Company Registration No. 13022461 (England and Wales)
60Forty Films Limited (formerly known as Half Moon Films Limited)
Annual report and unaudited financial statements
for the year ended 28 February 2023
60Forty Films Limited (formerly known as Half Moon Films Limited)
Company information
Directors
Lucy Akrill
Hakan Kousetta
James Laurenson
Gizel Osman
Company number
13022461
Registered office
21 Poland Streeet
Third Floor
London
England
W1F 8QG
Accountants
Saffery LLP
71 Queen Victoria Street
London
EC4V 4BE
60Forty Films Limited (formerly known as Half Moon Films Limited)
Contents
Page
Directors' report
1
Accountants' report
2
Income statement
3
Statement of financial position
4
Notes to the financial statements
5 - 11
60Forty Films Limited (formerly known as Half Moon Films Limited)
Directors' report
For the year ended 28 February 2023
1
The directors present their annual report and financial statements for the year ended 28 February 2023.
Principal activities
The principle activity of the company is that of television programme production activities.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Lucy Akrill
Hakan Kousetta
James Laurenson
Gizel Osman
Small companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
On behalf of the board
Hakan Kousetta
Director
30 November 2023
60Forty Films Limited (formerly known as Half Moon Films Limited)
Chartered accountants' report to the Board of Directors on the preparation of the unaudited statutory financial statements of 60Forty Films Limited (Formerly Known As Half Moon Films Limited) for the year ended 28 February 2023
2
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of 60Forty Films Limited (formerly known as Half Moon Films Limited) for the year ended 28 February 2023 set out on pages 3 to 11 from the company’s accounting records and from information and explanations you have given us.
As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at https://www.icaew.com/regulation.
This report is made solely to the board of directors of 60Forty Films Limited (formerly known as Half Moon Films Limited), as a body, in accordance with the terms of our engagement letter dated 3 March 2021. Our work has been undertaken solely to prepare for your approval the financial statements of 60Forty Films Limited (formerly known as Half Moon Films Limited) and state those matters that we have agreed to state to the board of directors of 60Forty Films Limited (formerly known as Half Moon Films Limited), as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than 60Forty Films Limited (formerly known as Half Moon Films Limited) and its board of directors as a body, for our work or for this report.
It is your duty to ensure that 60Forty Films Limited (formerly known as Half Moon Films Limited) has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of 60Forty Films Limited (formerly known as Half Moon Films Limited). You consider that 60Forty Films Limited (formerly known as Half Moon Films Limited) is exempt from the statutory audit requirement for the year.
We have not been instructed to carry out an audit or a review of the financial statements of 60Forty Films Limited (formerly known as Half Moon Films Limited). For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.
Saffery LLP
30 November 2023
Chartered Accountants
71 Queen Victoria Street
London
EC4V 4BE
60Forty Films Limited (formerly known as Half Moon Films Limited)
Income statement
For the year ended 28 February 2023
3
Year
Period
ended
ended
28 February
28 February
2023
2022
£
£
Turnover
2,589,077
2,637,795
Cost of sales
(1,154,033)
(419,184)
Gross profit
1,435,044
2,218,611
Administrative expenses
(25,561)
(28,894)
Profit before taxation
1,409,483
2,189,717
Tax on profit
(273,208)
(406,661)
Profit for the financial year
1,136,275
1,783,056
The income statement has been prepared on the basis that all operations are continuing operations.
60Forty Films Limited (formerly known as Half Moon Films Limited)
Statement of financial position
As at 28 February 2023
4
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
4
35,405
47,568
Investments
5
2
2
35,407
47,570
Current assets
Debtors
7
368,349
1,241,229
Cash at bank and in hand
1,441,773
526,967
1,810,122
1,768,196
Creditors: amounts falling due within one year
8
(824,486)
(882,606)
Net current assets
985,636
885,590
Net assets
1,021,043
933,160
Capital and reserves
Called up share capital
100
100
Profit and loss reserves
1,020,943
933,060
Total equity
1,021,043
933,160
For the financial year ended 28 February 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
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.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 30 November 2023 and are signed on its behalf by:
Hakan Kousetta
Director
Company Registration No. 13022461
60Forty Films Limited (formerly known as Half Moon Films Limited)
Notes to the financial statements
For the year ended 28 February 2023
5
1
Accounting policies
Company information
60Forty Films Limited (formerly known as Half Moon Films Limited) is a private company limited by shares incorporated in England and Wales. The registered office is 21 Poland Streeet, Third Floor, London, England, W1F 8QG.
