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11 October 2024
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No description of principal activity
2021-07-04
Sage Accounts Production Advanced 2023 - FRS102_2023
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12362440
2021-07-04
2022-07-03
12362440
2022-07-03
12362440
2021-07-03
12362440
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2021-07-03
12362440
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12362440
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COMPANY REGISTRATION NUMBER:
12362440
Fortress Productions Limited |
|
Filleted Financial Statements |
|
Fortress Productions Limited |
|
Statement of Financial Position |
|
3 July 2022
Current assets
Debtors |
6 |
286,744 |
2,441,667 |
Cash at bank and in hand |
107,867 |
254,220 |
|
--------- |
------------ |
|
394,611 |
2,695,887 |
|
|
|
|
Creditors: amounts falling due within one year |
7 |
(
394,610) |
(
2,695,886) |
|
--------- |
------------ |
Net current assets |
1 |
1 |
|
---- |
---- |
Total assets less current liabilities |
1 |
1 |
|
---- |
---- |
Net assets |
1 |
1 |
|
---- |
---- |
|
|
|
|
Capital and reserves
Called up share capital |
9 |
1 |
1 |
|
---- |
---- |
Shareholders funds |
1 |
1 |
|
---- |
---- |
|
|
|
|
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
In accordance with section 444 of the Companies Act 2006, the statement of comprehensive income has not been delivered.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
These financial statements were approved by the
board of directors
and authorised for issue on
10 October 2024
, and are signed on behalf of the board by:
Company registration number:
12362440
Fortress Productions Limited |
|
Notes to the Financial Statements |
|
Year ended 3 July 2022
1.
General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is C/O Film Finances Ltd, 15 Conduit Street, London, W1S 2XJ, United Kingdom.
2.
Statement of compliance
These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3.
Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of the transaction. Exchange differences are taken into account in arriving at the operating profit.
Going concern
In establishing whether to continue to report under the going concern assumption we have considered the following points: - The impact on the day to day trade of the business - The impact on the ability of our suppliers to meet our needs - The impact of our staff's ability to perform their duties - The impact on our cash position of a period of minimum activity A detailed budget and cashflow have been prepared for the production and delivery of the television movie. Funds to meet the cashflow requirements are contractually in place and the directors do not anticipate any material overspend. After considering all factors, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Furthermore the television movie had been completed in full in the year and thus the directors are therefore satisfied that the going concern assumption remains appropriate.
Comparatives
The accounts cover the year from 4 July 2021 through to 3 July 2022. The comparatives cover the period from 1 March 2020 through to 3 July 2021 and as such the comparatives are not entirely comparable.
Disclosure exemptions
The entity satisfies the criteria of being a qualifying small entity as defined in FRS 102. As such, advantage has been taken of the following disclosure exemptions available under section 1A of FRS 102: (a) No cash flow statement has been presented for the company. (b) Disclosures in respect of financial instruments have not been presented.
Judgements and key sources of estimation uncertainty
Accruals are estimated by reference to purchase orders raised at the period end and estimates to complete. Payments received on account are estimated by reference to percentage of completion of the television production, as noted in "Revenue recognition" below.
Revenue recognition
Turnover relates to the production of the television movie entitled "A Castle For Christmas". It represents the value of the work done in the period, including estimates of amounts not invoiced and is stated after trade discounts, other taxes and net of VAT. Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that expenses recognised are recoverable.
Income tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Financial instruments
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitute a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Intra-group borrowings are debt instruments and are initially measured at present value of the future cash flows and subsequently at amortised cost using an effective interest method.
4.
Employees
The company has been incorporated to produce a high-end television movie entitled "A Castle for Christmas". In common with the film and television industry the majority of crew are hired on short term contracts for the duration of principal photography or are self-employed.
None of the Directors received any form of remuneration.
5.
