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Registered number: 00697555









EON PRODUCTIONS LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
EON PRODUCTIONS LIMITED
 
 
COMPANY INFORMATION


Directors
B Broccoli CBE 
M Wilson CBE 




Company secretary
John Roebuck



Registered number
00697555



Registered office
124 Finchley Road

London

NW3 5JS




Trading Address
Eon House
138 Piccadilly

London

W1J 7NR






Independent auditors
Nyman Libson Paul LLP
Chartered Accountants & Statutory Auditors

124 Finchley Road

London

NW3 5JS





 
EON PRODUCTIONS LIMITED
 

CONTENTS



Page
Group Strategic Report
 
1 - 2
Directors' Report
 
3 - 4
Independent Auditors' Report
 
5 - 8
Consolidated Statement of Income and Retained Earnings
 
9
Consolidated Balance Sheet
 
10
Company Balance Sheet
 
11
Consolidated Statement of Cash Flows
 
12
Consolidated Analysis of Net Debt
 
13
Notes to the Financial Statements
 
14 - 27


 
EON PRODUCTIONS LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
The directors present the group's strategic report for the year ended 31 December 2023.
The principal activity of the company and its group is film production and ancillary activities.

Business review
 
The directors consider the results of the group for the year to be in line with expectations with the continued revenue generated by the group's films. This was aided by the continuation of a substantial merchandising contract agreed in 2017. The results for the year were considered more than satisfactory by the directors. 
Looking forward, the directors anticipate the group to display continued growth and profitability whilst concentrating on the development of its next film towards its production.

Going concern
 
At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. The directors therefore consider that the going concern basis of accounting in preparing the financial statements remains appropriate.

Principal risks and uncertainties
 
The ongoing and usual management of the business and process of film production are subject to a number of risks. The key business risks and uncertainties affecting the group are considered to relate to the normal commercial risks involved in the production of a film to budget and the delivery of it at the required time.
The principal financial instruments of the group comprise bank balances, debtors and creditors. The main purpose of these instruments is to raise funds to finance the group's operations.
In respect of bank balances, liquidity risk is managed by actively monitoring balances and ensuring that funds are in place to meet liabilities as and when they fall due.
Debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits.
Creditors' liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.
Currency risk is managed by monitoring movements in exchange rates in an effort to reduce any negative impact of those movements.

Financial key performance indicators
 
Given the nature of the business, the directors are of the opinion that analysis using key performance indicators is not necessary for an understanding of the development, performance or position of the business. They consider the group's key financial performance indicator to be whether a film is completed in line with the production budget.

Page 1

 
EON PRODUCTIONS LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Other key performance indicators
 
The directors consider the group's key non-financial performance indicator to be whether a film achieves a British certification.


This report was approved by the board on 11 October 2024 and signed on its behalf.





B Broccoli CBE
Director

Page 2

 
EON PRODUCTIONS LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

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

Directors

The directors who served during the year were:

B Broccoli CBE 
M Wilson CBE 

Directors' responsibilities statement

The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the group's financial statements and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The profit for the year, after taxation, amounted to £2,369,130 (2022 - £1,610,121).

The company paid interim dividends totalling £600,000 (2022: £800,000) during the year.

Matters covered in the Group Strategic Report

As permitted by Paragraph 1A of Schedule 7 to the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 certain matters which are required to be disclosed in the Directors' Report have been omitted as they are included in the Strategic Report. These matters relate to financial instruments and future developments.

Page 3

 
EON PRODUCTIONS LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the company and the group's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the company and the group's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the group since the year end.

Auditors

The auditorsNyman Libson Paul LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 11 October 2024 and signed on its behalf.
 





B Broccoli CBE
Director

Page 4

 
EON PRODUCTIONS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EON PRODUCTIONS LIMITED
 

Opinion


We have audited the financial statements of Eon Productions Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023, which comprise the Consolidated Statement of Income and Retained Earnings, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows and the related notes, including a summary of significant accounting policiesThe 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:


give a true and fair view of the state of the group's and of the parent company's affairs as at 31 December 2023 and of the group's profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


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 group's or the parent 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.


Page 5

 
EON PRODUCTIONS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EON PRODUCTIONS LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Group Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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:


adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Page 6

 
EON PRODUCTIONS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EON PRODUCTIONS LIMITED (CONTINUED)


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 3, 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 group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so.


Auditors' 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 Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Group financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that 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.
We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, reading minutes of meetings of those charged with governance, enquiries with management and review of accounting estimates. 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. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.


