Blue Ant TV (UK) Limited
Annual Report and Financial Statements
For the year ended 31 August 2023
Company registration number 09641652 (England and Wales)
Blue Ant TV (UK) Limited
Company Information
Director
C M Mckee
Secretary
A Zimmer
Company number
09641652
Registered office
McCarthy Tetrault
1 Angel Court
18th Floor
London
United Kingdom
EC2R 7HJ
Auditor
Moore Kingston Smith LLP
Charlotte Building
17 Gresse Street
London
W1T 1QL
Blue Ant TV (UK) Limited
Contents
Page
Strategic report
1
Director's report
2
Director's responsibilities statement
3
Independent auditor's report
4 - 8
Statement of comprehensive income
9
Statement of financial position
10
Statement of changes in equity
11
Notes to the financial statements
12 - 25
Blue Ant TV (UK) Limited
Strategic Report
For the year ended 31 August 2023
Page 1
The director presents the strategic report for the year ended 31 August 2023.
Fair review of the business
C M Mckee
Director
8 November 2024
Blue Ant TV (UK) Limited
Director's Report
For the year ended 31 August 2023
Page 2
The director presents her annual report and financial statements for the year ended 31 August 2023.
Principal activities
The principal activity of the company continued to be that of the distribution of natural history video content across a range of traditional and digital media platforms. The director does not expect the nature of these activities to change significantly in the next year.
Results and dividends
The results for the year are set out on page 9.
No dividends were paid. The director does not recommend payment of a final dividend.
Director
The director who held office during the year and up to the date of signature of the financial statements was as follows:
C M Mckee
Supplier payment policy
The company's current policy concerning the payment of trade creditors is to follow the CBI's Prompt Payers Code (copies are available from the CBI, Centre Point, 103 New Oxford Street, London WC1A 1DU).
The company's current policy concerning the payment of trade creditors is to:
settle the terms of payment with suppliers when agreeing the terms of each transaction;
ensure that suppliers are made aware of the terms of payment by inclusion of the relevant terms in contracts; and
pay in accordance with the company's contractual and other legal obligations.
Trade creditors of the company at the year end were equivalent to 20 day's purchases, based on the average daily amount invoiced by suppliers during the year.
Auditor
Moore Kingston Smith LLP were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
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
C M Mckee
Director
8 November 2024
Blue Ant TV (UK) Limited
Director's Responsibilities Statement
For the year ended 31 August 2023
Page 3
The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless she is 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 director is required to:
select suitable accounting policies 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; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The director is 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. She is 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.
Blue Ant TV (UK) Limited
Independent Auditor's Report
To the Members of Blue Ant TV (UK) Limited
Page 4
Opinion
We have audited the financial statements of Blue Ant TV (UK) Limited (the 'company') for the year ended 31 August 2023 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 FRS 101 'Reduced Disclosure Framework' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 August 2023 and of its 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.
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 director's 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 director with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is 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.
Blue Ant TV (UK) Limited
Independent Auditor's Report (Continued)
To the Members of Blue Ant TV (UK) 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:
the information given in the Strategic Report and the Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Director's 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Director's 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, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of director
As explained more fully in the Director's Responsibilities Statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.
Blue Ant TV (UK) Limited
Independent Auditor's Report (Continued)
To the Members of Blue Ant TV (UK) 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:
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the company’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
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.
Blue Ant TV (UK) Limited
Independent Auditor's Report (Continued)
To the Members of Blue Ant TV (UK) 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:
We obtained an understanding of the legal and regulatory requirements applicable to the company and considered that the most significant are the Companies Act 2006, UK financial reporting standards as issued by the Financial Reporting Council, and UK taxation legislation.
We obtained an understanding of how the company complies with these requirements by discussions with management and those charged with governance.
We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.
We inquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations.
Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required.
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.
