that would be considered as having a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial reporting period.
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The average monthly number of employees, including directors, during the period was 4 (2022 - 4).
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Amounts owed by participating interests
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BRUTAL OCTOBER LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2023
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Allotted, called up and fully paid
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53 (2022 - 53) A Ordinary shares of £0.02 each
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50 (2022 - 50) B Ordinary shares of £0.02 each
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Related party transactions
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Wholly-owned group undertakings
As the company forms part of a group for which consolidated financial statements are prepared and the results of the company are included within as part of the consolidation, the company has taken advantage of the exemptions provided by Section 33 of Financial Reporting Standard 102 from the requirement to disclose transactions undertaken or balances carried forward as at the reporting date between the company and its fellow wholly-owned group undertakings.
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The immediate parent undertaking is October Films Ltd, a company which holds a 100% interest in the total issued share capital of Brutal October Limited, is incorporated under the UK Companies Act 1985 and whose registered office is located at Benwell Studios, 11 - 13 Benwell Road, London, N7 7BL.
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BRUTAL OCTOBER LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2023
The auditors' report on the financial statements for the period ended 31 March 2023 was unqualified.
The audit report was signed on 6 March 2024 by Anthony Pins (senior statutory auditor) on behalf of Nyman Libson Paul LLP.
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