Somesuch & Co Limited
Annual Report and Financial Statements
For the year ended 31 December 2023
Company Registration No. 07330281 (England and Wales)
Somesuch & Co Limited
Company Information
Directors
S A Campbell
T J Nash
Secretary
T J Nash
Company number
07330281
Registered office
Charlotte Building
17 Gresse Street
London
W1T 1QL
Auditor
Moore Kingston Smith LLP
Charlotte Building
17 Gresse Street
London
W1T 1QL
Bankers
Coutts & Co
440 Strand
London
WC2R 0QS
Somesuch & Co Limited
Contents
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 8
Statement of income and retained earnings
9
Balance sheet
10
Statement of cash flows
11
Notes to the financial statements
12 - 25
Somesuch & Co Limited
Strategic Report
For the year ended 31 December 2023
Page 1

The directors present the strategic report for the year ended 31 December 2023.

Fair review of the business

The directors report that in the year ended 31 December 2023 the business was operating in a challenging economic environment. There was significant political and economic uncertainty in the UK, with associated inflation, recession and cost-of-living pressures leading to an industry-wide slowdown, compounded by industrial action motivated by advancements in artificial intelligence.

In addition, deliberate and significant investment was made by the business in new ventures, including the launch of a dedicated division for feature films.

The company's results for the year saw a decrease in turnover from £20.1m to £12m and a decrease in profit before tax from £0.2m to a loss of £1.4m.

Principal risks and uncertainties

The principal business risks affecting the company are considered to relate to the economy and political uncertainty in the UK where the company operates. Other risks include financial pressures on clients and advertising agencies, the ongoing economic challenges relating to the impact of the pandemic, Brexit and the Russia Ukraine war, and advancements in artificial intelligence leading to industrial action within the global film industry.

 

In light of these, the directors have taken the following steps:

- Further diversification of creative output and associated revenue streams

- Continued vigour around business development beyond the UK

- Cost-cutting measures to reduce fixed overheads streamline operations

- Close management of cash to ensure payment is made upon receipt of goods or services

 

At the end of the financial year the directors feel the company is well placed to meet these challenges, underpinned by a balance sheet including net assets of £1.3m (2022: £2.8m).

Key performance indicators

The Directors review KPIs throughout the year as part of the normal management process. The key performance indicators monitored by the directors are those that best demonstrate the financial performance and strength of the group. Specifically, we look at year on year trends in the profit and loss account, in turnover and gross profit margin.

 

As with most businesses, the challenging economic conditions associated with recession and high inflationary environment have led to a decrease in the group’s key performance indicators compared to the prior year, with a decrease in both gross profit margin and operating profit margin.

 

The KPIs for the year ended 31 December 2023 are:

2023         2022

Turnover             £12.08m     £20.18m

Gross profit             £1.99m     £3.79m

Gross profit margin         16%         19%

Operating profit margin         0%         1%

 

The economic climate has seen a marked improvement in the months that have followed year end, with stronger market conditions indicating a significantly more positive outlook for 2024. However, the company remains vigilant and open to further growth opportunities, and cost cutting measures should they be necessary, to ensure the long-term viability of the business.

Somesuch & Co Limited
Strategic Report (Continued)
For the year ended 31 December 2023
Page 2

On behalf of the board

 

S A Campbell
Director
2 October 2024
Date
Somesuch & Co Limited
Directors' Report
For the year ended 31 December 2023
Page 3

The directors present their annual report and financial statements for the year ended 31 December 2023.

Principal activities

The principal activity of the company is that of the production of television commercials, short films and music videos.

Results and dividends

The results for the year are set out on page 9.

Ordinary dividends were paid during the year amounting to £400,001. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

S A Campbell
T J Nash
Auditor

In accordance with the company's articles, a resolution proposing that Moore Kingston Smith LLP be reappointed as auditor of the company will be put at a General Meeting.

Statement of directors' responsibilities

The directors are responsible for preparing the annual 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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:

 

 

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 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.

Somesuch & Co Limited
Directors' Report (Continued)
For the year ended 31 December 2023
Page 4
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
S A Campbell
Director
2 October 2024
Somesuch & Co Limited
Independent Auditor's Report
To the Members of Somesuch & Co Limited
Page 5
Opinion

We have audited the financial statements of Somesuch & Co Limited (the 'company') for the year ended 31 December 2023 which comprise the Statement of Income and Retained Earnings, the Balance Sheet, the Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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 Auditor's 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 UK, including the FRC’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.

Conclusions relating to going concern

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.

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor's 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.

