Company registration number 09115301 (England and Wales)
INGENIOUS COLLECTIONS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
INGENIOUS COLLECTIONS LIMITED
COMPANY INFORMATION
Director
Mr D M Reid
Secretary
Ms S Cruickshank
Company number
09115301
Registered office
Parcels Building
14 Bird Street
London
United Kingdom
W1U 1BU
Auditor
BDO LLP
55 Baker Street
London
United Kingdom
W1U 7EU
INGENIOUS COLLECTIONS LIMITED
CONTENTS
Page
Director's report
1 - 2
Director's responsibilities statement
3
Independent auditor's report
4 - 7
Income statement
8
Statement of financial position
9
Statement of changes in equity
10
Notes to the financial statements
11 - 17
INGENIOUS COLLECTIONS LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 1 -

The director presents his annual report and financial statements of Ingenious Collections Limited for the year ended 30 June 2024.

Principal activities

The Company is a wholly-owned subsidiary of Ingenious Capital Management Holdings Limited, the parent Company of the Ingenious Capital Management Holdings Limited group ("the Group"), The principal activity of the Company is the collection of the receipts in relation to films and/or television projects on behalf of companies managed by Ingenious Capital Management Limited, a wholly-owned subsidiary within the group.

 

Going concern

The Company's business activities, together with the factors likely to affect its future development, performance and position have been reviewed by the directors. Refer to note 1.2 for further details.

Director

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

Mr N A Forster
(Resigned 6 March 2024)
Mr D M Reid
Auditor

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

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.

Principal risks and uncertainties

The key business risks faced by the Company can be affected by a number of factors some of which may result from matters beyond the Company's control. This may include for example conditions in the domestic and global financial markets and the wider economy, as well as changes in legislation. The financial risk and operational management policies are determined for the Group as a whole and are discussed in the Group's annual reports and financial statements.The Company is exposed to financial risk through its financial assets and liabilities. The most important components of financial risk are:

 

(a) Liquidity risk

Liquidity risk is the risk that the Company could have short-term funding requirements to meet its payment obligations to counterparties. The Group operates a group-wide treasury management strategy to manage the liquidity requirements of the Group as a whole (including the Company) and is discussed in the Group's annual report and financial statements.

 

(b) Credit risk

The Company’s principal financial assets are royalties due with the Company’s credit risk primarily attributable to its trade debtors. Where possible the Company reviews the credit rating of its partners and undertakes regular detailed reviews of any outstanding receivable balances. The amounts presented in the Balance Sheet are net of allowances for doubtful receivables.

 

(c) Interest rate risk

The Company is no longer exposed to interest rate risk as its loans and deposit balances are fully settled. The Company seeks to maximise its margin on interest receivable, subject to the requirements of liquidity risk noted above.

 

(d) Business risk

Business risk is the failure of the business to execute its business strategy and therefore being unsuccessful in achieving projected returns. This includes changes to tax legislation or financial regulation.

INGENIOUS COLLECTIONS LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -
Small companies exemption

In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.

On behalf of the board
Mr D M Reid
Director
12 May 2025
INGENIOUS COLLECTIONS LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -

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

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the director is required to:

 

 

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

INGENIOUS COLLECTIONS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF INGENIOUS COLLECTIONS LIMITED
- 4 -
Opinion on the financial statements

In our opinion:

 

We have audited the financial statements of Ingenious Collections Limited (“the Company”) for the year ended 30 June 2024 which comprise the Income statement, Statement of financial position, Statement of changes in equity, and notes to the financial statements, including a summary of 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.

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 believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

 

Independence

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.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Directors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant sections of this report.

Other information

The 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.

INGENIOUS COLLECTIONS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF INGENIOUS COLLECTIONS LIMITED
- 5 -

Other Companies Act 2006 reporting

In our opinion, based on the work undertaken in the course of the audit:

 

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 Directors’ report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

 

Responsibilities of Directors

As explained more fully in the Directors' responsibilities statement, the Directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

 

In preparing the financial statements, the Directors are responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

 

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

 

INGENIOUS COLLECTIONS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF INGENIOUS COLLECTIONS LIMITED
- 6 -

Extent to which the audit was capable of detecting irregularities, including fraud

 

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 extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

 

Non-compliance with laws and regulations

Based on:

 

We considered the significant laws and regulations to be United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland and UK tax legislation.

