Company registration number 03569821 (England and Wales)
STREAMLAND MEDIA UK LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
STREAMLAND MEDIA UK LIMITED
COMPANY INFORMATION
Directors
Mr L Hirsh
(Appointed 23 October 2024)
Mr G Lyon
(Appointed 23 October 2024)
Mr E F Glover
(Appointed 4 February 2025)
Secretary
Ms H Murphy
Company number
03569821
Registered office
William Blake House
8 Marshall Street
London
W1F 7EJ
Auditor
Blinkhorns
27 Mortimer Street
London
W1T 3BL
STREAMLAND MEDIA UK LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Income statement
8
Statement of comprehensive income
9
Statement of financial position
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 26
STREAMLAND MEDIA UK LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -
The directors present the strategic report for the year ended 31 December 2023.
Fair review of the business
In trading, revenue decreased to £49.3m (2022: £55.0m), gross profit also decreased to £14.7m (2022: 21.2m). The decrease in revenue was due to the writers and actors strikes impacting the industry, mainly UK scripted.
The strategy was to grow by acquisition, with an expectation of a strong order book in 2023. The strikes in 2023 delayed this. The hope was to grow during a time when the market unexpectedly began to contract, with the aim of positioning the company with a larger share of the market. Scripted was always a strong area for growth whereas any unscripted revenue increases were offset by cost pressures associated with supply chain friction and skill shortages. However, with the strikes, scripted was heavily impacted. Luckily the blend of services offered, allowed the business to continue to operate.
The 2024 strategy is focused on cost mitigation in response to the new marketplace: scaling back on staff costs and reducing real estate. The landscape is taking a downturn and the strategy is to tighten controls and reduce overspend to navigate this period until the upturn in revenue, expected in the last quarter of the year. The expectation is that the latter part of the year and beginning of 2025 will be strong for revenue growth.
The company’s (loss)/profit before tax was £(17.8)m (2022: £(6.7)m).
Principal risks and uncertainties
The company is exposed to a number of risks and uncertainties. Financial risk management policies are employed to address these, primarily relating to foreign exchange, interest rate, liquidity, and credit risks. The Directors understand the importance of these risks and use internal monitoring tools and external resources to manage these, for example the routine review of cash flow forecasts, overall margin analysis by customer and genre, new supplier performance checks and new client credit checks.
Key performance indicators
The directors employ key performance indicators to assess the company’s performance. The KPIs for the 2023 financial year include:
UK Corporate Governance Code and s172 reporting
The obligations under this code are covered in the group accounts of The Farm UK Holdco Limited.
Mr E F Glover
Director
19 March 2025
STREAMLAND MEDIA UK LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
The directors present their annual report and financial statements for the year ended 31 December 2023.
Principal activities
The principal activity of the company continued to be that of motion picture, video and television programme post-production.
Directors
The directors who held office during the year and up to the date of approval of the financial statements were as follows:
Ms C J Sheppard
(Resigned 22 July 2024)
Mr W P Romeo
(Resigned 24 October 2024)
Mr G P Raksis
(Resigned 11 August 2023)
Mr D Stinnett
(Resigned 27 January 2025)
Mr N Fenwick
(Appointed 10 August 2023 and resigned 24 October 2024)
Mr L Hirsh
(Appointed 23 October 2024)
Mr G Lyon
(Appointed 23 October 2024)
Mr E F Glover
(Appointed 4 February 2025)
Results and dividends
The results for the year are set out on page 8.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Supplier payment policy
The company's current policy concerning the payment of trade creditors is to follow the CBI's Prompt Payers Code (copies are available from the CBI, Centre Point, 103 New Oxford Street, London WC1A 1DU).
The company's current policy concerning the payment of trade creditors is to:
settle the terms of payment with suppliers when agreeing the terms of each transaction;
ensure that suppliers are made aware of the terms of payment by inclusion of the relevant terms in contracts; and
pay in accordance with the company's contractual and other legal obligations.
Trade creditors of the company at the year end were equivalent to 30 day's purchases, based on the average daily amount invoiced by suppliers during the year.
Disabled persons
Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.
Employee involvement
Consultations are held with staff members when required.
Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.
Auditor
The auditor, Blinkhorns, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
STREAMLAND MEDIA UK LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
Energy and carbon report
As the company is a subsidiary, this information is reported within the group accounts of The Farm UK Holdco Limited.
