Company Registration No. 13289561 (England and Wales)
AB3 Productions Limited
Annual report and financial statements
for the period ended 30 September 2024
AB3 Productions Limited
Company information
Director
Christopher Milburn
Company number
13289561
Registered office
160 Great Portland Street
London
United Kingdom
W1W 5QA
Independent auditor
Saffery LLP
71 Queen Victoria Street
London
EC4V 4BE
AB3 Productions Limited
Contents
Page
Strategic report
1
Director's report
2
Director's responsibilities statement
3
Independent auditor's report
4 - 6
Income statement
7
Statement of financial position
8
Statement of changes in equity
9
Notes to the financial statements
11 - 16
AB3 Productions Limited
Strategic report
For the period ended 30 September 2024
1

The director presents the strategic report for the period ended 30 September 2024.

Fair review of the business

During the year, the company was involved in the production of an animation film.

Principal risks and uncertainties

The director does not anticipate any future risks or uncertainties which will impact the company going forward.

Key performance indicators

The directors consider the company's key performance indicator to be whether the film is produced in line with the agreed budget. At year end, the estimated total costs was within budget. The production is currently scheduled to deliver the programme as planned.

Other performance indicators

The directors consider the company's key non-financial performance indicator to be whether the film is certified as British. The company has obtained an interim British Film certificate in respect of this film.

On behalf of the board

C Milburn
Director
18 February 2025
AB3 Productions Limited
Director's report
For the period ended 30 September 2024
2

The director presents his annual report and financial statements for the period ended 30 September 2024.

 

The company was incorporated on 24 March 2021 and started trading on 1 June 2023.

Principal activities

The principal activity of the company is that of film production.

Results and dividends

The results for the period are set out on page 7.

No ordinary dividends were paid. The director does not recommend payment of a final dividend.

Director

The director who held office during the period and up to the date of signature of the financial statements was as follows:

C Milburn
Auditor

Saffery 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.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
C Milburn
Director
18 February 2025
AB3 Productions Limited
Director's responsibilities statement
For the period ended 30 September 2024
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 he 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:

 

 

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. He 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.

AB3 Productions Limited
Independent auditor's report
To the member of AB3 Productions Limited
4
Opinion

We have audited the financial statements of AB3 Productions Limited (the 'company') for the period ended 30 September 2024 which comprise the income statement, the statement of financial position, the statement of changes in equity, the statement of cash flows 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 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:

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 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.

Other information

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.

AB3 Productions Limited
Independent auditor's report (continued)
To the member of AB3 Productions Limited
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:

 

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:

 

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.

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.

 

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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.

 

Identifying and assessing risks related to irregularities:

We assessed the susceptibility of the Company’s financial statements to material misstatement and how fraud might occur, including through discussions with the director, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the Company by discussions with director and by updating our understanding of the sector in which the Company operates.

Laws and regulations of direct significance in the context of the Company include The Companies Act 2006 and UK Tax legislation specifically legislation relating to creative industry tax credits.
AB3 Productions Limited
Independent auditor's report (continued)
To the member of AB3 Productions Limited
6
In addition, the Company is subject to other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to its ability to operate or to avoid a material penalty. These include anti-bribery legislation and employment law.

Audit response to risks identified

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the Company's records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the Company's policies and procedures for compliance with laws and regulations with members of management responsible for compliance. We have reviewed management's assessment of how the Company, and production, comply with the relevant laws and regulations governing access to the creative industry tax credits.

During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

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. 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.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.

Isla MacGillivray
Senior Statutory Auditor
For and on behalf of Saffery LLP
19 February 2025
Statutory Auditors
71 Queen Victoria Street
London
EC4V 4BE
AB3 Productions Limited
Income statement
For the period ended 30 September 2024
7
Period
Year
ended
ended
30 September
31 March
2024
2023
Notes
£
£
Turnover
3
19,533,277
-
Cost of sales
(21,583,992)
-
0
Gross (loss)/profit
(2,050,715)
-
Administrative expenses
1,011,940
-
0
Other operating income
1,096,275
-
0
Profit before taxation
57,500
-
0
Tax on profit
6
(57,500)
-
0
Profit for the financial period
-
0
-
0

The income statement has been prepared on the basis that all operations are continuing operations.

AB3 Productions Limited
Statement of financial position
As at 30 September 2024
8
30 September 2024
31 March 2023
Notes
£
£
£
£
Current assets
Debtors
7
22,014,502
-
0
Cash at bank and in hand
726,685
1
22,741,187
1
Creditors: amounts falling due within one year
8
(22,741,186)
-
0
Net current assets
1
1
Capital and reserves
-
-
Called up share capital
9
1
1
The financial statements were approved and signed by the director and authorised for issue on 18 February 2025.
C Milburn
Director
Company Registration No. 13289561
AB3 Productions Limited
Statement of changes in equity
For the period ended 30 September 2024
9
Share capital
£
Balance at 1 April 2022
1
Year ended 31 March 2023:
Profit and total comprehensive income
-
Balance at 31 March 2023
1
Period ended 30 September 2024:
Profit and total comprehensive income
-
Balance at 30 September 2024
1
AB3 Productions Limited
Statement of cash flows
For the period ended 30 September 2024
10
Period
Year
ended
ended
30 September
31 March
2024
2023
Notes
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
13
726,684
-
0
Net increase in cash and cash equivalents
726,684
-
Cash and cash equivalents at beginning of period
1
1
Cash and cash equivalents at end of period
726,685
1
AB3 Productions Limited
Notes to the financial statements
For the period ended 30 September 2024
11
1
Accounting policies
Company information

AB3 Productions Limited is a private company limited by shares incorporated in England and Wales. The registered office is 160 Great Portland Street, London, United Kingdom, W1W 5QA.