Blue Ant TV (UK) Limited
Independent Auditor's Report (Continued)
To the Members of Blue Ant TV (UK) Limited
Page 8
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
8 November 2024
Chartered Accountants
Statutory Auditor
Charlotte Building
17 Gresse Street
London
W1T 1QL
Blue Ant TV (UK) Limited
Statement of Comprehensive Income
For the year ended 31 August 2023
Page 9
2023
2022
Notes
$
$
Turnover
3
13,145,927
12,188,232
Cost of sales
(5,415,473)
(4,571,772)
Gross profit
7,730,454
7,616,460
Administrative expenses
(2,944,127)
(2,232,280)
Operating profit
4,786,327
5,384,180
Interest payable and similar expenses
6
(50,133)
(596,486)
Profit before taxation
4,736,194
4,787,694
Tax on profit
7
(1,223,487)
3,802,182
Profit and total comprehensive income for the financial year
3,512,707
8,589,876
Blue Ant TV (UK) Limited
Statement Of Financial Position
As at 31 August 2023
Page 10
2023
2022
Notes
$
$
$
$
Fixed assets
Intangible assets
8
9,004,845
7,324,560
Tangible fixed assets
9
63,172
32,290
9,068,017
7,356,850
Current assets
Debtors
10
9,039,664
10,131,129
Cash at bank and in hand
2,261,131
742,054
11,300,795
10,873,183
Creditors: amounts falling due within one year
11
(3,194,980)
(3,482,834)
Net current assets
8,105,815
7,390,349
Total assets less current liabilities
17,173,832
14,747,199
Creditors: amounts falling due after more than one year
Loans and overdrafts
12
1,086,074
-
(1,086,074)
Net assets
17,173,832
13,661,125
Capital and reserves
Called up share capital
17
29,200,000
29,200,000
Profit and loss reserves
(12,026,168)
(15,538,875)
Total equity
17,173,832
13,661,125
The financial statements were approved and signed by the director and authorised for issue on 8 November 2024
C M Mckee
Director
Company Registration No. 09641652
Blue Ant TV (UK) Limited
Statement of Changes in Equity
For the year ended 31 August 2023
Page 11
Share capital
Profit and loss reserves
Total
$
$
$
Balance at 1 September 2021
29,200,000
(24,128,751)
5,071,249
Year ended 31 August 2022:
Profit and total comprehensive income for the year
-
8,589,876
8,589,876
Balance at 31 August 2022
29,200,000
(15,538,875)
13,661,125
Year ended 31 August 2023:
Profit and total comprehensive income for the year
-
3,512,707
3,512,707
Balance at 31 August 2023
29,200,000
(12,026,168)
17,173,832
The notes on pages 12 to 25 form part of these financial statements.
Blue Ant TV (UK) Limited
Notes to the Financial Statements
For the year ended 31 August 2023
Page 12
1
Accounting policies
Company information
Blue Ant TV (UK) Limited is a private company limited by shares incorporated in England and Wales. The registered office is McCarthy Tetrault, 1 Angel Court, 18th Floor, London, United Kingdom, EC2R 7HJ. The company's principal activities and nature of its operations are disclosed in the director's report.
1.1
Accounting convention
The financial statements have been prepared in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework (FRS 101) and in accordance with applicable accounting standards.
The financial statements are prepared in United States dollar (US$), which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest $.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
As permitted by FRS 101, the company has taken advantage of the following disclosure exemptions from the requirements of IFRS:
presentation of a statement of cash flows and related notes;
disclosure of key management personnel compensation;
disclosure of the categories of financial instrument and the nature and extent of risks arising on these financial instruments;
related party disclosures for transactions with the parent or wholly owned members of the group.
Where required, equivalent disclosures are given in the group accounts of Blue Ant Media, Inc. The group accounts of Blue Ant Media, Inc. are available to the public and can be obtained as set out in note 20.
1.2
Going concern
The director has at the time of approving the financial statements, a reasonable expectation that the truecompany has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.
Blue Ant TV (UK) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 August 2023
1
Accounting policies
(Continued)
Page 13
1.3
Turnover
Revenue is recognised at an amount that reflects the expected consideration receivable in exchange for transferring goods or services to a customer, applying the following five steps:
1. Identify the contract with the customer
2. Identify the performance obligation in the contract
3. Determine the transaction price
4. Allocate the transaction price to the performance obligations in the contract; and
5. Recognise revenue when (or as) the entity satisfies the performance obligation.
The Company applies the following specific revenue recognition policies:
Subscriber revenue is recognised monthly based on the distribution units, as delivery is complete and payments are contractually enforceable.
Distribution revenue represents income on licensing fees for the right to exhibit television programs in specified geographic markets and within specified time periods. Revenue recognition occurs on issuance of the licence, when the customer has access to and can benefit from the content, delivery has been met, and collection is reasonably assured.
Advertising revenue, net of agency commissions if applicable, is recognised upon fulfilment of contractual campaigns based on the number of advertising units utilised.
Blue Ant TV (UK) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 August 2023
1
Accounting policies
(Continued)
Page 14
1.4
Intangible assets other than goodwill
Acquired program rights
Acquired program rights represent licence rights acquired for a finite time period to broadcast television programs and feature films on the Company’s television channels.
