Company Registration No. 11851561 (England and Wales)
Western Sky Limited
Annual report and financial statements
for the year ended 26 February 2024
Western Sky Limited
Company information
Directors
David Hodgson
Jose Arturo Barquet
Matthew Sica
Company number
11851561
Registered office
1 Central St. Giles
St. Giles High Street
London
WC2H 8NU
Independent auditor
Saffery LLP
71 Queen Victoria Street
London
EC4V 4BE
Western Sky Limited
Contents
Page
Strategic report
1 - 2
Directors' report
3 - 5
Directors' responsibilities statement
6
Independent auditor's report
7 - 9
Income statement
10
Statement of financial position
11
Statement of changes in equity
12
Notes to the financial statements
13 - 19
Western Sky Limited
Strategic report
For the year ended 26 February 2024
1

The directors present the strategic report for the year ended 26 February 2024.

Review of the business

During the year the company was involved in production of a film for theatrical release. The company incurred a loss before tax of £40,473,594 (2023: £27,012,071) and at the year end had net assets of £29,051 (2023: £12,951).

Principal risks and uncertainties

The directors have reviewed the risks and resultant uncertainties facing the business as being the ability to secure future contracts. However, the ultimate parent company has provided sufficient assurance that it will support the company and provide the necessary finances for its future operations.

Key performance indicators

The directors consider the company's key financial performance indicator to be whether the film is completed in line with the production budget. Although the budget has been exceeded the production release has been scheduled and the overage on budget is not deemed to be a risk. The film continues to be funded by it's financiers.

 

The directors consider the company's key non-financial performance indicator to be whether the film is certified as British. As of the date of signature, the company has received the interim British Film Certificate.

Section 172 (1) statement

Under section 172(1) of the Companies Act 2006, the directors must act in a way that they consider, in good faith, would most likely promote the success of the company for the benefit of its members as a whole, and in doing so have regard (amongst other matters) to:

 

 

This section explains how the directors of the company, both individually and collectively, have had regard to the factors listed above in their decision making during the year ended 26 February 2024. As part of their decision-making process, the directors have regard to the likely consequences of any decision in the long term.

Our Employees

The directors recognize that employees are central to our success. We promote a culture that embraces equal opportunity for all, and seek to have a workforce that is inclusive and reflective of the diversity of our stakeholders, including our shareholders, employees, customers, suppliers and the communities where we operate.

The company and its directors are proud of our community of employee resource groups. These voluntary, employee-led organisations are open to all and contribute to business priorities, career development and foster an inclusive and collaborative workplace. We aim to ensure a transparent, professional working environment where employees treat each other with respect. We communicate with our employees frequently and conduct employee engagement surveys.

Our Partners

As a part of the Comcast Group, the directors and the company as a whole seek to build long-term relationships with our suppliers and customers and help them succeed. A critical part of doing business is partnering with others, and we believe that partnerships are built on trust and mutual advantage. The Comcast Group considers these relationships and the feedback received from engagement with our partners in its decision-making process.

Western Sky Limited
Strategic report (continued)
For the year ended 26 February 2024
2

We expect our suppliers and business partners to act ethically and share in our commitment to operate with integrity and in accordance with applicable laws and regulations, as set forth in our Code of Conduct for Suppliers and Business Partners, available here: https://corporate.comcast.com/impact/values-integrity/integrity/our-suppliers-and-business-partners.

Comcast's annual Statement on Modern Slavery and Supply Chain Values provide more information on the company’s approach to understanding and addressing the risks of modern slavery, as well as conducting human rights due diligence.

Our Communities

As a part of the Comcast Group, a global media and technology company, the directors and the company as a whole seek to use our resources – our people, programming and platforms – to work toward opportunity for all in areas where we can have a meaningful impact. By supporting local communities, our teammates, and our planet we can help create a world of unlimited possibilities so that together we can build a future that benefits generations to come. We are focusing our efforts in the following areas:

Environment

 

The directors and the company as a whole have considered the importance of climate change and working towards the Comcast Group’s strategy for a sustainable future, which includes setting a goal to be carbon neutral by 2035 in Scope 1 and 2 emissions across our global operations. In 2024, Comcast Group also submitted its near term emissions reduction targets for Scopes 1,2 and 3 for validation to the Science Based Targets initiative (SBTi). To achieve these goals, we are focused primarily on sourcing clean and renewable energy and improving energy efficiency. We are also innovating to create more sustainable products and packaging. More details on the Comcast Group’s environmental strategy can be found at https://corporate.comcast.com/impact/environment.

