118
false
false
false
false
true
false
false
false
false
false
false
true
true
false
false
false
true
false
2023-01-01
Sage Accounts Production Advanced 2023 - FRS102_2023
616,936
813,467
41,891
41,891
xbrli:pure
xbrli:shares
iso4217:GBP
05665322
2023-01-01
2023-12-31
05665322
2023-12-31
05665322
2022-12-31
05665322
2022-01-01
2022-12-31
05665322
2022-12-31
05665322
2021-12-31
05665322
bus:RegisteredOffice
2023-01-01
2023-12-31
05665322
bus:OrdinaryShareClass1
2023-01-01
2023-12-31
05665322
bus:LeadAgentIfApplicable
2023-01-01
2023-12-31
05665322
bus:Director1
2023-01-01
2023-12-31
05665322
core:WithinOneYear
2023-12-31
05665322
core:WithinOneYear
2022-12-31
05665322
core:FurnitureFittings
2023-12-31
05665322
core:DeferredTaxation
2023-01-01
2023-12-31
05665322
core:FurnitureFittings
2023-01-01
2023-12-31
05665322
core:RetainedEarningsAccumulatedLosses
2022-12-31
05665322
core:RetainedEarningsAccumulatedLosses
2021-12-31
05665322
core:RetainedEarningsAccumulatedLosses
2023-12-31
05665322
core:RetainedEarningsAccumulatedLosses
2022-12-31
05665322
core:ShareCapital
2023-12-31
05665322
core:ShareCapital
2022-12-31
05665322
core:BetweenOneFiveYears
2023-12-31
05665322
core:BetweenOneFiveYears
2022-12-31
05665322
core:UKTax
2022-01-01
2022-12-31
05665322
core:AcceleratedTaxDepreciationDeferredTax
2022-12-31
05665322
core:DeferredTaxation
2022-12-31
05665322
bus:MediumEntities
2023-01-01
2023-12-31
05665322
bus:Audited
2023-01-01
2023-12-31
05665322
bus:Medium-sizedCompaniesRegimeForAccounts
2023-01-01
2023-12-31
05665322
bus:PrivateLimitedCompanyLtd
2023-01-01
2023-12-31
05665322
bus:FullAccounts
2023-01-01
2023-12-31
05665322
bus:OrdinaryShareClass1
2023-12-31
05665322
bus:OrdinaryShareClass1
2022-12-31
05665322
core:OtherPropertyPlantEquipment
2022-12-31
05665322
core:OtherPropertyPlantEquipment
2023-01-01
2023-12-31
05665322
core:OtherPropertyPlantEquipment
2023-12-31
COMPANY REGISTRATION NUMBER:
05665322
Year ended 31 December 2023
|
Officers and professional advisers |
1 |
|
|
|
Independent auditor's report to the members |
7 |
|
|
|
Statement of income and retained earnings |
12 |
|
|
|
Statement of financial position |
13 |
|
|
|
Notes to the financial statements |
14 |
|
|
|
Officers and Professional Advisers |
|
|
Registered office |
39-40 Eagle Street |
|
Holborn |
|
London |
|
United Kingdom |
|
WC1R 4TH |
|
|
|
Auditor |
Moore Kingston Smith LLP |
|
Chartered accountants & statutory auditor |
|
10 Orange Street |
|
London |
|
United Kingdom |
|
WC2H 7DQ |
|
|
Year ended 31 December 2023
The director presents the strategic report for the year ending 31 December 2023.
Principal Activities The principal activity of the company continued to be the provision of film and TV productions services.
