Company Registration No. 01226628 (England and Wales)
QUEEN PRODUCTIONS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2021
QUEEN PRODUCTIONS LIMITED
COMPANY INFORMATION
FOR THE YEAR ENDED 30 SEPTEMBER 2021
Directors
B May
R Taylor
J Deacon
Secretary
N Adleman
Company number
01226628
Registered office
7 Savoy Court
London
WC2R 0EX
Auditor
Sopher + Co LLP
Chartered Accountants & Statutory Auditors
5 Elstree Gate
Elstree Way
Borehamwood
Hertfordshire
WD6 1JD
Accountants
Dales Evans & Co Limited
Chartered Accountants
88/90 Baker Street
London
W1U 6TQ
QUEEN PRODUCTIONS LIMITED
CONTENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2021
Page
Strategic report
1
Directors' report
2
Independent auditor's report
3 - 6
Group statement of comprehensive income
7
Group balance sheet
8
Company balance sheet
9
Group statement of changes in equity
10
Company statement of changes in equity
11
Group statement of cash flows
12
Notes to the financial statements
13 - 24
QUEEN PRODUCTIONS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2021
- 1 -
The directors present the strategic report for the year ended 30 September 2021.
Fair review of the business
The group is principally engaged in the promotion
and exploitation of various services and productions of the artists collectively known as Queen
. In assessing the performance of the group, the directors consider that success is determined
by
the level of sales
from which the group derives its profit
and hence the group's key performance indicator
s
are
considered to be the level of
turnover and the net profit margin for the year.
During the year turnover decreased by £2,758,148, which lead to a decrease in profit before tax. This was expected and can be attributed in part to the success of the film Bohemian Rhapsody which was released in the year ended 30 September 2019. The net profit margin for the year decreased by 3%, as the decrease in turnover was mainly matched by the combined decrease in royalties, commissions and service fees payable.
Given the success of Bohemian Rhapsody it is anticipated there will be further income from the film in the year ended 30 September 2022 and in the years thereafter, although that is expected to decrease year on year.
Principal risks and uncertainties
The group uses a variety of financial instruments including cash deposits and net trade debtors arising from its operations. The main purpose of these financial instruments is to provide working capital for the group's operations. Given the nature of the group's operations and the financial instruments in existence the company is exposed to very limited credit
or
liquidity risk.
Credit risk
The principal credit risk arises from its trade debtors. In order to manage the credit risk associated with this the directors review payment plans on a regular basis.
Liquidity risk
The group seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs
and to invest cash assets safely and profitably.
Development and performance
The directors believe that the gross core income from royalties will continue to be generated in the immediate future at a satisfactory level
.
Key performance indicators
T
he directors
use many key performance indicators
to monitor the performance of the group. They regard the following as the key financial indicators of performance, all of which can be observed in the attached financial statements.
Turnover
:
£
39,193,189
(20
20
: £
41,951,337
)
Profit before tax
:
£
16,835,252
(20
20
: £
19,179,528
)
Net profit margin: 43% (2020: 46%)
The net profit margin is calculated as a percentage of profit before tax over turnover.
The net profit margin has decreased when compared with the prior year, however this was in line with the directors' expectations and they are satisfied with the overall results for the year. The directors' expect the performance of the group to improve for the coming year as a result of increased activity within group projects and a change in royalty distributions.
20 June 2022
R Taylor
Date
Director
QUEEN PRODUCTIONS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2021
- 2 -
The directors present their annual report and financial statements for the year ended 30 September 2021.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
B May
R Taylor
J Deacon
Results and dividends
The results for the year are set out on page 7.
Dividends of £17,066,000 were paid during the year (2020: £20,172,200).
Auditor
The auditor, Sopher + Co LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of directors' responsibilities
The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:
-
select suitable accounting policies and then apply them consistently;
-
make judgements and accounting estimates that are reasonable and prudent;
-
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the
;
-
prepare the
on the going concern basis unless it is inappropriate to presume that the
group and
company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The directors are responsible for the maintenance and integrity of the company website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Strategic report
The directors have included principal risks and uncertainties in the Strategic report and that information is not repeated here under S414c of the Companies Act 2006.
true
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor
of the
company is
unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor
of the
company
is
aware of that information.
