FOR THE YEAR ENDED 31 DECEMBER 2024
FILMS AT 59 LIMITED
COMPANY INFORMATION
FILMS AT 59 LIMITED
CONTENTS
FILMS AT 59 LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The purpose of this report is to provide an analysis of the company's past performance and to provide insight into the company's main objectives, strategies, future prospects, the principal risks it faces moving forward and to provide information to assess how the directors have performed their duty to promote the success of the company.
Films at 59 is an award winning media support company based in the Bristol, UK. The company has gained both national and international recognition for its work in a variety of genres, but always in partnership with other businesses both within our region and beyond. We are fiercely proud of our Bristol heritage and the creative city we live and work within, and have always strived to work collaboratively to bring success not only to ourselves, but to the city and region as a whole.
Our Business Model and Company Philosophy
Films at 59 Limited is a media support company that specialises in supplying creative skills and technology to media programme-makers throughout the world.
We provide end-to-end solutions: crews, location equipment hire, workflow consultancy, post-production finishing and completed programme quality assurance and delivery. In our ever-growing and over-crowded world of media content creation, we know that our clients require flexibility, responsiveness, creative flair and budgetary “peace of mind”. We strive to meet and exceed their expectations with every project we work on.
Our company mission statement is this: “By delivering personal, flexible and innovative solutions, we enable our clients to achieve their ambitions, creatively and within budget. We are committed to being a sustainable business which treats everybody with respect.”
It is thanks to the hard work, talent and commitment of all of our staff that we are able to achieve success and continually rank amongst the top 15 post-production houses in the nation. We have been nominated multiple times for the industry recognised Broadcast Magazine ‘Best Post Production Facility’ award, and were immensely proud to finally bring this home to Bristol and the South West in early 2018.
Our Strategy
The company has a strong management team with excellent commercial, technical and financial skills and entrepreneurial flair. We appreciate our creative, operational and support talent who commit fully to our clients and their projects. This customer-focused work ethic across all activities has, over the long term, built trust and an enviable reputation in our sector.
We are a business that invests in new technology to ensure we are creative and forward-thinking. We have nurtured strong relationships with key suppliers and manufacturers to ensure we are always ‘ahead of the curve’ and our collaborative nature means that we always view these relationships as a two way street. We are active participants in beta tests and field trials, and pride ourselves on providing real world feedback to manufacturers so that they can produce the best equipment for ourselves and our clients.
A key part of our strategy is maintaining and strengthening relationships with our clients, working collaboratively with them to win commissions and bring in confirmed work. We sometimes offer our services to help pilot or test new ideas, and get involved in the pre-production planning as early as possible to help identify innovative and cost-effective workflows. In the digital age, workflow is king.
The media industry – particularly in the broadcast and film sector – can suffer turbulence due to high level changes at broadcaster and commissioner levels. We pride ourselves on keeping ahead of these changes and working with our clients to maximise our collective potential.
Business Activities and Performance
Turnover in the year to December 2024 totalled £11.8m compared to £16.5m in the same period in 2023. This was a result reflective of a substantial slowdown in the industry as a whole, following the recovery after the COVID-19 pandemic.
Investment in 2024 was muted as a result of decreased demand for our services, offset slightly by the need to replace equipment lost in a fire at one of our premises in Dec 2023.
Our Business Model and Company Philosophy
Films at 59 Limited is a media support company that specialises in supplying creative skills and technology to media programme-makers throughout the world.
We provide end-to-end solutions: crews, location equipment hire, workflow consultancy, post-production finishing and completed programme quality assurance and delivery. In our ever-growing and over-crowded world of media content creation, we know that our clients require flexibility, responsiveness, creative flair and budgetary “peace of mind”. We strive to meet and exceed their expectations with every project we work on.
Our company mission statement is this: “By delivering personal, flexible and innovative solutions, we enable our clients to achieve their ambitions, creatively and within budget. We are committed to being a sustainable business which treats everybody with respect.”