The Company regards both acquired program rights and owned content as falling under the definition of IAS 38 Intangible Assets, which defines an intangible asset as an identifiable non-monetary asset without physical substance that is controlled by an entity and from which future economic benefits are expected to flow. IAS 38 stipulates that an intangible asset shall be recognised if the probability is that future economic benefit will flow to the entity and the cost can be measured reliably.
The Company records an acquired program asset when the licence period has commenced and all of the following conditions have been met: (i) the cost of the program is known or reasonably determinable, (ii) the program material has been accepted by the Company in accordance with the licence agreement and (iii) the material is available to the Company for telecast. The acquired program right is measured initially at cost and any advance payments prior to the program being available and licensed to air are recorded as deposits within program rights.
Acquired programming rights have a contractual licence period or finite life as defined under IAS 38 and accordingly the intangible asset must be allocated on a systematic basis over its useful life that shall not exceed the period of its contractual or legal right.
Acquired program rights airing on premium subscription channels are amortized on a straight-line basis over the licence term.
Owned content
Owned content represents programs that are produced in-house or through a production services arrangement, where the rights of ownership are held outright by the Company. It includes costs of productions in development, productions in process and completed productions.
In the case of owned content rights, an asset is recorded once the production has been completed and the following conditions have been met: (i) the cost to produce the program is known or reasonably determinable and (ii) the material is available to the Company for distribution or telecast. Prior to the completion of the production, the costs incurred are carried as productions-in-progress. Owned content programs are measured at the cost to produce, net of relevant tax credits or similar subsidy funding obtained by the Company.
For owned content rights, the premise underlying control of production and retention of ownership rights is that the content will be utilized on multiple platforms over an extended period of time with the intention of creating a growing library of content available for use by the Company into the future and for sale in distribution into other international markets. Accordingly, the Company amortizes owned content rights on a straight-line basis over four years.
Owned content - Intercompany
Owned content - Intercompany represents programs that are produced in-house or through a production services arrangement, where the rights of ownership are held outright by the parent Company, Blue Ant Media Inc. The global rights to monetize the content are sold to the Company in an intercompany transaction to allow the Company to use the content owned by the parent Company.
Blue Ant TV (UK) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 August 2023
1
Accounting policies
(Continued)
Page 15
In the case of intercompany owned content rights, an asset is recorded once the production has been completed and the following conditions have been met: (i) the cost to produce the program is known or reasonably determinable, (ii) the material is available to the Company for distribution or telecast and (iii) the content has aired on the available broadcast channels globally.
For intercompany owned content rights, the Company amortizes the content straight-line over a 5 year period, which reflects the useful life of the asset which is monetized via channel distribution, royalties from content sales, and finally being used on streaming services including FAST (Free Ad-Supported Television), PAST (Paid Ad-Supported Television) and AVOD (Advertising Video-On-Demand) services. The Company amortizes content from the Smithsonian output deal over a 15 year period, with 50% amortized on delivery, followed by an 11 month amortization break, with a 14 year 20% declining balance thereafter.
Change in useful life and content abandonment
The content library is periodically reviewed and assessed by management to ensure each asset has a continuing value to the Company. Programs that are considered to be no longer suitable for distribution or broadcast are considered 'abandoned' with the related carrying value fully written off in the period.
1.5
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:
Computers
5 years 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 recognised in the profit and loss account.
1.6
Impairment of tangible and intangible assets
At the end of each reporting period, the Company reviews the carrying amounts of its tangible and intangible 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. 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. Where a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to individual cash-generating units, or otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified.
Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment annually, and whenever there is an indication that the asset may be impaired.
Blue Ant TV (UK) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 August 2023
1
Accounting policies
(Continued)
Page 16
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.
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
Cash at bank and in hand
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
Financial assets
Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.
At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.
Financial assets at fair value through profit or loss
When any of the above-mentioned conditions for classification of financial assets is not met, a financial asset is classified as measured at fair value through profit or loss. Financial assets measured at fair value through profit or loss are recognised initially at fair value and any transaction costs are recognised in profit or loss when incurred. A gain or loss on a financial asset measured at fair value through profit or loss is recognised in profit or loss, and is included within finance income or finance costs in the statement of income for the reporting period in which it arises.
Financial assets held at amortised cost
Financial instruments are classified as financial assets measured at amortised cost where the objective is to hold these assets in order to collect contractual cash flows, and the contractual cash flows are solely payments of principal and interest. They arise principally from the provision of goods and services to customers (eg trade receivables). They are initially recognised at fair value plus transaction costs directly attributable to their acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment where necessary.
