RSA Films Limited
Annual Report and Financial Statements
For the year ended 30 September 2023
Company Registration No. 01761486 (England and Wales)
RSA Films Limited
Company Information
Directors
Deborah Garvey
Kai Hsiung
Jordan Scott
Luke Scott
Richard Nicholas
Company number
01761486
Registered office
42-44 Beak Street
London
United Kingdom
W1F 9RH
Auditor
Moore Kingston Smith LLP
Charlotte Building
17 Gresse Street
London
W1T 1QL
RSA Films Limited
Contents
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 25
RSA Films Limited
Strategic Report
For the year ended 30 September 2023
Page 1

The directors present the strategic report for the year ended 30 September 2023.

Fair review of the business

The results for the year and the financial position of the company are in the annexed financial statements.

 

RSA Films is a global, award-winning advertising, creative and entertainment production company specializing in Live Action, Stills Photography, Ideation, Social Media and Unscripted TV and Live Event films.

 

The year ending 30 September 2023 was a year for the global entertainment industry and the country. The heart of the entertainment industry (Hollywood) went on strike, pausing productions in features and TV. This caused a backlog for all productions, which delayed everything. RSA continued to convert most of its pipelines at the higher end, which enabled us to navigate the turbulent waters of the global industry.

Principal risks and uncertainties

The determination of the creative industries to diversify and drive new verticals increased the load on reserves, and with the contraction of the market made the cash management strategy key to navigating another tough year. The FX Markets continue to fluctuate, and risks around shooting in certain countries continue to hamper production worldwide.

 

Management continues executing the strategic plan, focusing on growing new areas of the business and developing our global reach. The initial investment is starting to show signs of maturing into a harmonious, solid, and secure business.

Development and performance

We have maintained a similar level of output. We have also continued to invest in nurturing new talent and developing Black Dog, our Music Video Division whilst exploring other opportunities in TV, Creative Ideation, social media and Brand Entertainment.

Key performance indicators

The Directors review KPIs throughout the year as part of the normal management process. Whilst our turnover has decreased by £6,061,766, the margins are increasingly difficult to maintain in the challenging environment. The net current asset position of the group still remains in a very strong position at £2,005,076. The directors were also satisfied with net asset position at the year end.

 

On behalf of the board

Richard Nicholas
Director
1 October 2024
RSA Films Limited
Directors' Report
For the year ended 30 September 2023
Page 2

The directors present their annual report and financial statements for the year ended 30 September 2023.

Principal activities

The principal activity of the company continued to be that of film production.

Results and dividends

The results for the year are set out on page 8.

No ordinary dividends were paid. 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:

Deborah Garvey
Kai Hsiung
Jordan Scott
Luke Scott
Richard Nicholas
Auditor

The auditor, Moore Kingston Smith LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

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
Richard Nicholas
Director
1 October 2024
RSA Films Limited
Directors' Responsibilities Statement
For the year ended 30 September 2023
Page 3

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.

RSA Films Limited
Independent Auditor's Report
To the Members of RSA Films Limited
Page 4
Opinion

We have audited the financial statements of RSA Films Limited (the 'company') for the year ended 30 September 2023 which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity 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.

RSA Films Limited
Independent Auditor's Report (Continued)
To the Members of RSA Films Limited
Page 5

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 or the Directors' Report.

 

We have nothing to report in respect of the following matters in relation to which 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.

RSA Films Limited
Independent Auditor's Report (Continued)
To the Members of RSA Films Limited
Page 6
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.

 

 

RSA Films Limited
Independent Auditor's Report (Continued)
To the Members of RSA Films Limited
Page 7

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.

