62
false
false
false
false
true
false
false
false
false
false
false
true
true
false
true
true
true
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Sage Accounts Production Advanced 2023 - FRS102_2023
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213,962
9,090,672
8,912,415
18,003,087
8,821,292
9,181,795
18,003,087
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COMPANY REGISTRATION NUMBER:
08447415
|
Entertainment One Unscripted TV UK Ltd |
|
|
Entertainment One Unscripted TV UK Ltd |
|
Period from 26 December 2022 to 30 December 2023
|
Officers and professional advisers |
1 |
|
|
|
Independent auditor's report to the members |
7 |
|
|
|
Statement of comprehensive income |
12 |
|
|
|
Statement of financial position |
13 |
|
|
|
Statement of changes in equity |
14 |
|
|
|
Notes to the financial statements |
15 |
|
|
|
Entertainment One Unscripted TV UK Ltd |
|
|
Officers and Professional Advisers |
|
|
The board of directors |
M A Pritchard |
|
M C R S Walton |
|
A P Clary |
|
S Benoit |
|
|
|
Registered office |
96 Kirkstall Road |
|
Leeds |
|
Engalnd |
|
LS3 1HD |
|
|
|
Auditor |
Moore Kingston Smith LLP |
|
Chartered accountants & statutory auditor |
|
10 Orange Street |
|
London |
|
United Kingdom |
|
WC2H 7DQ |
|
|
|
Entertainment One Unscripted TV UK Ltd |
|
Period from 26 December 2022 to 30 December 2023
The directors present their strategic report for the period ending 30 December 2023. Principal Activities The principal activity of the company continued to be the provision of film and TV productions services. Business review Financial performance in each trading year can fluctuate significantly dependent upon the number of on-going development projects in each given reporting period, as most productions are completed within a year the stage of completion is not generally significant factor in the performance of the company. On 27 December 2023, the business was transitioned from Hasbro Inc to Lions Gate Entertainment Corporation, an entity incorporated in Canada. From this date Lions Gate Entertainment Corporation became the ultimate controlling party. Key performance indicators Key performance indicators of the company are considered to be revenue, profit before tax and net assets.
|
|
2023 |
2022 |
|
|
£ |
£ |
|
Turnover |
11,702,493 |
9,717,578 |
|
Loss before tax |
496,324 |
209,214 |
|
Net assets |
2,595,350 |
1,208,921 |
|
|
|
|
Principal risks and uncertainties The company manages business and financial risk and uncertainties as a whole rather than each individual production. For this reason the directors believe that the company has reduced exposure to business and financial risks given the variety in its television series portfolio. The television industry is a volatile industry susceptible to changes in the global economy, as well as changes in legislation, regulation and government policy which may affect the industry. Any of these may adversely affect consumer demand for television programmes or the ability to successfully finance or market television productions. Going concern The company made a loss of £496,324 (25 December 2022: loss of £213,962) during the period and has net assets of £2,595,350 (25 December 2022: £1,208,921) at the balance sheet date. The parent company Lions Gate Entertainment Corporation has provided a letter of support to the company confirming that they will continue to provide support as required, for the next 12 months from the date of signing the financial statements, to ensure that the company has sufficient cash to meet its liabilities as they fall due. The directors consider the operations of the company to be ongoing, with reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future and accordingly these financial statements have been prepared on the going concern basis.
This report was approved by the board of directors on 17 June 2025 and signed on behalf of the board by:
|
Entertainment One Unscripted TV UK Ltd |
|
Period from 26 December 2022 to 30 December 2023
The directors present their report and the financial statements of the company for the period ended
30 December 2023
.
Directors
The directors who served the company during the period were as follows:
|
M A Pritchard |
|
|
P W Stead |
|
|
M C R S Walton |
|
|
N K Gascoigne |
|
|
|
N K Gascoigne
resigned on 30 November 2024 and P W Stead
resigned on 16 December 2024. A P Clary
and S Benoit
were appointed as directors on 16 May 2024.