On behalf of the board
20 June 2022
B May
Date
Director
QUEEN PRODUCTIONS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF QUEEN PRODUCTIONS LIMITED
- 3 -
Opinion
We have audited the
financial statements of
Queen Productions Limited
(the 'parent
C
ompany') and its subsidiaries (the '
G
roup') for the year ended 30 September 2021 which comprise
the Group Statement of Comprehensive Income, the Group Balance Sheet, the Company Balance Sheet
, the Group Statement of Changes in Equity, the Company Statement of Changes in Equity, the Group Statement of Cash Flows
and notes to the financial statements,
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 F
inancial
R
eporting
S
tandard
102
'
The Financial Reporting Standard applicable in the UK and Republic of Ireland
'
(United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
-
give a true and fair view of the state of the Group's and the parent Company's affairs as at 30 September 2021 and of the Group's profit for the year then ended;
-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-
have been prepared in accordance with the requirements of the Companies Act 2006.
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
Group
in accordance with the ethical requirements that are relevant to our audit of the
financial statements
in the U
nited Kingdom
, including the F
inancial 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.
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 Group's or the parent 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 directors are responsible for the other information. The other information comprises the information included in the Group Strategic Report and Directors' Report and our Auditors' Report thereon. 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.
In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
QUEEN PRODUCTIONS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF QUEEN PRODUCTIONS LIMITED
- 4 -
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
-
the information given in the Group 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 Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
-
adequate accounting records have not been kept by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
-
the parent Company financial statements are not in agreement with the accounting records and returns; or
-
certain disclosures of directors' remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the Directors' Responsibilities Statement set out on page 2, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the Group's and the parent Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an 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 Group 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:
QUEEN PRODUCTIONS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF QUEEN PRODUCTIONS LIMITED
- 5 -
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non‑compliance with laws and regulations, was as follows:
-
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non‑compliance with applicable laws and regulations;
-
we identified the laws and regulations applicable to the Group and the Company through discussions with directors and other management, and from our commercial knowledge and experience of the audio and visual sector;
-
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the Group and the Company, including the Companies Act 2006, taxation legislation and data protection, anti‑bribery, employment, environmental and health and safety legislation;
-
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
-
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non‑compliance throughout the audit.
We assessed the susceptibility of the Group and the Company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
-
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;
-
considering the internal controls in place to mitigate risks of fraud and non‑compliance with laws and regulations; and
-
understanding the design of the Group and the Company’s remuneration policies.
To address the risk of fraud through management bias and override of controls, we:
-
performed analytical procedures to identify any unusual or unexpected relationships;
-
tested journal entries to identify unusual transactions;
-
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
-
investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non‑compliance with laws and regulations, we designed procedures which included, but were not limited to:
-
agreeing financial statement disclosures to underlying supporting documentation;
-
reading the minutes of meetings of those charged with governance;
-
enquiring of management as to actual and potential litigation and claims; and
-
reviewing correspondence with HMRC, relevant regulators and the Company’s legal advisors.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non‑compliance. Auditing standards also limit the audit procedures required to identify non‑compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
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.
QUEEN PRODUCTIONS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF QUEEN PRODUCTIONS LIMITED
- 6 -
This report is made solely to the
C
ompany’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
C
ompany’s members those matters we are required to state to them in an
Auditors' R
eport and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the
C
ompany and the
C
ompany’s members as a body, for our audit work, for this report, or for the opinions we have formed.
20 June 2022
Stephen Iseman FCA
Date
(Senior Statutory Auditor)
For and on behalf of Sopher + Co LLP
Chartered Accountants
Statutory Auditors
5 Elstree Gate
Elstree Way
Borehamwood
Hertfordshire
WD6 1JD
QUEEN PRODUCTIONS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2021
- 7 -
2021
2020
Notes
£
£
Turnover
3
39,193,189
41,951,337
Cost of sales
(11,531,719)
(13,271,683)
Gross profit
27,661,470
28,679,654
Administrative expenses
(10,842,684)
(9,557,054)
Operating profit
4
16,818,786
19,122,600
Interest receivable and similar income
7
25,330
63,827
Interest payable and similar expenses
8
(8,864)
(6,899)
Profit before taxation
16,835,252
19,179,528
Tax on profit
9
(3,263,520)
(3,668,641)
Profit for the financial year
18
13,571,732
15,510,887
Profit for the financial year and total comprehensive income for the year is all attributable to the owners of the parent company.