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.
On behalf of the board
Mr E F Glover
Director
19 March 2025
STREAMLAND MEDIA UK LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
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:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
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.
STREAMLAND MEDIA UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF STREAMLAND MEDIA UK LIMITED
- 5 -
Opinion
We have audited the financial statements of Streamland Media UK Limited (the 'company') for the year ended 31 December 2023 which comprise the income statement, the statement of comprehensive income, 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 FRS 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:
give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
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.
Material uncertainty related to going concern
We draw attention to Note 1.2 in the financial statements, which indicates that the company incurred a net loss of £17,810,513 during the year ended 31 December 2023 and, as of that date, the company's liabilities exceeded its total assets by £12,681,017. As stated in Noted 1.2, these events or conditions, along with other matters as set forth in Note 1.2, indicate that a material uncertainty exists that may cast significant doubt on the company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.
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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
STREAMLAND MEDIA UK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF STREAMLAND MEDIA UK LIMITED
- 6 -
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 and the directors' report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
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.
We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The key laws and regulations we have considered in this context included the Companies Act 2006, pensions and tax legislation. In addition, we have considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Using our sector experience and through discussions with the directors and management, we identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements as well as those arising from management’s own assessment of the risks that irregularities may occur either as a result of fraud or error.
STREAMLAND MEDIA UK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF STREAMLAND MEDIA UK LIMITED
- 7 -
Based on the results of our risk assessment we designed our audit procedures to identify and to address material misstatements in relation to fraud, including:
- The possibility of fraudulent or corrupt payments made through third parties.
- The risk of bribery and corruption.
- The opportunity to segregate duties within the entity.
There is a presumed risk that revenue may be misstated due to the improper recognition of revenue. To address this risk, we obtained an understanding of the company’s revenue recognition policies and compared these to the accounting standard, performed a walkthrough to confirm our understanding of the processes and controls through which the business initiates, records, processes and reports revenue transactions. We tested a sample of revenue transactions to supporting evidence and tested, on a sample basis, revenue related balances in the balance sheet.
We considered the extent to which the audit was considered capable of detecting irregularities.
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 from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentation, 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.
This report is made solely to the company's members, as a body, 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 members those matters we are required to state to them 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 members, as a body, for our audit work, for this report, or for the opinions we have formed.
James Alexander ACA (Senior Statutory Auditor)
For and on behalf of Blinkhorns
27 Mortimer Street
London
W1T 3BL
STREAMLAND MEDIA UK LIMITED
INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Notes
£
£
Revenue
3
49,279,495
55,012,645
Cost of sales
(34,580,672)
(33,832,946)
Gross profit
14,698,823
21,179,699
Administrative expenses
(32,329,468)
(27,706,244)
Operating loss
5
(17,630,645)
(6,526,545)
Investment income
9
36,544
866
Finance costs
10
(216,412)
(138,408)
Loss before taxation
(17,810,513)
(6,664,087)
Tax on loss
11
Loss for the financial year
(17,810,513)
(6,664,087)
The income statement has been prepared on the basis that all operations are continuing operations.
