Company Registration No. 07891066 (England and Wales)
GFM FILM SALES LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 27 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
King & King
Chartered Accountants
5th Floor
Watson House
54-60 Baker Street
London
W1U 7BU
GFM FILM SALES LIMITED
CONTENTS
Page
Accountants' report
2
Statement of financial position
3
Statement of changes in equity
4
Notes to the financial statements
5 - 9
GFM FILM SALES LIMITED
COMPANY INFORMATION
- 1 -
Directors
Mr G S Collins
Mr F J Hedman
Mr M P Ryan
Company number
07891066
Registered office
Suite 7 The Sanctuary
23 Oak Hill Grove
Surbiton
England
KT6 6DU
Accountants
King & King
Chartered Accountants & Statutory Auditors
5th Floor
Watson House
54-60 Baker Street
London
W1U 7BU
GFM FILM SALES LIMITED
ACCOUNTANTS' REPORT TO THE BOARD OF DIRECTORS ON THE PREPARATION OF THE UNAUDITED STATUTORY FINANCIAL STATEMENTS OF GFM FILM SALES LIMITED FOR THE YEAR ENDED 27 DECEMBER 2023
- 2 -
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of GFM Film Sales Limited for the year ended 27 December 2023 which comprise, the statement of financial position, the statement of changes in equity and the related notes from the company’s accounting records and from information and explanations you have given us.
As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at https://www.icaew.com/regulation.
This report is made solely to the board of directors of GFM Film Sales Limited, as a body, in accordance with the terms of our engagement letter dated 26 October 2018. Our work has been undertaken solely to prepare for your approval the financial statements of GFM Film Sales Limited and state those matters that we have agreed to state to the board of directors of GFM Film Sales Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than GFM Film Sales Limited and its board of directors as a body, for our work or for this report.
It is your duty to ensure that GFM Film Sales Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and loss of GFM Film Sales Limited. You consider that GFM Film Sales Limited is exempt from the statutory audit requirement for the year.
We have not been instructed to carry out an audit or a review of the financial statements of GFM Film Sales Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.
King & King
Chartered Accountants
5th Floor
Watson House
54-60 Baker Street
London
W1U 7BU
26 November 2024
GFM FILM SALES LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
27 DECEMBER 2023
27 December 2023
- 3 -
2023
2022
Notes
£
£
£
£
Current assets
Trade and other receivables
4
211,217
419,581
Cash and cash equivalents
11
1,916
211,228
421,497
Current liabilities
5
(711,867)
(816,865)
Net current liabilities
(500,639)
(395,368)
Non-current liabilities
6
(31,810)
(29,992)
Net liabilities
(532,449)
(425,360)
Equity
Called up share capital
1
1
Retained earnings
(532,450)
(425,361)
Total equity
(532,449)
(425,360)
The directors of the company have elected not to include a copy of the income statement within the financial statements.true
For the financial year ended 27 December 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The member has not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 26 November 2024 and are signed on its behalf by:
Mr G S Collins
Director
Company Registration No. 07891066
GFM FILM SALES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 27 DECEMBER 2023
- 4 -
Share capital
Retained earnings
Total
£
£
£
Balance at 29 December 2021
1
(412,225)
(412,224)
Period ended 27 December 2022:
Loss and total comprehensive income for the period
-
(13,136)
(13,136)
Balance at 27 December 2022
1
(425,361)
(425,360)
Year ended 27 December 2023:
Loss and total comprehensive income for the year
-
(107,089)
(107,089)
Balance at 27 December 2023
1
(532,450)
(532,449)
GFM FILM SALES LIMITED
STATEMENT OF CHANGES IN EQUITY (CONTINUED)
FOR THE YEAR ENDED 27 DECEMBER 2023
- 5 -
1
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
2
Accounting policies
Company information
GFM Film Sales Limited is a private company limited by shares incorporated in England and Wales. The registered office is Suite 7 The Sanctuary, 23 Oak Hill Grove, Surbiton, England, KT6 6DU.
2.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
2.2
Going concern
The financial statements have been prepare don a going concern basis subject to the following material uncertainties.
