1.
General Information
Vertigo Releasing Limited
is a private company, limited by shares, incorporated in England & Wales, registered number
08938376
. The registered office is 20-22 Wenlock Road, London, N1 7GU.
2.
Accounting Policies
2.1.
Basis of Preparation of Financial Statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.
2.2.
Going Concern Disclosure
The directors have conducted a review to assess whether it is reasonable to prepare the financial statements on a going concern basis.
In making their assessment, the directors have considered the 12 month period from the date of approval of the financial statements and have noted that -
- the company has traded successfully for several years,
- the operating performance has resulted in a net profit after tax for the year of £90,007 (2024:£246,693)
- and has net assets at the balance sheet date of £775,206 (2024:£685,199) including cash balances of £488,983 (2024:£168,510)
The company has significant financial resources at its disposal including the availability of funding from its shareholders and external financier which have been confirmed, and the directors are satisfied that this support will continue, if required, for a period of 12 months from the date of approval of the financial statements.
The company is expected to trade profitably for the foreseeable future and it has assets that will continue to generate income for several years.
Consequently, the directors believe that the company is well placed to manage its business risks successfully.
The directors have a reasonable expectation that the company has adequate resources, to meet its obligations for a period of at least 12 months from the date of approval of the financial statements, and to continue in operational existence for the foreseeable future.
Accordingly, they continue to adopt the going concern basis in preparing the financial statements.
2.3.
Turnover
Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover is reduced for estimated customer returns, rebates and other similar allowances.
Sale of goods
Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point that the customer has signed for the delivery of the goods.
Rendering of services
Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. Turnover is only recognised to the extent of recoverable expenses when the outcome of a contract cannot be estimated reliably.
Vertigo Releasing Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 March 2025
2.4.
Tangible Fixed Assets and Depreciation
Tangible fixed assets under the cost model are stated at historical cost less accumulated
depreciation and any accumulated impairment losses. Historical cost includes expenditure that is
directly attributable to bringing the asset to the location and condition necessary for it to be capable of
operating in the manner intended by management.
Depreciation is provided at the following annual rates in order to write off the cost, less any estimated residual value, of each asset at the following annual rates:
| Fixtures & Fittings |
|
| Computer Equipment |
|
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 in profit or loss.
2.5.
Leasing and Hire Purchase Contracts
Assets obtained under finance leases are capitalised as tangible fixed assets. Assets acquired under finance leases are depreciated over the shorter of the lease term and their useful lives. Assets acquired under hire purchase contracts are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in the creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.
Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to the profit and loss account as incurred.
2.6.
Foreign Currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.
2.7.
Taxation
Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.
Current or deferred taxation assets and liabilities are not discounted.
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
2.8.
Pensions
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.
Vertigo Releasing Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 March 2025
2.9.
Preparation of consolidated financial statements
The financial statements contain information about Vertigo Releasing Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 399(2A) of the Companies Act 2006 from the requirements to prepare consolidated financial statements.
2.10.
Revenue Recognition
Revenue is stated exclusive of VAT and consists of sales of goods and services.
Revenue is recognised from the sale of goods when the company has transferred the risks and rewards of ownership and control of the goods, and the amount of revenue can be measured reliably. Under this method, the standard can be applied either to all contracts at the date of initial application or only to contracts that are not completed at that date.
Revenue from the provision of services comprises:
- revenues and profit shares receivable in respect of the commercial exploitation of film titles, after the recoupment of up-front equity positions; and
- fees and commissions receivable for the provision of distribution services on film titles.
The following specific recognition criteria must also be met before revenue is recognised:
Theatrical sales -
Revenue from theatrical sales is recognised when the films are exhibited based on contractual rental terms of box office admissions with exhibitors.
Home Entertainment sales -
Home Entertainment revenue, is recognised on the sale of the home DVDs to retailers and other Home Entertainment revenue streams. Any sales in advance of the street release date are deferred until the release date. In the normal course of trade, the company will accept product returns and retrospective adjustments to the sales value with certain key customers. The company has, where necessary, recognised revenue with a corresponding provision for estimated returns and pricing adjustments.
On-line streaming and television sales -
Revenue from films exhibited on on-line streaming platforms and television is recognised once contractual terms have been agreed, the materials have been delivered and the licence period for on-line streaming television exhibition has commenced. Any advanced invoicing is deferred until all recognition criteria have been met.