STREAMLAND MEDIA UK LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
£
£
Loss for the year
(17,810,513)
(6,664,087)
Other comprehensive income
-
-
Total comprehensive income for the year
(17,810,513)
(6,664,087)
STREAMLAND MEDIA UK LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Non-current assets
Goodwill
12
2,265,513
2,303,470
Property, plant and equipment
13
11,649,766
12,771,664
Investments
14
5,641,939
5,591,939
19,557,218
20,667,073
Current assets
Inventories
16
24,704
25,730
Trade and other receivables
17
15,117,604
16,365,582
Cash and cash equivalents
394,439
877,200
15,536,747
17,268,512
Current liabilities
18
(47,173,041)
(32,246,218)
Net current liabilities
(31,636,294)
(14,977,706)
Total assets less current liabilities
(12,079,076)
5,689,367
Non-current liabilities
19
(601,941)
(559,871)
Net (liabilities)/assets
(12,681,017)
5,129,496
Equity
Called up share capital
24
784,324
784,324
Share premium account
2,737,356
2,737,356
Retained earnings
(16,202,697)
1,607,816
Total equity
(12,681,017)
5,129,496
The financial statements were approved by the board of directors and authorised for issue on 19 March 2025 and are signed on its behalf by:
Mr E F Glover
Director
Company registration number 03569821 (England and Wales)
STREAMLAND MEDIA UK LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
Share capital
Share premium account
Retained earnings
Total
£
£
£
£
Balance at 1 January 2022
784,324
2,737,356
8,271,903
11,793,583
Year ended 31 December 2022:
Loss and total comprehensive income for the year
-
-
(6,664,087)
(6,664,087)
Balance at 31 December 2022
784,324
2,737,356
1,607,816
5,129,496
Year ended 31 December 2023:
Loss and total comprehensive income for the year
-
-
(17,810,513)
(17,810,513)
Balance at 31 December 2023
784,324
2,737,356
(16,202,697)
(12,681,017)
STREAMLAND MEDIA UK LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
28
2,507,646
7,713,159
Interest paid
(216,412)
(138,407)
Net cash inflow from operating activities
2,291,234
7,574,752
Investing activities
Proceeds from disposal of intangibles
-
720
Purchase of property, plant and equipment
(3,160,799)
(2,835,103)
Proceeds from disposal of property, plant and equipment
217
-
Purchase of subsidiaries
(50,000)
(4,740,405)
Repayment of loans
(62,235)
32,458
Interest received
36,544
866
Net cash used in investing activities
(3,236,273)
(7,541,464)
Financing activities
Payment of finance leases obligations
(58,246)
(652,153)
Net cash used in financing activities
(58,246)
(652,153)
Net decrease in cash and cash equivalents
(1,003,285)
(618,865)
Cash and cash equivalents at beginning of year
869,729
1,488,594
Cash and cash equivalents at end of year
(133,556)
869,729
Relating to:
Cash at bank and in hand
394,439
877,200
Bank overdrafts included in creditors payable within one year
(527,995)
(7,471)
STREAMLAND MEDIA UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
1
Accounting policies
Company information
Streamland Media UK Limited is a private company limited by shares incorporated in England and Wales. The registered office is William Blake House, 8 Marshall Street, London, W1F 7EJ.
The Farm Post Production Limited is a 100% owned subsidiary of The Farm UK Holdco Limited and the results of The Farm Post Production Limited and it's subsidiaries are included in the consolidated financial statements of The Farm UK Holdco Limited. The ultimate parent company is Streamland Media LLC, a company incorporated in Delaware, United States of America. The principal place of business of Streamland Media LLC is 1132 Vine Street, Hollywood, CA 90038.
The principal activities of the company continued to be that of motion picture, video and television programme post-production.
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.
The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.
Streamland Media UK Limited is a wholly owned subsidiary of The Farm UK Holdco Limited and the results of Streamland Media UK Limited are included in the consolidated financial statements of The Farm UK Holdco Limited which are available from William Blake House, 8, Marshall Street, London, England, W1F 7EJ.
1.2
Going concern
The financial statements have been prepared on a going concern basis after due consideration of the principal risks and uncertainties disclosed in the directors' report and strategic report. true
The company incurred a net loss of £17,810,513 during the year ended 31 December 2023 and, as of that date, the company's liabilities exceeded its total assets by £12,681,017.
The company's board has given regard to the forecasts produced by management. These forecasts have been sensitised to reflect plausible downside scenarios.
The forecasts demonstrate that the company is projected to continue to generate losses and although the company has sufficient liquidity to enable it to meet its obligations, presently there is an uncertainty as to whether this will continue.
The company is undergoing significant restructuring and are of the opinion that if this is successful the company will maintain its going concern status.
1.3
Revenue
Revenue is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes.
STREAMLAND MEDIA UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
Revenue from contracts for the provision of professional services are recognised by reference to the stage of completion of the contract.
1.4
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated impairment losses.
FRS 102 permits first time adopters an option not to apply Section 19 to Business Combinations that were effected before the date of transition to this FRS.
Streamland Media UK Limited has applied this exemption to the goodwill that was in existence at the date of transition to FRS 102.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation is recognised so as to write off the cost or valuation of assets over 10 years.
1.5
Property, plant and equipment
Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation 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:
Leasehold land and buildings
Over the period of the lease
Plant and equipment
Between 2 and 5 years
Fixtures and fittings
4 years
Assets in the course of construction are not depreciated.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.6
Non-current investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.7
Impairment of non-current 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.
