Academy Films Limited
Annual Report and Financial Statements
For the year ended 30 June 2024
Company Registration No. 05860629 (England and Wales)
Academy Films Limited
Company Information
Directors
J Glazer
S Cooper
M Riordan
Company number
05860629
Registered office
Charlotte Building
17 Gresse Street
London
W1T 1QL
Auditor
Moore Kingston Smith LLP
Charlotte Building
17 Gresse Street
London
W1T 1QL
Academy Films Limited
Contents
Page
Strategic report
1 - 3
Directors' report
4 - 5
Independent auditor's report
6 - 9
Statement of income and retained earnings
10
Balance sheet
11
Notes to the financial statements
12 - 22
Academy Films Limited
Strategic Report
For the year ended 30 June 2024
Page 1
The directors present the strategic report for the year ended 30 June 2024.
Business Overview
Academy Films is a leading advertising and film production company, specialising in the creation and delivery of high-quality commercials, branded content, music videos, and feature films. Operating from our studios in London and with an office in Los Angeles, we collaborate with global brands and agencies to produce culturally resonant and visually ambitious work, as well as with leading film financiers to develop and produce feature films.
Our directors and creative teams are recognised for their innovation, and the company is known for its commitment to developing new talent and embracing emerging technologies in content production.
Academy is equally committed to sustainability and inclusion. We continue to collaborate with Carbon Aware Productions to implement and expand environmentally conscious practices across all areas of production. Alongside this, our long-standing partnership with Ghetto Film School helps provide meaningful opportunities to young adults from underrepresented communities within the film and advertising industries.
At present, we are undergoing a strategic review of our production offerings, with a focus on future-proofing the business in response to increasing competition from in-house agency production and the rapid evolution of AI tools. Through a partnership with a leading business consultancy, we aim to grow our client base across platforms and territories, foster deeper creative partnerships through co-productions, and increase our visibility via targeted marketing strategies.
While the industry is experiencing significant disruption, we believe this moment presents exciting opportunities for innovation - and Academy intends to lead from the front.
Strategy and Objectives
Our strategic objectives are to:
Continue producing award-winning commercial work for major global clients.
Invest in and nurture emerging directorial talent.
Expand our use of future-facing production practices, including virtual production and remote collaboration tools.
Expand our use of sustainable production practices including CAP
Develop our product offerings including SMART production, which takes a 360 approach to production, offering clients and agencies a full service across multiple platforms, outputs and deliverables in an efficient way.
Strengthen and grow our international presence, particularly in the US, LATAM and EMEA markets, through considered global production partnerships.
Maintain robust financial management and operational efficiency.
Continue our growth into the long-form industry, developing new projects, and expanding into television and branded entertainment.
Academy Films Limited
Strategic Report (Continued)
For the year ended 30 June 2024
Page 2
Business Performance
2024 was a strong year for Academy, with increased demand for high-end digital and branded content. Key highlights include:
Delivery of 68 commercial campaigns and music videos for clients including Prada, Riyadh Season, LISA, Waitrose and BET 365.
Continued success in the US markets.
Continued recognition for creative excellence with, in the narrative space, our first BAFTA and film festival recognition across 3 projects (feature and short film), along with success in the advertising sector seen through wins at the British Arrows, Ciclope, D&AD and our first MTV VMA in over 20 years.
Increased leadership recognition with Simon Cooper chairing the British Arrows, and Medb Riordan chairing the jury of the Young Director Award at Cannes, and the Ciclope Award jury panel, along with increased visibility through BAFTA panels and interviews.
Increased investment in new production approaches in SMART production.
Financial performance was in line with expectations, with turnover of Turnover Increased from £29m in 2023 to £32m and a profit for the year of £2.8m (2023 £3.1m )
And this is underpinned by a strong balance sheet including net assets of over £3.4m (2023 £2.9m )
Key Performance Indicators
The directors review KPIs throughout the year on a project by project basis. The KPI’s for the year ended June 2024 are:
2024 2023
Gross Profit Margin 19% 21%
Operating Profit Margin 12% 13%
Profit (after tax) Margin 9% 11%
The company continues to maintain healthy cash flow and has reinvested profits into creative and talent development and business consultancy.