Somesuch & Co Limited
Independent Auditor's Report (Continued)
To the Members of Somesuch & Co Limited
Page 6

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

Matters on which we are required to report by exception

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 and the Directors' Report.

 

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

 

Responsibilities of directors

As explained more fully in the Directors' Responsibilities Statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

 

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Somesuch & Co Limited
Independent Auditor's Report (Continued)
To the Members of Somesuch & Co Limited
Page 7
Auditor's responsibilities for the audit of the financial statements

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 auditor's 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.

 

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

 

 

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

 

Somesuch & Co Limited
Independent Auditor's Report (Continued)
To the Members of Somesuch & Co Limited
Page 8

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

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.

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company.

Our approach was as follows:

 

 

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

Use of our report

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 auditor's 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.

Gary De Souza
Senior Statutory Auditor
for and on behalf of Moore Kingston Smith LLP
3 October 2024
Chartered Accountants
Statutory Auditor
Charlotte Building
17 Gresse Street
London
W1T 1QL
Somesuch & Co Limited
Statement of Income and Retained Earnings
For the year ended 31 December 2023
Page 9
2023
2022
Notes
£
£
Turnover
3
12,086,851
20,183,308
Cost of sales
(10,087,553)
(16,391,575)
Gross profit
1,999,298
3,791,733
Administrative expenses
(3,390,705)
(3,636,260)
Other operating income
-
0
46,482
Operating (loss)/profit
4
(1,391,407)
201,955
Interest receivable and similar income
8
3,045
320
(Loss)/profit before taxation
(1,388,362)
202,275
Tax on (loss)/profit
9
326,444
(67,196)
(Loss)/profit for the financial year
(1,061,918)
135,079
Other comprehensive income
-
-
Total comprehensive (loss)/income for the year
(1,061,918)
135,079
Retained earnings brought forward
2,795,637
2,660,558
Dividends
(400,001)
-
0
Retained earnings carried forward
1,333,718
2,795,637

The Statement of Income and Retained Earnings has been prepared on the basis that all operations are continuing operations.

Somesuch & Co Limited
Balance Sheet
As at 31 December 2023
Page 10
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
10
465,857
540,968
Current assets
Work in progress
11
357,145
215,630
Debtors
12
4,103,057
4,238,659
Cash at bank and in hand
-
0
879,861
4,460,202
5,334,150
Creditors: amounts falling due within one year
13
(3,516,890)
(2,986,555)
Net current assets
943,312
2,347,595
Total assets less current liabilities
1,409,169
2,888,563
Provisions for liabilities
(74,551)
(92,026)
Net assets
1,334,618
2,796,537
Capital and reserves
Called up share capital
17
780
780
Capital redemption reserve
120
120
Profit and loss reserves
1,333,718
2,795,637
Total equity
1,334,618
2,796,537
The financial statements were approved by the board of directors and authorised for issue on 2 October 2024 and are signed on its behalf by:
S A Campbell
Director
Company Registration No. 07330281
Somesuch & Co Limited
Statement of Cash Flows
For the year ended 31 December 2023
Page 11
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
21
(780,618)
1,177,948
Income taxes paid
-
0
(222,545)
Net cash (outflow)/inflow from operating activities
(780,618)
955,403
Investing activities
Purchase of tangible fixed assets
(14,549)
(543,462)
Repayment of loans
-
(376,204)
Interest received
3,045
320
Net cash used in investing activities
(11,504)
(919,346)
Financing activities
Dividends paid
(400,001)
-
0
Net cash used in financing activities
(400,001)
-
Net (decrease)/increase in cash and cash equivalents
(1,192,123)
36,057
Cash and cash equivalents at beginning of year
879,861
843,804
Cash and cash equivalents at end of year
(312,262)
879,861
Relating to:
Cash at bank and in hand
-
0
879,861
Bank overdrafts included in creditors payable within one year
(312,262)
-
0
Somesuch & Co Limited
Notes to the Financial Statements
For the year ended 31 December 2023
Page 12
1
Accounting policies
Company information

Somesuch & Co Limited is a private company limited by shares incorporated in England and Wales. The registered office is Charlotte Building, 17 Gresse Street, London, W1T 1QL.

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.

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

Atruet 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.

The directors have prepared cash flow projections for a period of 12 months from the date of approval of these financial statements, which indicate that the company will continue to generate sufficient cash to meet liabilities as they fall due based on existing financing facilities. The directors will continue to monitor the trading conditions in the industry, and in the event income is impacted significantly they will consider cost cutting measures in order to ensure the long term viability of the business.