Business review The company has, in the past couple of years, significantly increased its production activity with a new client. This has presented significant growth opportunity for the company. The client relationship is now on a robust footing, and the foundations have been laid for a long term and production relationship. Key performance indicators Key performance indicators of the company are considered to be revenue, profit before tax and net assets.
|
|
2023 |
2022 |
|
|
£ |
£ |
|
Turnover |
37,598,889 |
20,724,208 |
|
Loss before tax |
658,827 |
772,351 |
|
Net assets |
495,997 |
1,112,933 |
|
|
|
|
Principal risks and uncertainties The company’s operations expose it to various risks, which are laid out below. Exchange rate risk The company is exposed to foreign exchange risk on large related party balances. To mitigate the risk, Management are looking to implement an effective hedging strategy. In addition, the Company is taking steps to settle balances on a regular basis. It is also pertinent to note that foreign exchange movements may result in foreign exchange gains or losses. Operating Risk The company is impacted by the general economic environment, competition from other television production companies and reliance on a very small number of clients for the majority of the company’s revenues. To mitigate against the risk, the Company is looking to diversify it’s income streams on a long term basis. Cyber-Security Risk The Company takes cyber-security risks very seriously, particularly in relation to protection of its intellectual property. The company has carried out thorough due diligence with relevant technology partners, to ensure that the platforms housing the Company’s IP are robust and comply with globally-recognised accreditation standards e.g. ISO/IEC 27001. Going concern The company has made a loss for the year but continues to be in a net current asset and net asset position. After the year end the company have performed as expected, there have been no significant cancellation of contracts and relationships with our clients and suppliers remains strong. The directors have concluded that the amounts due from group undertakings are fully recoverable. The directors are confident given the financial resources available to it that the company has adequate resources for all reasonably expected eventualities. Whilst some contracts suffered delays post year end, there have been no significant cancellation of contracts and relationships with our clients and suppliers remains strong. Having made appropriate enquiries and having reviewed forecasts and projections together with the support from a connected entity under common control, the directors have concluded that the amounts due from group undertakings are fully recoverable and that the company has sufficient resources to continue to trade and to meet its working capital requirements and it's liabilities as they fall due for a period of 12 months from the date these financial statements are approved and signed. The company therefore continues to adopt the going concern basis in preparing the financial statements.
This report was approved by the board of directors on 23 June 2025 and signed on behalf of the board by:
|
Registered office: |
|
39-40 Eagle Street |
|
Holborn |
|
London |
|
United Kingdom |
|
WC1R 4TH |
|
Year ended 31 December 2023
The director presents his report and the financial statements of the company for the year ended
31 December 2023
.
Director
The director who served the company during the year was as follows:
Dividends
The director does 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, primarily with respect to the US dollar. 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
Qualifying indemnity provision
The company maintains appropriate insurance to its directors and officers against liability brought by third parties, subject to the conditions set out in the Companies Act 2006. Such qualifying third party indemnity insurance remains in force at the date that this report is approved.
Future developments
The Company expects to enjoy a long term, multi-year relationship with its key clients. The Company expects to produce a significant number of original, high end productions on a wide variety of topics including Tourism, Archaeology, Food and much more.
Director's responsibilities statement
The director is responsible for preparing the strategic report, director's report and the financial statements in accordance with applicable law and regulations. Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and the profit or loss of the company for that period. In preparing these financial statements, the director is 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 director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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
23 June 2025
and signed on behalf of the board by:
|
Registered office: |
|
39-40 Eagle Street |
|
Holborn |
|
London |
|
United Kingdom |
|
WC1R 4TH |
|
|
Independent Auditor's Report to the Members of
OR Media Limited |
|
Year ended 31 December 2023
Opinion
We have audited the financial statements of OR Media Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of income and retained earnings, statement of financial position 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 31 December 2023 and of its loss for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - 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 director's 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 director 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 director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
-
the strategic report and the director's 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 director's 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 director's remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.
Responsibilities of the director
As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has 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: Identifying and assessing risks related to irregularities: 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 inquired 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 director. - Conclude on the appropriateness of the director's 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.
Other information
The comparative figures for financial year ending 31 December 2022 were un-audited.
