Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2023
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VIDEO CONTENT LIBRARY LIMITED
COMPANY INFORMATION
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VIDEO CONTENT LIBRARY LIMITED
CONTENTS
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VIDEO CONTENT LIBRARY LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
Since the Russia's invasion of Ukraine on February 24, 2022, the global geopolitical landscape has intensified, resulting in significant instability. This conflict has indirectly contributed to widespread macroeconomic uncertainty, posing operational challenges for the Company.
Video Content Library Limited has faced a decline in demand for its media products, primarily due to sanctions imposed on Russian companies linked to military aggression against Ukraine. Despite these challenges, the Company has maintained its cooperation with global industry partners and successfully achieved its objectives. Profits have been secured through the sale of licences to media companies, including television channels, digital platforms, and content aggregators worldwide. The Company’s management has taken and continues to implement necessary measures to ensure minimal disruption to operations and sustain the Company's activities, while supporting both employees and customers. Several strategic actions have been undertaken to mitigate negative impacts and improve operational costs. The management will continue to monitor the situation closely and take appropriate actions when and if needed. For the year 2024, the Company's objectives are as follows: 1. Attracting new customers globally; 2. Expanding the market for content sales; 3. Establishing partnerships with new distributors to access challenging regions such as Central and South Africa, South America, the Far East, and Oceania; 4. Broadening the content portfolio for further sales; 5. Developing a new work stream focused on acquiring rights and distributing TV show formats and series scripts.
The susceptibility of the Company to financial risks is monitored as part of its daily management of the business.
Credit risk Credit risk arises from cash and cash equivalents and outstanding receivables. Close attention is given to the timing of such receipts and are chased accordingly. The directors do not expect any losses from non-performance by the counterparties. Liquidity risk The Company has access to a mixture of long-term ancl short-term debt finance that is designed to ensure that the Company has sufficient available funds for operations ancl development opporturiities that may arise. Currency risk The Company enters into transactions that are denominated in currencies other than its functional currency, currency, primarily in euro (EUR), pound sterling (GBP) and Russian ruble (RUB). Consequently, the Company is exposed to risk that the exchange rate of its currency relative to other foreign currencies may change in a manner that has an adverse effect on the fair value of future cash flows of that portion of the Company's financial assets or financial liabilities that is denominated in currencies other than United States dollar (USD). The company's currency risk is monitored, rnanaged and limited wherever possible by management of the company on a monthly basis.
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VIDEO CONTENT LIBRARY LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
This report was approved by the board on 24 September 2024 and signed on its behalf.
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VIDEO CONTENT LIBRARY LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
The Directors present their report and the financial statements for the year ended 31 December 2023.
The Directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.
In preparing these financial statements, the Directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The loss for the year, after taxation, amounted to £1,148,499 (2022 - profit £325,726).
The Company proposed and paid dividends of £467,000 (2022: £1,663,200) during the year.
The Directors who served during the year were:
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VIDEO CONTENT LIBRARY LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
There have been no significant events affecting the Company since the year end.
The auditors, Zenith Audit Ltd, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board on
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VIDEO CONTENT LIBRARY LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF VIDEO CONTENT LIBRARY LIMITED
We have audited the financial statements of Video Content Library Limited (the 'Company') for the year ended 31 December 2023, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Cash Flows, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In auditing the financial statements, we have concluded that the Directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant sections of this report.
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VIDEO CONTENT LIBRARY LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF VIDEO CONTENT LIBRARY LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The Directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.
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VIDEO CONTENT LIBRARY LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF VIDEO CONTENT LIBRARY LIMITED (CONTINUED)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We performed risk assessment procedures and obtained an understanding of the company and its environment, the applicable financial reporting framework, the applicable laws and regulations, the company's system of internal control and the fraud risk factors relevant to the company that affect the susceptibility of assertions to material misstatement due to fraud. We made enquiries with management regarding actual or suspected fraud, non-compliance with laws and regulations, potential litigation and claims. The engagement partner led a discussion among the audit team with particular emphasis on how and where the company's financial statements may be susceptible to material misstatement due to fraud, including how fraud might occur. The engagement partner assessed that the engagement team collectively had the appropriate competence and capability to identify or recognise non-compliance with laws and regulations. We considered compliance with UK Companies Act 2006 and the applicable tax legislation as the key laws and regulations which non-compliance could directly lead to material misstatement due to fraud at the financial statement level. We evaluated whether the selection and application of accounting policies by the company may be indicative of fraudulent financial reporting. Audit procedures performed by the audit engagement team responsive to assessed risks of material misstatement due to fraud at the assertion level included but were not limited to: - Testing the appropriateness of manual journal entries recorded in the general ledger and other adjustments made in the preparation of the financial statements; - Making inquiries of individuals involved in the financial reporting process about inappropriate or unusual activity relating to the processing of journal entries; - Selecting and testing journal entries and other adjustments made at the end of a reporting period and throughout the period; - Reviewing accounting estimates for biases that could represent a risk of material misstatement due to fraud. Owing to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements of the financial statements due to irregularities, including fraud, may not be detected, even though we have properly planned and performed our audit in accordance with the auditing standards. For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. In addition, as with any audit, there remains a higher risk of non-detection of irregularities, as they may involve collusion, forgery, intentional omissions, override of internal controls, or collusion.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.