It is thanks to the hard work, talent and commitment of all of our staff that we are able to achieve success and continually rank amongst the top 15 post-production houses in the nation. We have been nominated multiple times for the industry recognised Broadcast Magazine ‘Best Post Production Facility’ award, and were immensely proud to finally bring this home to Bristol and the South West in early 2018.
Our Strategy
The company has a strong management team with excellent commercial, technical and financial skills and entrepreneurial flair. We appreciate our creative, operational and support talent who commit fully to our clients and their projects. This customer-focused work ethic across all activities has, over the long term, built trust and an enviable reputation in our sector.
We are a business that invests in new technology to ensure we are creative and forward-thinking. We have nurtured strong relationships with key suppliers and manufacturers to ensure we are always ‘ahead of the curve’ and our collaborative nature means that we always view these relationships as a two way street. We are active participants in beta tests and field trials, and pride ourselves on providing real world feedback to manufacturers so that they can produce the best equipment for ourselves and our clients.
A key part of our strategy is maintaining and strengthening relationships with our clients, working collaboratively with them to win commissions and bring in confirmed work. We sometimes offer our services to help pilot or test new ideas, and get involved in the pre-production planning as early as possible to help identify innovative and cost-effective workflows. In the digital age, workflow is king.
The media industry – particularly in the broadcast and film sector – can suffer turbulence due to high level changes at broadcaster and commissioner levels. We pride ourselves on keeping ahead of these changes and working with our clients to maximise our collective potential.
Business Activities and Performance
Turnover in the year to December 2024 totalled £11.8m compared to £16.5m in the same period in 2023. This was a result reflective of a substantial slowdown in the industry as a whole, following the recovery after the COVID-19 pandemic.
Investment in 2024 was muted as a result of decreased demand for our services, offset slightly by the need to replace equipment lost in a fire at one of our premises in Dec 2023.
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FILMS AT 59 LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Fire Incident in December 2023
In December 2023, a significant fire broke out at Clifton Heights in Bristol, affecting our equipment hire department and a number of cutting rooms and production company tenants. Fire safety protocols were followed correctly and as a result there were thankfully no injuries.
Subsequently the building was closed for an extended period, requiring us to relocate our hire department to other premises and work with affected clients to provide interim accommodations and cutting rooms. We would like to thank our clients and tenants for their patience and support during this difficult process, and also commend the work done by our support teams, who with their experience from the COVID-19 pandemic were able to get the hire department up and running in alternate premises within 24 hours.
It is also worth noting that our status as an employee owned company helped create a shared purpose in recovering from this traumatic event and committing to rebuilding the affected department. As has been shown in the wider economy, the employee ownership model increases business resiliency, employee engagement, productivity and innovation.
In spite of the severity of this incident, with outstanding support from our suppliers, we were able to continue to meet our commitments for equipment hire. However, a substantial amount of equipment was lost in the fire, and an insurance claim to cover that cost has been successfully settled.
As well as being a good employer (the majority of our staff have grown with the company for over 10 years), having created many full time jobs, championed the local freelance economy and provided business opportunities to our various clients and suppliers, the company's prime directive has always been 'customer satisfaction' - getting good products to people at fair prices and providing excellent after sales support. Most of our business is repeat business from long established relationships or via word of mouth. Our customers know we stand behind what we do.
The company endorses the active application of equal opportunities policies to provide fair and equitable conditions for all employees regardless of sex, family status, religion, creed, colour, ethnic origin, age, disability or sexual orientation.
Consultation with employees has continued at all levels, with the aim of ensuring their views are taken into account when decisions are made that are likely to affect their interests and that all employees are aware of the performance of the company and issues in the wider industry.
The company endorses the active application of equal opportunities policies to provide fair and equitable conditions for all employees regardless of sex, family status, religion, creed, colour, ethnic origin, age, disability or sexual orientation.
Consultation with employees has continued at all levels, with the aim of ensuring their views are taken into account when decisions are made that are likely to affect their interests and that all employees are aware of the performance of the company and issues in the wider industry.