Joanna Cosgrove
Senior Statutory Auditor
for and on behalf of Moore Kingston Smith LLP
2 October 2024
Chartered Accountants
Statutory Auditor
Charlotte Building
17 Gresse Street
London
W1T 1QL
RSA Films Limited
Statement of Comprehensive Income
For the year ended 30 September 2023
Page 8
2023
2022
Notes
£
£
Turnover
3
22,772,607
28,834,373
Cost of sales
(18,966,403)
(25,675,035)
Gross profit
3,806,204
3,159,338
Administrative expenses
(5,011,308)
(2,930,403)
Other operating income
135,243
224,284
Operating (loss)/profit
4
(1,069,861)
453,219
Interest receivable and similar income
7
9,449
52,792
Interest payable and similar expenses
8
(92)
-
0
(Loss)/profit before taxation
(1,060,504)
506,011
Taxation
9
12,316
(23,680)
(Loss)/profit for the financial year
(1,048,188)
482,331

The Profit and Loss Account has been prepared on the basis that all operations are continuing operations.

RSA Films Limited
Balance Sheet
As at 30 September 2023
Page 9
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
10
20,384
12,300
Investments
11
1
1
20,385
12,301
Current assets
Work in progress
13
1,049,292
2,769,598
Debtors
14
2,723,686
4,987,663
Investments
15
500
500
Cash at bank and in hand
924,504
3,121,804
4,697,982
10,879,565
Creditors: amounts falling due within one year
16
(2,692,906)
(7,820,738)
Net current assets
2,005,076
3,058,827
Total assets less current liabilities
2,025,461
3,071,128
Provisions for liabilities
(2,821)
(300)
Net assets
2,022,640
3,070,828
Capital and reserves
Called up share capital
19
12
12
Profit and loss reserves
2,022,628
3,070,816
Total equity
2,022,640
3,070,828
The financial statements were approved by the board of directors and authorised for issue on 1 October 2024 and are signed on its behalf by:
Richard Nicholas
Director
Company Registration No. 01761486
RSA Films Limited
Statement of Changes in Equity
For the year ended 30 September 2023
Page 10
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 October 2021
12
2,588,485
2,588,497
Year ended 30 September 2022:
Profit and total comprehensive income for the year
-
482,331
482,331
Balance at 30 September 2022
12
3,070,816
3,070,828
Year ended 30 September 2023:
Loss and total comprehensive income for the year
-
(1,048,188)
(1,048,188)
Balance at 30 September 2023
12
2,022,628
2,022,640
RSA Films Limited
Notes to the Financial Statements
For the year ended 30 September 2023
Page 11
1
Accounting policies
Company information

RSA Films Limited is a private company limited by shares incorporated in England and Wales. The registered office is 42-44 Beak Street, London, United Kingdom, W1F 9RH.

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, which include certain financial instruments at fair value. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of RSA Films (Holdings) Limited. These consolidated financial statements are available from its registered office, 42- 44 Beak Street, London, United Kingdom, W1F 9RH.

 

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 to trade in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.true

RSA Films Limited
Notes to the Financial Statements (Continued)
For the year ended 30 September 2023
1
Accounting policies
(Continued)
Page 12
1.3
Turnover / Revenue

Revenue is recognised at the fair value of the consideration received or receivable for production, creative and retainer services provided in the normal course of business, and is shown net of VAT and other sales related taxes.

 

Revenue from production contracts is recognised by reference to the stage of completion, when the stage of completion, costs incurred and costs to complete can be estimated reliably. If the production contract is a short-form production, the stage of completion is measured by shoot days. If the production contract is a long-form production, revenue is recognised to the extent of the expenses recognised that are recoverable, otherwise known as the percentage completion.

 

When long form productions are in the development stage, expenditure is treated as work in progress and held on the balance sheet until either the production begins to generate revenue or it is no longer likely that future economic benefits will flow into the company.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

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 land and buildings
33% straight line
Plant and equipment
20% straight line
Fixtures and fittings
33% 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
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

RSA Films Limited
Notes to the Financial Statements (Continued)
For the year ended 30 September 2023
1
Accounting policies
(Continued)
Page 13
1.6
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.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) 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 (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.