 

The Company is also subject to laws and regulations where the consequence of noncompliance could have a material effect on the amount or disclosures in the financial statements, for example through the imposition of fines or litigations. We identified such laws and regulations to be the Companies Act 2006.

 

Our procedures in respect of the above included:

 

Fraud

We assessed the susceptibility of the financial statements to material misstatement, including fraud. Our risk assessment procedures included:

INGENIOUS COLLECTIONS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF INGENIOUS COLLECTIONS LIMITED
- 7 -
Based on our risk assessment, we considered the areas most susceptible to fraud to be management override of controls.

Our procedures in respect of the above included:
• Testing a sample of journal entries throughout the year which meet a defined risk criteria as well as journals that do not meet the aforementioned risk criteria. Testing carried out by agreeing to supporting documentation and understanding the rationale for such transactions.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members who were all deemed to have appropriate competence and capabilities and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.  

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that 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, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed 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 are to become aware of it.

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

Use of our report

This report is made solely to the company's 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.

Peter Smith (Senior Statutory Auditor)
For and on behalf of BDO LLP, statutory auditor
London, United Kingdom
13 May 2025
BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).
INGENIOUS COLLECTIONS LIMITED
INCOME STATEMENT
FOR THE YEAR ENDED 30 JUNE 2024
- 8 -
2024
2023
as restated
Notes
£
£
Turnover
203,557
32,201
Administrative expenses
(95,812)
(48,153)
Operating profit/(loss)
107,745
(15,952)
Amounts written off investments
5
-
(39,681)
Profit/(loss) before taxation
107,745
(55,633)
Tax on profit/(loss)
6
-
0
-
0
Profit/(loss) for the financial year
107,745
(55,633)

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

 

The notes on pages 10 to 15 form part of these financial statements.

INGENIOUS COLLECTIONS LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
30 JUNE 2024
30 June 2024
- 9 -
2024
2023
as restated
Notes
£
£
£
£
Current assets
Debtors
7
48,924
91,621
Cash at bank and in hand
637,742
541,055
686,666
632,676
Creditors: amounts falling due within one year
8
(624,639)
(678,398)
Net current assets/(liabilities)
62,027
(45,722)
Provisions for liabilities
(300)
(300)
Net assets/(liabilities)
61,727
(46,022)
Capital and reserves
Called up share capital
9
1
1
Profit and loss reserves
10
61,726
(46,023)
Total equity
61,727
(46,022)

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 12 May 2025 and are signed on its behalf by:
Mr D M Reid
Director
Company registration number 09115301 (England and Wales)
INGENIOUS COLLECTIONS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 10 -
Share capital
Profit and loss reserves
Total
£
£
£
As restated for the period ended 30 June 2023:
Balance at 1 July 2022
1
9,610
9,611
Year ended 30 June 2023:
Loss and total comprehensive income
-
(55,633)
(55,633)
Balance at 30 June 2023
1
(46,023)
(46,022)
Year ended 30 June 2024:
Profit and total comprehensive income
-
107,745
107,745
Balance at 30 June 2024
1
61,726
61,727
INGENIOUS COLLECTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 11 -
1
Accounting policies
Company information

Ingenious Collections Limited is a private company limited by shares incorporated in England and Wales. The registered office is Parcels Building, 14 Bird Street, London, United Kingdom, W1U 1BU.

 

The principal activity of the company is the collection of the receipts in relation to films and/or television projects on behalf of companies managed by Ingenious Capital Management Limited, a wholly-owned subsidiary within the Group.

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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.

 

The Company meets the definition of a small company under FRS 102 and has therefore taken advantage of the disclosure exemptions available to it in respect of its financial statements. Exemptions have been taken in relation to presentation of a cashflow statement.