2.11.
Intangible Assets - Film Costs
2.11.
Intangible Assets - Film Costs - continued
Film rights acquired and film development costs -
The net carrying value of each film title acquired or in development is reviewed for impairment at least annually in accordance with the accounting policy outlined below. In each case, the directors estimate the future cash flows and profitability for the title, with reference to the revenue generated by the film to date and the performance of other similar titles. Any change in expectations of future performance may impact upon the spread of amortisation of minimum guarantees and participation costs across the expected life of the film title.
Minimum guarantees and related participation costs -
Minimum guarantee (advance royalty) payments made to third parties and other participation costs relating to the acquisition of the rights to distribute films are stated in the statement of financial position at the lower of unamortised cost or estimated realisable value using the individual film forecast method.
Under the individual film forecast method, the cost of each film is allocated to the theatrical and various other markets in which the film is to be exhibited based on the proportion that the revenues expected to be earned from each market bear to management's estimate of the total revenues to be earned.
In each accounting period, the film cost is amortised based on the proportion that revenues earned in the accounting period bear to management's estimate of the total revenue to be earned. Such estimates are revised periodically and losses, if any, are provided in full.
For the purpose of calculating the amortisation of film costs and losses, revenues are measured after deduction of distribution fees.
Impairment of assets -
...CONTINUED
Vertigo Releasing Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 March 2025
The company assesses at each reporting date whether there is an indication that an asset may be impaired. If any such indication exists, or when annual impairment testing for an asset is required, the company makes an estimate of the asset's recoverable amount. An asset's recoverable amount is the higher of an asset's or cash-generating unit's fair value less costs to sell and its value in use, and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. Where the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. Impairment losses of continuing operations are recognised in the statement of comprehensive income in those expense categories consistent with the function of the impaired asset.
An assessment is made at each reporting date as to whether there is any indication that previously recognised impairment losses may no longer exist or may have decreased. If such indication exists, the recoverable amount is estimated. A previously recognised impairment loss is reversed only if there has been a change in the estimates used to determine the asset's recoverable amount since the last impairment loss was recognised. If that is the case the carrying amount of the asset is increased to its recoverable amount. That increased amount cannot exceed the carrying amount that would have been determined, net of depreciation or amortisation, had no impairment loss been recognised for the asset in prior years. Such reversal is recognised in profit or loss unless the asset is carried at revalued amount, in which case the reversal is treated as a revaluation increase. After such a reversal the depreciation or amortisation charge is adjusted in future periods to allocate the asset's revised carrying amount, less any residual value, on a systemic basis over its remaining useful life.
3.
Average Number of Employees
Average number of employees, including directors, during the year was: 18 (2024: 15)
4.
Intangible Assets
| Other | |||
|---|---|---|---|
| £ | |||
| Cost or Valuation | |||
| As at 1 April 2024 |
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| Additions |
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| As at 31 March 2025 |
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| Amortisation | |||
| As at 1 April 2024 |
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| Provided during the period |
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| Impairment losses |
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| As at 31 March 2025 |
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| Net Book Value | |||
| As at 31 March 2025 |
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| As at 1 April 2024 |
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Minimum guarantee (advance royalty) payments and other participation costs relating to the acquisition of the rights to distribute films are stated at the lower of unamortised cost or estimated realisable value.
Vertigo Releasing Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 March 2025
5.
Tangible Assets
| Fixtures & Fittings | Computer Equipment | Total | |
|---|---|---|---|
| £ | £ | £ | |
| Cost | |||
| As at 1 April 2024 |
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|
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| Additions |
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| As at 31 March 2025 |
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| Depreciation | |||
| As at 1 April 2024 |
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| Provided during the period |
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| As at 31 March 2025 |
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| Net Book Value | |||
| As at 31 March 2025 |
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| As at 1 April 2024 |
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6.
Debtors
| 2025 | 2024 | ||
|---|---|---|---|
| £ | £ | ||
| Due within one year | |||
| Trade debtors |
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| Prepayments and accrued income |
|
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| Staff loans | - |
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| Deposits |
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| Amount owed by related parties - Sunrise Films Limited | - |
|
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| Interest reserve |
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| Directors' loan accounts |
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7.