1.7
Work in progress

Work in progress represents costs incurred on productions which are shot post year end and is valued at the lower of cost and net realisable value.

1.8
Cash at bank and in hand

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.

1.9
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.

RSA Films Limited
Notes to the Financial Statements (Continued)
For the year ended 30 September 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.

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.

RSA Films Limited
Notes to the Financial Statements (Continued)
For the year ended 30 September 2023
1
Accounting policies
(Continued)
Page 15
Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

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

1.10
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.

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

1.11
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.

RSA Films Limited
Notes to the Financial Statements (Continued)
For the year ended 30 September 2023
1
Accounting policies
(Continued)
Page 16
1.12
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.

1.13
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.14
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.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.15
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.

RSA Films Limited
Notes to the Financial Statements (Continued)
For the year ended 30 September 2023
Page 17
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

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 would were to be pulled.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Depreciation

The annual depreciation charge for property, plant and equipment is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 9 for the carrying amount of the property, plant and equipment.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Production and creative services
22,772,607
28,834,373
RSA Films Limited
Notes to the Financial Statements (Continued)
For the year ended 30 September 2023
3
Turnover and other revenue
(Continued)
Page 18
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
15,546,675
17,546,304
Europe
2,946,276
6,272,454
USA
2,131,480
2,371,334
Rest of the World
2,148,176
2,644,281
22,772,607
28,834,373
2023
2022
£
£
Other significant revenue
Interest income
9,449
10,792
Dividends received
-
42,000
4
Operating (loss)/profit
2023
2022
Operating (loss)/profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
37,748
(58,926)
Fees payable to the company's auditor for the audit of the company's financial statements
20,950
17,400
Depreciation of owned tangible fixed assets
7,092
6,977
Operating lease charges
266,389
256,667
5
Employees

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

2023
2022
Number
Number
Management and administration
16
12
Production
29
26
Total
45
38
RSA Films Limited
Notes to the Financial Statements (Continued)
For the year ended 30 September 2023
5
Employees
(Continued)
Page 19

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
3,460,305
2,843,613
Social security costs
496,765
373,406
Pension costs
43,876
33,932
4,000,946
3,250,951
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
428,545
590,070
Company pension contributions to defined contribution schemes
3,381
3,406
431,926
593,476
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
215,912
282,385
Company pension contributions to defined contribution schemes
1,321
1,321
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Other interest income
9,449
10,792
Income from fixed asset investments
Income from shares in group undertakings
-
0
42,000
Total income
9,449
52,792
RSA Films Limited
Notes to the Financial Statements (Continued)
For the year ended 30 September 2023
Page 20
8
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
92
-
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
-
0
22,276
Adjustments in respect of prior periods
(14,837)
-
0
Total current tax
(14,837)
22,276
Deferred tax
Origination and reversal of timing differences
2,521
1,753
Changes in tax rates
-
0
(349)
Total deferred tax
2,521
1,404
Total tax (credit)/charge
(12,316)
23,680

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
(1,060,504)
506,011
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
(201,496)
96,142
Tax effect of expenses that are not deductible in determining taxable profit
129,705
10,680
Tax effect of utilisation of tax losses not previously recognised
-
0
(74,575)
Unutilised tax losses carried forward
62,278
-
0
Adjustments in respect of prior years
(14,837)
-
0
Group relief
11,478
-
0
Permanent capital allowances in excess of depreciation
556
(587)
Dividend income
-
0
(7,980)
Taxation (credit)/charge for the year
(12,316)
23,680
RSA Films Limited
Notes to the Financial Statements (Continued)
For the year ended 30 September 2023
Page 21
10
Tangible fixed assets
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Total
£
£
£
£
Cost
At 1 October 2022
17,057
140,191
113,216
270,464
Additions
-
0
-
0
15,176
15,176
Disposals
-
0
-
0
(4,803)
(4,803)
At 30 September 2023
17,057
140,191
123,589
280,837
Depreciation and impairment
At 1 October 2022
17,057
140,191
100,916
258,164
Depreciation charged in the year
-
0
-
0
7,092
7,092
Eliminated in respect of disposals
-
0
-
0
(4,803)
(4,803)
At 30 September 2023
17,057
140,191
103,205
260,453
Carrying amount
At 30 September 2023
-
0
-
0
20,384
20,384
At 30 September 2022
-
0
-
0
12,300
12,300
11
Fixed asset investments
2023
2022
Notes
£
£
Investments in subsidiaries
12
1
1
12
Subsidiaries

