Sky's Edge (London) Limited
Unaudited Financial Statements
For the period ended 31 March 2024
Pages for Filing with Registrar
Company Registration No. 14878386 (England and Wales)
Sky's Edge (London) Limited
Contents
Page
Statement of comprehensive income
Balance sheet
1 - 2
Statement of changes in equity
3
Notes to the financial statements
4 - 8
Sky's Edge (London) Limited
Balance Sheet
As at 31 March 2024
Page 1
2024
Notes
£
£
Fixed assets
Intangible assets
3
1,197,457
Current assets
Debtors
4
1,166,098
Cash at bank and in hand
274,003
1,440,101
Creditors: amounts falling due within one year
5
(3,342,325)
Net current liabilities
(1,902,224)
Total assets less current liabilities
(704,767)
Provisions for liabilities
Provisions
(70,647)
(70,647)
Net liabilities
(775,414)
Capital and reserves
Called up share capital
6
100
Profit and loss reserves
(775,514)
Total equity
(775,414)

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

For the financial period ended 31 March 2024 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 members have not required the company to obtain an audit of its financial statements for the period 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.

Sky's Edge (London) Limited
Balance Sheet (Continued)
As at 31 March 2024
Page 2
The financial statements were approved by the board of directors and authorised for issue on 9 September 2024 and are signed on its behalf by:
R A Lord
Director
Company Registration No. 14878386
Sky's Edge (London) Limited
Statement of Changes in Equity
For the period ended 31 March 2024
Page 3
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 18 May 2023
-
0
-
0
-
Period ended 31 March 2024:
Loss and total comprehensive income for the period
-
(775,514)
(775,514)
Issue of share capital
6
100
-
100
Balance at 31 March 2024
100
(775,514)
(775,414)
Sky's Edge (London) Limited
Notes to the Financial Statements
For the period ended 31 March 2024
Page 4
1
Accounting policies
Company information

Sky’s Edge (London) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Charlotte Building, 17 Gresse Street, London, W1T 1QL.

1.1
Reporting period

The company was incorporated on 18 May 2023 and has a 31 March 2024 year end to align with other productions owned by the parent.

1.2
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.3
Going concern

The company's production of Standing at the Sky's Edge at the Gillian Lynne Theatre in the West End of London closetrued on 3 August 2024 at the end of its run. Following the closure of the production, the company will cease to actively trade and the directors intend to liquidate the company and therefore do not consider it to be appropriate to adopt the going concern basis of accounting in preparing the financial statements. In common with other theatrical productions the company is financed by loans from investors which are subordinate to all other creditors and are repayable only to the extent of the assets available to the company. Timing of repayments on these loans is at the reasonable discretion of the company. Accordingly, the financial statements have been prepared on a basis other than going concern. No adjustments are required to the financial statements as a result of them being prepared on a basis other than that of a going concern. The theatrical investment loans are shown at their amortised historic cost.

1.4
Turnover

Turnover is recognised at the fair value of theatre tickets and merchandising sales provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from theatrical productions is recognised by reference to the date the performance took place.

1.5
Intangible fixed assets other than goodwill

The company capitalises pre-production development costs incurred subsequent to the green-lighting of a production to the extent that the directors have a reasonable belief that the the production will recoup. Costs capitalised exclude marketing and promotional expenditure in relation to the production. All relevant development is capitalised within intangible assets as pre-production costs and the company does not distinguish between the cost of physical assets, such as the set, and the development of broader aspects of the show, as the distinction is not useful and the expenditure is considered as a whole.

Sky's Edge (London) Limited
Notes to the Financial Statements (Continued)
For the period ended 31 March 2024
1
Accounting policies
(Continued)
Page 5

Amortisation 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:

Pre-production costs
Over the life of the production

The amortisation period commences from the date of opening of the production. The production closed on 3 August 2024.

1.6
Impairment of fixed assets

At each reporting period end date, 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 (if any). 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.

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.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. 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 and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.8
Financial instruments

The company has only basic financial instruments at amortised cost, with no financial instruments classified as other or basic instruments measured at fair value.

1.9
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.

1.10
Taxation

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

Sky's Edge (London) Limited
Notes to the Financial Statements (Continued)
For the period ended 31 March 2024
1
Accounting policies
(Continued)
Page 6
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 liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. 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.

1.11
Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

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 stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13
Retirement benefits

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

Sky's Edge (London) Limited
Notes to the Financial Statements (Continued)
For the period ended 31 March 2024
Page 7
2
Employees

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

2024
Number
16
3
Intangible fixed assets
Pre-production costs
£
Cost
At 18 May 2023
-
0
Additions - internally developed
1,705,178
At 31 March 2024
1,705,178
Amortisation and impairment
At 18 May 2023
-
0
Amortisation charged for the period
507,721
At 31 March 2024
507,721
Carrying amount
At 31 March 2024
1,197,457
4
Debtors
2024
Amounts falling due within one year:
£
Trade debtors
200,681
Corporation tax recoverable
528,218
Amounts owed by group undertakings
100
Other debtors
126,024
Prepayments and accrued income
311,075
1,166,098
Sky's Edge (London) Limited
Notes to the Financial Statements (Continued)
For the period ended 31 March 2024
Page 8
5
Creditors: amounts falling due within one year
2024
£
Trade creditors
511,203
Amounts owed to group undertakings
357,500
Taxation and social security
28,263
Other creditors
2,150,812
Accruals and deferred income
294,547
3,342,325
6
Share capital
2024
2024
Ordinary share capital
Number
£
Issued and fully paid
Ordinary shares of £1 each
100
100
7
Related party transactions

The company has taken the exemption under FRS102 Section 33 Related Party Disclosures paragraph 33.1A from disclosing transactions with other members of a wholly owned group.

 

During the period the company incurred royalty and fixed fee expenses and recharges of costs of £1,017,031 from National Theatre Productions Ltd, a related party by virtue of sharing a common director. At the balance sheet date, the company owed £499,415.

8
Ultimate controlling party

The immediate and ultimate parent company is Various Productions Limited, a company incorporated in England and Wales

The ultimate controlling party is R A Lord by virtue of shareholdings in Various Productions Limited.

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