The directors have reviewed and agreed policies for managing the financial risks, and these are summarised below:
1/ The Marketplace
The changes to our market continue as technology evolves and new ways of producing and consuming content become popular. Although the growth of “Subscription Video on Demand” (SVOD) streaming services in 2024 has slowed, their business models generate strong demand for high quality content, both in factual and entertainment genres. An interesting facet of this trend is that their customer base is generally global, and as such they are commissioning content globally as well.
In Bristol, SVOD broadcasters such as Netflix, Amazon, Disney+ and Apple continue to commission work from our clients, albeit at a much slower pace. Many of them built excess inventory in their genre libraries following a marked acceleration of their activity in 2020/2021, and this is now reflected in a reduction in commissioning across the board.
1/ The Marketplace
The changes to our market continue as technology evolves and new ways of producing and consuming content become popular. Although the growth of “Subscription Video on Demand” (SVOD) streaming services in 2024 has slowed, their business models generate strong demand for high quality content, both in factual and entertainment genres. An interesting facet of this trend is that their customer base is generally global, and as such they are commissioning content globally as well.
In Bristol, SVOD broadcasters such as Netflix, Amazon, Disney+ and Apple continue to commission work from our clients, albeit at a much slower pace. Many of them built excess inventory in their genre libraries following a marked acceleration of their activity in 2020/2021, and this is now reflected in a reduction in commissioning across the board.
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FILMS AT 59 LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Moving forward, we face the following risks in the marketplace:
Ongoing Market Disruption Risk
We are ultimately dependent on our clients winning commissions from broadcasters and high level changes continue to be disruptive. We are, however, aware of these factors and work hard with our clients to deliver that ‘little bit extra’ that hopefully helps their programmes attract the audiences that provide future commissions. There was, however, a major slowdown in programme making in 2024 and this has continued into 2025, although there are signs that the situation is improving. We are keeping a close eye on the situation and making appropriate plans to preserve our capabilities whilst remaining profitable.
Price risk
We continue to compete effectively and are regularly monitoring our services. We are in a competitive market and feel that global uncertainty, as well as flux in broadcaster commissions, has forced rates down. In an industry with a high level of ‘value add’, we are also unfortunately facing some competition based on ‘price’ rather than ‘value for money’. We continue to work with our clients to maintain a balance that ensures they receive the creative and technical expertise they demand whilst keeping the business sustainable.
Interest rate risk
Company bank borrowings incur interest at market rates. The company mitigates its exposure through the ongoing monitoring of the rates being applied. We continue to keep our borrowings at a sustainable level that allows for a sensible amount of ongoing investment and our current borrowings are at fixed interest rates.
Credit risk
Customer credit risk is addressed through a mixture of credit worthiness checks and a proactive approach to credit control. Following on from the COVID-19 pandemic, and with a general industry slowdown, we will be paying particular attention to at-risk accounts and act in advance to put in place payment plans or limit exposure.
2/ The Technology
Technology moves ever onward, with 4K (UHD) replacing high definition (HD) as the high-end format of choice and an increasing number of programmes being delivered in High Dynamic Range (HDR) formats. New camera technology is coming to market all the time, and a strategic approach is needed to ensure that our finite resources are invested wisely. File-based delivery over the Internet is now the norm and continual investment is needed in connectivity, storage and the technology to secure our systems and processes. Our investment in previous years has put us in a good position to take advantage of these developments, and we continue to pursue relationships with manufacturers and suppliers that provide us with insight into their future direction.
3/ The Operation
We work closely with our project management and workflow teams to ensure we have a transparent and accurate way of managing projects, and ensure new learning is applied easily to new projects. We have transitioned away from our bespoke software system to a commercial bookings and invoicing platform which will provide for future growth.
We also continue to work closely with our clients to provide in-house training of their teams to help ensure efficiencies are made across the board. We have worked hard to continue to invest in our staff to meet ever-changing creative, technical, and cultural changes in the business.
We are continually watchful of sales revenue and costs in these tough and unprecedented economic times.