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 |
|
24 June 2025
|
Statement of Income and Retained Earnings |
|
Year ended 31 December 2023
|
2023 |
2022 |
|
Note |
£ |
£ |
|
Turnover |
4 |
37,598,889 |
20,724,208 |
|
|
|
|
|
Cost of sales |
(
34,784,242) |
(
19,725,350) |
|
------------- |
------------- |
|
Gross profit |
2,814,647 |
998,858 |
|
|
|
|
Administrative expenses |
(
3,941,691) |
(
2,059,222) |
|
Other operating income |
5 |
464,478 |
288,051 |
|
|
------------ |
------------ |
|
Operating loss |
6 |
(
662,566) |
(
772,313) |
|
|
|
|
|
Other interest receivable and similar income |
9 |
3,739 |
– |
|
Interest payable and similar expenses |
10 |
– |
(
38) |
|
------------ |
------------ |
|
Loss before taxation |
(
658,827) |
(
772,351) |
|
|
|
|
|
Tax on loss |
11 |
41,891 |
(
41,116) |
|
--------- |
--------- |
|
Loss for the financial year and total comprehensive income |
(
616,936) |
(
813,467) |
|
--------- |
--------- |
|
|
|
|
|
Retained earnings at the start of the year |
1,112,931 |
1,926,398 |
|
------------ |
------------ |
|
Retained earnings at the end of the year |
495,995 |
1,112,931 |
|
------------ |
------------ |
|
|
|
All the activities of the company are from continuing operations.
|
Statement of Financial Position |
|
31 December 2023
Fixed assets
|
Tangible assets |
12 |
|
42,851 |
1,191 |
|
|
|
|
|
Current assets
|
Stocks |
13 |
126,641 |
|
1,981,752 |
|
Debtors |
14 |
24,580,614 |
|
35,327,106 |
|
Cash at bank and in hand |
55,036 |
|
2,047,628 |
|
------------- |
|
------------- |
|
24,762,291 |
|
39,356,486 |
|
|
|
|
|
|
Creditors: amounts falling due within one year |
15 |
(
24,309,145) |
|
(
38,202,853) |
|
------------- |
|
------------- |
|
Net current assets |
|
453,146 |
1,153,633 |
|
|
--------- |
------------ |
|
Total assets less current liabilities |
|
495,997 |
1,154,824 |
|
|
|
|
|
|
Provisions |
16 |
|
– |
(
41,891) |
|
|
--------- |
------------ |
|
Net assets |
|
495,997 |
1,112,933 |
|
|
--------- |
------------ |
|
|
|
|
|
Capital and reserves
|
Called up share capital |
20 |
|
2 |
2 |
|
Profit and loss account |
22 |
|
495,995 |
1,112,931 |
|
|
--------- |
------------ |
|
Shareholders funds |
|
495,997 |
1,112,933 |
|
|
--------- |
------------ |
|
|
|
|
|
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
23 June 2025
, and are signed on behalf of the board by:
Company registration number:
05665322
|
Notes to the Financial Statements |
|
Year ended 31 December 2023
1.
General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office and principal place of business 39-40 Eagle Street, Holborn, London, WC1R 4TH, United Kingdom. The principal activity of the company continued to be the provision of film and TV productions services.
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 and rounded to the nearest £. The comparative figures for financial year ending 31 December 2022 were un-audited.
Going concern
The company has made a loss for the year but continues to be in a net current asset and net asset position. After the year end the company have performed as expected, there have been no significant cancellation of contracts and relationships with our clients and suppliers remains strong. The directors have concluded that the amounts due from group undertakings are fully recoverable. The directors are confident given the financial resources available to it that the company has adequate resources for all reasonably expected eventualities. In addition, a connected entity under common control has undertaken to provide such financial support as may be necessary to enable the company to continue to trade and to meet its working capital requirements and it's liabilities as they fall due for a period of 12 months from the date the year end 31 December 2023 financial statements of the company are approved and signed. The above undertaking does not constitute a legally binding agreement. Having made appropriate enquiries and having reviewed forecasts and projections together with the support mentioned previously, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future (at least 12 months from the date the accounts are approved and signed). The company therefore continues to adopt the going concern basis in preparing the financial statements.
