The notes on pages 2 to 8 form part of these financial statements.
Illium Limited is a private company limited by shares incorporated in England and Wales. The registered office is 12 Conduit Street, London, England, W1S 2XH.
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 £.
Basic financial assets, which include debtors 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.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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, including creditors, 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 creditors 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 creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
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.
Exceptional items
The company classifies certain one-off charges or credits that have a material impact on the company’s financial results as ‘exceptional items'. These are disclosed separately to provide further understanding of the financial performance of the company. Exceptional items represent costs in relation to bad debt provisions in respect of trade loans and accrued income that are not considered to be recoverable by the company.
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.
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
The company makes an estimate of the recoverable value of trade loans. When assessing recoverability of trade loans, the directors consider factors including the ageing profile of loans and historical experience of repayments. A provision is made when there is significant uncertainty over the timing or likelihood of the recovery of the loans.
The Company did not have any employees during the year (2023: nil).
Total debtors included trade loans of £26,949,096 (2023 restated: £16,254,280) are secured by way of fixed charges over film and programme assets including revenues due in respect of these assets.
Trade loans are stated after the provision of £7,474,089 (2023 restated: £16,840,577) for bad debts.
During the year the following shares were issued:
2,717,907 Ordinary shares of 10p each were issued at a premium of £1.1541 per share
4,831,278 Ordinary shares of 10p each were issued at a premium of £1.1669 per share
1,230,503 Ordinary shares of 10p each were issued at a premium of £1.1784 per share
During the year 512,302 Ordinary shares of 10p each were cancelled.
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The company had committed to providing trade loans amounting to £1,904,344 which had not been drawn down as at the balance sheet date. This has subsequently been drawn down.
Since the year end, the Company's management company Great Point Investments Limited went into administration due to unforeseen circumstances. Since 10 July 2024, Calculus Media Limited has been appointed as the Advisor to the Company to help with its business operations.
During the year, the Company made loans amounting to £7,653,970 (2023: £20,143,742) to entities which key personnel of Great Point Investment Limited, the Company’s previous manager, either had beneficial interests or exercised significant control over. Key management personnel include the Directors and senior management team. Repayments of £5,184,883 (2023: £8,755,107) were received during the year from these loans. Income amounting to £655,848 (2023 restated: £1,406,000) has been recognised on these loans. At the balance sheet date, deferred income in relation to these loans totalled £11,084 (2023 restated: £254,808).
The Company has recognised bad debt provisions of £7,474,089 (2023 restated: £16,840,577) in relation to commercial loans made to the entities with common key management personnel.
At the balance sheet date, the balance outstanding on these loans amounted to £24,861,701 (2023 restated: £22,148,890).
At the balance sheet date, the balance of outstanding loans for which there is security amounted to £12,982,575 (2023 restated: £10,269,764).
Great Point Investments Limited charged annual administration fees of 1% +VAT of Net Asset Value of the Company. The administrative fees were calculated and paid on a quarterly basis.
Great Point Investments Limited also charged annual management fees of 1% +VAT of the Net Asset Value of the Company, subject to the annual increase of 3% of the Net Asset Value after the administration fees.
Great Point Investments Limited also recharged Woodside Nominees’ annual custodian fees of 0.125% +VAT of Net Asset Value of the Company. The custodian fees were calculated and paid on a quarterly basis.
The following administration, management and custodian fees were charged by Great Point Investments Limited:
Administration fees: £508,315 (2023: £355,086)
Management fees: £nil (2023: £704,696)
Custodian fees: £71,449 (2023: £56,848)
At the balance sheet date an amount of Nil (2023: £127,578) of administration fees were accrued and subsequently paid to Great Point Investments Limited after the year end.
At the balance sheet date an amount of Nil (2023: £704,696) of management fees were accrued and subsequently paid to Great Point Investments Limited after the year end.
At the balance sheet date an amount of Nil (2023: £17,475) of custodian fees were accrued and subsequently paid to Great Point Investments Limited after the year end.
In the prior year, the company did not recognise bad debt provisions amounting to £16,840,577 in relation to trade loans however these were disclosed as post balance sheet event in the prior year's financial statements. Also, the accrued income in relation to interest receivable on the trade loans was overstated by £141,267 and the corporation tax charge was overstated by £306,766. Prior year adjustments have been made to correct these errors, reducing the net profit and net assets by £16,675,078.
Trade loans amounting to £4,538,082 due after more than one year were incorrectly treated as non-current assets in the prior year. A prior year adjustment has been made to correct this, reducing the net current assets and increasing the current assets by the same amount. This adjustment did not have an impact on the profit for the year.