Dividends
The directors do not recommend the payment of a dividend. Financial instruments The company is exposed to financial risks, including liquidly risk, credit risk, supplier insolvency and foreign exchange risk. The company has limited exposure to price risk and interest rate risk. Given the size of the company, the directors have not delegated the responsibility of monitoring financial risk management to a sub-committee of the board. The policies set by the board of directors are implemented by the company's finance department which applies specific risk management policies and procedures. The company's approach to these risks is discussed below. Liquidity risk: Liquidity risk is the risk that the company does not have sufficient financial resources to meet its obligations when they fall due or will have to do so at excessive cost. This risk can arise from mismatches in the timing of cash flows relating to assets and liabilities. This risk is managed through effective credit control procedures, including managing credit risk, and detailed financial reviews regarding the acceptance of any proposed significant financial obligations to ensure that the company can continue to meet its liabilities as they fail due. Credit risk: The company has implemented policies that require credit checks on potential customers before sales are made. The company regularly reviews the credit limits applied to all its customers. Supplier insolvency risk: If a supplier were to be declared bankrupt or insolvent, the company would have financial exposure. Any risk is mitigated by the diversification of suppliers and undertaking regular credit reviews of key suppliers. Foreign exchange risk: The company's international operations are subject to foreign exchange risk arising from currency exposures. Foreign exchange risk arises when future commercial transactions. recognised assets or liabilities, or investments are denominated in a currency that is not the entity's functional currency. Management regularly reviews the company's foreign exchange exposures to ensure there is no material impact on the company's trading performance. Future developments The company will continue to develop its business in line with current activities.
Future developments
Existing scripts and related production opportunities are being evaluated, and will be progressed dependent upon the directors’ assessment of the risk and commercial merit of each individual project.
Directors' responsibilities statement
The directors are responsible for preparing the strategic report, directors' report and the financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial period. 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 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 judgments 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.
Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
-
so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This report was approved by the board of directors on
17 June 2025
and signed on behalf of the board by:
|
Entertainment One Unscripted TV UK Ltd |
|
|
Independent Auditor's Report to the Members of
Entertainment One Unscripted TV UK Ltd |
|
Period from 26 December 2022 to 30 December 2023
Opinion
We have audited the financial statements of Entertainment One Unscripted TV UK Ltd (the 'company') for the period ended 30 December 2023 which comprise the statement of comprehensive income, statement of financial position, statement of changes in equity and the related notes, 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 December 2023 and of its loss for the period then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the Annual Report, other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
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 period 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.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: We assessed the susceptibility of the company's financial statements to material misstatement and how fraud might occur, including through discussions with the directors, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the company by discussions with directors and updating our understanding of the sector in which the company operates. Laws and regulations of direct significance in the context of the company include The Companies Act 2006 and UK Tax legislation. 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 and employment law. Audit response to risks identified We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the company's records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the company's policies and procedures for compliance with laws and regulations with members of management responsible for compliance. We have reviewed management's assessment of how the company complies with the relevant laws and regulations. During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner's review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud. There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. An auditor conducting an audit in accordance with ISAs (UK) is responsible for obtaining reasonable assurance that the financial statements taken as a whole are free from material misstatement, whether caused by fraud or error and in our audit procedures described above. Owing to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements of the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). As part of an audit in accordance with ISAs (UK), we exercise professional judgment 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 purpose of expressing an opinion on the effectiveness of the internal control. - 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.
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 Conneely |
|
(Senior Statutory Auditor) |
|
|
For and on behalf of |
|
Moore Kingston Smith LLP |
|
Chartered accountants & statutory auditor |
|
10 Orange Street |
|
London |
|
United Kingdom |
|
WC2H 7DQ |
|
17 June 2025
|
Entertainment One Unscripted TV UK Ltd |
|
|
Statement of Comprehensive Income |
|
Period from 26 December 2022 to 30 December 2023
|
Period from |
Period from |
|
26 Dec 22 to |
27 Dec 21 to |
|
30 Dec 23 |
25 Dec 22 |
|
Note |
£ |
£ |
|
Turnover |
4 |
11,702,493 |
9,717,578 |
|
|
|
|
|
Cost of sales |
(
9,181,795) |
(
7,450,020) |
|
------------- |
------------ |
|
Gross profit |
2,520,698 |
2,267,558 |
|
|
|
|
Administrative expenses |
(
2,925,862) |
(
2,454,492) |
|
|
------------ |
------------ |
|
Operating loss |
5 |
(
405,164) |
(
186,934) |
|
|
|
|
|
Other interest receivable and similar income |
8 |
11,502 |
– |
|
Interest payable and similar expenses |
9 |
(
102,663) |
(
22,280) |
|
------------ |
------------ |
|
Loss before taxation |
(
496,325) |
(
209,214) |
|
|
|
|
|
Tax on loss |
10 |
– |
(
4,748) |
|
--------- |
--------- |
|
Loss for the financial period and total comprehensive income |
(
496,325) |
(
213,962) |
|
--------- |
--------- |
|
|
|
|
All the activities of the company are from continuing operations.