STREAMLAND MEDIA UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
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.
1.8
Inventories
Inventories are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition.
Inventories held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
1.9
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.
1.10
Financial instruments
Basic financial assets
Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
STREAMLAND MEDIA UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
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.
Basic financial liabilities
Basic financial liabilities, including trade and other payables, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
STREAMLAND MEDIA UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.11
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.
1.12
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 non-current 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
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.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
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.
1.14
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
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.
There were no sources of estimation uncertainty or critical judgements that the directors have made in the process of applying the accounting policies that have significant effect on the amounts recognised in the financial statements.
STREAMLAND MEDIA UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
3
Revenue
2023
2022
£
£
Revenue analysed by class of business
Post production services
49,279,495
55,012,645
2023
2022
£
£
Other significant revenue
Interest income
36,544
866
2023
2022
£
£
Revenue analysed by geographical market
United Kingdom
46,561,414
52,779,396
Rest of the world
2,718,081
2,233,249
49,279,495
55,012,645
4
Exceptional item
2023
2022
£
£
Expenditure
Exceptional items
5,531,415
810,771
Exceptional costs in the year relate to redundancy costs and associated payroll fees as a result of the restructuring taking place in the year.
5
Operating loss
2023
2022
Operating loss for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
26,462
(27,037)
Depreciation of owned property, plant and equipment
4,268,157
4,799,312
Amortisation of intangible assets
37,957
37,957
Profit on disposal of intangible assets
(217)
(720)
Operating lease charges
4,847,892
4,794,077
6
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
141,023
74,750
Audit of the financial statements of the company's subsidiaries
10,000
9,000
151,023
83,750
STREAMLAND MEDIA UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
7
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Administration
63
59
Operation
555
520
Total
618
579
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
38,907,648
33,035,218
Social security costs
1,457,426
1,365,283
Pension costs
297,335
262,628
40,662,409
34,663,129
8
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
400,000
399,677
Company pension contributions to defined contribution schemes
39,000
-
439,000
399,677
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1.
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
400,000
130,985
9
Investment income
2023
2022
£
£
Interest income
Interest on bank deposits
36,544
866
STREAMLAND MEDIA UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
10
Finance costs
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
207,731
138,408
Other interest on financial liabilities
8,681
216,412
138,408
11
Taxation
The actual charge 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:
2023
2022
£
£
Loss before taxation
(17,810,513)
(6,664,087)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
(4,452,628)
(1,266,177)
Unutilised tax losses carried forward
4,452,628
1,266,177
Taxation charge for the year
-
-
12
Intangible fixed assets
Goodwill
£
Cost
At 1 January 2023 and 31 December 2023
2,379,384
Amortisation and impairment
At 1 January 2023
75,914
Amortisation charged for the year
37,957
At 31 December 2023
113,871
Carrying amount
At 31 December 2023
2,265,513
At 31 December 2022
2,303,470
STREAMLAND MEDIA UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
13
Property, plant and equipment
Leasehold land and buildings
Assets under construction
Plant and equipment
Fixtures and fittings
Total
£
£
£
£
£
Cost
At 1 January 2023
19,336,402
46,398
28,540,896
3,554,397
51,478,093
Additions
279,063
2,709,167
172,569
3,160,799
Disposals
(6,935)
(7,680)