Page 7

 
EON PRODUCTIONS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EON PRODUCTIONS LIMITED (CONTINUED)


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 2006Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members, as a body, for our audit work, for this report, or for the opinions we have formed.





Paul Taiano (Senior Statutory Auditor)
  
for and on behalf of
Nyman Libson Paul LLP
 
Chartered Accountants
Statutory Auditors
  
124 Finchley Road
London
NW3 5JS

15 October 2024
Page 8

 
EON PRODUCTIONS LIMITED
 
 
CONSOLIDATED STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
22,247,699
15,844,403

Cost of sales
  
(14,607,996)
(6,107,969)

Gross profit
  
7,639,703
9,736,434

Administrative expenses
  
(9,056,204)
(8,790,891)

Other operating income
 5 
1,619,146
112,721

Operating profit
 6 
202,645
1,058,264

Amounts written off investments
  
-
(162,814)

Interest receivable and similar income
 10 
24,219
8,089

Interest payable and similar expenses
 11 
(1,879)
(2,660)

Profit before tax
  
224,985
900,879

Tax on profit
 12 
2,144,145
709,242

Profit after tax
  
2,369,130
1,610,121

  

  

Retained earnings at the beginning of the year
  
8,780,332
7,970,211

Profit for the year attributable to the owners of the parent
  
2,369,130
1,610,121

Dividends declared and paid
  
(600,000)
(800,000)

Retained earnings at the end of the year
  
10,549,462
8,780,332

Non-controlling interest at the end of the year
  


The notes on pages 14 to 27 form part of these financial statements.

Page 9

 
EON PRODUCTIONS LIMITED
REGISTERED NUMBER: 00697555

CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2023
2022
2022
Note
£
£
£
£

Fixed assets
  

Tangible fixed assets
  
214,542
229,872

  
214,542
229,872

Current assets
  

Debtors: amounts falling due within one year
 16 
11,811,483
6,148,415

Current asset investments
 17 
247,379
234,879

Cash at bank and in hand
 18 
2,201,023
5,206,342

  
14,259,885
11,589,636

Creditors: amounts falling due within one year
 19 
(3,922,830)
(3,037,041)

Net current assets
  
 
 
10,337,055
 
 
8,552,595

Net assets
  
10,551,597
8,782,467


Capital and reserves
  

Called up share capital 
 20 
2
2

Capital redemption reserve
  
2,133
2,133

Profit and loss account
  
10,549,462
8,780,332

  
10,551,597
8,782,467


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 11 October 2024.



B Broccoli CBE
Director

The notes on pages 14 to 27 form part of these financial statements.

Page 10

 
EON PRODUCTIONS LIMITED
REGISTERED NUMBER: 00697555

COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2023
2022
2022
Note
£
£
£
£

Fixed assets
  

Tangible fixed assets
  
214,542
229,872

Investments
 15 
300
300

  
214,842
230,172

Current assets
  

Debtors: amounts falling due within one year
 16 
9,609,917
5,641,446

Current asset investments
 17 
247,379
234,879

Cash at bank and in hand
 18 
2,076,836
5,061,065

  
11,934,132
10,937,390

Creditors: amounts falling due within one year
 19 
(3,022,558)
(2,432,595)

Net current assets
  
 
 
8,911,574
 
 
8,504,795

Net assets
  
9,126,416
8,734,967


Capital and reserves
  

Called up share capital 
 20 
2
2

Capital redemption reserve
  
2,133
2,133

Profit and loss account brought forward
  
8,732,832
7,922,711

Profit for the year
  
991,449
1,610,121

Other changes in the profit and loss account

  

(600,000)
(800,000)

Profit and loss account carried forward
  
9,124,281
8,732,832

  
9,126,416
8,734,967


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 11 October 2024.



B Broccoli CBE
Director

The notes on pages 14 to 27 form part of these financial statements.

