The directors present the strategic report for the year ended 30 June 2024.
The directors consider the company's key non-financial performance indicator to be whether the programmes in development and production will qualify as British in order to attract the High End Television and Film tax credits and the Audio Visual Expenditure Credit.
During the period the Company continued to develop and produce high-end television programming and feature films in keeping with its stated aims.
The Group is continuing to invest in actively developing both high-end television programmes and feature films. In 2024, the Company was in production on “Slow Horses” (Season 2), “Slow Horses” (Season 3) for Apple TV+, “Heartstopper”(Season 3) for Netflix and “Sweetpea”(Season 1) for Sky. With multiple returning seasons of “Heartstopper” and “Slow Horses”, the Company has grown into a significant player in returning TV, further building on its reputation as one of the world’s most dynamic independent film and TV production houses.
On 5th March 2025, 51% of the total issued share capital in See-Saw Films Limited was acquired by M&A Holdco Breteuil, a company incorporated in France and a subsidiary of Mediawan Holding SAS. On and from 5th March 2025 the Company’s ultimate controlling parent company is Mediawan Holding SAS, a company incorporated in France who is a leading independent content production, distribution and licensing company.
In 2024, the UK production sector continues to face challenges stemming from tighter budgets and reduced investment from U.S. studios, streamers, and other commissioners. Oversaturation and consolidation among global platforms may further limit opportunities for UK production deals. Heightened competition from countries offering more attractive tax incentives—such as Canada, Australia, and Eastern European nations—risks diverting projects abroad. Lingering disruptions from the 2023 Writers Guild of America (WGA) strikes have compounded financial strain, delaying transatlantic collaborations and reshuffling production timelines. Brexit’s enduring complexities persist, affecting access to EU funding, talent mobility, and seamless market integration.
Meanwhile, declining linear TV viewership, contrasted with the dominance of streaming and on-demand platforms, necessitates agile, audience-tailored content strategies. Evolving audience expectations for inclusive storytelling further pressure creators to adapt swiftly. The accelerating integration of AI poses additional risks, including potential job displacement and ethical concerns surrounding deepfake technology and intellectual property ownership.
Collectively, these factors create a volatile environment for producers navigating project planning and execution. To mitigate ongoing uncertainty, the Company prioritizes collaboration with world-class creative talent to develop a diverse slate of compelling projects. This strategy is bolstered by the Company’s established relationships with commissioners, distributors, and financiers, as well as the Group’s proven track record of delivering high-quality content.
As reported on the Profit and Loss account on Page 10, the Group turnover for the year ended 30 June 2024 was £94,214,426 compared with £122,267,587 for year ended 30 June 2023. Cost of sales for the year was £106,723,494 compared with £142,327,704 for 2023. Loss before taxation was £1,581,113 from £20,440,505 in 2023.
The group continues to operate as a going concern. Driven by the delivery and release of TV productions including “Slow Horses”-Season 2 and 3, “Heartstopper”-Season 2 and 3, the overall group profit after taxation for the year ended 30 June 2024 increased by 173% from £4,530,110 in 2023 to £7,854,454. As a result, net assets of the group on the Group statement of financial position on Page 11, has increased by 174% from £10,225,603 to £17,767,683.
The directors consider the company's key non-financial performance indicator to be whether the programmes in development and production will qualify as British in order to attract the High End Television and Film tax credits and the Audio Visual Expenditure Credit.
The directors of See-Saw Films Limited consider that they have acted in the way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole (having regard to the stakeholders and matters set out in s172(1)(a-f) of the Act) in the decisions taken during the period ended 30 June 2024.
The Company is committed to being a responsible business. Our behaviour is aligned with the expectations of our people, suppliers, customers, communities and societies as a whole.
Our strategy focusses on working with the best talent in front of and behind the camera, to create high quality, distinctive and ambitious scripted TV drama and feature films for the UK and global markets. To do this, we need to develop and maintain strong client relations. We value all of our suppliers and contractors and are committed to developing talent.
On behalf of the board
The directors present their annual report and financial statements for the year ended 30 June 2024.
The results for the year are set out on page 10.
Ordinary dividends of £342,270 were paid in the year (2023: £nil). The directors do not recommend payment of an interim dividend (2023: £114,770).
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
The company makes little use of financial instruments other than operational bank accounts and so its exposure to price risk, credit risk, liquidity risk and cash flow risk is not material for the assessment of the assets, liabilities, financial position and profit or loss of the company.
The group's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.
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 group's performance.
Our strategy focusses on creating ambitious, imaginative and relevant films for the global markets. To do this, we need to develop and maintain strong client relations. We value all of our suppliers and contractors and are committed to developing production talent.
The directors expect to continue the principal activity for the foreseeable future.
The auditor, Saffery LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
UK greenhouse gas emissions and energy use data for the year ended 30 June 2024.