|
Entertainment One Unscripted TV UK Ltd |
|
|
Statement of Financial Position |
|
30 December 2023
|
30 Dec 23 |
25 Dec 22 |
|
Note |
£ |
£ |
|
|
|
Fixed assets
|
Intangible assets |
11 |
– |
269,380 |
|
Tangible assets |
12 |
51,013 |
29,049 |
|
-------- |
--------- |
|
51,013 |
298,429 |
|
|
|
|
Current assets
|
Debtors |
13 |
5,866,176 |
3,319,977 |
|
Cash at bank and in hand |
2,536,536 |
4,399,989 |
|
------------ |
------------ |
|
8,402,712 |
7,719,966 |
|
|
|
|
|
Creditors: amounts falling due within one year |
14 |
(
5,858,375) |
(
6,809,474) |
|
------------ |
------------ |
|
Net current assets |
2,544,337 |
910,492 |
|
------------ |
------------ |
|
Total assets less current liabilities |
2,595,350 |
1,208,921 |
|
------------ |
------------ |
|
Net assets |
2,595,350 |
1,208,921 |
|
------------ |
------------ |
|
|
|
|
Capital and reserves
|
Called up share capital |
16 |
2 |
1 |
|
Share premium account |
17 |
1,882,753 |
– |
|
Profit and loss account |
17 |
712,595 |
1,208,920 |
|
------------ |
------------ |
|
Shareholders funds |
2,595,350 |
1,208,921 |
|
------------ |
------------ |
|
|
|
|
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.
These financial statements were approved by the
board of directors
and authorised for issue on
17 June 2025
, and are signed on behalf of the board by:
Company registration number:
08447415
|
Entertainment One Unscripted TV UK Ltd |
|
|
Statement of Changes in Equity |
|
Period from 26 December 2022 to 30 December 2023
|
Called up share capital |
Share premium account |
Profit and loss account |
Total |
|
£ |
£ |
£ |
£ |
|
At 27 December 2021 |
1 |
– |
1,422,882 |
1,422,883 |
|
|
|
|
|
|
Loss for the period |
|
|
(
213,962) |
(
213,962) |
|
---- |
---- |
------------ |
------------ |
|
Total comprehensive income for the period |
– |
– |
(
213,962) |
(
213,962) |
|
|
|
|
|
|
At 25 December 2022 |
1 |
– |
1,208,920 |
1,208,921 |
|
|
|
|
|
|
Loss for the period |
|
|
(
496,325) |
(
496,325) |
|
---- |
---- |
------------ |
------------ |
|
Total comprehensive income for the period |
– |
– |
(
496,325) |
(
496,325) |
|
|
|
|
|
|
Issue of shares |
1 |
1,882,753 |
– |
1,882,754 |
|
---- |
------------ |
---- |
------------ |
|
Total investments by and distributions to owners |
1 |
1,882,753 |
– |
1,882,754 |
|
|
|
|
|
|
---- |
------------ |
--------- |
------------ |
|
At 30 December 2023 |
2 |
1,882,753 |
712,595 |
2,595,350 |
|
---- |
------------ |
--------- |
------------ |
|
|
|
|
|
|
Entertainment One Unscripted TV UK Ltd |
|
|
Notes to the Financial Statements |
|
Period from 26 December 2022 to 30 December 2023
1.