Disclosure exemptions
The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. Its financial statements are consolidated into the financial statements of OR Holdings and Investments Limited as at 31 December 2023. 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. Stocks The carrying value of stock is reviewed by management who use their experience and judgment to determine if provision is required to reflect stock at the lower of cost and net realisable value.
Foreign currency transactions
Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods supplied and services rendered, stated net of discounts and of Value Added Tax. Turnover relates to production of various documentaries. It represents the value of the work done in the period, including estimates of amounts not invoiced and is stated after trade discounts, other taxes and net of VAT. Revenue is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably measured. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that expenses recognised are recoverable.
Taxation
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.
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.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses.
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:
|
Fixtures and fittings |
- |
Straight line over 4 years
|
|
Equipment |
- |
Straight line over 3 years
|
|
|
|
|
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
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
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. 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.
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:
|
2023 |
2022 |
|
£ |
£ |
|
Television Production |
37,598,889 |
20,754,208 |
|
------------- |
------------- |
|
|
|
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
5.
Other operating income
|
2023 |
2022 |
|
£ |
£ |
|
Foreign currency gains/losses |
464,478
|
288,051
|
|
--------- |
--------- |
|
|
|
6.
Operating loss
Operating profit or loss is stated after charging:
|
2023 |
2022 |
|
£ |
£ |
|
Depreciation of tangible assets |
7,087 |
9,880 |
|
Loss on disposal of tangible assets |
– |
1,045 |
|
Impairment of trade debtors |
216,103 |
– |
|
Operating lease rentals |
170,889
|
43,201
|
|
Fees payable for audit of the financial statements |
21,000
|
– |
|
Fees payable to the company auditor for non audit services |
3,000 |
– |
|
Impairment of stocks |
2,396,895 |
– |
|
------------ |
-------- |
|
|
|
7.
Staff costs
The average number of persons employed by the company during the year, including the director, amounted to:
|
2023 |
2022 |
|
No. |
No. |
|
Administrative |
31
|
23
|
|
Production |
87
|
42
|
|
---- |
---- |
|
118 |
65 |
|
---- |
---- |
|
|
|
The aggregate payroll costs incurred during the year, relating to the above, were:
|
2023 |
2022 |
|
£ |
£ |
|
Wages and salaries |
5,997,296 |
3,353,185 |
|
Social security costs |
680,203 |
397,191 |
|
Other pension costs |
99,603 |
89,879 |
|
------------ |
------------ |
|
6,777,102 |
3,840,255 |
|
------------ |
------------ |
|
|
|
8.
Director's remuneration
The director's aggregate remuneration in respect of qualifying services was:
|
2023 |
2022 |
|
£ |
£ |
|
Remuneration |
50,000 |
29,551 |
|
Company contributions to defined contribution pension plans |
1,313 |
– |
|
-------- |
-------- |
|
51,313 |
29,551 |
|
-------- |
-------- |
|
|
|
9.
Other interest receivable and similar income
|
2023 |
2022 |
|
£ |
£ |
|
Other interest receivable and similar income |
3,739 |
– |
|
------- |
---- |
|
|
|
10.
Interest payable and similar expenses
|
2023 |
2022 |
|
£ |
£ |
|
Other interest payable and similar charges |
– |
38 |
|
---- |
---- |
|
|
|
11.