The group has followed the Environmental Reporting Guidelines. The group has also used the GHG Reporting Protocol – Corporate Standard and have used the 2024 UK Government’s Conversion Factors for Company Reporting
The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per £'000 revenue, being the most appropriate measure for the group's principal activity of film and television production.
The Company is committed to making effort to ensure that the production reduce its impact on our environment and increase awareness of sustainable behaviours. Following key steps are taken by the Company:
Engage a Sustainability Consultant in pre-production to development a tailored environment policy
Calculate carbon footprint using carbon accounting software
Offset to compensate for unavoidable emission to achieve carbon neutral status
On set, we recommend our crew use rechargeable batteries, LED lights, eliminate disposable water bottles, take part in Meat Free Day, participate in a food donation for any left-over meals, reduce the number of disposable items for hair & make-up, recycle and reclaim as much materials as possible for use on future productions
We have audited the financial statements of See-Saw Films Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2024 which comprise the group income statement, the group statement of financial position, the company statement of financial position, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
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 group and parent 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 group's and parent 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 directors are responsible for the other information. The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. 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 the 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.
In the light of the knowledge and understanding of the group and the parent company and their 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:
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
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 parent 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 parent company or to cease operations, or have no realistic alternative but to do so.
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 group and parent 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 group and parent company by discussions with directors and by updating our understanding of the sector in which the group and parent company operates.
Laws and regulations of direct significance in the context of the group and parent company include The Companies Act 2006, and UK Tax legislation, specifically legislation relating to creative industry tax credits.
In addition, the company is subject to other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to its ability to operate or to avoid a material penalty. These include anti-bribery legislation, employment law and health and safety regulations.
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 group and parent company financial statement disclosures. We reviewed the parent 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 parent 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.
As group auditors, our assessment of matters relating to non-compliance with laws or regulations and fraud differed at group and component level according to their particular circumstances. Our communications included a request to identify instances of non-compliance with laws and regulations and fraud that could give rise to a material misstatement of the group financial statements in addition to our risk assessment.
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 parent 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 parent company's members those matters we are required to state to them in an auditors 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 parent company and the parent company's members as a body, for our audit work, for this report, or for the opinions we have formed.
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £3,763,673 (2023 - £372,699 profit).
See-Saw Films Limited (“the company”) is a private company limited by shares incorporated in England and Wales. The registered office is 3rd Floor, 45 Folgate Street, London, E1 6GL.
The group consists of See-Saw Films Limited and all of its subsidiaries.
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 consolidated group financial statements consist of the financial statements of the parent company See-Saw Films Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 30 June 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.
Investments in joint ventures and associates are carried in the group statement of financial position at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.
If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.
Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.
The company is supported by its immediate parent undertakings, the directors of which have indicated that they will continue to support the company for the twelve months from the date of signing of these financial statements if required. At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.
Turnover 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. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
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 recognised in the income statement.
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.
Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.
In the parent company financial statements, investments in associates are accounted for at cost less impairment.
Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
At each reporting period end date, the group 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.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
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.
The group 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 group's statement of financial position when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and 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, 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.
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.
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.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
Equity instruments issued by the group 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 group.
The tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
The tax currently recoverable is based on relievable losses arising in the period as the result of high end TV and 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 television 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 group’s asset for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
High end TV and film tax credits have only been recognised where management believe that the tax credit will be recoverable based on their experience of obtaining the relevant certification and the success of similar historical claims in the wider group.
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
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.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity.
The expense in relation to options over the parent company’s shares granted to employees of a subsidiary is recognised by the company as a capital contribution, and presented as an increase in the company’s investment in that subsidiary.
When the terms and conditions of equity-settled share-based payments at the time they were granted are subsequently modified, the fair value of the share-based payment under the original terms and conditions and under the modified terms and conditions are both determined at the date of the modification. Any excess of the modified fair value over the original fair value is recognised over the remaining vesting period in addition to the grant date fair value of the original share-based payment. The share-based payment expense is not adjusted if the modified fair value is less than the original fair value.
Cancellations or settlements (including those resulting from employee redundancies) are treated as an acceleration of vesting and the amount that would have been recognised over the remaining vesting period is recognised immediately.
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.
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.
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
The directors believe the key accounting estimate within the financial statements for the company is the valuation of the film and high-end television tax credits available. The estimate is based on the assessment of the value of qualifying expenditure as per HMRC legislation and guidance plus assessment of the qualification of the underlying production as eligible for the tax relief.
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 expenditure credit.
Government grants
Government grants received during the year relate entirely to the Audio-Visual Expenditure Credit claimed in respect of a high-end television production.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
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:
Details of the company's subsidiaries at 30 June 2024 are as follows:
Registered office addresses (all UK unless otherwise indicated):
A loss of £89,327 (2023: £123,605) has been recognised in the profit and loss statement relating to the group's share of the losses of associates held during the year.
Amounts owed by group undertakings due within one year are unsecured, interest free and repayable on demand.