QUEEN PRODUCTIONS LIMITED
GROUP BALANCE SHEET
AS AT 30 SEPTEMBER 2021
30 September 2021
- 8 -
2021
2020
Notes
£
£
£
£
Fixed assets
Tangible assets
11
11,964
13,464
Current assets
Debtors
15
10,806,206
17,125,475
Cash at bank and in hand
3,302,833
6,053,155
14,109,039
23,178,630
Creditors: amounts falling due within one year
16
(9,523,156)
(15,099,979)
Net current assets
4,585,883
8,078,651
Net assets
4,597,847
8,092,115
Capital and reserves
Called up share capital
17
100
100
Profit and loss reserves
18
4,597,747
8,092,015
Total equity
4,597,847
8,092,115
The financial statements were approved by the board of directors and authorised for issue on 20 June 2022 and are signed on its behalf by:
20 June 2022
R Taylor
Director
QUEEN PRODUCTIONS LIMITED
COMPANY BALANCE SHEET
AS AT 30 SEPTEMBER 2021
30 September 2021
- 9 -
2021
2020
Notes
£
£
£
£
Fixed assets
Tangible assets
11
11,964
13,464
Investments
12
109
109
12,073
13,573
Current assets
Debtors
15
9,674,612
12,763,363
Cash at bank and in hand
2,452,797
4,087,899
12,127,409
16,851,262
Creditors: amounts falling due within one year
16
(7,848,004)
(9,419,408)
Net current assets
4,279,405
7,431,854
Net assets
4,291,478
7,445,427
Capital and reserves
Called up share capital
17
100
100
Profit and loss reserves
18
4,291,378
7,445,327
Total equity
4,291,478
7,445,427
As permitted by s408 Companies Act 2006, the
c
ompany has not presented its own
Statement of Comprehensive Income
and related notes. The
c
ompany’s profit after tax for the year was £13,912,051 (2020: £16,295,941).
The financial statements were approved by the board of directors and authorised for issue on 20 June 2022 and are signed on its behalf by:
20 June 2022
R Taylor
Director
Company Registration No. 01226628
QUEEN PRODUCTIONS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2021
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 October 2019
100
12,753,328
12,753,428
Year ended 30 September 2020:
Profit and total comprehensive income for the year
-
15,510,887
15,510,887
Dividends
10
-
(20,172,200)
(20,172,200)
Balance at 30 September 2020
100
8,092,015
8,092,115
Year ended 30 September 2021:
Profit and total comprehensive income for the year
-
13,571,732
13,571,732
Dividends
10
-
(17,066,000)
(17,066,000)
Balance at 30 September 2021
100
4,597,747
4,597,847
QUEEN PRODUCTIONS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2021
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 October 2019
100
11,321,586
11,321,686
Year ended 30 September 2020:
Profit and total comprehensive income for the year
-
16,295,941
16,295,941
Dividends
10
-
(20,172,200)
(20,172,200)
Balance at 30 September 2020
100
7,445,327
7,445,427
Year ended 30 September 2021:
Profit and total comprehensive income for the year
-
13,912,051
13,912,051
Dividends
10
-
(17,066,000)
(17,066,000)
Balance at 30 September 2021
100
4,291,378
4,291,478
QUEEN PRODUCTIONS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2021
- 12 -
2021
2020
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
22
15,795,012
9,280,582
Interest paid
(8,864)
(6,899)
Income taxes paid
(1,493,467)
(8,400,631)
Net cash inflow from operating activities
14,292,681
873,052
Investing activities
Purchase of tangible fixed assets
(2,333)
(16,830)
Interest received
25,330
63,827
Net cash generated from investing activities
22,997
46,997
Financing activities
Dividends paid to equity shareholders
(17,066,000)
(20,172,200)
Net cash used in financing activities
(17,066,000)
(20,172,200)
Net decrease in cash and cash equivalents
(2,750,322)
(19,252,151)
Cash and cash equivalents at beginning of year
6,053,155
25,305,306
Cash and cash equivalents at end of year
3,302,833
6,053,155
QUEEN PRODUCTIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2021
- 13 -
1
Accounting policies
Company information
Queen Productions Limited
(“the company”)
is a
private
limited company domiciled and incorporated in
England and Wales
.