Ongoing Market Disruption Risk
We are ultimately dependent on our clients winning commissions from broadcasters and high level changes continue to be disruptive. We are, however, aware of these factors and work hard with our clients to deliver that ‘little bit extra’ that hopefully helps their programmes attract the audiences that provide future commissions. There was, however, a major slowdown in programme making in 2024 and this has continued into 2025, although there are signs that the situation is improving. We are keeping a close eye on the situation and making appropriate plans to preserve our capabilities whilst remaining profitable.
Price risk
We continue to compete effectively and are regularly monitoring our services. We are in a competitive market and feel that global uncertainty, as well as flux in broadcaster commissions, has forced rates down. In an industry with a high level of ‘value add’, we are also unfortunately facing some competition based on ‘price’ rather than ‘value for money’. We continue to work with our clients to maintain a balance that ensures they receive the creative and technical expertise they demand whilst keeping the business sustainable.
Interest rate risk
Company bank borrowings incur interest at market rates. The company mitigates its exposure through the ongoing monitoring of the rates being applied. We continue to keep our borrowings at a sustainable level that allows for a sensible amount of ongoing investment and our current borrowings are at fixed interest rates.
Credit risk
Customer credit risk is addressed through a mixture of credit worthiness checks and a proactive approach to credit control. Following on from the COVID-19 pandemic, and with a general industry slowdown, we will be paying particular attention to at-risk accounts and act in advance to put in place payment plans or limit exposure.
2/ The Technology
Technology moves ever onward, with 4K (UHD) replacing high definition (HD) as the high-end format of choice and an increasing number of programmes being delivered in High Dynamic Range (HDR) formats. New camera technology is coming to market all the time, and a strategic approach is needed to ensure that our finite resources are invested wisely. File-based delivery over the Internet is now the norm and continual investment is needed in connectivity, storage and the technology to secure our systems and processes. Our investment in previous years has put us in a good position to take advantage of these developments, and we continue to pursue relationships with manufacturers and suppliers that provide us with insight into their future direction.
3/ The Operation
We work closely with our project management and workflow teams to ensure we have a transparent and accurate way of managing projects, and ensure new learning is applied easily to new projects. We have transitioned away from our bespoke software system to a commercial bookings and invoicing platform which will provide for future growth.
We also continue to work closely with our clients to provide in-house training of their teams to help ensure efficiencies are made across the board. We have worked hard to continue to invest in our staff to meet ever-changing creative, technical, and cultural changes in the business.
We are continually watchful of sales revenue and costs in these tough and unprecedented economic times.
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FILMS AT 59 LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
4/ Other Macro-Economic Factors
Whilst it may be argued that the direct effects of the COVID-19 pandemic have moved into the background, the indirect effects are potentially more of a long term threat to the stability of the current global economic system. In particular, the so-called ‘cost of living crisis’, which appears to be a global increase in inflation fuelled by stimulus and supply side issues during the COVID-19 pandemic, is putting pressure on our costs across the board.
Energy prices are still a concern, and upward pressure on wages continues as domestic economic conditions make it more difficult for households to make ends meet. As disposable incomes have reduced, household entertainment subscriptions have come under pressure, and we have seen a reduction in production activity as a result. We are also expecting to see consolidation in the sector as those services unable to attract sufficient subscribers are swept up by more dominant players.
All of these factors are, of course, out of our control, however we are not unaware of their significance, and make sure that all of our decision making is in line with our best predictions for the macro-economic conditions within which the business operates.
The company uses a variety of metrics to assess performance, including turnover, profit before tax, cash and cost of sales.
FINANCIAL KEY PERFORMANCE INDICATORS
Profit before tax for the year ending December 2024 was £2.5m (year ending December 2023: £0.7m), which shows the strength of the business against significant industry headwinds. For clarity, we note that £4.4m of our reported income was related to insurance income paid in relation to the fire in December 2023.
Turnover for the year ending December 2024 was £11.8m (year ending December 2023: £16.5m). This result again illustrates the slowdown that has occurred across our sector.
Closing cash balance for the year ending December 2024 was £9.1m (year ending December 2023: £7.7m), This result is skewed by the receipt of funds from our insurance claim related to the fire. In addition, investment slowed in 2024 as a result of subdued trading in our sector generally.