Page 11

 
EON PRODUCTIONS LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
2,369,130
1,610,121

Adjustments for:

Depreciation of tangible assets
59,877
58,342

Impairment of unlisted investments
-
162,814

Interest paid
1,879
2,660

Interest received
(24,219)
(8,089)

Taxation charge
(2,144,145)
(709,242)

(Increase)/decrease in debtors
(4,333,115)
2,792,249

Increase in creditors
1,036,165
425,731

Corporation tax received/(paid)
663,816
(446,612)

Net cash generated from operating activities

(2,370,612)
3,887,974


Cash flows from investing activities

Purchase of tangible fixed assets
(44,547)
(61,493)

Purchase of short-term unlisted investments
(50,000)
(23,250)

Sale of short-term unlisted investments
37,500
26,041

Interest received
24,219
8,089

Net cash from investing activities

(32,828)
(50,613)

Cash flows from financing activities

Dividends paid
(600,000)
(800,000)

Interest paid
(1,879)
-

Net cash used in financing activities
(601,879)
(800,000)

Net (decrease)/increase in cash and cash equivalents
(3,005,319)
3,037,361

Cash and cash equivalents at beginning of year
5,206,342
2,168,981

Cash and cash equivalents at the end of year
2,201,023
5,206,342


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
2,201,023
5,206,342

2,201,023
5,206,342


The notes on pages 14 to 27 form part of these financial statements.

Page 12

 
EON PRODUCTIONS LIMITED
 

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2023




At 1 January 2023
Cash flows
At 31 December 2023
£

£

£

Cash at bank and in hand

5,206,342

(3,005,319)

2,201,023


5,206,342
(3,005,319)
2,201,023

The notes on pages 14 to 27 form part of these financial statements.

Page 13

 
EON PRODUCTIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

Eon Productions Limited is a private company limited by shares incorporated in the United Kingdom and registered in England and Wales. The address of its registered office is 124 Finchley Road, London, NW3 5JS and the address of its principal place of business is Eon House, 138 Piccadilly, London, W1J 7NR.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires group management to exercise judgement in applying the group's accounting policies (see note 3).

The company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Income and Retained Earnings in these financial statements.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the company and its own subsidiaries ("the group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Income and Retained Earnings from the date on which control is obtained. They are deconsolidated from the date control ceases.
In accordance with the transitional exemption available in FRS 102, the group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being 01 January 2015.

Page 14

 
EON PRODUCTIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.3

Foreign currency translation

Functional and presentation currency
The company's functional and presentational currency is GBP.
Transactions and balances
The individual financial statements of each group entity are presented in the currency of the primary economic environment in which the entity operates. These, and the results and financial position reported in the Consolidated Financial Statements, are presented in Sterling (£).
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction. Exchange differences are recognised in the Consolidated Statement of Income and Retained Earnings in the period in which they arise.
Exchange differences on production costs have been offset against production advances on the balance sheet. Other exchange gains and losses are recognised in the Consolidated Statement of Income and Retained Earnings.

 
2.4

Revenue

Turnover is measured as the fair value of the consideration received or receivable, net of value added tax. Turnover includes revenue earned from film production, recharged costs and from the sale of merchandise.
Film production
A production fee is earned during the production of each feature film and is recognised evenly over the entire production period. Once the production of the feature film has been completed, the film is sold for a price equal to the total cost of production less the amount received in respect of UK Film Tax Credits.
Recharged costs
Certain administrative costs are recharged in line with an approved contract on a quarterly basis.
Merchandising income
The company operates as a licensing agent in respect of the group's merchandising deals. The company receives the gross merchandising receipts from its worldwide agents before deducting and paying out the various amounts owed to participants in line with their contracted rates.

 
2.5

Operating leases: the group as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Page 15

 
EON PRODUCTIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.6

Taxation

Tax is recognised in profit or loss. The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company and the group operate and generate income.
The element of tax that is recoverable is based on relievable losses arising in the year as the result of film 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 film development expenditure and exclude items of income or expense that are taxable or deductible in other years, as well as items that are never taxable or deductible.

 
2.7

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives.

Depreciation is provided on the following basis:

Plant and equipment
-
15%
on written down value
Motor vehicles
-
25%
on written down value
Fixtures and fittings
-
10%
and 16.67% on cost
Computer equipment
-
50%
on cost

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.8

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Investments in unlisted group shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Consolidated Statement of Income and Retained Earnings for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

 
2.9

Debtors

Short term debtors are measured at transaction price, less any impairment.

Page 16

 
EON PRODUCTIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.10

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.

 
2.11

Creditors

Short term creditors are measured at the transaction price.

 
2.12

Financial instruments

The group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from third parties, loans to or from related parties and investments in non-puttable ordinary shares.
Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received.
Investments in non-derivative instruments that are equity to the issuer are measured:
•   at fair value with changes recognised in the Consolidated Statement of Income and Retained   Earnings if the shares are publicly traded or their fair value can otherwise be measured       reliably;
•   at cost less impairment for all other investments.