General information
With effect from 23 June 2024, the address of the registered office and principal place of business of the Company has changed from 5th Floor, 45 Mortimer Street, London, W1W 8HJ, United Kingdom to 96 Kirkstall Road, Leeds, LS3 1HD, United Kingdom.
2.
Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3.
Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities measured at fair value through profit or loss. The financial statements are prepared in sterling, which is the functional currency of the entity.
Comparatives
The accounts cover the period from 26 December 2022 to 30 December 2023. The comparatives cover the period from 27 December 2021 to 25 December 2022.
The prior accounting period was extended to ensure the accounting period was conterminous with the group.
Going concern
The company made a loss of £496,324 (25 December 2022: loss of £213,962) during the period and has net assets of £2,595,350 (25 December 2022: £1,208,921) at the balance sheet date. The parent company Lions Gate Entertainment Corporation has provided a letter of support to the company confirming that they will continue to provide support as required, for the next 12 months from the date of signing the financial statements, to ensure that the company has sufficient cash to meet its liabilities as they fall due. The directors consider the operations of the company to be ongoing, with reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future and accordingly these financial statements have been prepared on the going concern basis.
Disclosure exemptions
The company satisfies the criteria of being a qualifying entity as defined in FRS 102. Its financial statements are consolidated into the financial statements of Lions Gate Entertainment Corporation. As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102: - The cash flow statement, as per paragraph 3.17(d) and Section 7, has not been presented for the company. - Disclosures in respect of financial instruments, have not been presented for the company. The paragraph references for these disclosures are as follows: 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b), 11.48(c), 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A. - Disclosure for the aggregate remuneration of key management personnel, as per paragraph 33.7, has not been included for the company.
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. The key assumptions concerning the future and other key sources of estimation uncertainty at the Statement of Financial Position date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows: Recoverable value of recognised receivables The recoverability of trade and other receivables is regularly reviewed by management in the light of available economic information specific to each receivable and provisions are recognised for balances considered to be irrecoverable. Development costs The carrying value of development costs is reviewed by management who use their experience and judgment to determine if impairment or provision is required against the carrying value.
Revenue recognition
Revenue is measured at the fair value of the consideration received or receivable and represents amounts receivable for services provided in the normal course of business, net of discounts, VAT and other sales related taxes. When productions are in progress at the year end, and where the bank receipts in relation to the sales exceed the value of work done the excess is shown as deferred income; where costs incurred exceed bank receipts in relation to the sales the amounts are classified as accrued income. The company can be contracted to create television content for a commissioning broadcaster and earns revenue through either a fixed fee or ongoing royalty payments attached to the broadcaster's revenue. The customer simultaneously receives and consumes the benefits of these services, as such the company recognises revenue over the period of production based on the percentage of completion. Interest income is accrued on a timely basis, by reference to the principal outstanding and at the effective interest rate applicable. Any loss/overspend on a production is recognised in the year in which it is realised in order to be prudent. Revenue from royalties and licence agreements are recognised once contractual terms have been agreed.
Income tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Foreign currencies
Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured. Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
Operating leases
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.
Intangible assets
Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses.
Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:
|
Development costs |
- |
Over the period of development
|
|
|
|
|
If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.
Research and development
Research expenditure is written off in the period in which it is incurred. Development expenditure incurred is capitalised as an intangible asset only when all of the following criteria are met: - It is technically feasible to complete the intangible asset so that it will be available for use or sale; - There is the intention to complete the intangible asset and use or sell it; - There is the ability to use or sell the intangible asset; - The use or sale of the intangible asset will generate probable future economic benefits; - There are adequate technical, financial and other resources available to complete the development and to use or sell the intangible asset; and - The expenditure attributable to the intangible asset during its development can be measured reliably. Expenditure that does not meet the above criteria is expensed as incurred.
Tangible assets
Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
|
Plant and machinery |
- |
25% straight line |
|
Fixtures and fittings |
- |
25% straight line |
|
Equipment |
- |
25% straight line |
|
|
|
|
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.