Tax on loss
Major components of tax (income)/expense
Current tax:
|
Adjustments in respect of prior periods |
– |
(
775) |
|
|
|
Deferred tax:
|
Origination and reversal of timing differences |
(
41,891) |
41,891 |
|
-------- |
-------- |
|
Tax on loss |
(
41,891) |
41,116 |
|
-------- |
-------- |
|
|
|
Reconciliation of tax (income)/expense
The tax assessed on the loss on ordinary activities for the year is higher than (2022: higher than) the
standard rate of corporation tax in the UK
of
25
% (2022:
19
%).
|
2023 |
2022 |
|
£ |
£ |
|
Loss on ordinary activities before taxation |
(
658,827) |
(
772,351) |
|
--------- |
--------- |
|
Loss on ordinary activities by rate of tax |
(
164,707) |
(
146,747) |
|
Adjustment to tax charge in respect of prior periods |
– |
(
775) |
|
Effect of expenses not deductible for tax purposes |
4,222 |
12,283 |
|
Effect of capital allowances and depreciation |
(
11,234) |
(
33,037) |
|
Unused tax losses |
171,719 |
167,501 |
|
Deferred tax |
(
41,891)
|
41,891 |
|
--------- |
--------- |
|
Tax on loss |
(
41,891) |
41,116 |
|
--------- |
--------- |
|
|
|
12.
Tangible assets
|
Fixtures and fittings |
Equipment |
Total |
|
£ |
£ |
£ |
|
Cost |
|
|
|
|
At 1 January 2023 |
– |
30,676 |
30,676 |
|
Additions |
7,541 |
41,206 |
48,747 |
|
------- |
-------- |
-------- |
|
At 31 December 2023 |
7,541 |
71,882 |
79,423 |
|
------- |
-------- |
-------- |
|
Depreciation |
|
|
|
|
At 1 January 2023 |
– |
29,485 |
29,485 |
|
Charge for the year |
769 |
6,318 |
7,087 |
|
------- |
-------- |
-------- |
|
At 31 December 2023 |
769 |
35,803 |
36,572 |
|
------- |
-------- |
-------- |
|
Carrying amount |
|
|
|
|
At 31 December 2023 |
6,772 |
36,079 |
42,851 |
|
------- |
-------- |
-------- |
|
At 31 December 2022 |
– |
1,191 |
1,191 |
|
------- |
-------- |
-------- |
|
|
|
|
13.
Stocks
|
2023 |
2022 |
|
£ |
£ |
|
Work in progress |
126,641 |
1,981,752 |
|
--------- |
------------ |
|
|
|
14.
Debtors
|
2023 |
2022 |
|
£ |
£ |
|
Trade debtors |
1,687,406 |
29,750,061 |
|
Amounts owed by group undertakings |
8,973,218 |
1,988,589 |
|
Prepayments and accrued income |
12,607,463 |
2,131,452 |
|
Other debtors |
1,312,527 |
1,457,004 |
|
------------- |
------------- |
|
24,580,614 |
35,327,106 |
|
------------- |
------------- |
|
|
|
15.
Creditors:
amounts falling due within one year
|
2023 |
2022 |
|
£ |
£ |
|
Trade creditors |
4,399,521 |
2,159,506 |
|
Accruals and deferred income |
16,304,208 |
32,515,137 |
|
Social security and other taxes |
614,985 |
151,628 |
|
Director loan accounts |
480,575 |
970,808 |
|
Other creditors |
2,509,856 |
2,405,774 |
|
------------- |
------------- |
|
24,309,145 |
38,202,853 |
|
------------- |
------------- |
|
|
|
16.
Provisions
|
Deferred tax (note 17) |
|
£ |
|
At 1 January 2023 |
41,891 |
|
Additions |
(
41,891) |
|
-------- |
|
At 31 December 2023 |
– |
|
-------- |
|
|
17.
Deferred tax
The deferred tax included in the statement of financial position is as follows:
|
2023 |
2022 |
|
£ |
£ |
|
Included in provisions (note 16) |
– |
41,891 |
|
---- |
-------- |
|
|
|
The deferred tax account consists of the tax effect of timing differences in respect of:
|
2023 |
2022 |
|
£ |
£ |
|
Accelerated capital allowances |
– |
41,891 |
|
---- |
-------- |
|
|
|
18.
Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £
99,603
(2022: £
89,879
).
19.