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VIDEO CONTENT LIBRARY LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF VIDEO CONTENT LIBRARY LIMITED (CONTINUED)
The financial statements of the Company for the year ended 31 December 2022 were audited by another auditor who expressed an unmodified opinion on those statements on 31 July 2023.
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Statutory Auditors
1st Floor
18 Devonshire Row
London
EC2M 4RH
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VIDEO CONTENT LIBRARY LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
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VIDEO CONTENT LIBRARY LIMITED
REGISTERED NUMBER: NI622105
BALANCE SHEET
AS AT 31 DECEMBER 2023
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 15 to 24 form part of these financial statements.
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VIDEO CONTENT LIBRARY LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
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VIDEO CONTENT LIBRARY LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
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VIDEO CONTENT LIBRARY LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
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VIDEO CONTENT LIBRARY LIMITED
ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2023
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VIDEO CONTENT LIBRARY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
The Company is a private company limited by shares, registered in Northenl Ireland, The address of the registered office is Forsyth House, Cromac Square, Belfast, BT2 8LA and the place of business is 288 Bishopsgate, Lonclon, EC2M 4QP.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with 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 compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
Functional and presentation currency
Transactions and balances
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VIDEO CONTENT LIBRARY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
Revenue recognition
Turnover of licences Income represents licence fees receivable from the distribution of television programmes, excluding value added tax. The company's policy is to recognise licence fee income once the following criteria are met: a) a licence agreement has been executed by both parties; b) delivery to the broadcaster has occurred; and c) the licence term has commenced Any license fees received in advance which do not meet all of the above criteria, are included in deferred income until the criteria are met and the below approaches applied: 1. When license fees are granted for a number of years, the licence revenue and related cost of sales are recognized in equal amounts over the course of the licence term. 2. When license fees are granted for a fixed period and not divided into multiple years, the licence revenue and related cost of sales are recognized in full at the start of the licence term. This accounting treatment is considered the most appropriate since the license fees are agreed in advance, they are not contingent on any future event, the customer is able to exploit the rights freely and the company has no future performance obligations subsequent to delivery.
The cost of short-term employee benefits are recognised as a liability and an expense, unless these costs are required to be recognises as part of the cost of stock or fixed assets.
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VIDEO CONTENT LIBRARY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
Stocks of content are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of production and other costs incurred in bringing the stock to its present location and condition.
Recognition of an asset in stock for acquired programming rights; occurs on the signing of a contract between the company and the licence seller.
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are
measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
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VIDEO CONTENT LIBRARY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
Creditors are obligations to pay for goods or services that have been acquired in the ordinary course
of business from suppliers. Creditors are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method.
All loans and borrowings are recognised initially at cost, which is the fair value of the consideration received, net of issue costs associated with the borrowings.
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense.
Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date aud subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation.Any adjustments to the amounts previously recognised are recognised in profit and loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit and loss in the period it arises.
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VIDEO CONTENT LIBRARY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of the assets and liabilities within the next financial year and are: Determining when the significant risks and rewards have transferred to the customer and a sale is recognised. This has been determined to be upon delivery to the broadcaster and commencement of the licence term. Determining and recognising bad debt provision for doubtful debts. At each reporting date, the Company reviews the receivables to assess whether an impairment loss should be recorded in the statement of comprehensive income. Impairment of receivables is assessed individually for each receivable. Impairment is calculated on an individual basis depending on delinquencies and case specific analysis. When assessing the requirement for such a provision, management consider factors including the current credit rating of the customer, the ageing profile of the debt and previous experience. Determining whether there are indicators of impairment of the company's stock. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset and where it is a component of a larger cash-generating unit, the viability and expected future performance of that unit.
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VIDEO CONTENT LIBRARY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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VIDEO CONTENT LIBRARY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
There were no factors that may affect future tax charges.
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VIDEO CONTENT LIBRARY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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VIDEO CONTENT LIBRARY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Profit and loss account
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VIDEO CONTENT LIBRARY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
The immediate parent company is TRK Media Holding Limited incorporated in Cyprus and the ultimate parent company is System Capital Managernent, a company incorporated in Ukraine.
The ultimate controlling party is Rinat Akhmetov.
An auditors' limitation of liability agreement has been approved by the members for the financial period ended 31 December 2023. The principal terms and conditions are as below:
-The agreement limits the amount of any liability owed to the Company by the auditors in respect of any negligence default, breach of duty or breach of trust, occurring in the course of audit of the Company's accounts and pursuant to this agreement the auditor may be guilty in relation to the Company. - The agreement also stipulates the maximum aggregated amount payable in event of any of the circumstances stated above.
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