1.2
Going concern

The directors of the Company have considered the impact of macroeconomic factors such as higher than expected inflation rates and exposure to fluctuating interest rates, both contributing to the increased economic uncertainty which is expected in the next 12 months. Having also assessed the risks facing the business as set out in the Directors' report, its financial position and profit and cashflow forecasts, the directors believe that the Company is well placed to manage its business successfully.

 

For title rights that were assigned under the terms of the old agreement, the Company has an obligation to pass on any cash receipts from outstanding receivables (net of fees) to retired investors that exited from companies managed by Ingenious Capital Management Limited. For title rights that were assigned under the terms of the new agreement, the Company has no obligation to pass on any cash receipts and will instead earn revenues wholly from this income.

 

Therefore, the directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the Directors' report and financial statements.

1.3
Turnover

Turnover represents amounts receivable recorded net of Value Added Tax ("VAT"), derived from the Company's principal activity, recorded on an accruals basis.

 

For the year ended 30 June 2024, turnover was represented by 2 revenue streams. The first is the annual management fee payable to Ingenious Collections Limited ("ICL"). Following an update to fees charged form prior year, companies (or their investor pools) are charged £5,750 per annum, with reduced fees charged in cases where the amount collected is lower than these set fee levels. The second is the distribution income collected from all titles where rights are assigned under the new version of the agreement since June 2023, in which ICL doesn't charge a fee on receipts but instead collects all income as 100% revenue in the P&L.

INGENIOUS COLLECTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 12 -
1.4
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.5
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors 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.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. If loans are limited recourse, they are measured at fair value through profit and loss. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

1.6
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

INGENIOUS COLLECTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 13 -
1.7
Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.8
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.

1.9

Fair value of the syndicate loan and other debtors measured at fair value

In previous years the company held financial assets and financial liabilities where the repayment obligation of the syndicate loan was restricted to the film receipts collected by the underlying film production company, with any changes in value of these financial assets and liabilities being accounted for in the profit or loss account. In the prior year, a £127,557 repayment was made to the Shelley 5 lending syndicate, with the remaining balance written back to the profit or loss account in the prior year financial statements. These loans were not actually extinguished or expired, and so all open loan balances payable were reinstated in the prior year in the current year financial statements. Please refer to note 5 for further detail.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

There were no critical accounting judgements or key sources of estimations during the year.

 

3
Employees

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

2024
2023
Number
Number
Total
-
0
-
0
INGENIOUS COLLECTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 14 -
4
Auditor's remuneration
2024
2023
Fees payable to the company's auditor:
£
£
For audit services
Audit of the financial statements of the company
13,650
13,226
5
Amounts written off investments
2024
2023
as restated
£
£
Change in value of financial liabilities
-
4,513
Change in value of financial assets
-
(44,194)
Total change in value
-
(39,681)

During the prior year, £31,099 of the syndicated loan payable to Ingenious Project Finance Limited, Ingenious Media Finance Limited and Ingenious Broadcasting LLP, and £6,538 of the outstanding loan balance payable to Ingenious Resources Limited, was written back in full to the Income statement. As the loans hadn't extinguished or expired, this adjustment was made in error and so the restatement to prior year has now been added into the current year financial statements, net of £4,513 which is no longer repayable after assignment of Ingenious Broadcasting LLP's rights to ICL.

In the prior year, £44,194 which had related to an FX gain from 2019 transactions was written off to the Income statement because the previous gain could not be attributed to any particular company that the entity was collecting on behalf of.

As at 30 June 2024, no adjustments are required as all reversals of loan provisions have been restated in the prior years.