Cost of sales as a percentage of turnover for the year ending December 2024 was 32% (year ending December 2023: 27%).
NON-FINANCIAL KEY PERFORMANCE INDICATORS
Client retention is an important KPI for us. Almost all of the clients present in our top twenty customer list from the year ending December 2023 are present in or around the top twenty list for the year ending December 2024.
Attracting new clients and new business is also very important. In spite of the slowdown, we have seen steady growth in new accounts this year, with over 150 account openings across both post production and equipment hire. This is indicative of our attempts to reach out into new business areas across the UK and beyond.
Employee retention is also key across creative, support and administration areas, although we promote a regular throughput of runners and junior trainee positions to bring new talent into the industry. In the year ending December 2024, our non-runner employee retention rate was 92% (year ending December 2023: 89%).
FINANCIAL KEY PERFORMANCE INDICATORS
Profit before tax for the year ending December 2024 was £2.5m (year ending December 2023: £0.7m), which shows the strength of the business against significant industry headwinds. For clarity, we note that £4.4m of our reported income was related to insurance income paid in relation to the fire in December 2023.
Turnover for the year ending December 2024 was £11.8m (year ending December 2023: £16.5m). This result again illustrates the slowdown that has occurred across our sector.
Closing cash balance for the year ending December 2024 was £9.1m (year ending December 2023: £7.7m), This result is skewed by the receipt of funds from our insurance claim related to the fire. In addition, investment slowed in 2024 as a result of subdued trading in our sector generally.
Cost of sales as a percentage of turnover for the year ending December 2024 was 32% (year ending December 2023: 27%).
NON-FINANCIAL KEY PERFORMANCE INDICATORS
Client retention is an important KPI for us. Almost all of the clients present in our top twenty customer list from the year ending December 2023 are present in or around the top twenty list for the year ending December 2024.
Attracting new clients and new business is also very important. In spite of the slowdown, we have seen steady growth in new accounts this year, with over 150 account openings across both post production and equipment hire. This is indicative of our attempts to reach out into new business areas across the UK and beyond.
Employee retention is also key across creative, support and administration areas, although we promote a regular throughput of runners and junior trainee positions to bring new talent into the industry. In the year ending December 2024, our non-runner employee retention rate was 92% (year ending December 2023: 89%).
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FILMS AT 59 LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Consultation with employees has continued at all levels, with the aim of ensuring their views are taken into account when decisions are made that are likely to affect their interests and that all employees are aware of the performance of the company and issues in the wider industry.
It was always an ambition of the original shareholders to implement an employee share ownership scheme and this came into existence in February 2021. As a result, Films at 59 has transitioned to an Employee Owned Company, with an Employee Benefit Trust and an EMI Scheme the mechanism used to implement this change.
It was always an ambition of the original shareholders to implement an employee share ownership scheme and this came into existence in February 2021. As a result, Films at 59 has transitioned to an Employee Owned Company, with an Employee Benefit Trust and an EMI Scheme the mechanism used to implement this change.
The Directors have considered the principal risks to the Company and feel that there is an underlying strong demand for our services that will underpin future trading, although with an industry wide slowdown in commissioning, this will probably impact our financial performance in 2025. The impact of the SVOD services on production is slowing, amidst a challenging inflation and interest rate backdrop, however long term, we feel there is still a market for quality content as these services need this to keep their libraries interesting and fresh for their subscribers.
We are also in a difficult period of global instability, as a number of factors continue to disrupt supply chains, increase the cost of energy, and generally raise inflation and interest rates to uncomfortable levels. These factors are all outside of our control, however a careful and prudent approach to investment, as well as maintaining strong cost controls, are seen as a sensible response. We always work closely with our clients to maximise their production budgets, and with upward pressure on costs, this is more important than ever.
Taking these factors into consideration, and also with reference to the strength of the company’s balance sheet and forward order book, the directors believe the company will be able to continue to trade for the foreseeable future.