The directors and management of the company are responsible for ensuring the company contributes to the progress toward these Group wide goals, and consideration of these goals, together with wider environmental impact considerations, are incorporated into the company’s decision-making processes. For more information on Group wide environmental performance and progress, see the 2023 Carbon Footprint Data Report, the Sustainability Accounting Standards Board (SASB) Report, the Task Force on Climate-Related Financial Disclosures (TCFD) Report and the Carbon Disclosure Project (CDP) Report, all available on Comcast Group’s ESG Reporting website at https://www.cmcsa.com/esg-reporting.

 

Members

 

The company is a wholly owned subsidiary of the Universal Group and is ultimately controlled by Comcast. The duties of the directors are exercised in a way that is most likely to promote the success of the Company, the Universal Group and the Comcast Group as a whole, while having regard to the factors outlined in Section 172.

Approved by the Board on 6 March 2025 and signed on its behalf by:

Jose Arturo Barquet
Director
Western Sky Limited
Directors' report
For the year ended 26 February 2024
3

The directors present their annual report and financial statements for the year ended 26 February 2024.

Principal activities

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

Results and dividends

The results for the year are set out on page 10.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

David Hodgson
Jose Arturo Barquet
Matthew Sica
Auditor

The auditor, Saffery LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Energy and carbon report

We have reported on all sources of GHG emissions and energy usage as required under The Large and Medium-Sized Companies and Groups (Accounts and Reports) Regulations 2008 as amended.

2024
Energy consumption
kWh
Aggregate of energy consumption in the year
- Gas combustion
28,536
- Electricity purchased
11,866
- Fuel consumed for transport
967
41,369
Western Sky Limited
Directors' report (continued)
For the year ended 26 February 2024
4
2024
Emissions of CO2 equivalent
metric tonnes
Scope 1 - direct emissions
- Gas combustion
5,758.80
- Fuel consumed for owned transport
-
5,758.80
Scope 2 - indirect emissions
- Electricity purchased
2,457.20
Scope 3 - other indirect emissions
- Fuel consumed for transport not owned by the
248.00
Total gross emissions
8,464.00
Intensity ratio
Tonnes CO2e per employee
39.92
Quantification and reporting methodology

We have followed the 2019 UK Government environmental reporting guidance. We have used the GHG Protocol Corporate Accounting and Reporting Standard (revised edition) and emission factors from the UK Government’s GHG Conversion Factors for Company Reporting 2023 to calculate the above disclosures.

 

Where the above report does not provide a fuel-specific factor, we have used conversion factors from the Environmental Protection Agency.

 

This data covers the UK production activity only, as required by the regulations.

 

The chosen intensity measurement ratio reflects the most appropriate measure for the company's principal activity of motion picture production.

 

The electricity emissions have been calculated using the location-based grid average emissions factor, as required by the regulations.

Measures taken to improve energy efficiency

During the period of reporting we have taken a number of steps to improve energy efficiency. These include:

- Hiring a local sustainable consulting team to help implement a range of sustainable initiatives.

- Many vehicles and generators were fueled with renewable diesel, or Hydrotreated Vegetable Oil (HVO). HVO has approximately 80% less lifecycle carbon emissions than standard diesel.

- Approximately 75% of lighting were LEDs, which use significantly less energy than conventional counterparts.

- To reduce emissions further, the team piloted an electric heavy-duty truck, battery systems, and hybrid generators.

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.

