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.
The directors who held office during the period and up to the date of signature of the financial statements were as follows:
Saffery LLP were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006.
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:
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”).
The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per shooting day, the recommended ratio for the sector.
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.
Qualifying third party indemnity provisions are in place to indemnify the directors and officers of the Company.
The directors present the strategic report for the period ended 31 December 2024.
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.
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.
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.
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:
likely consequences of any decision in the long term;
interests of the Company’s employees;
need to foster the Company’s business relationships with suppliers, customers and others;
impact of the Company’s operations on the community and the environment;
desirability of the Company maintaining a reputation for high standards of business conduct; and
need to act fairly between the members of the Company.
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.
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:
Developing and maintaining strong policies & standards;
Embedding human rights into business operations & decision-making;
Assessing, prioritising, & addressing risk;
Engaging with stakeholders; and
Improving access to effective grievance mechanisms & remediation procedures.
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.
On behalf of the board
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).
Basis for 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
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
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.
The income statement has been prepared on the basis that all operations are continuing operations.
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.
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.
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.
The Company operates a defined contribution scheme. Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
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.
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 estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
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.
The average monthly number of persons (excluding directors) employed by the Company during the period was:
Their aggregate remuneration comprised:
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.
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:
As at 31 December 2024, there were no recognised deferred tax assets or liabilities.