1.1
Reporting period

The current accounting period covers the period from 1 April 2023 to 30 September 2024, which is longer than 1 year. The prior accounting period covered the period from 1 April 2022 to 31 March 2023 for which dormant accounts were filed. The current accounting period was lengthened to coincide with the production schedule of the film being produced.

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.

1.3
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.4
Turnover

In respect of long-term contracts for on-going services, turnover represents the value of work done in the period, including estimates of amounts not invoiced. Value of work done in respect of long-term contracts and contracts for on-going services is determined by reference to the stage of completion.

 

The "percentage of completion method" is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the period in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented in stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recoverable.

1.5
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.

AB3 Productions Limited
Notes to the financial statements (continued)
For the period ended 30 September 2024
1
Accounting policies (continued)
12
1.6
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 debtors, 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 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.

1.7
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.

1.8
Taxation

The tax income represents the Film Tax Credit receivable.

Current tax

The tax currently recoverable is based on relievable losses arising 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 deductible in other years, as well as items that are never taxable or deductible. The company’s tax position is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

AB3 Productions Limited
Notes to the financial statements (continued)
For the period ended 30 September 2024
1
Accounting policies (continued)
13
1.9
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

1.10
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.

2
Critical accounting judgements and key sources of estimation uncertainty

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 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.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Tax credit and AVEC estimate

The key accounting estimate within the financial statements for this company is the valuation of the tax credit and AVEC claim available. The estimate is based on the assessment of the value of qualifying expenditure as per HMRC legislations and guidance plus assessment of the qualification of the underlying production as eligible for the tax relief.

 

In the director's opinion, there were no other critical judgements or other estimation uncertainties in these financial statements.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Sale of rights
19,533,277
-
AB3 Productions Limited
Notes to the financial statements (continued)
For the period ended 30 September 2024
3
Turnover and other revenue (continued)
14
2024
2023
£
£
Turnover analysed by geographical market
United States
19,533,277
-
2024
2023
£
£
Other revenue
Grants received
1,096,275
-
4
Operating profit
2024
2023
Operating profit for the period is stated after charging/(crediting):
£
£
Exchange gains
(1,037,440)
-
0
Government grants
(1,096,275)
-
Fees payable to the company's auditor for the audit of the company's financial statements
17,500
-
0
Fees payable to the company's auditor for non-audit services
8,000
-
5
Employees

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

2024
2023
Number
Number
Total
-
0
-
0
6
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
57,500
-
0
AB3 Productions Limited
Notes to the financial statements (continued)
For the period ended 30 September 2024
6
Taxation (continued)
15

The actual charge for the period can be reconciled to the expected charge/(credit) for the period based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
57,500
-
0
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19%)
14,375
-
0
Enhanced losses arising from the film tax credit
(43,827)
-
0
Losses carried forward
86,952
-
0
Taxation charge for the period
57,500
-
7
Debtors
2024
2023
Amounts falling due within one year:
£
£
Government grant receivable
1,012,885
Corporation tax recoverable
25,890
-
0
Other debtors
15,751,024
-
0
Prepayments and accrued income
5,224,703
-
0
22,014,502
-
8
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
18,082,956
-
0
Accruals and deferred income
4,658,230
-
0
22,741,186
-
0
9
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1
1
1
1
AB3 Productions Limited
Notes to the financial statements (continued)
For the period ended 30 September 2024
16
10
Financial commitments, guarantees and contingent liabilities

The company currently has 1 charge outstanding:

 

Coutts & Company holds a fixed and floating charge over the company's present and future rights, title and interest in and to the film and its assets.

11
Related party transactions
Transactions with related parties

During the period the company entered into the following transactions with related parties.

The Company paid director and shareholder Christopher Milburn a total of £64,526 for services provided during the period.

Milstein Productions Limited, a company with a common director and shareholder, paid amounts totalling £149,771 on behalf of the Company during the period. The full amount is included within trade creditors at period end.

12
Ultimate controlling party

The company's sole shareholder and ultimate controlling party is Christopher Milburn.

13
Cash generated from/(absorbed by) operations
2024
2023
£
£
Profit for the period after tax
-
0
-
0
Adjustments for:
Taxation credited
(1,038,775)
-
0
Movements in working capital:
Increase in debtors
(20,975,726)
-
0
Increase in creditors
22,741,186
-
0
Cash generated from/(absorbed by) operations
726,685
-
14
Analysis of changes in net funds
1 April 2023
Cash flows
30 September 2024
£
£
£
Cash at bank and in hand
1
726,684
726,685
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