Within other debtors is an amount of £11,670,046 relating to Government grants. This balance relates entirely to the Audio Visual Expenditure Credit claimed in respect of a high-end television production.
Amounts owed to group undertakings due within one year are unsecured, interest free and repayable on demand.
The outstanding loans at the period end have interest rates between 1.5% and 3% and are due for repayment within 12 months of the period end.
The long-term loans are secured by the following charges over:
Warner Bros. Entertainment UK Limited holds a fixed and floating charge over the company's present and future rights, title and interest in and to the film 'One Life' and its assets.
During the year Film Finances, Inc. held a fixed and floating charge over the company's present and future rights, title and interest in and to the film 'One Life' and its assets. This was satisfied after the period end on 25 October 2024.
MBK Productions Limited holds a fixed and floating charge over the company's present and future rights, title and interest in and to the film 'One Life' and its assets.
Cross City Films Limited holds a fixed and floating charge over the company's present and future rights, title and interest in and to the film 'One Life' and its assets.
LIP Sync Productions LLP holds a fixed and floating charge over the company's present and future rights, title and interest in and to the film 'One Life' and its assets.
Natixis Coficine S.A. holds a fixed and floating charge over the company's present and future rights, title and interest in and to the film 'One Life' and its assets. This was satisfied after the period end on 26 September 2024.
British Broadcasting Corporation holds a fixed and floating charge over the company's present and future rights, title and interest in and to the film 'One Life' and its assets.
Apple Video Programming LLC holds a fixed and floating charge over the company which entitles it to the rights, title and interest in the entire copyright and all other rights in relation to the production 'Slow Horses'.
Apple Video Programming LLC holds a fixed and floating charge over the company which entitles it to the rights, title and interest in the entire copyright and all other rights in relation to the production 'The Essex Serpent'.
During the year Fulcrum Media Finance 4 NZ held two fixed and floating charges over all the right, title and interest in 'The Legend of Monkey' and 'The New Legends of Monkey'. These charges were satisfied in full on 10 July 2023.
Netflix Inc. hold a fixed and floating charge over all right, title and interest in 'The Legend of Monkey'.
Bank of Montreal holds a charge over all sums due or to become due to the company which entitles it to the right, title, interest and benefits in and to the television programme "The North Water".
British Film Institute holds a fixed and floating charge over the company's present and future rights, title and interest in and to the film 'Ammonite' and its assets.
During the year Coutts & Company held a floating charge over the company's present and future rights, title and interest in and to the film 'Ammonite' and its assets. This was satisfied on 25 October 2024.
During the year Film Finances Inc. held a fixed and floating charge over the company's present and future rights, title and interest in and to the film 'Ammonite' and its assets. This was satisfied on 25 October 2024.
The British Broadcasting Corporation holds a fixed and floating charge over the company's present and future rights, title and interest in and to the film 'Ammonite' and its assets.
Film Finances Inc holds a charge over all sums due or to become due to the company which entitles it to the right, title, interest and benefits in and to the television programme "The North Water".
Fulcrum Media Finance 4 Pty LTD holds a fixed charge, floating charge and negative pledge over all the rights, title and interest in and to the film 'The Royal Hotel' and its assets.
Natixis Coficine S.A. holds a fixed charge over all the rights, title and interest in and to the television series "Sweetpea'" and its assets.
Neddy Dean Productions holds a fixed charge, floating charge and negative pledge over all the rights, title and interest in and to the film "'The Son" and its assets.
FILM4, a Division of Channel Four Television Corporation holds a fixed charge, floating charge and negative pledge over all the rights, title and interest in and to the film "'The Son" and its assets.
Bank of America N.A. holds a fixed charge, floating charge and negative pledge over all the rights, title and interest in and to the film "Mary Magdalene'" and its assets.
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
The company granted various share options to employees in the prior year. Some of the share options vest based on the employees continuing in employment through to 4 October 2026. Other share options vest in equal annual tranches, or if there has been a group sale or partial sale. Additionally, there are share options which vest on an annual basis from 30 April 2027, dependent on the company achieving certain EBIT levels for the 2027 financial year and onwards. Finally, the employees granted share options in the prior year have also been granted an anti-dilution option, which prevents their potential shareholding being reduced if future share transactions are made.
All share option schemes are equity-settled.
The weighted average fair value of options was determined by reference to the performance and net asset position of the company at the date of grant and was found to 3.709 (2023: £3.709).
Non-vesting conditions and market conditions are taken into account when estimating the fair value of the option at grant date. Service conditions and non-market performance conditions are taken into account by adjusting the number of options expected to vest at each reporting date.
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
The remuneration of key management personnel is as follows.
Remuneration of £21,937 (2023: £19,714) was paid to directors in the year.
During the year the group entered into the following transactions with related parties:
The following amounts were outstanding at the reporting end date:
The following amounts were outstanding at the reporting end date: