Company Registration No. 15365719 (England and Wales)
Grand Leo UK Productions Limited
Annual report and financial statements
for the period ended 31 December 2024
Grand Leo UK Productions Limited
Contents
Page
Company information
1
Directors' report
2 - 4
Strategic report
5 - 7
Directors' responsibilities statement
8
Independent auditor's report
9 - 11
Statement of comprehensive income
12
Statement of financial position
13
Statement of changes in equity
14
Notes to the financial statements
15 - 21
Grand Leo UK Productions Limited
Company information
1
Directors
David Clapham
(Appointed 7 February 2024)
Ajay Patel
(Appointed 5 August 2024)
Secretary
David Clapham
(Appointed 7 February 2024)
Ajay Patel
(Appointed 5 August 2024)
Company number
15365719
Registered office
71 Queen Victoria Street
London
United Kingdom
EC4V 4BE
Independent auditor
Saffery LLP
71 Queen Victoria Street
London
EC4V 4BE
Grand Leo UK Productions Limited
Directors' report
For the period ended 31 December 2024
2

The directors of Grand Leo UK Productions Limited (the "Company") present the annual report containing their Directors' Report and financial statements for the period ended 31 December 2024.

Directors

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

David Clapham
(Appointed 7 February 2024)
Ajay Patel
(Appointed 5 August 2024)
Lesley Freeman
(Appointed 21 December 2023 and resigned 5 August 2024)
No director held any interest in the share capital of the Company during the period.
Principal activity

The company was incorporated on 21 December 2023 and began trading on the same day. The principal activity of the company is that of motion picture production.

Dividend
The directors do not recommend payment of any dividend.
Auditor

Saffery LLP were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006.

Energy and carbon report

This statement is made in compliance with the UK Streamlined Energy and Carbon Reporting requirements under The Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018 (‘SECR’). The statement does not reflect the internal guidelines of Grand Leo UK Productions Limited for disclosing such data in its Sustainability Report.

 

UK energy consumption data and associated greenhouse gas (GHG) emissions for the year ended 31 December 2024:

 

Grand Leo UK Productions Limited
Directors' report (continued)
For the period ended 31 December 2024
3
2024
Energy consumption
kWh
Energy consumption used to calcualte emissions in kilowatt-hours (kWh)
2,609,556
2024
Emissions of CO2 equivalent
metric tonnes
Scope 1 - direct emissions
- Gas combustion and fuel consumed for owned transport
281
Scope 2 - indirect emissions
- Electricity purchased
69
Scope 3 - other indirect emissions
- Fuel consumed for transport not owned by the company
-
Total gross emissions
350
Intensity ratio
Emissions Intensity average MTCO2e emissions per production day (80 days)
5.1
Quantification and reporting methodology

For the purpose of determining Scope 1 and Scope 2 emissions, the Company follows the operation control approach as outlined in the GHG Protocol.

Scope 1 GHG emissions include stationary combustion of fossil fuels (e.g., combustion from the Company’s stationary sources such as boilers and generators).

Scope 2 GHG emissions include purchased electricity (e.g., energy used in the company’s sites). Scope 2 emissions are location based method emissions.

 

The Company's emissions are calculated by multiplying activity data (such as electricity purchased) by an appropriate emissions factor (e.g., grams CO₂ per kWh of electricity used), to provide a representative value for the carbon dioxide emissions associated with each activity. The Company’s emission intensity ratio is calculated by dividing the total annual emissions (kg CO2e) by the chosen activity metric (number of production days). The chosen intensity ratio has been selected as the most appropriate metric for the company’s operations, as production shooting says represent the core business activity and primary driver of energy consumption. Emissions have been calculated using conversions provided by the Green Production guide Toolkit’s Productive Environmental Accounting Report (PEAR, version 4.2.4), produced by the Producers Guild of America Foundation (“PGAF”).

Intensity measurement

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per shooting day, the recommended ratio for the sector.

Grand Leo UK Productions Limited
Directors' report (continued)
For the period ended 31 December 2024
4
Measures taken to improve energy efficiency

The Company leverages industry best practices and emerging technologies in facility design and operation to drive reductions across carbon and energy. It focuses on the direct emissions that result from powering its buildings, as well as the indirect.

The Company implemented a number of measures to minimize and reduce its carbon impact, including: . deploying hybrid generators for its facilities, hybridizing two separate, large NRMM units that powered catering setups, deploying 30 smaller (capacity of 10kWh and below) batteries, replacing white diesel with HVO fuel, using energy efficient ED lighting, maximizing the use of the electric grid at the studio and on location and using hybrid rental cars when possible.

 

The Company’s ultimate controlling parent - Amazon, co-founded The Climate Pledge with Global Optimism in 2019 and became the first company to sign on. The Climate Pledge brings together the world’s top companies to accelerate joint action, cross-sector collaboration, and responsible change. As part of The Climate Pledge, Amazon aims to reach net-zero carbon emissions across Amazon's operations by 2040, 10 years ahead of the Paris Agreement. Please refer to the Section 172(1) Statement in the Strategic Report for additional information on the strategic importance of the pledge.

 

On renewable energy, Amazon set an ambitious goal to match 100% of the electricity consumed by global operations with renewable energy by 2030, and reached that goal in 2023 — seven years early. As of January 2025, Amazon has 44 renewable energy projects in the United Kingdom with a total annual expected capacity of 964 megawatts when operational. The Company is continually working to reduce emissions throughout the business, as well as partnering across the supply chain and the industries in which it operates to share knowledge and scale sustainable practices.

Disclosure of information to the auditor

The directors who held office at the date of approval of this annual report confirm that so far as they are aware, there is no relevant audit information of which the Company's audit is unaware, and the directors have taken steps that ought to have been taken as directors to make themselves aware of any relevant audit information and to establish that the Company's auditor is aware of that information.

Qualifying third party indemnity provisions

Qualifying third party indemnity provisions are in place to indemnify the directors and officers of the Company.

On behalf of the board
David Clapham
Director
27 September 2025
Grand Leo UK Productions Limited
Strategic report
For the period ended 31 December 2024
5

The directors present the strategic report for the period ended 31 December 2024.

General Business Review

The Company was incorporated on 21 December 2023 and began trading the same day. During the period the company was involved in the production of a feature film. The company has a profit of £24,150 after tax, and at the period end it had net assets of £24,151.

Principal risks and uncertainties

The Company is dependent on the continued success of the Amazon group companies. The principal risks and uncertainties they face include, among others, risks related to competition, management of growth, new products, services and technologies, potential fluctuations in operating results, international expansion, outcomes of legal proceedings and claims, fulfilment centre optimisation, seasonality, commercial agreements, acquisitions and strategic transactions, foreign exchange rates, system interruption, government regulation and taxation, and fraud.

 

More information about the principal risks and uncertainties facing the group are included in Amazon.com, Inc.’s filings with the U.S. Securities and Exchange Commission, including its Annual Report on Form 10-K.

Analysis of financial key performance indicators

The directors consider the company's key financial performance indicator to be whether the motion picture is produced in line with the agreed budget. The motion picture was in line with the budget.

Analysis of non-financial key performance indicators

The directors consider the company's key non-financial performance indicator to be whether the company creates and delivers the feature film it has been contracted to produce for general release in national and international cinema. The motion picture has been awarded an interim British Film Certificate and is to be delivered and released in the following period.

SECTION 172(1) STATEMENT - DUTY TO PROMOTE THE SUCCESS OF THE COMPANY

Section 172 of the Companies Act 2006 (the “Act”) defines the general duties of the directors of a company to promote the success of that company. It is noted the directors of the Company are under a duty to act in a way that they consider, in good faith, would be most likely to promote the success of the Company for the benefit of its shareholder and, in doing so, to have regard, amongst other matters, to the:

The directors who served during the year have acted in good faith and had regard to the matters above in discharging their duties. The Company operates in the UK as part of Amazon.com, Inc.’s global business (‘Amazon’) and therefore the decisions of the directors with respect to the Company take account of the corporate strategy of Amazon more broadly. Amazon’s mission, as presented in its group annual report, is to be “Earth’s most customer-centric company”. Amazon is guided by four key principles: customer obsession rather than competitor focus, passion for invention, commitment to operational excellence, and long-term thinking. Whether decisions are taken at a global or country level, specific actions are taken by the directors in discharging their responsibilities under Section 172. More about Amazon's UK initiatives, including those of the Company, can be found at www.aboutamazon.co.uk.

Grand Leo UK Productions Limited
Strategic report (continued)
For the period ended 31 December 2024
6

Likely consequences of any decision on the long term

The Company’s directors recognise the responsibility to protect and enhance the reputation of the Company and maintain high standards of business conduct. The Company takes a long-term view on the benefits it generates through the jobs and skills offered, the small businesses supported, the sustainability actions led and the resulting community impact. Customers, policymakers and the media have pathways to raise any potential issues with Customer Service, Public Policy or Public Relations teams. The directors of the Company are confident that escalation mechanisms exist to raise these issues with the Board, address the problem at hand and agree on a response to the relevant stakeholder.

Workforce engagement

One of Amazon’s leadership principles is to 'strive to be earth's best employer’. There are several ways in which the Company engages with employees. The directors seek to understand the Company’s employees’ concerns through dialogue directly with Human Resources teams and via anonymous workplace feedback surveys. Also, the Company has an “Open Door Philosophy” that welcomes and encourages any employee to discuss suggestions, concerns, or feedback with their manager, a Human Resources team member, or a member of the leadership team.

Stakeholder Engagement (Including customers)

Amazon strives to be Earth’s most customer-centric company, Earth’s best employer, and Earth’s safest place to work in the industries in which the Company operates. Strong management and governance are key to that ambition. The directors’ focus is on implementing best practice governance principles to operate an ethical business that stakeholders trust. Customers and local communities are able to engage with Amazon through a number of physical and digital channels.

Environmental and sustainability initiatives, and enabling a socially responsible and ethical supply chain

Just as the directors are committed to promoting the rights of employees, the Company is committed to working with suppliers to embed respect for human rights in their operations and supply chains and to help further the goal to support the fundamental dignity of everyone the Company works with. The Company’s human rights strategy is informed by leading international standards and frameworks developed by the United Nations (UN) and the International Labour Organisation (ILO). The Company is committed to respecting and supporting the UN Guiding Principles on Business and Human Rights (UNGPs), the UN Universal Declaration of Human Rights, the Core Conventions of the ILO, and the ILO Declaration on Fundamental Principles and Rights at Work.

The strategy to deliver on these commitments is based on the UNGPs and has five pillars:

Maintaining a reputation for high standards of business conduct

The Company looks to adhere to local and international laws. The Code of Business Conduct and Ethics (Code of Conduct) and associated policies, procedures, and communications outline the expectations of employees. All employees receive Code of Conduct training during onboarding, with regular refresher training required subsequently. Depending on risks associated with job role and location, employees may receive additional anti-bribery training.

The Company's focus is on implementing best practice governance principles to operate an ethical business that stakeholders trust. The directors of the Company recognise the importance of upholding high ethical standards and conducting business with integrity as outlined in the Corporate Governance Arrangements.

Grand Leo UK Productions Limited
Strategic report (continued)
For the period ended 31 December 2024
7

On behalf of the board

David Clapham
Director
27 September 2025
Grand Leo UK Productions Limited
Directors' responsibilities statement
For the period ended 31 December 2024
8

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

 

Company law requires the directors to prepare financial statements for each financial year. Under the law the directors have elected to prepare the financial statements in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and applicable law.

 

Under Company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period. In preparing these financial statements, the directors are required to:

 

 

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.

 

Under the applicable law and regulations, the directors are also responsible for preparing a directors' report that complies with that law and those regulations. The directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company's website.

Grand Leo UK Productions Limited
Independent auditor's report
To the members of Grand Leo UK Productions Limited
9
Opinion

We have audited the financial statements of Grand Leo UK Productions Limited (the 'Company') for the period ended 31 December 2024 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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.

Grand Leo UK Productions Limited
Independent auditor's report (continued)
To the members of Grand Leo UK Productions Limited
10

Opinions on other matters prescribed by the Companies Act 2006

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

 

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:

 

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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.

 

Identifying and assessing risks related to irregularities:

We assessed the susceptibility of the 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 by updating our understanding of the sector in which the Company operates.

 

Grand Leo UK Productions Limited
Independent auditor's report (continued)
To the members of Grand Leo UK Productions Limited
11

Laws and regulations of direct significance in the context of the Company include The Companies Act 2006 and UK Tax legislation, specifically legislation relating to creative industry tax credits and expenditure credits.

 

In addition, the Company is subject to other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to its ability to operate or to avoid a material penalty. These include anti-bribery legislation, employment law and anti-money laundering legislation.

 

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, and production, comply with the relevant laws and regulations governing access to the creative industry tax credits, including the Audio-Visual Expenditure Credit (AVEC).

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.

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

Use of our report

This report is made solely to the Company's member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.

Sinead McHugh
Senior Statutory Auditor
For and on behalf of Saffery LLP
29 September 2025
Statutory Auditors
71 Queen Victoria Street
London
EC4V 4BE
Grand Leo UK Productions Limited
Statement of comprehensive income
For the period ended 31 December 2024
12
Period
ended
31 December
2024
Notes
£
TURNOVER
3
52,074,816
Cost of sales
(65,367,699)
GROSS LOSS
(13,292,883)
Administrative expenses
22,226
Government grants - AVEC
4
14,191,497
OPERATING PROFIT
920,840
Interest receivable and similar income
7
84,192
OPERATING PROFIT BEFORE TAXATION
1,005,032
Tax on profit
8
(980,882)
PROFIT AND TOTAL COMPREHENSIVE INCOME FOR THE PERIOD
24,150

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

Grand Leo UK Productions Limited
Statement of financial position
As at 31 December 2024
13
2024
Notes
£
£
CURRENT ASSETS
DEBTORS: amounts falling due within one year
9
17,564,580
Cash at bank and in hand
2,110,283
19,674,863
CREDITORS:
amounts falling due within one year
10
(19,650,712)
NET CURRENT ASSETS
24,151
CAPTIAL AND RESERVES
Called up share capital
11
1
Retained earnings
24,150
SHAREHOLDER'S FUNDS
24,151
The financial statements were approved by the board of directors and authorised for issue on 27 September 2025 and are signed on its behalf by:
David Clapham
Director
Company Registration No. 15365719
Grand Leo UK Productions Limited
Statement of changes in equity
For the period ended 31 December 2024
14
Share capital
Retained earnings
Total
Notes
£
£
£
Balance at 21 December 2023
-
0
-
0
-
Period ended 31 December 2024:
Profit and total comprehensive income
-
24,150
24,150
Issue of share capital
11
1
-
1
Balance at 31 December 2024
1
24,150
24,151
Grand Leo UK Productions Limited
Notes to the financial statements
For the period ended 31 December 2024
15
1
Accounting policies

Statement of compliance

Grand Leo UK Productions Limited (the "Company") is a private company limited by shares incorporated in England and Wales. The registered office is 71 Queen Victoria Street, London, EC4V 4BE.

 

The Company’s financial statements have been prepared in compliance with Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (“FRS 102”), and with the Companies Act 2006.

