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COMPANY REGISTRATION NUMBER: 04999028
Independent Film Sales Limited
Filleted Financial Statements
31 December 2023
Independent Film Sales Limited
Financial Statements
Year ended 31 December 2023
Contents
Page
Officers and professional advisers
1
Statement of financial position
2
Notes to the financial statements
3
Independent Film Sales Limited
Officers and Professional Advisers
Director
LJ Roeg
Registered office
Ground Floor, Hanway House
24-26 Hanway Street
London
England
W1T 1UH
Auditor
Riverside Accountancy Lancaster Limited
Chartered accountants & statutory auditor
Second Floor, Riverside Offices
26 St George's Quay
Lancaster
LA1 1RD
Bankers
Coutts & Co
440 Strand
London
WC2R 0QS
Independent Film Sales Limited
Statement of Financial Position
31 December 2023
2023
2022
Note
£
£
Fixed assets
Tangible assets
6
2,918
4,471
Current assets
Debtors
7
963,004
923,520
Cash at bank and in hand
302,752
222,881
------------
------------
1,265,756
1,146,401
Creditors: amounts falling due within one year
8
758,999
745,944
------------
------------
Net current assets
506,757
400,457
---------
---------
Total assets less current liabilities
509,675
404,928
Creditors: amounts falling due after more than one year
9
5,144,527
4,571,905
------------
------------
Net liabilities
( 4,634,852)
( 4,166,977)
------------
------------
Capital and reserves
Called up share capital
10
100
100
Profit and loss account
( 4,634,952)
( 4,167,077)
------------
------------
Shareholders deficit
( 4,634,852)
( 4,166,977)
------------
------------
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
In accordance with section 444 of the Companies Act 2006, the statement of income and retained earnings has not been delivered.
The director acknowledges her responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
These financial statements were approved by the board of directors and authorised for issue on 23 August 2024 , and are signed on behalf of the board by:
LJ Roeg
Director
Company registration number: 04999028
Independent Film Sales Limited
Notes to the Financial Statements
Year ended 31 December 2023
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Ground Floor, Hanway House, 24-26 Hanway Street, London, W1T 1UH, England.
2. Statement of compliance
These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Going concern
During the past few years the company has been developing its portfolio of intellectual property and enhancing its value. It is the intention of the company to continue these activities and accordingly will in at least the medium term, continue to be dependent upon the support of its parent company. Its parent company company has undertaken not to seek repayment until at least 31 December 2024 unless the company is in a position to do so. The company's cash flow forecast for the period 31 December 2025 suggests that the company will continue to require support from its parent company for at least that period. The company has received assurances from its parent that it anticipates being able to meet any funding requirements in that period. Based on these undertakings the directors consider its appropriate to prepare the financial statements on a going concern basis.
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods supplied and services rendered, stated net of discounts and of Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer, usually on despatch of the goods, the amount of revenue can be measured reliably, it is probable that the associated economic benefits will flow to the entity, and the costs incurred or to be incurred in respect of the transactions can be measured reliably. When the outcome of a transaction involving the rendering of services can be reliably estimated, revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period. When the outcome of a transaction involving the rendering of services cannot be reliably estimated, revenue is recognised only to the extent that expenses recognised are recoverable.
Foreign currencies
Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Short leasehold property
-
20% straight line
Fixtures and fittings
-
33% straight line
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.
Financial instruments
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
4. Employee numbers
The average number of persons employed by the company during the year amounted to 5 (2022: 5 ).
5. Consolidated accounts
The ultimate parent company that produces consolidated accounts is Living Capital Exploration and Renewable AB whose registered office is Karlavagen 46, 114 49 Stockholm, Sweden.
6. Tangible assets
Short leasehold property
Fixtures and fittings
Total
£
£
£
Cost
At 1 January 2023
1,115
11,990
13,105
Additions
369
369
-------
--------
--------
At 31 December 2023
1,115
12,359
13,474
-------
--------
--------
Depreciation
At 1 January 2023
446
8,188
8,634
Charge for the year
223
1,699
1,922
-------
--------
--------
At 31 December 2023
669
9,887
10,556
-------
--------
--------
Carrying amount
At 31 December 2023
446
2,472
2,918
-------
--------
--------
At 31 December 2022
669
3,802
4,471
-------
--------
--------
7. Debtors
2023
2022
£
£
Trade debtors
81,853
130,746
Amounts owed by group undertakings and undertakings in which the company has a participating interest
692,297
626,469
Other debtors
188,854
166,305
---------
---------
963,004
923,520
---------
---------
8. Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans and overdrafts
240
Trade creditors
39,094
4,018
Social security and other taxes
29,947
67,504
Other creditors
689,718
674,422
---------
---------
758,999
745,944
---------
---------
9. Creditors: amounts falling due after more than one year
2023
2022
£
£
Amounts owed to group undertakings and undertakings in which the company has a participating interest
5,144,527
4,571,905
------------
------------
10. Called up share capital
Issued, called up and fully paid
2023
2022
No.
£
No.
£
Ordinary shares of £ 1 each
100
100
100
100
----
----
----
----
11. Summary audit opinion
The auditor's report dated 23 August 2024 was unqualified , however, the auditor drew attention to the following by way of emphasis.
In forming our opinion, we have considered the adequacy of the disclosures made in the financial statements concerning the company's ability to continue as a going concern. The company incurred an operating loss during the year ended 31st December 2023 and as of that date; the company's current liabilities exceeded its total assets. These conditions, along with other matters as set forth in Note 3 to the financial statements, indicates an existence of a material uncertainty which may cast significant doubt about the company's ability to continue as a going concern. Details of the circumstances relating to this emphasis of matter are described in Note 3. Our opinion is not qualified in this respect. As an additional matter we would draw to the attention of the readers of these financial statements, is the position on Debtors. Within Debtors there are sums owing to the company of £753,126 in total, in respect of monies due from associated businesses. At the date of these accounts these companies do not have the ability to repay the debts due. The companies in the "film related" businesses are strongly connected and collectively are building a portfolio of intellectual property, which the Director believes will have a value in the years to come. If that value materialises, then the various debts will be repaid.
The senior statutory auditor was Lyndsay Nicholson ACA , for and on behalf of Riverside Accountancy Lancaster Limited .
12. Related party transactions
Interest was paid to connected companies from Independent Film Sales Limited totalling £104,376 (2022 - £101,047). Included within debtors are loans due from a connected party totalling £127,728 (2022 - £127,728). Also included within debtors are loans due from a connected company totalling £692,297 (2022 - £626,469). Included within creditors are loans due to connected companies totalling £5,144,527 (2022 - £4,571,904).
13. Controlling party
The immediate parent company is Independent Film Productions Limited a company registered in England and Wales, and ultimate parent company is Living Capital Exploration & Renewals AB, a company incorporated in Sweden. The ultimate controlling party is Andreas Versteegh , a national and resident of Sweden. Mr Versteegh owns and controls 100% of Living Capital Exploration & Renewals AB. The ultimate controlling party that produces consolidated accounts is Living Capital Exploration & Renewals AB whose registered office is Karlavagen 46, 114 49 Stockholm, Sweden.