 

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 services provided in the normal course of business, and is shown net of VAT and other sales related taxes.

Revenue for short-form production of commercials is recognised by reference to the stage of completion, when the stage of completion, costs incurred and costs to complete can be estimated reliably.

 

The production is considered complete from the point at which the company has obtained the right to consideration in return for performance. This is considered to be when all necessary approvals during the process of pre-production have been obtained from the commissioning agency and normally equates to the date at which shooting of the production commences.

 

Overages are recognised on receipt unless they can be measured reliably.

 

 

 

 

Somesuch & Co Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
Page 13
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:

Leasehold improvements
Over the term of the lease
Fixtures, fittings & equipment
20% straight line

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
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.

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.

1.6
Work in progress

Work in progress is recognised as costs that have been incurred during the year, where the revenue is to be recognised in the following period as per the revenue recognition policy. Work-in-progress is stated at the lower of the costs incurred and the estimated amount that is going to be charged as revenue in the following period.

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 only has basic financial instruments measured at amortised cost, with no financial instruments classified as other or basic instruments measured at fair value.

Somesuch & Co Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
Page 14
Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

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.

Somesuch & Co Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
Page 15
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 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.

1.11
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.

Somesuch & Co Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 16
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.

Revenue Recognition

Significant management judgement is required in determining the point at which revenue should be recognised. Revenue is recognised in respect of each production from the point at which the company has obtained the right to consideration in return for performance. This is considered to be when all necessary approvals during the process of pre-production have been obtained from the commissioning agency and normally equates to the date at which shooting commences. No profit element is recognised until the company is able to estimate the profit on the production reliably. In arriving at this point of recognition, management have considered the liabilities and amounts that would be due if at different points of the contract, the project were to be pulled.

Trade debtors recoverability

The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience.

Deferred tax asset recoverability

Deferred tax assets are recognised for unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilised. Significant management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and level of future taxable profits together with future tax planning strategies. See note 15 for the carrying amount and further details.

Impairment of fixed assets

Where there are signs of impairment, the company makes an estimate of the recoverable value of fixed assets and compares this to the net book value. When assessing the impairment of fixed assets, directors consider factors including the asset's physical condition, the useful life, its residual value, the market value, the trading levels of the company and historical experience.

 

Following the directors' assessment and review, the directors have determined no impairment is necessary.

Somesuch & Co Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 17
3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
Production services
12,086,851
20,183,308
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
8,568,148
18,578,907
United States of America
2,452,729
328,081
European Union
1,065,974
1,276,320
12,086,851
20,183,308
2023
2022
£
£
Other significant revenue
Interest income
3,045
320
4
Operating (loss)/profit
2023
2022
Operating (loss)/profit for the year is stated after charging/(crediting):
£
£
Exchange gains
(9,987)
(46,595)
Depreciation of owned tangible fixed assets
89,660
38,825
Operating lease charges
157,454
215,397
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
42,000
39,000
Somesuch & Co Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 18
6
Employees

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

2023
2022
Number
Number
22
26

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
2,030,564
2,119,677
Social security costs
214,928
250,904
Pension costs
56,212
61,210
2,301,704
2,431,791
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
24,000
24,000
Company pension contributions to defined contribution schemes
24,000
24,000
48,000
48,000

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2022 - 2).

8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
3,045
320
9
Taxation
2023
2022
£
£
Current tax
Adjustments in respect of prior periods
26,844
-
0
Somesuch & Co Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
9
Taxation
2023
2022
£
£
(Continued)
Page 19
Deferred tax
Origination and reversal of timing differences
(353,288)
67,196
Total tax (credit)/charge
(326,444)
67,196