1.1
Reporting period

The financial statements have been presented for a period from inception on 21 December 2023 to 31 December 2024, to align with the reporting dates of the wider group.

1.2
Basis of preparation

These financial statements have been prepared in accordance with applicable accounting standards and under the historical cost convention.

 

The functional currency of the Company's operations in the United Kingdom is pound sterling. The financial statements are presented in pound sterling and are rounded to the nearest pound sterling (£).

 

The Company has taken advantage of the following disclosure exemptions in FRS 102:

 

 

The exemptions stated above are available to the Company as it is a member of a group where the parent of that group prepares publicly available consolidated financial statements.

1.3
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future, being twelve months from the approval of the financial statements (until September 2026). This period is deemed appropriate due to the nature of the principal activities of the business and Amazon.com Inc.'s ongoing commitment and proven ability to support the Company's operations. The financial statements have therefore been prepared on a going concern basis.true

1.4
Turnover

Turnover represents income from the Company's principal trading activities and is stated exclusive of VAT.

 

In respect of long-term contracts for ongoing services, turnover represents the value of work done in the period, including estimates of amounts not invoiced. Value of work done in respect of long-term contracts and contracts for ongoing services is determined by reference to the stage of completion.

The "percentage of completion method" is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the period in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recoverable.

Grand Leo UK Productions Limited
Notes to the financial statements (continued)
For the period ended 31 December 2024
1
Accounting policies (continued)
16
1.5
Cash at bank and in hand

All highly liquid instruments with an original maturity of three months or less are classified as cash equivalents.

1.6
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Income tax

On 11 July 2023, the UK enacted new global minimum tax rules to align with the Organization for Economic Co-operation and Development Base Erosion and Profit Shifting ("BEPS") Pillar two model rules. The enacted law includes the implementation of multinational top-up tax ("MTUT") and domestic minimum top-up tax ("DTT"). The MTUT and DTT are effective for fiscal years beginning on or after 31 December 2023. The UK has also adopted the Transitional Country by Country Safe Harbor guidance applicable for fiscal years beginning on or before 31 December 2026. The Transitional Country by Country Safe Harbors will provide relief from the application of the global minimum tax rules within a jurisdiction should certain criteria be met. We have applied the temporary, mandatory exception provided under Section 29 - Income Taxes to neither recognise nor disclose information on deferred tax assets and liabilities related to Pillar two income taxes.

1.7
Pension costs

The Company operates a defined contribution scheme. Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.8
Government grants - AVEC

Government grants are not recognised until there is reasonable assurance that the Company will comply with the conditions attaching to them and that the grants will be received.

 

Government grants, including AV Expenditure Credits, received towards production costs are recognised as other operating income. The recognition occurs over the periods necessary to match the grants with the related costs.

 

On 29 November 2023, the UK government issued final legislation to reform the current system of Audio Visual ('AV') tax credits to merge the four existing AV schemes (Film, High-End Television ('HETV'), Children's Television and Animation) into a single scheme of Audio-Visual Expenditure Credits ('AVEC') and has reviewed the qualifying criteria. The legislation was substantively enacted on 21 February 2024. The new scheme is one of expenditure credits as opposed to corporate tax relief, requiring a change to the accounting treatment to include them within statutory operating profit rather than within the consolidated tax charge.

 

The Company has elected to claim the new AV expenditure credits for all qualifying expenditure incurred as opposed to claiming under the previous Film tax credit scheme.

Grand Leo UK Productions Limited
Notes to the financial statements (continued)
For the period ended 31 December 2024
1
Accounting policies (continued)
17
1.9
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions where practicable, else at the average rate over the period in which the transactions were incurred. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Critical accounting 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.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

AVEC Estimate

The directors believe the key accounting estimate within the financial statements for the Company is the valuation of the AVEC available. The estimate is based on the assessment of the value of qualifying expenditure as per HMRC legislations and guidance plus assessment of the qualification of the underlying production as eligible for AVEC.