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 when the Company 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 Basic financial assets, which include trade and other 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 financial asset is measured at the present value of the future receipts discounted at a market rate of interest. Impairment of financial assets Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss. If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss. Derecognition of financial assets Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the Company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party. Classification of financial liabilities Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities. Basic financial liabilities Basic financial liabilities, including trade and other creditors, bank loans, loans from fellow Company 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. Debt instruments are subsequently carried at amortised cost. using the effective interest rate method. Financial liabilities held at fair value Debt instruments where the contractual returns, repayment of the principal, or other terms (such as prepayment provisions or term extensions) do not meet the conditions to be measured at amortised cost, are subsequently measured at fair value through profit or loss, unless fair value measurement is not permitted by law, or the debt instrument gives rise to cash flows on specified dates that constitute repayment of the principal advanced, together with reasonable compensation for the time value of money, credit risk and other basic lending risks and costs and does not have contractual terms which introduce exposure to unrelated risks or volatility. Derecognition of financial liabilities Financial liabilities are derecognised when, and only when, the Company's contractual obligations are discharged, cancelled, or they expire. Equity instruments Equity instruments issued by the Company are recorded at the fair value of 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.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
4.
Turnover
Turnover arises from:
|
Period from |
Period from |
|
26 Dec 22 to |
27 Dec 21 to |
|
30 Dec 23 |
25 Dec 22 |
|
£ |
£ |
|
Television and film production |
11,150,139 |
9,276,859 |
|
Royalties |
552,354 |
440,719 |
|
------------- |
------------ |
|
11,702,493 |
9,717,578 |
|
------------- |
------------ |
|
|
|
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
5.
Operating loss
Operating profit or loss is stated after charging:
|
Period from |
Period from |
|
26 Dec 22 to |
27 Dec 21 to |
|
30 Dec 23 |
25 Dec 22 |
|
£ |
£ |
|
Amortisation of intangible assets |
9,181,795 |
8,821,292 |
|
Depreciation of tangible assets |
52,805 |
39,852 |
|
Foreign exchange differences |
16,747 |
– |
|
Operating lease charges |
287,460 |
54,774 |
|
Fees payable for audit of the financial statements |
15,000 |
11,000 |
|
Fees payable to the company auditor for non-audit services |
1,000 |
1,000 |
|
------------ |
------------ |
|
|
|
6.
Staff costs
The average number of persons employed by the company during the period, including the directors, amounted to:
|
30 Dec 23 |
25 Dec 22 |
|
No. |
No. |
|
Production staff |
52 |
50 |
|
Administrative staff |
6 |
6 |
|
Directors |
4 |
4 |
|
---- |
---- |
|
62 |
60 |
|
---- |
---- |
|
|
|
The aggregate payroll costs incurred during the period, relating to the above, were:
|
Period from |
Period from |
|
26 Dec 22 to |
27 Dec 21 to |
|
30 Dec 23 |
25 Dec 22 |
|
£ |
£ |
|
Wages and salaries |
2,783,606 |
4,475,534 |
|
Social security costs |
309,071 |
569,295 |
|
Other pension costs |
54,470 |
57,955 |
|
------------ |
------------ |
|
3,147,147 |
5,102,784 |
|
------------ |
------------ |
|
|
|
Within the wages and salaries costs paid to the employees of the company, the following costs were capitalised within the development costs.
|
|
2023 |
2022 |
|
|
£ |
£ |
|
Capitalised wages and salaries |
2,272,487 |
2,644,442 |
|
Capitalised social security costs |
246,490 |
302,130 |
|
Capitalised other pension costs |
35,298 |
36,377 |
|
|
------------ |
------------ |
|
|
2,554,275 |
2,982,949 |
|
|
------------ |
------------ |
|
|
|
|
In addition to the salary costs as disclosed, the company was recharged £1,391,490 of salary costs from related parties. The company also recharged £43,668 of salary costs to other related parties.
7.
Directors' remuneration
The directors' aggregate remuneration in respect of qualifying services was:
|
Period from |
Period from |
|
26 Dec 22 to |
27 Dec 21 to |
|
30 Dec 23 |
25 Dec 22 |
|
£ |
£ |
|
Remuneration |
127,679 |
134,500 |
|
Company contributions to defined contribution pension plans |
4,268 |
4,194 |
|
Sums paid to third parties in respect of directors' services |
963,425 |
511,815 |
|
------------ |
--------- |
|
1,095,372 |
650,509 |
|
------------ |
--------- |
|
|
|
The number of directors who accrued benefits under company pension plans was as follows:
|
30 Dec 23 |
25 Dec 22 |
|
No. |
No. |
|
Defined contribution plans |
1 |
1 |
|
---- |
---- |
|
|
|
8.