We are also in a difficult period of global instability, as a number of factors continue to disrupt supply chains, increase the cost of energy, and generally raise inflation and interest rates to uncomfortable levels. These factors are all outside of our control, however a careful and prudent approach to investment, as well as maintaining strong cost controls, are seen as a sensible response. We always work closely with our clients to maximise their production budgets, and with upward pressure on costs, this is more important than ever.
Taking these factors into consideration, and also with reference to the strength of the company’s balance sheet and forward order book, the directors believe the company will be able to continue to trade for the foreseeable future.
This report was approved by the board and signed on its behalf.
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1
FILMS AT 59 LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors present their report and the financial statements for the year ended 31 December 2024.
The profit for the year, after taxation, amounted to £1,870,540 (2023: £836,901).
During the year no dividends (2023: £Nil) were declared and paid.
The directors who served during the year were:
All future developments are included within the Strategic Report.
There have been no significant events affecting the Company since the year end.
The auditors, Bishop Fleming Audit Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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FILMS AT 59 LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
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FILMS AT 59 LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FILMS AT 59 LIMITED
We have audited the financial statements of Films at 59 Limited (the 'Company') for the year ended 31 December 2024, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
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 Auditors' 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 United Kingdom, including the Financial Reporting Council'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.
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.
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FILMS AT 59 LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FILMS AT 59 LIMITED (CONTINUED)
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
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.
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FILMS AT 59 LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FILMS AT 59 LIMITED (CONTINUED)
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 Auditors' 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:
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations, we have considered the following:
∙The nature of the industry and sector, control environment and business performance
∙Results of our enquires of management and directors in relation to their own identification and assessment of the risks of irregularities within the Company; and
∙Any matters we identified having obtained and reviewed the Company’s documentation of their policies and procedures relating to: identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance; detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; the internal controls established to mitigate risks of fraud or noncompliance with laws and regulations.
As a result of these procedures, we have considered the opportunities and incentives that may exist within the organisation for fraud and identified the area of highest risk to be in relation to revenue recognition, with a particular risk in relation to year-end cut-off. In common with all audits under ISAs (UK) we are also required to perform specific procedures to respond to the risk of management override.
We have also obtained an understanding of the legal and regulatory frameworks that the Company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures within the financial statements. The key laws and regulations we considered in this context included the UK Companies Act and UK tax legislation. In additions we considered provision of other laws and regulations that do not have a direct effect on the financial statements but compliance with may be fundamental for the Company’s ability to operate or avoid a material penalty. These included health and safety regulations, employment legislation and data protection laws.
Our audit procedures performed to respond to the risks identified included, but were not limited to:
∙Reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
∙Reviewing the financial statement disclosures and testing to supporting documentation to assess the recognition of revenue;
∙Challenging assumptions and judgments made by management in their significant accounting estimates;
∙Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulation and fraud;
∙Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; and
∙Identifying and testing journal entries, evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from an error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed 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.
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FILMS AT 59 LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FILMS AT 59 LIMITED (CONTINUED)
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' 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 Auditors' 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.
for and on behalf of
Chartered Accountants
Statutory Auditors
10 Temple Back
BS1 6FL
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FILMS AT 59 LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
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FILMS AT 59 LIMITED
REGISTERED NUMBER:02507861
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 15 to 33 form part of these financial statements.
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FILMS AT 59 LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
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FILMS AT 59 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Films at 59 Limited is a company limited by shares incorporated in England and Wales. The registered office is 59 Cotham Hill, Clifton, Bristol, BS6 6JR.
2.ACCOUNTING POLICIES
The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland and the Companies Act 2006.
The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
∙the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of Films @ 59 Holdings Limited as at 31 December 2024 and these financial statements may be obtained from Companies House.
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FILMS AT 59 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.ACCOUNTING POLICIES (CONTINUED)
Thanks to robust trading activity and the windfall return on investment, the company was in a strong financial position at the start of the COVID-19 pandemic and this has improved considerably in the years following. The Directors have considered the principal risks to the Company and feel that there is an underlying strong demand that will underpin future trading, albeit probably not at the levels seen in 2022 and 2023.