Details of the company's subsidiaries at 30 September 2023 are as follows:

Name of undertaking
Address
Class of
% Held
shares held
Direct
RSA1 - LIAD2020 Limited
1
Ordinary
100.00

Registered office addresses (all UK unless otherwise indicated):

1
42-44 Beak Street, London, W1F 9RH
13
Work in Progress
2023
2022
£
£
Work in progress
1,049,292
2,769,598
RSA Films Limited
Notes to the Financial Statements (Continued)
For the year ended 30 September 2023
Page 22
14
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
861,838
2,431,969
Corporation tax recoverable
10,415
-
0
Amounts due from group undertakings
288,964
721,552
Other debtors
248,358
485,212
Prepayments and accrued income
1,314,111
1,348,930
2,723,686
4,987,663
15
Current asset investments
2023
2022
£
£
Unlisted investments
500
500
16
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
211,983
1,758,952
Amounts owed to group undertakings
101,947
33,376
Corporation tax
-
0
22,276
Other taxation and social security
402,970
483,004
Other creditors
514,981
1,033,978
Accruals and deferred income
1,461,025
4,489,152
2,692,906
7,820,738
17
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
43,876
33,932

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.

RSA Films Limited
Notes to the Financial Statements (Continued)
For the year ended 30 September 2023
Page 23
18
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
2,821
300
2023
Movements in the year:
£
Liability at 1 October 2022
300
Charge to profit or loss
2,521
Liability at 30 September 2023
2,821

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

19
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
12
12
12
12
RSA Films Limited
Notes to the Financial Statements (Continued)
For the year ended 30 September 2023
Page 24
20
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
280,000
202,222
Between two and five years
443,333
241,111
723,333
443,333
Lessor

The company sublets surplus office space in its business premises.

At the reporting end date the company had contracted with tenants for the following minimum lease payments:

2023
2022
£
£
Within one year
25,200
87,612
Between two and five years
68,400
-
0
93,600
87,612
RSA Films Limited
Notes to the Financial Statements (Continued)
For the year ended 30 September 2023
Page 25
21
Related party transactions

RSA Films Limited has taken the exemption to disclose related party transactions under the same 100% control in accordance with FRS102 - Section 33 "Related Party Disclosures" paragraph 33.7.

 

During the year RSA Films Limited made sales of £1,342,676 (2022: £480,449) to RSA Films, Inc, a company incorporated in the United States of America and a related party by virtues of common ownership. RSA Films, Inc. also made sales of £1,218,448 (2022: £1,636,287) to RSA Films Limited. During the year RSA Films Limited recharged costs of £428,043 (2022: £445,949) to RSA Films, Inc. and RSA Films, Inc. recharged costs of £110,444 (2022: £341,995) to RSA Films Limited. At the year end a balance of £154,239 was owed from RSA Films, Inc (2022: £889,291 was owed to RSA Films, Inc).

 

During the year RSA Films Limited made sales of £148,386 (2022: £97,747) to Scott Free Films Limited, a related party by virtue of common directorship. During the year RSA Films Limited recharged costs of £17,115 (2022: £nil) to RSA Scott Free Films Limited and Scott Free Films Limited recharged costs of £20,618 (2022: £nil) to RSA Films Limited. At the year end a balance of £nil (2022: £94,797) was owed from Scott Free Films Limited.