Tax on loss
Major components of tax income
|
|
Period from |
|
Year to |
1 Mar 20 to |
|
3 Jul 22 |
3 Jul 21 |
|
£ |
£ |
|
|
|
Current tax:
UK current tax income |
– |
(
2,037,702) |
|
|
|
Deferred tax:
Origination and reversal of timing differences |
(
94,904) |
– |
|
-------- |
------------ |
Tax on loss |
(
94,904) |
(
2,037,702) |
|
-------- |
------------ |
|
|
|
Reconciliation of tax income
The tax assessed on the loss on ordinary activities for the year is lower than (2021: lower than) the
standard rate of corporation tax in the UK
of
19
% (2021:
19
%).
|
|
Period from |
|
Year to |
1 Mar 20 to |
|
3 Jul 22 |
3 Jul 21 |
|
£ |
£ |
Loss on ordinary activities before taxation |
(
94,904) |
(
2,037,702) |
|
-------- |
------------ |
High-end television tax relief |
– |
(2,037,702) |
Short term timing difference leading to an increase (decrease) in taxation |
(94,904)
|
– |
|
-------- |
------------ |
Tax on loss |
(
94,904) |
(
2,037,702) |
|
-------- |
------------ |
|
|
|
6.
Debtors
|
2022 |
2021 |
|
£ |
£ |
Trade debtors |
– |
14,188 |
Deferred tax asset |
94,904 |
– |
Prepayments and accrued income |
– |
1,818 |
VAT recoverable |
1 |
– |
Corporation tax recoverable |
– |
2,037,702
|
Other debtors |
191,839 |
387,959 |
|
--------- |
------------ |
|
286,744 |
2,441,667 |
|
--------- |
------------ |
|
|
|
7.
Creditors:
amounts falling due within one year
|
2022 |
2021 |
|
£ |
£ |
Trade creditors |
120,828 |
942 |
Accruals and deferred income |
202,898 |
654,467 |
Social security and other taxes |
– |
2,775 |
Production loan |
70,884 |
2,037,702 |
|
--------- |
------------ |
|
394,610 |
2,695,886 |
|
--------- |
------------ |
|
|
|
The loan has been secured against the anticipated future high-end television tax credit.
8.
Deferred tax
The deferred tax included in the statement of financial position is as follows:
|
2022 |
2021 |
|
£ |
£ |
Included in debtors (note 6) |
94,904 |
– |
|
-------- |
---- |
|
|
|
The deferred tax account consists of the tax effect of timing differences in respect of:
|
2022 |
2021 |
|
£ |
£ |
Origination of timing differences |
(94,904)
|
– |
|
-------- |
---- |
|
|
|
9.
Called up share capital
Issued, called up and fully paid
|
2022 |
2021 |
|
No. |
£ |
No. |
£ |
Ordinary shares of £ 0.01 each |
100 |
1 |
100 |
1 |
|
---- |
---- |
---- |
---- |
|
|
|
|
|
There are no restrictions on the distribution of dividends and the repayment of capital.
10.
Contingent liabilities
Charges have been made against the television series in favour of the following parties to secure their interests in the copyright of and title to the television series: Netflix US, LLC
11.
Summary audit opinion
The auditor's report dated
11 October 2024
was
unqualified
.
The senior statutory auditor was
Stephen Joberns
, for and on behalf of
Shipleys LLP
.
12.
Related party transactions
The company has taken advantage of Section 33 of FRS 102 from disclosing transactions entered into between two or more members of a group, where any subsidiary undertaking which is a party to the transaction is wholly owned by a member of that group. All transactions related to the production of the television movie "A Castle for Christmas" and arose on an arm's-length basis through the normal course of business. As such no transactions with related parties were undertaken such as are required to be disclosed under FRS 102 Section 1A.
13.
Parent undertaking and controlling party
In the opinion of the directors the immediate parent undertaking is
Film Finances Ltd
, a company incorporated in England and Wales. Lumiere Financing LLC, a company incorporated in the United States of America is the parent of both the smallest and largest group to consolidate these financial statements. A copy of the consolidated financial statements of Lumiere Financing LLC, which includes this entity, can be obtained as an appended document for FFI Holdings Limited, whose registered office is 15 Conduit Street, London, United Kingdom, W1S 2XJ. The ultimate parent undertaking is the 777 Group, a private equity investment firm based in the United States of America. The directors do not consider there to be an ultimate controlling party.