Western Sky Limited
Directors' report (continued)
For the year ended 26 February 2024
5
Approved by the Board on
6 March 2025
06 March 2025
and signed on its behalf by:
Jose Arturo Barquet
Director
Western Sky Limited
Directors' responsibilities statement
For the year ended 26 February 2024
6

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have 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 directors must not approve the financial statements unless they are 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 directors are required to:

 

 

The directors are 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. They are 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.

Western Sky Limited
Independent auditor's report
To the member of Western Sky Limited
7
Opinion

We have audited the financial statements of Western Sky Limited (the 'company') for the year ended 26 February 2024 which comprise the income statement, 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 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 directors' 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 directors 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 directors are 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.

Western Sky Limited
Independent auditor's report (continued)
To the member of Western Sky Limited
8

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 directors' 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 directors

As explained more fully in the directors' responsibilities statement, the directors are 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 directors determine 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 directors are 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 directors either intend to liquidate the company or to cease operations, or have 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 directors, 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 directors and by updating our understanding of the sector in which the company operates.

Western Sky Limited
Independent auditor's report (continued)
To the member of Western Sky Limited
9

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.

 

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.

Nigel Walde
Senior Statutory Auditor
For and on behalf of Saffery LLP
10 March 2025
Chartered Accountants
Statutory Auditors
71 Queen Victoria Street
London
EC4V 4BE
Western Sky Limited
Income statement
For the year ended 26 February 2024
10
2024
2023
Notes
£
£
Turnover
3
171,167,264
96,956,064
Cost of sales
(215,684,357)
(123,948,135)
Gross loss
(44,517,093)
(26,992,071)
Administrative expenses
(32,000)
(20,000)
Other operating income
4,075,499
-
0
Loss before taxation
(40,473,594)
(27,012,071)
Tax on loss
6
40,489,694
27,023,621
Profit for the financial year
16,100
11,550

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

Western Sky Limited
Statement of financial position
As at 26 February 2024
11
2024
2023
Notes
£
£
£
£
Current assets
Debtors
7
64,985,903
55,889,314
Cash at bank and in hand
1,022,949
16,847,211
66,008,852
72,736,525
Creditors: amounts falling due within one year
8
(65,979,801)
(72,723,574)
Net current assets
29,051
12,951
Capital and reserves
Called up share capital
10
1
1
Profit and loss reserves
29,050
12,950
Total equity
29,051
12,951
The financial statements were approved by the board of directors and authorised for issue on 6 March 2025 and are signed on its behalf by:
Jose Arturo Barquet
Director
Company Registration No. 11851561
Western Sky Limited
Statement of changes in equity
For the year ended 26 February 2024
12
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 28 February 2022
1
1,400
1,401
Year ended 28 February 2023:
Profit and total comprehensive income for the year
-
11,550
11,550
Balance at 28 February 2023
1
12,950
12,951
Year ended 26 February 2024:
Profit and total comprehensive income for the year
-
16,100
16,100
Balance at 26 February 2024
1
29,050
29,051
Western Sky Limited
Notes to the financial statements
For the year ended 26 February 2024
13
1
Accounting policies
Company information

Western Sky Limited is a private company limited by shares incorporated in England and Wales. The registered office is 1 Central St. Giles, St. Giles High Street, London, WC2H 8NU.

1.1
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.

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.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of Comcast Corporation. These consolidated financial statements are available to the public and may be obtained from One Comcast Center, 1701 John F Kennedy Blvd, 47th Floor, Philadelphia, Pennsylvania 19103-2838, USA or at www.comcast.com.

1.2
Going concern

At the time of approving the financial statements , the directors have a reasonable expectation that thetrue 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.

Western Sky Limited
Notes to the financial statements (continued)
For the year ended 26 February 2024
1
Accounting policies (continued)
14
1.3
Turnover

In respect of long-term contracts for ongoing services, turnover represents the value of work done in the period, including estimates for amounts not invoiced. Value of work done in respect of long-term contracts and contracts for ongoing 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 as stocks, prepayments or other assets depending on their nature and provided it is probable that they will be recovered.

1.4
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.

1.5
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 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.

Derecognition of financial assets

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.

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.

Western Sky Limited
Notes to the financial statements (continued)
For the year ended 26 February 2024
1
Accounting policies (continued)
15
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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.6
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.