The industry as a whole is reporting a slowdown in response to changing macro-economic conditions and the impact of inflation on disposable income worldwide. There is also a feeling that the SVODs have over committed in terms of inventory and are scaling back their production ambitions as a result. This is an industry wide problem, and we have seen business failures in our sector during 2024 and 2025.
Our approach has always been cautious, and we are keeping a very careful eye on the development of the market and our size and position within it.
The fire in December 2023 had a major impact on our hire department. However, the level of support received from our clients and suppliers is a testament to our good standing in the industry. In spite of the possibility of serious commercial impact, our distributed premises, and the sterling work of our support teams and the hire department, managed to mitigate this risk, and the insurance claim process has concluded with a positive outcome.
We are also in a difficult period of global instability, as a number of factors continue to disrupt supply chains, increase the cost of energy, and generally raise inflation and interest rates to uncomfortable levels. These factors are all outside of our control, however a careful and prudent approach to investment, as well as maintaining strong cost controls, are seen as a sensible response. We always work closely with our clients to maximise their production budgets, and with upward pressure on prices, this is more important than ever.
Taking these factors into consideration, and also with reference to the strength of the company’s balance sheet and forward order book, the directors believe the company will be able to continue to trade for the foreseeable future. The financial statements are therefore prepared on a going concern basis.
The industry as a whole is reporting a slowdown in response to changing macro-economic conditions and the impact of inflation on disposable income worldwide. There is also a feeling that the SVODs have over committed in terms of inventory and are scaling back their production ambitions as a result. This is an industry wide problem, and we have seen business failures in our sector during 2024 and 2025.
Our approach has always been cautious, and we are keeping a very careful eye on the development of the market and our size and position within it.
The fire in December 2023 had a major impact on our hire department. However, the level of support received from our clients and suppliers is a testament to our good standing in the industry. In spite of the possibility of serious commercial impact, our distributed premises, and the sterling work of our support teams and the hire department, managed to mitigate this risk, and the insurance claim process has concluded with a positive outcome.
We are also in a difficult period of global instability, as a number of factors continue to disrupt supply chains, increase the cost of energy, and generally raise inflation and interest rates to uncomfortable levels. These factors are all outside of our control, however a careful and prudent approach to investment, as well as maintaining strong cost controls, are seen as a sensible response. We always work closely with our clients to maximise their production budgets, and with upward pressure on prices, this is more important than ever.
Taking these factors into consideration, and also with reference to the strength of the company’s balance sheet and forward order book, the directors believe the company will be able to continue to trade for the foreseeable future. The financial statements are therefore prepared on a going concern basis.
Turnover represents amounts receivable for media production services, hire of media equipment and rents received. Hire and rental income is recognised in the period for which it is receivable. Media production services income is recognised in the period to which it relates.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
The estimated useful lives range as follows:
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FILMS AT 59 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.ACCOUNTING POLICIES (CONTINUED)
At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
The Company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the Company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised within 'other operating income' in the statement of comprehensive income.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised within 'other operating income' in the statement of comprehensive income.
Page 17
FILMS AT 59 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.ACCOUNTING POLICIES (CONTINUED)
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
Basic financial assets
Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.
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FILMS AT 59 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.ACCOUNTING POLICIES (CONTINUED)
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 the deduction of all its liabilities.
Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Derecognition of financial instruments
Derecognition of financial assets
Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.
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FILMS AT 59 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.ACCOUNTING POLICIES (CONTINUED)
Functional and presentation currency
Transactions and balances
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
Page 20
FILMS AT 59 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.ACCOUNTING POLICIES (CONTINUED)
Depreciation
The company holds significant fixed asset across a range of categories. The rates of depreciation applied to fixed assets are based on management's estimate of the useful economic life of these assets and estimate of the period over which economic benefits are likely to flow to the company from their use.
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FILMS AT 59 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Analysis of turnover by country of destination:
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FILMS AT 59 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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FILMS AT 59 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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FILMS AT 59 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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FILMS AT 59 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
12.TAXATION (CONTINUED)
There were no factors that may affect future tax charges.
Page 26
FILMS AT 59 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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