Other interest receivable and similar income
|
Period from |
Period from |
|
26 Dec 22 to |
27 Dec 21 to |
|
30 Dec 23 |
25 Dec 22 |
|
£ |
£ |
|
Interest on cash and cash equivalents |
11,502 |
– |
|
-------- |
---- |
|
|
|
9.
Interest payable and similar expenses
|
Period from |
Period from |
|
26 Dec 22 to |
27 Dec 21 to |
|
30 Dec 23 |
25 Dec 22 |
|
£ |
£ |
|
Loss on financial instruments |
– |
(
11,470)
|
|
Other interest payable and similar charges |
102,663 |
33,750 |
|
--------- |
-------- |
|
102,663 |
22,280 |
|
--------- |
-------- |
|
|
|
10.
Tax on loss
Major components of tax expense
|
Period from |
Period from |
|
26 Dec 22 to |
27 Dec 21 to |
|
30 Dec 23 |
25 Dec 22 |
|
£ |
£ |
|
|
|
Current tax:
|
Adjustments in respect of prior periods |
– |
4,748 |
|
---- |
------- |
|
Tax on loss |
– |
4,748 |
|
---- |
------- |
|
|
|
Reconciliation of tax expense
The tax assessed on the loss on ordinary activities for the period is higher than (2022: higher than) the
standard rate of corporation tax in the UK
of
23
% (2022:
19
%).
|
Period from |
Period from |
|
26 Dec 22 to |
27 Dec 21 to |
|
30 Dec 23 |
25 Dec 22 |
|
£ |
£ |
|
Loss on ordinary activities before taxation |
(
496,325) |
(
209,214) |
|
--------- |
--------- |
|
Loss on ordinary activities by rate of tax |
(
116,354) |
(
39,751) |
|
Adjustment to tax charge in respect of prior periods |
– |
4,748 |
|
Effect of expenses not deductible for tax purposes |
3,949 |
190 |
|
Effect of capital allowances and depreciation |
(
5,149) |
(
752) |
|
Unused tax losses |
117,554 |
40,313 |
|
--------- |
--------- |
|
Tax on loss |
– |
4,748 |
|
--------- |
--------- |
|
|
|
Up to 31 March 2023 a Corporation Tax rate of 19% generally applied to all companies whatever their size. From 1 April 2023, this rate ceased to apply and was replaced by variable rates ranging from 19% to 25%.
A small profits rate of 19% applies to companies whose profits are equal to or less than £50,000.
The main Corporation Tax rate increased to 25% and applies to companies with profits in excess of £250,000.
Companies with profits between £50,000 and £250,000 will pay tax at the main rate of 25% reduced by marginal relief. The marginal relief acts to adjust the rate of tax paid gradually increasing liability from 19% to 25%.
11.
Intangible assets
|
Development costs |
|
£ |
|
Cost |
|
|
At 26 December 2022 |
9,090,672 |
|
Additions |
– |
|
Additions from internal developments |
8,912,415 |
|
------------- |
|
At 30 December 2023 |
18,003,087 |
|
------------- |
|
Amortisation |
|
|
At 26 December 2022 |
8,821,292 |
|
Charge for the period |
9,181,795 |
|
------------- |
|
At 30 December 2023 |
18,003,087 |
|
------------- |
|
Carrying amount |
|
|
At 30 December 2023 |
– |
|
------------- |
|
At 25 December 2022 |
269,380 |
|
------------- |
|
|
12.