6
Taxation

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

2024
2023
as restated
£
£
Profit/(loss) before taxation
107,745
(55,633)
Expected tax charge/(credit) based on the blended/(standard) rate of corporation tax in the UK of 25.00% (2023: 20.50%)
26,936
(11,402)
Recognition of previously unrecognised losses
(1,542)
-
Adjustments in respect of prior years
1
-
0
Group relief claimed
(25,395)
-
Group relief surrendered
-
11,402
Taxation charge for the year
-
-
INGENIOUS COLLECTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 15 -
7
Debtors
2024
2023
as restated
Amounts falling due within one year:
£
£
Trade debtors
48,924
57,107
Other debtors
-
0
34,514
48,924
91,621
8
Creditors: amounts falling due within one year
2024
2023
as restated
£
£
Trade creditors
-
0
5,825
Amounts owed to group undertakings
137,769
55,474
Taxation and social security
15,786
-
0
Other creditors
471,084
617,099
624,639
678,398
9
Called up share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
1
1
1
1
10
Profit and loss reserves
2024
2023
as restated
£
£
At the beginning of the year
(12,813)
9,610
Prior year adjustment
(33,210)
-
0
As restated
(46,023)
9,610
Profit/(loss) for the year
107,745
(55,633)
At the end of the year
61,726
(46,023)

The profit and loss account represents the cumulative profits or losses, net of dividends paid and other adjustments.

INGENIOUS COLLECTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 16 -
11
Prior period adjustment

For the previous 3 years, loan payable balances have been understated on the balance sheet due to provisions being added to the P&L when the loans hadn't extinguished or expired, associated fees with these provisions have also been overstated in the P&L.

 

In the years prior to 1 July 2022, revenue was overstated by £1,749 and costs were understated by £31,895 (£33,644 aggregate). In the year to 30 June 2023, revenue was overstated by £664 and costs were understated by £32,546 (£33,210 aggregate). The directors of the company have therefore made a prior year adjustment to correct the material error.

 

Due to above, the opening retained earnings as of 1 July 2022 have been adjusted by £33,644. In the previous year, retained earnings were adjusted by £3,289 due to changes in fee revenue. This brings the total restatement to £36,933. Additionally, the opening profit and loss reserves for this year's financial statements, as of 1 July 2023, have been further adjusted by £33,210 as detailed above. This results in a cumulative negative impact of £70,143 on the retained earnings, as previously stated on 30 June 2023.

 

In the prior year, ICL fee income of £37,800 was earned from the collection of receipts in relation to films and/ or television projects. This fee income was accounted for in turnover in the income statement and incorrectly held in other debtors on the balance sheet. Since the fee income had been earned from the cash collected receipts by year end, the correct accounting treatment should have been to net off the fee income with other creditors. This resulted in other debtors being overstated by the fee income, whilst other creditors was overstated by the same amount. The directors of the company have therefore made a prior year adjustment to net off the fee income in other creditors, resulting in a reduction of other debtors of £37,800 and a reduction of other creditors by the same amount.

 

 

Reconciliation of changes in equity
1 July
30 June
2022
2023
£
£
Adjustments to prior year
Profit and loss reserves
(36,933)
(33,210)
Equity as previously reported
46,544
(12,812)
Equity as adjusted
9,611
(46,022)
Analysis of the effect upon equity
Profit and loss reserves
(36,933)
(33,210)
Reconciliation of changes in loss for the previous financial period
2023
£
Adjustments to prior year
Adjustments to loan provisions and associated fees
(33,210)
Loss as previously reported
(22,423)
Loss as adjusted
(55,633)
INGENIOUS COLLECTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 17 -
12
Related party transactions

The Company has applied the exemption granted by Section 33.1A of FRS 102 Related Party Disclosures not to disclose transactions with the parent company on the basis that it is a wholly owned subsidiary or any transactions with other related parties that have been undertaken under normal market conditions. Under this standard, disclosure is only required for material transactions with related parties that are not at arm’s length.

 

Ingenious Resources Limited/Enghamshire Limited ("IRL") is a connected party given it is part of the Fernlakes Group with the same ultimate beneficial owner/shareholder. In the current year, £16,603 was collected in the year to be made payable to IRL. Loans payable to IRL at FY24 year-end stands at £58,970.

 

13
Ultimate controlling party

The immediate parent company is Ingenious Capital Management Holdings Limited.

 

The consolidated financial statements of Ingenious Capital Management Holdings Limited can be obtained from Companies House, Crown Way, Maindy, Cardiff, CF14 3UZ.

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