MJ Productions Limited
Unaudited Financial Statements
For the period ended 31 March 2024
Pages for Filing with Registrar
Company Registration No. 14174186 (England and Wales)
MJ Productions Limited
Contents
Page
Balance sheet
1 - 2
Statement of changes in equity
3
Notes to the financial statements
4 - 9
MJ Productions Limited
Balance Sheet
As at 31 March 2024
Page 1
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
4
7,545,234
87,448
Current assets
Debtors
5
5,396,450
53,093
Cash at bank and in hand
2,669,017
300,000
8,065,467
353,093
Creditors: amounts falling due within one year
6
(14,277,500)
(464,285)
Net current liabilities
(6,212,033)
(111,192)
Total assets less current liabilities
1,333,201
(23,744)
Provisions for liabilities
7
(552,800)
-
0
Net assets/(liabilities)
780,401
(23,744)
Capital and reserves
Called up share capital
8
1
1
Profit and loss reserves
780,400
(23,745)
Total equity
780,401
(23,744)

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

For the financial period ended 31 March 2024 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 period in question in accordance with section 476.

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

MJ Productions Limited
Balance Sheet (Continued)
As at 31 March 2024
Page 2
The financial statements were approved by the board of directors and authorised for issue on 6 August 2024 and are signed on its behalf by:
N R Janis Smith
Director
Company Registration No. 14174186
MJ Productions Limited
Statement of Changes in Equity
For the period ended 31 March 2024
Page 3
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 15 June 2022
-
0
-
0
-
Period ended 31 March 2023:
Loss and total comprehensive income for the period
-
(23,745)
(23,745)
Issue of share capital
8
1
-
1
Balance at 31 March 2023
1
(23,745)
(23,744)
Period ended 31 March 2024:
Profit and total comprehensive income for the period
-
804,145
804,145
Balance at 31 March 2024
1
780,400
780,401
MJ Productions Limited
Notes to the Financial Statements
For the period ended 31 March 2024
Page 4
1
Accounting policies
Company information

MJ Productions Limited is a private company limited by shares incorporated in England and Wales. The registered office is 39-41 Charing Cross Road, London, United Kingdom, WC2H 0AR.

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

At the time of approving the financial statements the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

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. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Turnover comprises of admissions to the show MJ: The Musical and related merchandise sales.

Ticket sales

Revenue relating to ticket sales is recognised at the end of the week in which the show takes place. Revenue is reported on all admissions and is exclusive of VAT.

 

Merchandise sales

Revenue relating to merchandise sales is recognised when the sale takes place. Merchandise revenues represent the producer's share of merchandise sales, exclusive of VAT.

1.4
Intangible fixed assets other than goodwill

 

Pre-production costs

Intangible assets represent capitalised pre-production costs, which are those development expenses incurred before a theatrical production is played before a live, paying audience for the first time.  Such costs are initially recognised at cost and amortised over the expected lifetime of the production, subject to any impairment losses being recognised.

Amortisation 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:

Capitalised pre-production costs
Over the life of the production*
MJ Productions Limited
Notes to the Financial Statements (Continued)
For the period ended 31 March 2024
1
Accounting policies
(Continued)
Page 5

* The amortisation period commences from the date of opening of the production. The estimated life of the production is under continual re-assessment, with the impact of any changes to the estimated life of the amortisation period being accounted for prospectively.

1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible 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 is estimated to be less than its carrying amount, the carrying amount of the asset 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 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 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.

1.6
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.

1.7
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 and cash and bank balances, 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.

MJ Productions Limited
Notes to the Financial Statements (Continued)
For the period ended 31 March 2024
1
Accounting policies
(Continued)
Page 6
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.

1.8
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.

1.9
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.

MJ Productions Limited
Notes to the Financial Statements (Continued)
For the period ended 31 March 2024
1
Accounting policies
(Continued)
Page 7
1.10
Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

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.

2
Employees

The average monthly number of persons (including directors) employed by the company during the period was:

2024
2023
Number
Number
Total
47
-
0
3
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
(2,685,692)
(31,481)
MJ Productions Limited
Notes to the Financial Statements (Continued)
For the period ended 31 March 2024
3
Taxation
(Continued)
Page 8

The current tax figure includes the effect of Theatre Tax Relief credits (introduced in the Finance Act 2014) payable to the company that have arisen from expenditure on theatrical productions at 45% of 80% of qualifying core expenditure.

4
Intangible fixed assets
Capitalised pre-production costs
£
Cost
At 1 April 2023
87,448
Additions
7,871,112
At 31 March 2024
7,958,560
Amortisation and impairment
At 1 April 2023
-
0
Amortisation charged for the period
413,326
At 31 March 2024
413,326
Carrying amount
At 31 March 2024
7,545,234
At 31 March 2023
87,448

The above intangible fixed assets relate to the pre-production development costs of a theatrical production. The costs are amortised of the estimated life of the production.

5
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
872,066
-
0
Corporation tax recoverable
2,685,692
31,481
Amounts owed by group undertakings
-
0
1
Other debtors
694,980
21,611
Prepayments and accrued income
1,143,712
-
0
5,396,450
53,093
MJ Productions Limited
Notes to the Financial Statements (Continued)
For the period ended 31 March 2024
Page 9
6
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
1,641,338
39,945
Amounts owed to group undertakings
10,360,804
119,840
Other creditors
854,699
300,000
Accruals and deferred income
1,420,659
4,500
14,277,500
464,285
7
Provisions for liabilities
2024
2023
£
£
Get-out provision
552,800
-
8
Called up share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary share of £1 each
1
1
1
1
9
Related party transactions

The company has taken the exemption under Section 1A appendix D.51 from disclosing transactions with other members of a wholly owned group.

10
Parent company

The immediate parent company is MJ Investor UK Limited, a company incorporated in the United Kingdom.

 

Consequently, as at the reporting date, the ultimate controlling party is MJWE Investors LLC, a company registered in the USA, by virtue of its shareholdings in MJ Investor UK Limited.

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