Tangible assets
|
Plant and machinery |
Fixtures and fittings |
Equipment |
Total |
|
£ |
£ |
£ |
£ |
|
Cost |
|
|
|
|
|
At 26 December 2022 |
143,294 |
2,407 |
110,046 |
255,747 |
|
Additions |
15,072 |
– |
59,697 |
74,769 |
|
--------- |
------- |
--------- |
--------- |
|
At 30 December 2023 |
158,366 |
2,407 |
169,743 |
330,516 |
|
--------- |
------- |
--------- |
--------- |
|
Depreciation |
|
|
|
|
|
At 26 December 2022 |
128,942 |
2,407 |
95,349 |
226,698 |
|
Charge for the period |
2,428 |
– |
50,377 |
52,805 |
|
--------- |
------- |
--------- |
--------- |
|
At 30 December 2023 |
131,370 |
2,407 |
145,726 |
279,503 |
|
--------- |
------- |
--------- |
--------- |
|
Carrying amount |
|
|
|
|
|
At 30 December 2023 |
26,996 |
– |
24,017 |
51,013 |
|
--------- |
------- |
--------- |
--------- |
|
At 25 December 2022 |
14,352 |
– |
14,697 |
29,049 |
|
--------- |
------- |
--------- |
--------- |
|
|
|
|
|
13.
Debtors
|
30 Dec 23 |
25 Dec 22 |
|
£ |
£ |
|
Trade debtors |
1,070,269 |
976,564 |
|
Amounts owed by group undertakings |
3,022,095 |
375,539 |
|
Prepayments and accrued income |
1,773,812 |
1,951,993 |
|
Other debtors |
– |
15,881 |
|
------------ |
------------ |
|
5,866,176 |
3,319,977 |
|
------------ |
------------ |
|
|
|
14.
Creditors:
amounts falling due within one year
|
30 Dec 23 |
25 Dec 22 |
|
£ |
£ |
|
Trade creditors |
181,267 |
50,532 |
|
Amounts owed to group undertakings |
3,825,354 |
5,002,389 |
|
Accruals and deferred income |
1,663,515 |
1,499,033 |
|
Corporation tax |
– |
195,825 |
|
Social security and other taxes |
188,239 |
61,695 |
|
------------ |
------------ |
|
5,858,375 |
6,809,474 |
|
------------ |
------------ |
|
|
|
15.
Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £
54,470
(2022: £
57,955
).
16.
Called up share capital
Issued, called up and fully paid
|
30 Dec 23 |
25 Dec 22 |
|
No. |
£ |
No. |
£ |
|
Ordinary shares of £ 1 each |
2 |
2 |
1 |
1 |
|
---- |
---- |
---- |
---- |
|
|
|
|
|
During the period the company issued 1 £1 ordinary share at a premium of £1,882,753. Each ordinary share has the following rights attached to them: - Right to one vote per share - Right to a dividend - Right to participate in a distribution - No right to redemption
17.
Reserves
Profit and loss account - This reserve records retained earnings and accumulated losses. Share premium account - This reserve records the amount above the nominal value received for shares sold, less transaction costs.
18.
Operating leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
|
30 Dec 23 |
25 Dec 22 |
|
£ |
£ |
|
Not later than 1 year |
94,200 |
9,920 |
|
Later than 1 year and not later than 5 years |
118,404 |
1,440 |
|
--------- |
-------- |
|
212,604 |
11,360 |
|
--------- |
-------- |
|
|
|
19.
Related party transactions
The company has taken advantage of Section 33 of FRS 102 from disclosing transactions entered into between two or more members of a group, where any subsidiary undertaking which is a party of the transaction is wholly owned by a member of that group.
20.
Controlling party
At the balance sheet date the company was a wholly owned subsidiary of Entertainment One Canada Television Holdings Inc., which was the immediate controlling entity as at 31 December 2023. Until 27 December 2023 the ultimate controlling company was Hasbro Inc. Copies of consolidated financial statements of Hasbro Inc., may be obtained from 1027 Newport Avenue, Pawtucket, Rhode Island, 02861. On 27 December 2023, the business was transitioned from Hasbro Inc to Lions Gate Entertainment Corporation, an entity incorporated in Canada. From this date Lions Gate Entertainment Corporation became the ultimate controlling party. The Registered office of Lions Gate Entertainment Corporation is 250 Howe Street, Vancouver, British Columbia, Canada, V6C 3RB. Consolidated financial statements of Lions Gate Entertainment Corporation are available to the public and may be obtained from Lions Gate, 2700 Colorado Avenue, Santa Monica, California, CA 90404, USA.