Principle Risks and Uncertanties
Key risks faced by the business include:
Market volatility due to global economic conditions and increased competition.
Client budget constraints impacting project profitability.
Talent retention in a competitive creative market.
The growth of AI.
To mitigate these risks, we continue to:
Diversify our client base across industries and territories.
Invest in staff development and director loyalty schemes.
Invest in developing new products.
Monitor legislative changes and maintain close ties with industry bodies.
Academy Films Limited
Strategic Report (Continued)
For the year ended 30 June 2024
Page 3
Future Outlook
We anticipate continued growth in demand for high-quality, digital-first content. Our focus in 2025 will be on:
Scaling our presence in North America.
Scaling our presences in Europe and Latin America through considered partnerships.
Investment in new products, including Branded Entertainment, SMART production.
Investment in business consultation to improve access into new markets and to further develop our marketing strategies.
Further adoption of AI including staff training and education.
Strengthening sustainability practices across all shoots.
Launching long-form content partnerships in the independent film, streaming and documentary space.
The board is confident in the company’s ability to adapt to market shifts and remain a leader in the advertising and film production space.
S Cooper
Director
3 June 2025
Academy Films Limited
Directors' Report
For the year ended 30 June 2024
Page 4
The directors present their annual report and financial statements for the year ended 30 June 2024.
Principal activities
The principal activity of the company continued to be that of the production of television commercials.
Results and dividends
The results for the year are set out on page 10.
Ordinary dividends were paid amounting to £2,294,000. The directors do not recommend payment of a further dividend.
No preference dividends were paid.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
J Glazer
S Cooper
M Riordan
Future developments
The company expects the market to be challenging, but is confident that trading will continue to be profitable in the forthcoming year.
Auditor
The auditor, Moore Kingston Smith LLP, are deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of directors' responsibilities
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;
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.
Academy Films Limited
Directors' Report (Continued)
For the year ended 30 June 2024
Page 5
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
S Cooper
Director
Academy Films Limited
Independent Auditor's Report
To the Members of Academy Films Limited
Page 6
Opinion
We have audited the financial statements of Academy Films Limited (the 'company') for the year ended 30 June 2024 which comprise the Statement of Income and Retained Earnings, the Balance Sheet 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 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 30 June 2024 and of its profit 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.
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.
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.
Academy Films Limited
Independent Auditor's Report (Continued)
To the Members of Academy Films Limited
Page 7
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.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
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 directors' 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.
Academy Films Limited
Independent Auditor's Report (Continued)
To the Members of Academy Films Limited
Page 8
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.
As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the company’s internal control.
Perform substantive tests of detail to evaluate the cut off, completeness, and accuracy of production revenue and associated production costs.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Academy Films Limited
Independent Auditor's Report (Continued)
To the Members of Academy Films Limited
Page 9
Explanation as to what extent the audit was considered 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.
The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company.
Our approach was as follows:
We obtained an understanding of the legal and regulatory requirements applicable to the company and considered that the most significant are the Companies Act 2006, UK financial reporting standards as issued by the Financial Reporting Council, and UK taxation legislation.
We obtained an understanding of how the company complies with these requirements by discussions with management and those charged with governance.
We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.
We inquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations.
Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required.
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. 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.
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.