 

In the opinion of the directors, there were no other critical judgements or other estimation uncertainties in these financial statements.

3
Turnover and other revenue
Period ended
31 December
2024
£
Turnover analysed by class of business
Sale of film rights
52,050,666
Production services fee
24,150
52,074,816
Grand Leo UK Productions Limited
Notes to the financial statements (continued)
For the period ended 31 December 2024
3
Turnover and other revenue (continued)
18
Period ended
31 December
2024
£
Turnover analysed by geographical market
United States of America
52,074,816
Period ended
31 December
2024
£
Other revenue
Interest income
84,192
Government grants - AVEC
14,191,497
Government grants
Government grant income represents amounts accrued in respect of Audio-Visual Expenditure Credits ('AVEC') recognised in the period. The gross amount of AVEC is recognised and is subject to tax.
4
Operating profit
Period ended
31 December
2024
Operating profit for the period is stated after charging:
£
Exchange gains
(42,226)
Fees payable to the Company's auditor for the audit of the Company's financial statements
16,000
Fees payable to the Company's auditor for non-audit services
4,000
Government grants - AVEC
(14,191,497)
Interest
(84,192)
5
Staff costs

The average monthly number of persons (excluding directors) employed by the Company during the period was:

Period ended
31 December
2024
Number
Total
80
Grand Leo UK Productions Limited
Notes to the financial statements (continued)
For the period ended 31 December 2024
5
Staff costs (continued)
19

Their aggregate remuneration comprised:

Period ended
31 December
2024
£
Wages and salaries
3,201,017
Social security costs
364,136
Staff pension contributions
16,765
3,581,918
6
Directors' remuneration

The directors' remuneration has been borne by the parent company, Amazon.com, Inc. or one of its affiliated companies. The directors do not believe that it is practicable to apportion their remuneration for qualifying services to the Company for the period ended 31 December 2024.

7
Interest receivable and similar income
Period ended
31 December
2024
£
Interest income
Interest on bank deposits and VAT
84,192
8
Tax on profit
Period ended
31 December
2024
£
Current tax
UK corporation tax on profits for the current period
980,882
Grand Leo UK Productions Limited
Notes to the financial statements (continued)
For the period ended 31 December 2024
8
Tax on profit (continued)
20

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

Period ended
31 December
2024
£
Profit before taxation
1,005,032
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00%
251,258
Difference to profit arising per the accounts due to the Audio-Visual Expenditure Credit claim
709,945
Expenses not deductible for tax purposes
19,679
Taxation charge for the period
980,882

As at 31 December 2024, there were no recognised deferred tax assets or liabilities.

9
Debtors: amounts falling due within one year
2024
£
Amounts owed by group undertakings
3,372,054
Government grant receivable
13,210,615
Other debtors
731,767
Prepayments and accrued income
250,144
17,564,580
10
Creditors: amounts falling due within one year
2024
£
Amounts owed to group undertakings
19,533,396
Other creditors
23,648
Accruals and deferred income
93,668
19,650,712
11
Called up share capital
2024
2024
Ordinary share capital
Number
£
Issued and fully paid
Ordinary shares of £1 each
1
1
Grand Leo UK Productions Limited
Notes to the financial statements (continued)
For the period ended 31 December 2024
21
12
Ultimate controlling party

The Company's immediate parent undertaking is Metro-Goldwyn-Mayer Studios Inc., a company incorporated in the United States of America. The address of this company is 245 N Beverly Drive, Beverly Hills, CA 90210-5317, USA.

 

The smallest and largest group in which the results of the Company are consolidated is that headed by its ultimate parent undertaking, Amazon.com Inc., a company incorporated in the United States of America. Copies of group financial statements of Amazon.com Inc. can be obtained from 410 Terry Avenue N, Seattle, WA 98109-5210, USA.

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