 

During the year RSA Films Limited recharged costs of £11,115 (2022: £nil) to Scott Free Films LLC, a related party by virtue of common directorship. At the year end there were no balances owed in respect of these amounts.

 

During the year RSA Films Limited recharged costs of £16,754 (2022: £nil) to Scott Free Productions Inc, a related party by virtue of common directorship. At the year end a balance of £5,028 (2022: £nil) was owed to Scott Free Productions Inc.

 

During the year the company paid out directors fees of £310,232 (2022: £723,063) and profit shares of £250,565 (2022: £261,895) to the directors of the company. The company also accrued further directors fees of £nil (2022: £7,000) and profit shares of £nil (2022: £260,035) in relation to fees owed to the directors of the company. At the year end the company owed a total of £5,028 (2022: £260,035) to the directors of the company.

 

22
Ultimate controlling party

The company is controlled by RSA Films (Holdings) Limited, its immediate and ultimate parent company.

 

A copy of the group's consolidated financial statements can be obtained from the registered office of RSA Films (Holdings) Limited: 42-44 Beak Street, London, W1F 9RH.

 

There is no ultimate controlling party.

2023-09-302022-10-01falseCCH SoftwareCCH Accounts Production 2024.210Deborah GarveyKai HsiungJordan ScottLuke ScottRichard Nicholasfalsefalse017614862022-10-012023-09-3001761486bus:Director12022-10-012023-09-3001761486bus:Director22022-10-012023-09-3001761486bus:Director32022-10-012023-09-3001761486bus:Director42022-10-012023-09-3001761486bus:Director52022-10-012023-09-3001761486bus:RegisteredOffice2022-10-012023-09-30017614862023-09-30017614862021-10-012022-09-3001761486core:RetainedEarningsAccumulatedLosses2021-10-012022-09-3001761486core:RetainedEarningsAccumulatedLosses2022-10-012023-09-30017614862022-09-3001761486core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-09-3001761486core:PlantMachinery2023-09-3001761486core:FurnitureFittings2023-09-3001761486core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-09-3001761486core:PlantMachinery2022-09-3001761486core:FurnitureFittings2022-09-3001761486core:CurrentFinancialInstruments2023-09-3001761486core:CurrentFinancialInstruments2022-09-3001761486core:ShareCapital2023-09-3001761486core:ShareCapital2022-09-3001761486core:RetainedEarningsAccumulatedLosses2023-09-3001761486core:RetainedEarningsAccumulatedLosses2022-09-3001761486core:ShareCapital2021-09-3001761486core:RetainedEarningsAccumulatedLosses2021-09-3001761486core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-10-012023-09-3001761486core:PlantMachinery2022-10-012023-09-3001761486core:FurnitureFittings2022-10-012023-09-3001761486core:OwnedAssets2022-10-012023-09-3001761486core:OwnedAssets2021-10-012022-09-3001761486core:UKTax2022-10-012023-09-3001761486core:UKTax2021-10-012022-09-3001761486core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-09-3001761486core:PlantMachinery2022-09-3001761486core:FurnitureFittings2022-09-30017614862022-09-3001761486core:Non-currentFinancialInstruments2023-09-3001761486core:Non-currentFinancialInstruments2022-09-3001761486core:CurrentFinancialInstrumentscore:UnlistedNon-exchangeTraded2023-09-3001761486core:CurrentFinancialInstrumentscore:UnlistedNon-exchangeTraded2022-09-3001761486core:WithinOneYear2023-09-3001761486core:WithinOneYear2022-09-3001761486core:BetweenTwoFiveYears2023-09-3001761486core:BetweenTwoFiveYears2022-09-3001761486bus:PrivateLimitedCompanyLtd2022-10-012023-09-3001761486bus:FRS1022022-10-012023-09-3001761486bus:Audited2022-10-012023-09-3001761486bus:FullAccounts2022-10-012023-09-30xbrli:purexbrli:sharesiso4217:GBP