Company Registration No. 14744245 (England and Wales)
London 3 Films Limited
Annual report and financial statements
for the period ended 31 January 2024
London 3 Films Limited
Company information
Directors
Jamie Hall
(Appointed 21 March 2023)
Maria Meade
(Appointed 21 March 2023)
Company number
14744245
Registered office
Stapleton House, 3rd Floor
29-33 Scrutton Street
London
England
EC2A 4HU
Independent auditor
Saffery LLP
71 Queen Victoria Street
London
EC4V 4BE
London 3 Films Limited
Contents
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Statement of financial position
8
Statement of changes in equity
9
Notes to the financial statements
10 - 16
London 3 Films Limited
Strategic report
For the period ended 31 January 2024
1

The directors present the strategic report for the period ended 31 January 2024.

Review of the business

The profit for the period, after taxation, amounted to £Nil and the Company had net assets of £1. The directors do not recommend the payment of a dividend in respect of the financial period ended 31 January 2024.

Principal risks and uncertainties

The business of television production is subject to a number of risks.

 

The television industry is a volatile industry susceptible to changes in the global economy, as well as changes in legislation, regulation and government policy which may affect the industry. Any of these may adversely affect consumer demand for television series or the ability to successfully finance or market television productions.

Key performance indicators

The company was incorporated solely to produce the television series "Gangs of London Season 3". Given this and the nature of the business, the directors consider the company's key financial performance indicator to be whether the television series is produced in line with the agreed budget.

 

As the period end, the final cost of the television series was in line with its agreed budget. The company's directors are of the opinion that any further analysis using KPIs is not necessary for an understanding of the development, performance or position of the business.

On behalf of the board

Jamie Hall
Director
26 September 2024
London 3 Films Limited
Directors' report
For the period ended 31 January 2024
2

The directors present their annual report and financial statements for the period ended 31 January 2024. The company was incorporated on 21 March 2023 and began trading on that day.

Principal activities

The principal activity of the company is that of television production.

Results and dividends

The results for the period are set out on page 7.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

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

Jamie Hall
(Appointed 21 March 2023)
Maria Meade
(Appointed 21 March 2023)
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.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Jamie Hall
Director
26 September 2024
London 3 Films Limited
Directors' responsibilities statement
For the period ended 31 January 2024
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.

London 3 Films Limited
Independent auditor's report
To the members of London 3 Films Limited
4
Opinion

We have audited the financial statements of London 3 Films Limited (the 'company') for the period ended 31 January 2024 which comprise the statement of comprehensive income, the statement of financial position, 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 Financial Reporting Standard 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.

London 3 Films Limited
Independent auditor's report (continued)
To the members of London 3 Films Limited
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.

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.

 

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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.

 

Identifying and assessing risks related to irregularities:

We assessed the susceptibility of the company’s financial statements to material misstatement and how fraud might occur, including through discussions with the directors, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the company by discussions with directors and by updating our understanding of the sector in which the company operates.

 

Laws and regulations of direct significance in the context of the company include The Companies Act 2006, and UK Tax legislation, specifically legislation relating to creative industry tax credits.

London 3 Films Limited
Independent auditor's report (continued)
To the members of London 3 Films Limited
6

In addition, the company is subject to other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to its ability to operate or to avoid a material penalty. These include anti-bribery legislation, employment law and health and safety regulations,

 

Audit response to risks identified

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the company’s records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the company’s policies and procedures for compliance with laws and regulations with members of management responsible for compliance. We have reviewed management’s assessment of how the company, and production, comply with the relevant laws and regulations governing access to the creative industry tax credits.

 

During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. 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.

 

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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.

Isla MacGillivray
Senior Statutory Auditor
For and on behalf of Saffery LLP
4 October 2024
Chartered Accountants
Statutory Auditors
71 Queen Victoria Street
London
EC4V 4BE
London 3 Films Limited
Statement of comprehensive income
For the period ended 31 January 2024
7
Period
ended
31 January
2024
Notes
£
Turnover
3
23,559,821
Cost of sales
(28,837,736)
Gross (loss)/profit
(5,277,915)
Administrative expenses
(18,000)
Operating loss
4
(5,295,915)
Interest receivable and similar income
6
11,655
Loss before taxation
(5,284,260)
Tax on loss
7
5,284,260
Profit for the financial period
-
0

The income statement has been prepared on the basis that all operations are continuing operations.

London 3 Films Limited
Statement of financial position
As at 31 January 2024
8
2024
Notes
£
£
Current assets
Debtors
8
10,063,623
Cash at bank and in hand
6,412
10,070,035
Creditors: amounts falling due within one year
9
(10,070,034)
Net current assets
1
Capital and reserves
-
Called up share capital
11
1
The financial statements were approved by the board of directors and authorised for issue on 26 September 2024 and are signed on its behalf by:
Jamie Hall
Director
Company Registration No. 14744245
London 3 Films Limited
Statement of changes in equity
For the period ended 31 January 2024
9
Share capital
Notes
£
Balance at 21 March 2023
-
0
Period ended 31 January 2024:
Profit and total comprehensive income
-
Issue of share capital
11
1
Balance at 31 January 2024
1
London 3 Films Limited
Notes to the financial statements
For the period ended 31 January 2024
10
1
Accounting policies
Company information

London 3 Films Limited is a private company limited by shares incorporated in England and Wales. The registered office is Stapleton House, 3rd Floor, 29-33 Scrutton Street, London, England, EC2A 4HU.

