The Really Useful Theatre Company Limited
Financial Statements
For the year ended 30 June 2023
Pages for Filing with Registrar
Company Registration No. 01604830 (England and Wales)
The Really Useful Theatre Company Limited
Contents
Page
Balance sheet
1
Notes to the financial statements
2 - 7
The Really Useful Theatre Company Limited
Balance Sheet
As at 30 June 2023
Page 1
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
4
500,011
3,800,011
Current assets
Debtors
5
7,294,473
904,561
Cash at bank and in hand
1,632,091
2,608,051
8,926,564
3,512,612
Creditors: amounts falling due within one year
6
(331,100)
(358,517)
Net current assets
8,595,464
3,154,095
Net assets
9,095,475
6,954,106
Capital and reserves
Called up share capital
7
100
100
Profit and loss reserves
9,095,375
6,954,006
Total equity
9,095,475
6,954,106
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered 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 26 February 2024 and are signed on its behalf by:
L I Chapman
Director
Company Registration No. 01604830
The Really Useful Theatre Company Limited
Notes to the Financial Statements
For the year ended 30 June 2023
Page 2
1
Accounting policies
Company information
The Really Useful Theatre Company Limited is a private company limited by shares incorporated in England and Wales. The registered office is 6 Catherine Street, London, WC2B 5JY.
1.1
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 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.
1.2
Going concern
The directors have prepared projections and cash flow forecasts for a period of 12 months from the date of approval of these financial statements, which indicate that the company will continue to trade profitably and generate cash from trading. The directors are committed to continuing to grow the business for ongoing long-term success.true
Consequently, the directors are confident that the company will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements and therefore have prepared the financial statements on a going concern basis
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for royalties, management fees and the company's share of net profits of shows it produces in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
The company recognises revenue when they can be reliably determined, usually once a royalty statement has been received from a third party. This is consistent with industry practice.
All other revenues are recognised on a right to consideration basis.
1.4
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.
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.
Entities in which the company has a long term interest and shares control under a contractual
arrangement are classified as jointly controlled entities.
The Really Useful Theatre Company Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2023
1
Accounting policies
(Continued)
Page 3
Investment in theatrical productions consist of non-recourse loans advanced to a production which are repayable out of the profit of the production. These investments are initially measured at fair value which is normally the transaction price. In general fair values subsequent to initial investment cannot be measured reliably so investments in theatrical productions are subsequently measured at cost less impairment.
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.
1.6
Financial instruments
The company has only basic financial instruments measured at amortised cost, with no financial instruments classified as other, or basic financial instruments measured at fair value.
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.
1.8
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 profit and loss account 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.
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. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. 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
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.
The Really Useful Theatre Company Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2023
1
Accounting policies
(Continued)
Page 4
1.10
The company and its related companies utilise the application of group relief whereby current year tax losses from one company will be surrendered to a company with current year taxable profits. The amount surrendered from the loss making company will not exceed the amount of the profit making company's taxable profits.
To the extent that losses are surrendered to shelter profits recognised in the accounts, the profit-making company will utilise the tax loss surrendered and book an amount equivalent to the tax saving in its intercompany account.
2
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.
Investments in theatre productions
The investments relate to non-recourse loans to companies involved with theatre productions either directly or indirectly. The directors are required to make a determination at each year end of the likelihood that the productions will recoup and retain the company's investment monies. Forecasting the future performance of a theatrical production is subject to a significant amount of uncertainty, being affected by future estimated box office receipts and running costs.
3
Employees
The company had 4 employees (2022: 3) who were directors. The directors received no remuneration in the year in respect of qualifying services (2022: £nil). Directors are remunerated by the company's parent.
2023
2022
Number
Number
Total
4
3
The Really Useful Theatre Company Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2023
Page 5
4
Fixed asset investments
2023
2022
£
£
Investments
11
11
Investments in theatre productions
500,000
3,800,000
500,011
3,800,011
Movements in fixed asset investments
Shares in group undertakings and participating interests
Theatre Productions
Total
£
£
£
Cost or valuation
At 1 July 2022
11
3,800,000
3,800,011
Return of capital
-
(3,300,000)
(3,300,000)
At 30 June 2023
11
500,000
500,011
Carrying amount
At 30 June 2023
11
500,000
500,011
At 30 June 2022
11
3,800,000
3,800,011
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Amounts owed by group undertakings
7,074,125
744,841
Prepayments and accrued income
220,348
159,720
7,294,473
904,561
Intercompany balances are interest free and repayable on demand.
The Really Useful Theatre Company Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2023
Page 6
6
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
5,522
Amounts owed to group undertakings
176,512
188,234
Corporation tax
1,991
1,991
Other creditors
152,597
162,770
331,100
358,517
Intercompany balances are interest free and repayable on demand.
7
Called up share capital
2023
2022
£
£
Ordinary share capital
Issued and fully paid
100 Ordinary shares of £1 each
100
100
The Really Useful Theatre Company Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2023
Page 7
8
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
The senior statutory auditor was Mark Twum-Ampofo.
The auditor was Moore Kingston Smith LLP.
9
Related party transactions
During the year the company loaned £nil (2022: £625,000) to Phantom Productions London Limited, a production and joint venture undertaking. Income from Phantom Productions London Limited totalled £285,215 (2022: £591,576). At the year end, the company was owed £37,424 (2022: £10,968) from Phantom Productions London Limited and £500,000 (2022: £3,800,000) in respect of non-recourse loans advanced to a production.
10
Parent company
The immediate parent company is The Really Useful Group Limited, a company incorporated in England and Wales.
The ultimate parent company and the parent company of the smallest and largest group for which group accounts are prepared and of which the company is a member is Really Useful Group Investments Limited, a company incorporated in England and Wales. Its registered address is 6 Catherine Street, London, WC2B 5JY. A copy of the group accounts of Really Useful Group Investments Limited may be obtained from Companies House, Crown Way, Cardiff, CF14 3UZ.
The ultimate controlling party is Lord Lloyd Webber, who is the owner of the ultimate parent company.
11
Joint ventures
Details of the company's joint ventures at 30 June 2023 are as follows:
Name of undertaking
Registered office
Nature of business
Interest
% Held
held
Direct
Phantom Productions London Limited
England & Wales
Theatre producer
Ordinary
55
The registered address for Phantom Productions London Limited is 1-2 Bedford Square, London, United Kingdom, WC1B 3RB.