Creditors: Amounts Falling Due Within One Year
| 2025 | 2024 | ||
|---|---|---|---|
| £ | £ | ||
| Trade creditors |
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| Bank loans and overdrafts |
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| Other loans |
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| Corporation tax |
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| Other taxes and social security |
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| VAT |
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| Student loans |
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| Pensions |
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| Distributable receipts payable |
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| International distributable receipts payable |
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...CONTINUED
Vertigo Releasing Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 March 2025
| Sundry creditors |
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| Accruals and deferred income |
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| Amounts owed to parent undertaking |
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8.
Creditors: Amounts Falling Due After More Than One Year
| 2025 | 2024 | ||
|---|---|---|---|
| £ | £ | ||
| Bank loans |
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| Other loans |
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| Amounts owed to parent undertaking |
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9.
Secured Creditors
Bank loans, other loans and amounts owed to the parent undertaking are secured by fixed and floating assets over the assets of the company.
11.
Financial Instruments
|
2025
|
2024
|
||
|
£
|
£
|
||
|
Financial assets that are debt instruments measured at amortised cost:
|
|||
|
Trade debtors
|
682,057
|
667,409
|
|
|
Other debtors
|
15,482
|
10,190
|
|
|
Bank and cash
|
488,990
|
168,510
|
|
|
Amounts owed by related company
|
-
|
146,926
|
|
|
Financial liabilities measured at amortised cost:
|
|||
|
Bank loans and overdrafts
|
9,408
|
2,542,515
|
|
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Other loans
|
2,061,458
|
-
|
|
|
Trade creditors
|
354,394
|
784,259
|
|
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Amounts owed to parent company
|
2,392,494
|
1,502,111
|
|
|
Distributable receipts (domestic and international)
|
1,124,340
|
1,495,437
|
|
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Vertigo Releasing Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 March 2025
12.
Other Commitments
The total of future minimum lease payments under non-cancellable operating leases are as following:
| 2025 | 2024 | ||
|---|---|---|---|
| £ | £ | ||
| Not later than one year |
|
|
|
|
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|
||
The above operating lease commitment is payable in respect of the rental of premises.
13.
Directors Advances, Credits and Guarantees
Included within Debtors are the following loans to directors:
| As at 1 April 2024 | Amounts advanced | Amounts repaid | Amounts written off | As at 31 March 2025 | |
|---|---|---|---|---|---|
| £ | £ | £ | £ | £ | |
| Mr Rupert Preston |
|
|
|
- |
|
The above loan is unsecured, interest free and repayable on demand.
14.
Reserves
| Profit and Loss Account | |
|---|---|
| £ | |
| As at 1 April 2024 |
|
| Profit for the year and total comprehensive income |
|
| As at 31 March 2025 |
|
15.
Related Party Transactions
Veranding Limited - Group undertaking
At the beginning of the year, the company owed an amount of £1,502,111 (2024: £1,857,111) to its parent undertaking, Veranding Limited, under a term loan facility arrangement.
During the period, Veranding Limited advanced net amounts totalling £716,606 (2024: £355,000 - was repaid by) to the company, and charged interest of £88,265. The total amount owed at the period end amounted to £2,392,494 (2024: £1,502,111) and was secured, interest bearing and repayable on demand.
In addition to the above, Veranding Limited advanced receivables finance facilities to the company on a commercial basis. The balance owed to Veranding Limited at the balance sheet date under this arrangement was £2,061,458 which was secured and interest bearing.
Interest amounting to £242,451 was charged to the company during the year in respect of this facility.
Sunrise Films Limited - Related undertaking
At the beginning of the year, the company was owed an amount of £146,926 (2024: £98,970) by Sunrise Films Limited, a company related by commonality of some shareholders and directors.
During the period, the company was repaid amounts totalling £115,150 (2024: £47,956 - advances made to) from Sunrise Films Limited.
The total amount owed at the period end amounted to £31,776 (2024: £146,926) and was unsecured, interest free and repayable on demand.
The balance owed at the year end is included in trade debtors and creditors in the financial statements.
Vertigo Releasing Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 March 2025
16.
Controlling Party
The company's controlling party is Veranding Limited by virtue of it's ownership of a controlling interest in the issued share capital in the company.
The company is ultimately controlled by Nigel and Veronica Williams.