Prior period adjustments
In the prior year, various balances in the statement of income and statement of financial position were restated: a) Revenue recognised in the 2022 was overstated by £876,522 thereby overstating revenue, net income, debtors, net assets and retained earnings. b) Presentation at gross of debtor and creditor entered with the same counterparty which should have been netted off amounting to £19,769,954 thereby overstating debtors and creditors due within one year. c) Presentation of creditors due for more than one year which should have been classified as creditors due within one year of £4,041,945, thereby understating creditors due within one year and overstating creditors due for more than one year. d) Fixed assets recognised which relates to an entity within the group amounting to £1,105,061 thereby overstating tangible fixed assets, understating debtors by £1,107,305 and understating creditors due within one year by £2,243. e) Presentation at gross of amounts due to and from group undertakings with the same counterparty which should have been netted off amounting to £692,531 thereby overstating debtors and creditors due within one year. Table below summarises the results of the above prior year adjustments.
|
|
Amounts as reported |
Restatement |
Amounts as restated |
|
|
£ |
£ |
£ |
|
Turnover |
21,600,730 |
(876,522) |
20,724,208 |
|
Profit (loss) for the financial year |
63,054 |
(876,522) |
(813,467) |
|
Retained earnings |
1,989,452 |
(876,522) |
1,112,931 |
|
Tangible assets |
1,106,252 |
(1,105,061) |
1,191 |
|
Debtors |
55,558,808 |
(15,095,404) |
35,327,106 |
|
Creditors falling due within one year |
54,621,150 |
(16,418,297) |
38,202,853 |
|
Creditors falling due after one year |
4,041,945 |
(4,041,945) |
– |
|
|
|
|
|
20.
Called up share capital
Issued, called up and fully paid
|
2023 |
2022 |
|
No. |
£ |
No. |
£ |
|
Ordinary shares of £ 1 each |
2 |
2 |
2 |
2 |
|
---- |
---- |
---- |
---- |
|
|
|
|
|
The shares have attached to them full voting, dividend and capital distribution (including on winding up) rights; they do not confer any rights of redemption.
21.
Security
Abdul Rahman AI Rashed holds a fixed and floating charge over the assets of the company.
Adel Abdulkarim Alabdulkarim holds a fixed and floating charge over the assets of the company.
22.
Reserves
Profit and loss account - This reserve records retained earnings and accumulated losses.
23.
Operating leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
|
2023 |
2022 |
|
£ |
£ |
|
Not later than 1 year |
117,945 |
112,259 |
|
Later than 1 year and not later than 5 years |
45,596 |
140,324 |
|
--------- |
--------- |
|
163,541 |
252,583 |
|
--------- |
--------- |
|
|
|
24.
Related party transactions
The company has taken advantage of the exemption available under FRS 102 not to disclose transactions with 100% owned subsidiaries within the group of which the company is a member. During the year a shareholder of the parent company advanced an aggregate amount of £100,000 to the company. The aggregate amount owing to this company at the year end is £2,478,607 (2022: £2,378,607). During the year the company repaid a net amount of £490,233 to the director. The aggregate amount owed to the director at the year end is £480,575 (2022: £970,808). During the year the company invoiced £10,005,590 (2022: £50,383,718) to connected entities under common control related to sales. The Company also invoiced a connected entity under common control of £21,840 (2022: £181,147) for recharges. During the year one of the connected entities under common control invoiced the Company for recharges amounting to £12,921 (2022: £64,515). Aggregate amounts owed by entities under common control at the year end amounted to £1,911,004 (2022: £29,958,206).
25.
Controlling party
OR Holdings and Investments Limited, a company registered in England and Wales, is the parent undertaking of the Company. The smallest and largest group of undertakings for which group accounts have been drawn up is that headed by OR Holdings and Investments Limited. Copies of these accounts are available from their registered office, 39-40 Eagle Street, Holborn, London, United Kingdom, WC1R 4TH. There is no ultimate controlling party as no one individual has greater than 50% shareholding.