1.1
Reporting period
The company's accounting reference date in the prior period had been elongated from 31 November 2021 to 28 February 2022. The company reported for a period that was longer than one year, being the 15 months from 16 November 2020 to 28 February 2022. Therefore, the prior period is not comparable to the current period which is for the year ended 28 February 2023.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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.The principal accounting policies adopted are set out below.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes.
Revenue from contracts for development and producing services is recognised at the fair value of the consideration received or receivable for the goods and services provided as stipulated by development agreements entered into by the company, and is shown net of VAT and other sales related taxes.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Fixtures and fittings
Straight line over 3 years
Computers
Straight line over 3 years
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
60Forty Films Limited (formerly known as Half Moon Films Limited)
Notes to the financial statements (continued)
For the year ended 28 February 2023
1
Accounting policies (continued)
6
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.7
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.
1.8
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 statement of financial position 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.
60Forty Films Limited (formerly known as Half Moon Films Limited)
Notes to the financial statements (continued)
For the year ended 28 February 2023
1
Accounting policies (continued)
7
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.
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.
1.9
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.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
60Forty Films Limited (formerly known as Half Moon Films Limited)
Notes to the financial statements (continued)
For the year ended 28 February 2023
1
Accounting policies (continued)
8
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.
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.14
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
1.15
The accounts present information about 60Forty Films Limited as an individual company and do not contain consolidated financial information for 60Forty Films Limited as the parent of the UK group. The Company has taken advantage of Section 399 of Companies Act 2006 whereby it is exempt from the requirement to prepare group accounts as it is a small group.
60Forty Films Limited (formerly known as Half Moon Films Limited)
Notes to the financial statements (continued)
For the year ended 28 February 2023
9
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.
Key sources of estimation uncertainty
In the directors' opinion there are no critical judgements or key areas of estimation in the financial statements.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
7
2
4
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 March 2022
55,668
Additions
8,014
At 28 February 2023
63,682
Depreciation and impairment
At 1 March 2022
8,100
Depreciation charged in the year
20,177
At 28 February 2023
28,277
Carrying amount
At 28 February 2023
35,405
At 28 February 2022
47,568
60Forty Films Limited (formerly known as Half Moon Films Limited)
Notes to the financial statements (continued)
For the year ended 28 February 2023
10
5
Fixed asset investments
2023
2022
£
£
Shares in group undertakings and participating interests
2
2
6
Subsidiaries
Details of the company's subsidiaries at 28 February 2023 are as follows:
Name of undertaking
Address
Class of shares held
% Held
Direct
Indirect
60Forty Developments Limited
1
Ordinary
100.00
-
Pilot Skies Limited
2
Ordinary
100.00
-
Registered office addresses (all UK unless otherwise indicated):
1
7 Verulam Avenue, Purley, United Kingdom, CR8 3NR
2
21 Poland Street, 3rd Floor, London, England, W1F 8QG
7
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
37,096
46,972
Amounts owed by group subsidaries
838
994,347
Other debtors
330,415
199,910
368,349
1,241,229
Amounts owed by group subsidiaries due within one year are unsecured, interest free and repayable on demand.
8
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
34,149
11,294
Corporation tax
139,708
406,661
Other taxation and social security
4,889
10,355
Other creditors
645,740
454,296
824,486
882,606
60Forty Films Limited (formerly known as Half Moon Films Limited)
Notes to the financial statements (continued)
For the year ended 28 February 2023
11
9
Operating lease commitments
At 28 February 2023, the company had total commitments under non-cancellable operating leases over the remaining life of those leases of £266,500 (2022: £342,915).
10
Directors' transactions
During the period Directors were loaned £146,371 (2022: £14,895) which was unsecured, interest free and repayable on demand. Dividends totalling £1,048,392 (2022: £849,996) were declared in the year in respect of shares held by the company's directors, of which £707,850 (2022: £598,048) has been paid as at the period end. Included within Other Creditors, the total owed to Directors as at 28 February 2023 was £194,171 (2022: £237,053).
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