Joanna Cosgrove
Senior Statutory Auditor
for and on behalf of Moore Kingston Smith LLP
4 June 2025
Chartered Accountants
Statutory Auditor
Charlotte Building
17 Gresse Street
London
W1T 1QL
Academy Films Limited
Statement of Income and Retained Earnings
For the year ended 30 June 2024
Page 10
2024
2023
Notes
£
£
Turnover
3
32,222,234
29,358,821
Cost of sales
(26,204,808)
(23,229,534)
Gross profit
6,017,426
6,129,287
Administrative expenses
(2,271,974)
(2,251,136)
Operating profit
4
3,745,452
3,878,151
Interest receivable and similar income
7
44,351
26,272
Interest payable and similar expenses
8
(3,938)
Profit before taxation
3,785,865
3,904,423
Tax on profit
9
(954,052)
(810,862)
Profit for the financial year
2,831,813
3,093,561
Retained earnings brought forward
2,858,191
6,982,457
Dividends
(2,294,000)
(7,217,827)
Retained earnings carried forward
3,396,004
2,858,191
The statement of income and retained earnings has been prepared on the basis that all operations are continuing operations.
There are no recognised gains and losses other than those passing through the profit and loss account.
Academy Films Limited
Balance Sheet
As at 30 June 2024
Page 11
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
22,246
11,808
Current assets
Work in progress
11
169,685
881,838
Debtors
12
5,919,371
5,447,957
Cash at bank and in hand
3,806,703
4,363,920
9,895,759
10,693,715
Creditors: amounts falling due within one year
13
(6,521,601)
(7,846,932)
Net current assets
3,374,158
2,846,783
Net assets
3,396,404
2,858,591
Capital and reserves
Called up share capital
16
400
400
Profit and loss reserves
3,396,004
2,858,191
Total equity
3,396,404
2,858,591
The financial statements were approved by the board of directors and authorised for issue on 3 June 2025 and are signed on its behalf by:
S Cooper
Director
Company Registration No. 05860629
Academy Films Limited
Notes to the Financial Statements
For the year ended 30 June 2024
Page 12
1
Accounting policies
Company information
Academy Films Limited is a private company limited by shares incorporated in England and Wales. The registered office is Charlotte Building, 17 Gresse Street, London, W1T 1QL.
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 on the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for 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.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.
1.4
Tangible fixed assets
Tangible fixed assets 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 improvements
20% straight line
Plant and machinery
33.33% straight line
Fixtures, fittings & equipment
20% straight line
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.
Academy Films Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2024
1
Accounting policies
(Continued)
Page 13
1.5
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.6
Financial instruments
The company only has basic financial instruments measured at amortised cost, with no financial instruments classified as other or basic instruments measured at fair value.
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.
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.
Academy Films Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2024
1
Accounting policies
(Continued)
Page 14
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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.7
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.8
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account 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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
1.9
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
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.
1.10
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.11
Leases
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.
Academy Films Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2024
1
Accounting policies
(Continued)
Page 15
1.12
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. 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.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Revenue recognition
Significant management judgement is required in determining the point at which revenue should be recognised. Revenue is recognised in respect of each production from the point at which the company has obtained the right to consideration in return for performance. This is considered to be when all necessary approvals during the process of pre-production have been obtained from the commissioning agency and normally equates to the date at which shooting commences. No profit element is recognised until the company is able to estimate the profit on the production reliably. In arriving at this point of recognition, management have considered the liabilities and amounts that would be due if at different points of the contract, the project were to be pulled.
Trade debtors recoverability
The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience.
Depreciation of tangible assets
The annual depreciation charge for property, plant and equipment is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets.