1.7
Taxation

The tax credit represents the tax currently receivable.

Current tax

The tax currently recoverable is based on relievable losses arising in the year 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 taxable or 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 date.

1.8
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.

1.9
Retirement benefits

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

1.10
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Western Sky Limited
Notes to the financial statements (continued)
For the year ended 26 February 2024
1
Accounting policies (continued)
16

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.11
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.

1.12
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions where practicable or at an average rate for the year. 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.

2
Critical accounting 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.

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 estimate

A key accounting estimate within the financial statements for this company is the valuation of the film tax credit 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.

Audio visual expenditure credit (AVEC) estimate

A key accounting estimate within the financial statements for this company is the valuation of the AVEC 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 credit.

Western Sky Limited
Notes to the financial statements (continued)
For the year ended 26 February 2024
17
3
Turnover and other revenue
2024
2022
£
£
Turnover analysed by class of business
Sale of film rights
171,167,264
12,245,828
2024
2022
£
£
Turnover analysed by geographical market
United States of America
171,167,264
12,245,828
2024
2023
£
£
Other significant revenue
Grants received
4,075,499
-
4
Operating loss
2024
2023
Operating loss for the year is stated after charging/(crediting):
£
£
Government grants
(4,075,499)
-
Audit fees payable to the company's auditor
26,000
15,000
Non-audit fees payable to the company's auditor
6,000
5,000
5
Employees

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

2024
2023
Number
Number
445
284

During the current and prior period, no director received any emoluments.

2024
2023
£
£
Wages and salaries
23,074,310
14,092,958
Social security costs
2,735,839
1,706,618
Pension costs
245,258
97,575
26,055,407
15,897,151
Western Sky Limited
Notes to the financial statements (continued)
For the year ended 26 February 2024
18
6
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
(40,489,694)
(27,023,621)

The actual credit for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Loss before taxation
(40,473,594)
(27,012,071)
Expected tax credit based on the standard rate of corporation tax in the UK of 24.49% (2023: 19.00%)
(9,911,983)
(5,132,293)
Enhanced losses arising from the film tax credit
(39,019,946)
(19,992,651)
Difference between the rate of corporation tax and the rate of relief under the film tax credit
(825,990)
(6,485,444)
Losses carried forward
9,268,225
4,586,767
Taxation credit for the year
(40,489,694)
(27,023,621)

From 1 April 2023, the UK's main corporation tax rate increased from 19% to 25%.

7
Debtors
2024
2023
Amounts falling due within one year:
£
£
Corporation tax recoverable
40,489,694
27,023,621
Amounts owed by group undertakings
12,933,620
19,947,129
Other debtors
9,046,765
6,108,147
Prepayments and accrued income
2,515,824
2,810,417
64,985,903
55,889,314
8
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
-
0
6,770,332
Amounts owed to fellow subsidiary undertakings
63,214,446
58,807,133
Other creditors
129,028
2,036,109
Accruals and deferred income
2,636,327
5,110,000
65,979,801
72,723,574
Western Sky Limited
Notes to the financial statements (continued)
For the year ended 26 February 2024
19
9
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
245,258
97,575

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.

10
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1
1
1
1
11
Operating lease commitments

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£
£
Within one year
-
0
11,481,696
12
Related party transactions

The company has taken advantage of the exemptions available under FRS 102 Section 33.1A whereby it is not required to disclose transactions entered into between two or more members of the group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member.

13
Ultimate controlling party

The company's immediate parent undertaking is Universal Pictures Limited, a company registered in England and Wales. Universal Pictures is a subsidiary in the NBCUniversal Media LLC group.

 

The smallest and largest group in which the results of the company will be consolidated is that headed by its ultimate parent undertaking, Comcast Corporation, a company incorporated in the United States of America. The consolidated financial statements for this company are available to the public and may be obtained from One Comcast Center, 1701 John F Kennedy Blvd, 47th Floor, Philadelphia, Pennsylvania 19103-2838, USA or at www.comcast.com respectively.

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