(1,040)
(15,655)
At 31 December 2023
19,608,530
46,398
31,242,383
3,725,926
54,623,237
Depreciation and impairment
At 1 January 2023
12,995,705
22,723,085
2,987,639
38,706,429
Depreciation charged in the year
1,211,667
2,828,906
227,584
4,268,157
Eliminated in respect of disposals
(578)
(320)
(217)
(1,115)
At 31 December 2023
14,206,794
25,551,671
3,215,006
42,973,471
Carrying amount
At 31 December 2023
5,401,736
46,398
5,690,712
510,920
11,649,766
At 31 December 2022
6,340,697
46,398
5,817,811
566,758
12,771,664
14
Fixed asset investments
2023
2022
Notes
£
£
Investments in subsidiaries
15
5,641,939
5,591,939
Movements in non-current investments
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023
5,591,939
Additions
50,000
At 31 December 2023
5,641,939
Carrying amount
At 31 December 2023
5,641,939
At 31 December 2022
5,591,939
STREAMLAND MEDIA UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
15
Subsidiaries
Details of the company's subsidiaries at 31 December 2023 are as follows:
Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Indirect
The Farm LA Inc
USA
Post Production
Ordinary
100.00
0
Uncle Post Production Limited
England & Wales
Dormant
Ordinary
100.00
0
Formosa Group Trident Limited
England & Wales
Post Production
Ordinary
100.00
0
Formosa Interactive UK Limited
England & Wales
Post Production
Ordinary
100.00
0
Streamland Media India Limited
India
Post Production
Ordinary
100.00
0
STREAMLAND MEDIA UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
16
Inventories
2023
2022
£
£
Raw materials and consumables
24,704
25,730
17
Trade and other receivables
2023
2022
Amounts falling due within one year:
£
£
Trade receivables
7,936,256
8,369,842
Amounts owed by group undertakings
2,955,329
3,445,233
Other receivables
307,941
244,030
Prepayments and accrued income
3,918,078
4,306,477
15,117,604
16,365,582
18
Current liabilities
2023
2022
Notes
£
£
Bank loans and overdrafts
20
527,995
7,471
Obligations under finance leases
21
929,085
912,909
Trade payables
1,917,456
888,258
Amounts owed to group undertakings
30,216,900
19,361,485
Taxation and social security
2,135,875
2,194,650
Deferred income
22
920,944
171,573
Other payables
289,639
465,143
Accruals and deferred income
10,235,147
8,244,729
47,173,041
32,246,218
19
Non-current liabilities
2023
2022
Notes
£
£
Obligations under finance leases
21
601,941
559,871
20
Borrowings
2023
2022
£
£
Bank overdrafts
527,995
7,471
Payable within one year
527,995
7,471
STREAMLAND MEDIA UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
21
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
929,085
912,909
In two to five years
601,941
559,871
1,531,026
1,472,780
22
Deferred income
2023
2022
£
£
Other deferred income
920,944
171,573
23
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
297,335
262,628
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.
24
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary 'A' of £1 each
588,243
588,243
588,243
588,243
Ordinary 'B' of £1 each
196,081
196,081
196,081
196,081
784,324
784,324
784,324
784,324
25
Operating lease commitments
Lessee
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:
2023
2022
£
£
Within one year
4,757,896
4,129,281
Between two and five years
13,584,705
14,397,398
In over five years
3,297,311
5,706,036
21,639,912
24,232,715
STREAMLAND MEDIA UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
26
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
2023
2022
Amounts due to related parties
£
£
Entities with control, joint control or significant influence over the company
10,017,298
10,017,298
Subsidiaries
835,124
400,000
Parent
12,697,476
8,735,051
Other related parties
6,667,002
209,136
The nature of the transactions between the related parties are the lending and repayment of loans and inter-company sales and purchases.
The following amounts were outstanding at the reporting end date:
2023
2022
Amounts due from related parties
£
£
Subsidiaries
2,379,593
2,348,142
Other related parties
575,736
1,097,091
The nature of the transactions between the related parties are the lending and repayment of loans and inter-company sales and purchases.
27
Ultimate controlling party
At the balance sheet date the parent company was The Farm UK Holdco Limited. The ultimate controlling party was Streamland Media LLC, a company incorporated in Delaware, United States of America.
The principal place of business of Streamland Media LLC is 1132 Vine Street, Hollywood, CA 90038. The results of the group are available at this address.