Academy Films Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2024
Page 16
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2024
2023
£
£
Turnover analysed by class of business
Production of television commercials
29,814,773
28,098,511
Music
999,181
351,985
Stills
1,408,280
908,325
32,222,234
29,358,821
2024
2023
£
£
Turnover analysed by geographical market
UK
21,119,769
25,408,562
Europe
3,495,953
2,273,083
ROW
7,606,512
1,677,176
32,222,234
29,358,821
2024
2023
£
£
Other significant revenue
Interest income
44,351
26,272
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange gains
(194)
(2,589)
Fees payable to the company's auditor for the audit of the company's financial statements
32,500
30,000
Depreciation of owned tangible fixed assets
10,530
34,522
Operating lease charges
312,092
313,867
Academy Films Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2024
Page 17
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Management
3
3
Production
21
21
Total
24
24
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
1,339,929
1,380,446
Social security costs
184,775
173,514
Pension costs
23,035
21,084
1,547,739
1,575,044
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
311,839
311,337
Company pension contributions to defined contribution schemes
2,642
-
314,481
311,337
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
108,600
106,972
Academy Films Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2024
Page 18
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
44,351
26,272
8
Interest payable and similar expenses
2024
2023
£
£
Other interest
3,938
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
954,052
810,862
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
3,785,865
3,904,423
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.50%)
946,466
800,407
Tax effect of expenses that are not deductible in determining taxable profit
10,633
7,242
Permanent capital allowances in excess of depreciation
(5,680)
(3,667)
Depreciation on assets not qualifying for tax allowances
2,633
6,880
Taxation charge for the year
954,052
810,862
Academy Films Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2024
Page 19
10
Tangible fixed assets
Leasehold improvements
Plant and machinery
Fixtures, fittings & equipment
Total
£
£
£
£
Cost
At 1 July 2023
230,659
106,618
91,335
428,612
Additions
2,001
18,967
20,968
At 30 June 2024
230,659
108,619
110,302
449,580
Depreciation and impairment
At 1 July 2023
230,659
98,420
87,725
416,804
Depreciation charged in the year
5,694
4,836
10,530
At 30 June 2024
230,659
104,114
92,561
427,334
Carrying amount
At 30 June 2024
4,505
17,741
22,246
At 30 June 2023
8,198
3,610
11,808
11
Stock
2024
2023
£
£
Work in progress
169,685
881,838
12
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,141,425
800,526
Other debtors
809,793
8,615
Prepayments and accrued income
3,968,153
4,638,816
5,919,371
5,447,957
Academy Films Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2024
Page 20
13
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Redeemable ordinary shares
14
200,000
200,000
Trade creditors
1,354,459
982,534
Corporation tax
669,659
565,607
Other taxation and social security
475,487
719,108
Other creditors
609,065
108,649
Accruals and deferred income
3,212,931
5,271,034
6,521,601
7,846,932
14
Loans and overdrafts
2024
2023
£
£
Redeemable ordinary shares payable within one year
200,000
200,000
The rights of the redeemable ordinary shares are included in note 16.
15
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
23,035
21,084
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.
16
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A Shares of £1 each
100
100
100
100
Ordinary B Shares of £1 each
100
100
100
100
Ordinary C Shares of £1 each
100
100
100
100
Ordinary D Shares of £1 each
100
100
100
100
400
400
400
400
Academy Films Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2024
16
Share capital
(Continued)
Page 21
The 'A' ordinary. 'B' ordinary, 'C' ordinary, 'D' ordinary shares and the redeemable ordinary shares all rank pari passu with the exception of when there are surplus assets of the company available for distribution among the members. In such a circumstance the following will apply.
Amounts will be paid upon the Redeemable Ordinary Shares.
Amounts will be paid upon the 'A' ordinary, 'C' and 'D' ordinary shares.
All remaining assets will be distributed pari passu amongst the holders of the 'A' ordinary, 'C' ordinary, 'D' ordinary and redeemable ordinary shares.
The 'B' ordinary shares shall not confer any further right of participation in the profits or assets of the company.
17
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:
2024
2023
£
£
Within one year
184,600
184,600
Between two and five years
123,067
307,667
307,667
492,267
18
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
The company has taken advantage of exemption, under the terms of FRS 102, not to disclose related party transactions with wholly owned subsidiaries within the group.
At the balance sheet date £Nil (2023: £2,197) was owed by directors in the company. Additionally, there was £600,302 (2023: £99,335) owed to directors in the company.
At the balance sheet date the company was owed £674,608 by a US-registered company under common control by the directors.
Academy Films Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2024
Page 22
19
Ultimate controlling party
The immediate parent company of Academy Films Limited is Nua Limited, a company registered in England and Wales.
Academy Films Limited has no ultimate controlling party.
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