HMRC have assessed on the company a Vat charge of £88,075 being a portion of he Vat liability due from GFM Films LLP at the point of its liquidation. This assessment was not known or expected at the time when the company was purchased by Nucit Ltd from the Receiver of GFM Films LLP. The company directors have appealed against this assessment but at the time of signing the accounts for the year under review this appeal has not been settled.
The company licenced distributions rights to the proposed feature film entitled 'Severance' to various distributors internationally. Deposit payments amounting to $284,639 were received by the company before the acquisition by Nucit Ltd and remain outstanding. As the company has not been able to raise the full production financing for the film some distributors have demanded repayment of these deposits.
Currently the GFM Films LLP liquidator controls the rights to the film which prevents the company continuing to set up the film. The company has asked the liquidator to grant it an option against agreed payments so that the company can proceed with the film.
In the event that the company is able to agree an option then the directors are of the opinion that the company has a reasonable prospect to reimburse the deposits but if it cannot, it is unlikely to be able to make these payments and continue as a going concern.
GFM FILM SALES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 27 DECEMBER 2023
2
Accounting policies
(Continued)
- 6 -
2.3
Revenue
Revenue is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT where applicable.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably.
2.4
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
2.5
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including trade and other payables, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
2.6
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
GFM FILM SALES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 27 DECEMBER 2023
2
Accounting policies
(Continued)
- 7 -
2.7
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
3
3
4
Trade and other receivables
2023
2022
Amounts falling due within one year:
£
£
Trade receivables
100,825
77,082
Amounts owed by group undertakings and undertakings in which the company has a participating interest
56,089
120,487
Other receivables
54,303
222,012
211,217
419,581
5
Current liabilities
2023
2022
£
£
Bank loans and overdrafts
4,870
10,030
Trade payables
3,359
Amounts owed to group undertakings and undertakings in which the company has a participating interest
285,254
253,235
Corporation tax
1,487
13,220
Other taxation and social security
88,075
Other payables
328,822
540,380
711,867
816,865
6
Non-current liabilities
2023
2022
£
£
Bank loans and overdrafts
31,810
29,992
GFM FILM SALES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 27 DECEMBER 2023
- 8 -
7
Financial commitments, guarantees and contingent liabilities
HMRC have assessed on the company a Vat charge of £88,075 being a portion of he Vat liability due from GFM Films LLP at the point of its liquidation. This assessment was not known or expected at the time when the company was purchased by Nucit Ltd from the Receiver of GFM Films LLP. The company directors have appealed against this assessment but at the time of signing the accounts for the year under review this appeal has not been settled.
The company licenced distributions rights to the proposed feature film entitled 'Severance' to various distributors internationally. Deposit payments amounting to $284,639 were received by the company before the acquisition by Nucit Ltd and remain outstanding. As the company has not been able to raise the full production financing for the film some distributors have demanded repayment of these deposits.
Currently the GFM Films LLP liquidator controls the rights to the film which prevents the company continuing to set up the film. The company has asked the liquidator to grant it an option against agreed payments so that the company can proceed with the film.
In the event that the company is able to agree an option then the directors are of the opinion that the company has a reasonable prospect to reimburse the deposits but if it cannot, it is unlikely to be able to make these payments and continue as a going concern.
These liabilities outcome is contingent on the company having the option granted.
8
Directors' transactions
Dividends totalling £0 (2022 - £0) were paid in the year in respect of shares held by the company's directors.
Description
% Rate
Opening balance
Closing balance
£
£
-
36,748
36,748
36,748
36,748
9
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
2023
2022
Amounts due to related parties
£
£
GFM Animation Limited
285,254
253,253
GFM FILM SALES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 27 DECEMBER 2023
9
Related party transactions
(Continued)
- 9 -
The following amounts were outstanding at the reporting end date:
2023
2022
Amounts due from related parties
£
£
Nucit Limited
51,890
74,495
Evolution Pictures Limited
744
45,641
GFM Productions LLP
3,455
350
10
Controlling parties
The company is 100% owned by Nucit Limited, a company registered in England. The parent company's registered office is 5th Floor Watson House, 54-60 Baker Street, London W1U 7BU.