STREAMLAND MEDIA UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
28
Cash generated from operations
2023
2022
£
£
Loss for the year after tax
(17,810,513)
(6,664,087)
Adjustments for:
Finance costs
216,412
138,408
Investment income
(36,544)
(866)
Gain on disposal of intangible assets
(217)
(720)
Amortisation and impairment of intangible assets
37,957
37,957
Depreciation and impairment of property, plant and equipment
4,264,435
4,799,312
Movements in working capital:
Decrease/(increase) in inventories
1,026
(2,363)
Decrease/(increase) in trade and other receivables
1,734,967
(1,965,393)
Increase in trade and other payables
13,350,752
11,308,159
Increase in deferred income
749,371
62,752
Cash generated from operations
2,507,646
7,713,159
29
Analysis of changes in net debt
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
877,200
(482,761)
394,439
Bank overdrafts
(7,471)
(520,524)
(527,995)
869,729
(1,003,285)
(133,556)
Obligations under finance leases
(1,472,780)
(58,246)
(1,531,026)
(603,051)
(1,061,531)
(1,664,582)
2023-12-312023-01-01falsefalsefalseCCH SoftwareCCH Accounts Production 2024.301Ms C J SheppardMr W P RomeoMr G P RaksisMr D StinnettMr N FenwickMr L HirshMr G LyonMr E F GloverWPP Group (Nominees) Limited035698212023-01-012023-12-3103569821bus:Director62023-01-012023-12-3103569821bus:Director72023-01-012023-12-3103569821bus:Director82023-01-012023-12-3103569821bus:Director12023-01-012023-12-3103569821bus:Director22023-01-012023-12-3103569821bus:Director32023-01-012023-12-3103569821bus:Director42023-01-012023-12-3103569821bus:Director52023-01-012023-12-3103569821bus:CompanySecretary12023-01-012023-12-3103569821bus:RegisteredOffice2023-01-012023-12-31035698212023-12-31035698212022-01-012022-12-3103569821core:RetainedEarningsAccumulatedLosses2022-01-012022-12-3103569821core:RetainedEarningsAccumulatedLosses2023-01-012023-12-3103569821core:Goodwill2023-12-3103569821core:Goodwill2022-12-31035698212022-12-3103569821core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-12-3103569821core:ConstructionInProgressAssetsUnderConstruction2023-12-3103569821core:PlantMachinery2023-12-3103569821core:FurnitureFittings2023-12-3103569821core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-12-3103569821core:ConstructionInProgressAssetsUnderConstruction2022-12-3103569821core:PlantMachinery2022-12-3103569821core:FurnitureFittings2022-12-3103569821core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-3103569821core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-3103569821core:Non-currentFinancialInstrumentscore:AfterOneYear2023-12-3103569821core:Non-currentFinancialInstrumentscore:AfterOneYear2022-12-3103569821core:CurrentFinancialInstruments2022-12-3103569821core:ShareCapital2023-12-3103569821core:ShareCapital2022-12-3103569821core:SharePremium2023-12-3103569821core:SharePremium2022-12-3103569821core:RetainedEarningsAccumulatedLosses2023-12-3103569821core:RetainedEarningsAccumulatedLosses2022-12-3103569821core:ShareCapital2021-12-3103569821core:SharePremium2021-12-3103569821core:RetainedEarningsAccumulatedLosses2021-12-31035698212021-12-3103569821core:ShareCapitalOrdinaryShares2023-12-3103569821core:ShareCapitalOrdinaryShares2022-12-31035698212022-12-3103569821core:WithinOneYear2023-12-3103569821core:WithinOneYear2022-12-3103569821core:Goodwill2023-01-012023-12-3103569821core:IntangibleAssetsOtherThanGoodwill2023-01-012023-12-3103569821core:LandBuildingscore:LongLeaseholdAssets2023-01-012023-12-3103569821core:PlantMachinery2023-01-012023-12-3103569821core:FurnitureFittings2023-01-012023-12-3103569821core:ConstructionInProgressAssetsUnderConstruction2023-01-012023-12-3103569821core:UKTax2023-01-012023-12-3103569821core:UKTax2022-01-012022-12-3103569821core:Goodwill2022-12-3103569821core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-12-3103569821core:ConstructionInProgressAssetsUnderConstruction2022-12-3103569821core:PlantMachinery2022-12-3103569821core:FurnitureFittings2022-12-3103569821core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-01-012023-12-3103569821core:Non-currentFinancialInstruments2023-12-3103569821core:Non-currentFinancialInstruments2022-12-3103569821core:CurrentFinancialInstruments2023-12-3103569821core:BetweenTwoFiveYears2023-12-3103569821core:BetweenTwoFiveYears2022-12-3103569821core:MoreThanFiveYears2023-12-3103569821core:MoreThanFiveYears2022-12-3103569821core:EntitiesWithJointControlOrSignificantInfluenceOverReportingEntity2023-12-3103569821bus:PrivateLimitedCompanyLtd2023-01-012023-12-3103569821bus:FRS1022023-01-012023-12-3103569821bus:Audited2023-01-012023-12-3103569821bus:FullAccounts2023-01-012023-12-31xbrli:purexbrli:sharesiso4217:GBP