1.1
Reporting period

The financial statements have been prepared for the period 21 March 2023 to 31 January 2024. The period was shortened to correspond with the production schedule of the television programme.

1.2
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, [modified to include the revaluation of freehold properties and to include investment properties and 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 Pulse Films Limited. These consolidated financial statements are available from its registered office, 110-122 New North Place, London, EC2A 4JA.

1.3
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.

London 3 Films Limited
Notes to the financial statements (continued)
For the period ended 31 January 2024
1
Accounting policies (continued)
11
1.4
Turnover

In respect of long-term contracts and contracts for on-going services, turnover represents the value of work

done in the period, including estimates of amounts not invoiced. Value of work done in respect of long-term

contracts for on-going services is determined by reference to the stage of completion.

 

The "percentage of completion" method is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract cost. Costs incurred in the period in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are represented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recovered.

1.5
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.

1.6
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 statement of financial position 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, 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.

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.

London 3 Films Limited
Notes to the financial statements (continued)
For the period ended 31 January 2024
1
Accounting policies (continued)
12

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

1.7
Taxation

The tax expense represents the sum of the tax currently receivable and deferred tax.

Current tax

The tax currently recoverable is based on relievable losses arising as the result of the high-end television tax relief legislation. Relievable losses differ from net losses as reported in the profit and loss account because they include an additional deduction relating to qualifying production expenditure and exclude items of income or expense that are deductible in other year, as well as items that are never taxable or deductible. The Company's tax position 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. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income. 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.

1.8
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.

1.9
Retirement benefits

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

London 3 Films Limited
Notes to the financial statements (continued)
For the period ended 31 January 2024
13
2
Critical accounting 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.

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.

Tax credit estimate

The key accounting estimate within the financial statements for this Company is the valuation of the high-end TV tax credit available. The estimate is based on the assessment of the value of qualifying expenditure as per HMRC legislations and guidance plus assessment of the qualification of the underlying production as eligible for the tax relief.

3
Turnover and other revenue
2024
£
Turnover analysed by class of business
Production
23,559,821
2024
£
Turnover analysed by geographical market
United Kingdom
23,559,821
2024
£
Other revenue
Interest income
11,655
4
Operating loss
2024
Operating loss for the period is stated after charging:
£
Fees payable to the company's auditor for the audit of the company's financial statements
9,500
London 3 Films Limited
Notes to the financial statements (continued)
For the period ended 31 January 2024
14
5
Employees

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

2024
Number
Employees
55

Their aggregate remuneration comprised:

2024
£
Wages and salaries
2,002,306
Social security costs
235,875
Pension costs
12,171
2,250,352
6
Interest receivable and similar income
2024
£
Interest income
Other interest income
11,655
7
Taxation
2024
£
Current tax
UK corporation tax on profits for the current period
(5,284,260)
London 3 Films Limited
Notes to the financial statements (continued)
For the period ended 31 January 2024
7
Taxation (continued)
15

The actual credit for the period can be reconciled to the expected credit for the period based on the profit or loss and the standard rate of tax as follows:

2024
£
Loss before taxation
(5,284,260)
Expected tax credit based on the standard rate of corporation tax in the UK of 24.79%
(1,309,968)
Enhanced losses arising from the HETV tax credit
(5,321,236)
Difference between the rate of corporation tax and the rate of relief under the HETV tax credit
(44,388)
Losses carried forward
1,391,332
Taxation credit for the period
(5,284,260)
8
Debtors
2024
Amounts falling due within one year:
£
Corporation tax recoverable
5,284,260
Amounts owed by group undertakings
4,168,183
Other debtors
410,765
Prepayments and accrued income
200,415
10,063,623
9
Creditors: amounts falling due within one year
2024
£
Trade creditors
1,383,881
Amounts owed to group undertakings
1,476,351
Taxation and social security
5,368,554
Other creditors
60,945
Accruals and deferred income
1,780,303
10,070,034
London 3 Films Limited
Notes to the financial statements (continued)
For the period ended 31 January 2024
16
10
Retirement benefit schemes
2024
Defined contribution schemes
£
Charge to profit or loss in respect of defined contribution schemes
12,171

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.

11
Share capital
2024
2024
Ordinary share capital
Number
£
Issued and fully paid
Ordinary shares of £1 each
1
1
12
Financial commitments, guarantees and contingent liabilities

Post period end, from the 6 March 2024, Bank of Montreal held a fixed and floating charge on all rights, title and interest, relating to the television programme produced by the company.

 

Post period end, from the 6 March 2024, Sky Studios Limited held a fixed and floating charge on all rights, title and interest, relating to the television programme produced by the company.

13
Operating lease commitments

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:

2024
£
Within one year
90,000
14
Related party transactions

The Company has taken advantage of the exemption under paragraph 33.1(a) of FRS 102, from disclosing transactions between two or more members of a group, where any subsidiary undertaking which is party to the transaction is wholly owned by a member of that group.

15
Ultimate controlling party

The Company's immediate parent company is Pulse Films Limited, a company incorporated in England and Wales.

 

The smallest group for which consolidated accounts are prepared and of which the company is a member is Pulse Films Limited, a company registered in England and Wales. Copies of the consolidated financial statements of Pulse Films Limited can be obtained from 110-122 New North Place, London, EC2A 4JA.

The ultimate controlling party and largest group for which consolidated accounts are prepared and of which the company is a member is Vice Ultimate Parent LLC, a company incorporated in the USA.

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