 
2.13

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 17

 
EON PRODUCTIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilites as at the reporting date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates.
The following are the group's key sources of estimation uncertainty:
Tangible assets
Tangible assets are depreciated over their useful lives taking into account residual values where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending upon a number of factors. In re-assessing the assets' lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account.
Investments
At each reporting date the investments are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected investment is estimated and compared with its carrying amount. If the estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in the Consolidated Statement of Income and Retained Earnings.
Due to the unpredictable nature of the recoverability of investments, an impairment loss may subsequently reverse. If so, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, without going in excess of the amount which would have been determined had no impairment loss been recognised in prior years. A reversal of an impairment loss is recognised immediately in the Consolidated Statement of Income and Retained Earnings.
Debtors
The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment, management considers factors including the ageing profile and historical experience of each debtor.
Accruals
The company makes an estimate of accruals at the year end based on invoices received after the year end and work undertaken which has not been invoiced based on quotations or estimates of amounts that may be due for payment.


4.


Turnover

In the opinion of the directors, it would seriously prejudice the company's interests to disclose the turnover by each class and provide a geographical analysis.

Page 18

 
EON PRODUCTIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

5.


Other operating income

2023
2022
£
£

Management fees and sundry income
193,965
112,721

Other operating income
1,425,181
-

1,619,146
112,721



6.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Exchange differences
130,703
(71,960)

Other operating lease rentals
343,640
343,640


7.


Auditors' remuneration

During the year, the group obtained the following services from the company's auditors:


2023
2022
£
£

Fees payable to the company's auditors for the audit of the consolidated and parent company's financial statements
35,000
35,000

Page 19

 
EON PRODUCTIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

8.


Employees

Staff costs, including directors' remuneration, were as follows:


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Wages and salaries
5,968,012
5,962,395
5,968,012
5,962,395

Social security costs
796,867
837,088
796,867
837,088

6,764,879
6,799,483
6,764,879
6,799,483


The average monthly number of employees, including the directors, during the year was as follows:



Group
Group
Company
Company
        2023
        2022
        2023
        2022
            No.
            No.
            No.
            No.









Administration
19
19
16
16


9.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
3,729,803
3,733,179

3,729,803
3,733,179


The highest paid director received remuneration of £2,100,437 (2022 - £2,096,365).

The total remuneration of the key management personnel of Eon Productions Limited and its group were £4,995,071 (2022: £4,944,385).


10.


Interest receivable

2023
2022
£
£


Other interest receivable
24,219
8,089

Page 20

 
EON PRODUCTIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

11.


Interest payable and similar expenses

2023
2022
£
£


Other interest payable
1,879
2,660


12.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
(2,144,145)
(708,183)

Adjustments in respect of previous periods
-
(1,059)


(2,144,145)
(709,242)


Double taxation relief
(41,213)
(86,613)


(2,185,358)
(795,855)

Foreign tax


Foreign tax on income for the year
41,213
86,613

41,213
86,613

Total current tax
(2,144,145)
(709,242)
Page 21

 
EON PRODUCTIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
12.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2022 - lower than) the standard rate of corporation tax in the UK of 23.50% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
272,485
900,879


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.50% (2022 - 19%)
64,034
171,167

Effects of:


Expenses not deductible for tax purposes
18,078
10,932

Depreciation in the year in excess of capital allowances
1,262
(6,075)

Utilisation of tax losses
(334,918)
-

Adjustments to tax charge in respect of prior periods
-
(1,059)

Amounts written off investments
-
30,935

Enhanced losses arising from film tax credits
(2,312,173)
(858,652)

Non-taxable income
(10,886)
-

Difference between the rate of corporation tax and the rate of relief under film tax credit
(147,585)
(271,153)

Unrelieved tax losses carried forward
578,043
214,663

Total tax charge for the year
(2,144,145)
(709,242)


13.


Dividends

2023
2022
£
£


Interim dividends
600,000
800,000

Page 22

 
EON PRODUCTIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

14.