Blue Ant TV (UK) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 August 2023
1
Accounting policies
(Continued)
Page 17
Financial assets at fair value through other comprehensive income
Debt instruments are classified as financial assets measured at fair value through other comprehensive income where the financial assets are held within the company’s business model whose objective is achieved by both collecting contractual cash flows and selling financial assets, and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
A debt instrument measured at fair value through other comprehensive income is recognised initially at fair value plus transaction costs directly attributable to the asset. After initial recognition, each asset is measured at fair value, with changes in fair value included in other comprehensive income. Accumulated gains or losses recognised through other comprehensive income are directly transferred to profit or loss when the debt instrument is derecognised.
The company has made an irrevocable election to recognize changes in fair value of investments in equity instruments through other comprehensive income, not through profit or loss. A gain or loss from fair value changes will be shown in other comprehensive income and will not be reclassified subsequently to profit or loss. Equity instruments measured at fair value through other comprehensive income are recognised initially at fair value plus transaction cost directly attributable to the asset. After initial recognition, each asset is measured at fair value, with changes in fair value included in other comprehensive income. Accumulated gains or losses recognised through other comprehensive income are directly transferred to retained earnings when the equity instrument is derecognized or its fair value substantially decreased. Dividends are recognised as finance income in profit or loss.
Impairment of financial assets
Financial assets carried at amortised cost and FVOCI are assessed for indicators of impairment at each reporting end date.
The expected credit losses associated with these assets are estimated on a forward-looking basis. A broad range of information is considered when assessing credit risk and measuring expected credit losses, including past events, current conditions, and reasonable and supportable forecasts that affect the expected collectability of the future cash flows of the instrument.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.
1.9
Financial liabilities
The company recognises financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.
Other financial liabilities
Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.
Blue Ant TV (UK) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 August 2023
1
Accounting policies
(Continued)
Page 18
Derecognition of financial liabilities
Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
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 is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.12
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 inventories 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.
Blue Ant TV (UK) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 August 2023
1
Accounting policies
(Continued)
Page 19
1.14
Foreign exchange
Transactions denominated in foreign currencies are translated using the rate of exchange in effect on the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated into US$ at the rates of exchange ruling at the statement of financial position date. Any exchange gains and losses arising are taken to the statement of comprehensive profit (loss).
2
Critical accounting estimates and judgements
In the application of the company’s accounting policies, the director is 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, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.
Revenue recognition
The timing of revenue recognition requires judgement, as does the amount to be recognised. This may involve estimating the value of consideration before it is received. In making these judgements, the company consider the detailed criteria for the recognition of revenue set out in IFRS 15 "Revenue from contracts with customers," the accounting criteria set out in Note 1.3 and whether the company has satisfied the performance obligations in contracts.
Impairment of tangible assets and intangible assets
Determining whether tangible and intangible assets are impaired requires an estimation of their fair value and their value in use. The value in use and fair value calculations require management to estimate the future cash flows expected to arise from the asset and a suitable discount rate in order to calculate present value. See Note 10 for carrying amounts of acquired intangible assets.
3
Turnover
2023
2022
$
$
Turnover analysed by class of business
Distribution revenue
1,222,359
1,484,827
Subscriber revenue
11,287,408
10,437,819
Advertising revenue
636,160
265,586
13,145,927
12,188,232
Blue Ant TV (UK) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 August 2023
Page 20
4
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
3
3
Their aggregate remuneration comprised:
2023
2022
$
$
Wages and salaries
678,547
612,361
Social security costs
29,896
27,907
Pension costs
6,037
6,644
714,480
646,912
5
Director's remuneration
2023
2022
$
$
Remuneration for qualifying services
179,185
131,736
Company pension contributions to defined contribution schemes
3,902
3,952
183,087
135,688
6
Interest payable and similar expenses
2023
2022
$
$
Interest on financial liabilities measured at amortised cost:
Interest on other loans
50,133
588,205
Interest on lease liabilities
-
8,281
7
Taxation
2023
2022
$
$
Current tax
UK corporation tax on profits for the current period
35,312
44,662
Blue Ant TV (UK) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 August 2023
7
Taxation
2023
2022
$
$
(Continued)
Page 21
Deferred tax
Origination and reversal of temporary differences
1,188,175
(3,846,844)
Total tax charge/(credit)
1,223,487
(3,802,182)
The charge for the year can be reconciled to the profit per the profit and loss account as follows:
2023
2022
$
$
Profit before taxation
4,736,194
4,787,694
Expected tax charge based on a corporation tax rate of 21.52% (2022: 19.00%)
1,019,229
909,662
Effect of expenses not deductible in determining taxable profit
2,053
Utilisation of tax losses not previously recognised
(1,006,494)
(909,662)
Depreciation on assets not qualifying for tax allowances
(7,151)
-
Deferred tax adjustments in respect of prior years
1,188,175
(3,846,844)
Withholding tax
27,675
44,662
Taxation charge/(credit) for the year
1,223,487
(3,802,182)
Blue Ant TV (UK) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 August 2023
Page 22
8
Intangible fixed assets
Intangible Assets
$
Cost
At 31 August 2022 (as restated)
16,411,010
Additions - purchased
4,084,165
Disposals
(1,225,791)
At 31 August 2023
19,269,384
Amortisation and impairment
At 31 August 2022 (as restated)
9,086,450
Charge for the year
2,403,879
Eliminated on disposals
(1,225,790)
At 31 August 2023
10,264,539
Carrying amount
At 31 August 2023
9,004,845
At 31 August 2022
7,324,560
9
Tangible fixed assets
Computers
$
Cost
At 1 September 2022
38,998
Additions
39,172
At 31 August 2023
78,170
Accumulated depreciation and impairment
At 1 September 2022
6,708
Charge for the year
8,290
At 31 August 2023
14,998
Carrying amount
At 31 August 2023
63,172
At 31 August 2022
32,290
Blue Ant TV (UK) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 August 2023
Page 23
10
Debtors
Due within one year
Due after one year
2023
2022
2023
2022
$
$
$
$
Trade debtors
3,504,870
1,789,655
-
-
Amount owed by parent undertaking
400,492
Amounts owed by fellow group undertakings
2,208,437
3,581,541
Other debtors
-
(42,075)
36,477
58,077
Prepayments and accrued income
631,211
496,595
-
-
6,344,518
6,226,208
36,477
58,077
Deferred tax asset
-
-
2,658,669
3,846,844
6,344,518
6,226,208
2,695,146
3,904,921
11
Creditors
Due within one year
Due after one year
2023
2022
2023
2022
Notes
$
$
$
$
Loans and overdrafts
12
710,005
2,237,864
1,086,074
Creditors
13
1,977,307
810,357
Taxation and social security
414,312
434,613
-
-
Deferred income
15
93,356
3,194,980
3,482,834
-
1,086,074
12
Loans and overdrafts
Due within one year
Due after one year
2023
2022
2023
2022
$
$
$
$
Borrowings held at amortised cost:
Bank loans
710,005
2,237,864
-
1,086,074
Blue Ant TV (UK) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 August 2023
Page 24
13
Creditors
2023
2022
$
$
Trade creditors
350,707
275,923
Amount owed to parent undertaking
16,444
59,519
Amounts owed to fellow group undertakings
1,229,923
328,071
Accruals and deferred income
350,348
146,844
Other creditors
29,885
-
1,977,307
810,357
14
Deferred taxation
2023
2022
$
$
Deferred tax assets
(2,658,669)
(3,846,844)
(2,658,669)
(3,846,844)
Deferred tax assets are expected to be recovered after more than one year
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon during the current and prior reporting period.
Tax losses
$
Balance at 1 September 2021
Deferred tax movements in prior year
Charge/(credit) to profit or loss
(3,846,844)
Asset at 1 September 2022
(3,846,844)
Deferred tax movements in current year
Charge/(credit) to profit or loss
1,188,175
Asset at 31 August 2023
(2,658,669)
15
Deferred revenue
2023
2022
$
$
Arising from billing in advance
93,356
-
Blue Ant TV (UK) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 August 2023
Page 25
16
Retirement benefit schemes
2023
2022
Defined contribution schemes
$
$
Charge to profit or loss in respect of defined contribution schemes
6,037
6,644
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
17
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
$
$
Issued and fully paid
Ordinary shares of $1 each
29,200,000
29,200,000
29,200,000
29,200,000
18
Capital management
The Company considers its capital structure to consist of cash, debt, capital stock and deficit, and makes adjustments to the structure based on the funds available to the Company in order to support the acquisition and development of content rights, licenses and programming. The director does not establish quantitative return on capital criteria for management, but rather relies on the expertise of the Company's management to sustain future development of the business.
Management reviews its capital management approach on an ongoing basis and believes that this approach, given the relative size of the Company, is reasonable. There were no changes (2022 - no changes) in the Company's approach to capital management in the year ended August 31, 2023 relative to the prior year.
19
Related party transactions
As permitted by FRS 101, the company has taken advantage to not disclose related party disclosures for transactions with the parent or wholly owned members of the group.
20
Controlling party
The company's parent undertaking is Blue Ant Media Inc., a company incorporated in Canada. Blue Ant Media Inc. is the smallest and largest group to consolidate these financial statements as at 31 August 2023.
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