The actual (credit)/charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
(Loss)/profit before taxation
(1,388,362)
202,275
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
(326,543)
38,432
Tax effect of expenses that are not deductible in determining taxable profit
481
13,134
Unutilised tax losses carried forward
-
0
(2,590)
Effect of change in corporation tax rate
(20,510)
21,965
Under/(over) provided in prior years
(7,120)
-
0
Deferred tax adjustments in respect of prior years
27,248
-
0
Capital Allowances
-
0
(3,745)
Taxation (credit)/charge for the year
(326,444)
67,196
Somesuch & Co Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 20
10
Tangible fixed assets
Leasehold improvements
Fixtures, fittings & equipment
Total
£
£
£
Cost
At 1 January 2023
519,176
286,524
805,700
Additions
-
0
14,549
14,549
At 31 December 2023
519,176
301,073
820,249
Depreciation and impairment
At 1 January 2023
24,723
240,009
264,732
Depreciation charged in the year
74,168
15,492
89,660
At 31 December 2023
98,891
255,501
354,392
Carrying amount
At 31 December 2023
420,285
45,572
465,857
At 31 December 2022
494,453
46,515
540,968
11
Work in progress
2023
2022
£
£
Work in progress
357,145
215,630
12
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,471,867
1,288,249
Corporation tax recoverable
-
0
26,844
Other debtors
1,825,653
2,272,128
Prepayments and accrued income
444,894
626,608
3,742,414
4,213,829
Somesuch & Co Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
12
Debtors
(Continued)
Page 21
2023
2022
Amounts falling due after more than one year:
£
£
Deferred tax asset (note 15)
360,643
24,830
Total debtors
4,103,057
4,238,659
13
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans and overdrafts
14
312,262
-
0
Trade creditors
934,444
494,250
Taxation and social security
350,860
517,772
Other creditors
165,959
22,573
Accruals and deferred income
1,753,365
1,951,960
3,516,890
2,986,555

The company's bank holds a fixed and floating charge over all assets of the company in respect of the overdraft facility provided to the company.

14
Loans and overdrafts
2023
2022
£
£
Bank overdrafts
312,262
-
0
Payable within one year
312,262
-
0

The long-term loans are secured by floating charges that cover all property or undertaking of the company.

Somesuch & Co Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 22
15
Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Balances:
£
£
£
£
Accelerated capital allowances
74,551
92,026
-
21,338
Tax losses
-
-
360,643
3,492
74,551
92,026
360,643
24,830
2023
Movements in the year:
£
Liability at 1 January 2023
67,196
Credit to profit or loss
(353,288)
Asset at 31 December 2023
(286,092)
16
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
56,212
61,210

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

17
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of 10p each
2,800
2,800
280
280
Ordinary B shares of 10p each
2,800
2,800
280
280
Ordinary C shares of 10p each
2,200
2,200
220
220
7,800
7,800
780
780
Somesuch & Co Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
17
Share capital
(Continued)
Page 23

The holders of the ordinary A, B, and C shares have full voting rights and all shares rank pari passu in all aspects with each of the other classes. The holders of the shares shall have the right to receive dividends, but the directors are empowered to declare different amounts of dividend in respect of each class of shares. The directors may decide to pay interim dividends on any of the shares to the exclusion of the other classes of shares then in existence in the company's capital. Insofar as a greater amount of dividends shall have been paid per share during any time in respect of the holder of one class.

18
Operating lease commitments
Lessee

 

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023
2022
£
£
Within one year
128,461
182,272
Between two and five years
706,213
697,708
In over five years
-
0
136,944
834,674
1,016,924
19
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2023
2022
£
£
Aggregate compensation
234,000
244,914
Somesuch & Co Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
19
Related party transactions
(Continued)
Page 24
Transactions with related parties

During the year sales of £541,282 (2022: £295,460) and purchases of £443,217 (2022: £3,048,029) were made from Somesuch Inc, a related party by virtue of common control. At the year end a debtor of £1,463,778 (2022: £1,643,452) was owed from Somesuch Inc and a creditor of £118,385 (2022: £nil) was owed to Somesuch Inc.

 

At the year end directors owed the company £29,989 (2022: £263,384) on an interest free loan.

 

In accordance with FRS 102 paragraph 33.1A, exemption is taken not to disclose transactions in the year between undertakings where 100% of the voting rights are controlled within the group.

20
Ultimate controlling party

The immediate and ultimate parent company is Somesuch Industries Limited, a company registered in England and Wales. There is no ultimate controlling party of Somesuch Industries Limited.

 

The financial statements of Somesuch Industries Limited are available from its registered office, 6th Floor Charlotte Building, 17 Gresse Street, London, United Kingdom, W1T 1QL.

21
Cash generated from operations
2023
2022
as restated
£
£
(Loss)/profit for the year after tax
(1,061,918)
135,079
Adjustments for:
Taxation (credited)/charged
(326,444)
67,196
Investment income
(3,045)
(320)
Depreciation and impairment of tangible fixed assets
89,660
38,825
Movements in working capital:
(Increase) in work in progress
(141,515)
(212,630)
Decrease in debtors
444,571
806,049
Increase in creditors
218,073
343,749
Cash (absorbed by)/generated from operations
(780,618)
1,177,948
Somesuch & Co Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 25
22
Analysis of changes in net funds/(debt)
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
879,861
(879,861)
-
Bank overdrafts
-
0
(312,262)
(312,262)
879,861
(1,192,123)
(312,262)
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