Tangible fixed assets

Group and Company






Motor vehicles
Office equipment
Computer equipment
Total

£
£
£
£



Cost


At 1 January 2023
16,500
1,736,152
237,150
1,989,802


Additions
-
13,948
30,599
44,547


Disposals
-
-
(71,719)
(71,719)



At 31 December 2023

16,500
1,750,100
196,030
1,962,630



Depreciation


At 1 January 2023
16,500
1,513,242
230,188
1,759,930


Charge for the year on owned assets
-
37,615
22,262
59,877


Disposals
-
-
(71,719)
(71,719)



At 31 December 2023

16,500
1,550,857
180,731
1,748,088



Net book value



At 31 December 2023
-
199,243
15,299
214,542



At 31 December 2022
-
222,910
6,962
229,872

Page 23

 
EON PRODUCTIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

15.


Fixed asset investments

Group





Unlisted investments

£



Cost


At 1 January 2023
500,000



At 31 December 2023
500,000



Impairment


At 1 January 2023
500,000



At 31 December 2023

500,000



Net book value



At 31 December 2023
-



At 31 December 2022
-

Page 24

 
EON PRODUCTIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Company





Investments in subsidiary companies
Unlisted investments
Total

£
£
£



Cost


At 1 January 2023
300
500,000
500,300



At 31 December 2023

300
500,000
500,300



Impairment


At 1 January 2023
-
500,000
500,000



At 31 December 2023

-
500,000
500,000



Net book value



At 31 December 2023
300
-
300



At 31 December 2022
300
-
300


Subsidiary undertakings


The following were subsidiary undertakings of the company:

Name

Registered office

Principal activity

Class of shares

Holding

B24 Limited
England and Wales
Film production
Ordinary
100
B25 Limited
England and Wales
Film production
Ordinary
100
Frozen Film Company Limited
England and Wales
Dormant
Ordinary
100

The aggregate of the share capital and reserves as at 31 December 2023 and the profit or loss for the year ended on that date for the subsidiary undertakings were as follows:

Name
Aggregate of share capital and reserves
Profit/(Loss)
£
£

B24 Limited
100
-

B25 Limited
1,425,281
1,425,181

Frozen Film Company Limited
100
-


16.


Debtors

Page 25

 
EON PRODUCTIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Trade debtors
329,923
196,685
329,923
196,685

Amounts owed by group undertakings
-
-
1,005,391
628,396

Other debtors
7,427,799
4,008,140
7,425,044
4,002,580

Prepayments and accrued income
1,594,003
813,785
849,559
813,785

Tax recoverable
2,459,758
1,129,805
-
-

11,811,483
6,148,415
9,609,917
5,641,446



17.


Current asset investments

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Unlisted investments
247,379
234,879
247,379
234,879



18.


Cash and cash equivalents

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Cash at bank and in hand
2,201,023
5,206,342
2,076,836
5,061,065



19.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Trade creditors
1,445,448
1,036,746
1,445,448
1,036,266

Corporation tax
67,402
217,778
67,402
217,778

Other taxation and social security
363,450
384,564
363,450
384,564

Other creditors
1,988,530
1,333,252
1,088,258
729,286

Accruals
58,000
64,701
58,000
64,701

3,922,830
3,037,041
3,022,558
2,432,595


Page 26

 
EON PRODUCTIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

20.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



201 (2022 - 201) Ordinary shares of £0.01 each
2
2



21.


Commitments under operating leases

At 31 December 2023 the group and the company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Not later than 1 year
200,457
343,640
200,457
343,640

Later than 1 year and not later than 5 years
-
200,457
-
200,457

200,457
544,097
200,457
544,097


22.


Related party transactions

Turnover includes £8,218,915 (2022: £8,125,544) arising from transactions with a company whose directors are closely connected with the directors of Eon Productions Limited. The amount due from that company at the balance sheet date was £7,223,381 (2022: £3,795,078).
The company has also received film production advances from the same company whose directors are closely connected with the directors of Eon Productions Limited. During the year Eon Productions Limited sold its latest film to this company for £9,633,6744 (2022: £698,408) and at the balance sheet date the company had net production advances of £1,005,391 (2022: £628,396) remaining. 
Eon Productions Limited paid rent and service charge totalling £444,148 (2022: £430,877) to a company whose directors are closely connected with the directors of Eon Productions Limited. Eon Productions Limited received management and other fees totalling £34,364 (2022: £34,364) from the company.
Eon Productions Limited has a cross guarantee with the bankers of its subsidiary companies, B24 Limited and B25 Limited.
The group is exempt from disclosing related party transactions which occur between other companies that are wholly owned within the group.


23.


Controlling party

The company is under the control of Barbara Broccoli CBE and Michael Wilson CBE by virtue of their shareholdings.

 
Page 27