The registered office is
7 Savoy Court, London, WC2R 0EX.
The Group's principal activities during the year continued to be the exploitation of the audio, visual and ancillary activities relating to the band, Queen.
The Group consists of Queen Productions Limited and all of its subsidiaries.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The principal accounting policies adopted are set out below.
1.2
Basis of consolidation
The consolidated
financial statements
incorporate those of Queen Productions Limited and all of its subsidiaries (i
.
e
.
entities that the
g
roup controls through its power to govern the financial and operating policies so as to obtain economic benefits).
All
financial statements
are made up to 30 September 2021
.
Where necessary, adjustments are made to the
financial statements
of subsidiaries to bring the accounting policies used into line with those used by other members of the
g
roup.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
1.3
Turnover
Turnover is measured at the fair value of the consideration received or receivable and represents amounts for services provided net of discounts and VAT
.
Income from services is recognised when they are performed and entitlement has arisen under the terms of the contract.
Royalties are recognised on receipt or as rights are utilised on an accruals basis where sufficient reliable information is available.
Performance fees are recognised on the date of the performance.
Film licensing income is recognised on an accruals basis where sufficient reliable information is available.
1.4
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Plant and equipment
15% - 33%
QUEEN PRODUCTIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2021
1
Accounting policies
(Continued)
- 14 -
1.5
Fixed asset investments
Investments in subsidiaries are measured at cost less accumulated impairment.
1.6
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.7
Financial instruments
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's
balance sheet
when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include
debtors
and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
m
ethod 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.
Financial assets classified as receivable within one year are not amortised.
Impairment of financial assets
Financial assets, other than those
held
at
fair value through profit and loss
, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.
If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
QUEEN PRODUCTIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2021
1
Accounting policies
(Continued)
- 15 -
Basic financial liabilities
Basic financial liabilities, including
creditors
, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers.
Creditors
are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the
group's contractual obligations expire or are discharged or cancelled.
1.8
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the
profit and loss account
because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
group’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the
profit and loss account
, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset
if, and only if, there is
a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.9
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
1.10
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.
QUEEN PRODUCTIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2021
1
Accounting policies
(Continued)
- 16 -
1.11
Prior period comparatives
In the prior year, interest of
£3,010
was incorrectly
classified as interest
receivable and similar income rather than as interest payable and similar expenses, The comparative figures have been amended to reflect this which has resulted in an increase of £3,010 in the total of interest receivable and similar income previously reported with a corresponding increase in interest payable and similar expenses.This adjustment had no impact on any of the group or company profits for the prior year.
The fixed asset investments
have been adjusted to accurately reflect the shareholdings held by Queen Productions Limited. As a result, the company comparatives for fixed asset investments and creditors: amounts falling due within one year have increased by £2.
2
Judgements and key sources of estimation uncertainty
In the application of the group’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.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Debtors
Management applies judgement in evaluating the recoverability of debtors. This judgement is based on the ageing profile of debtors and historical experience. To the extent that the directors believe debtors not to be recoverable they have been provided for in the financial statements.
3
Turnover and other revenue
An analysis of the group's turnover is as follows:
2021
2020
£
£
Turnover analysed by class of business
Royalties
38,922,376
41,670,491
Rendering of services
-
70,489
Other income
270,813
210,357
39,193,189
41,951,337
2021
2020
£
£
Other significant revenue
Interest income
25,330
63,827
QUEEN PRODUCTIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2021
3
Turnover and other revenue
(Continued)
- 17 -
The turnover and profit before tax are attributable to the promotion
and exploitation
of various services and product
ions of the artists collectively known as Queen
. Given the nature of the company's activities, any analysis of turnover between different geographical markets is impracticable to determine and would in any case be of little meaning or relevance.
4
Operating profit
2021
2020
£
£
Operating profit for the year is stated after charging:
Exchange losses
193,828
548,515
Depreciation of owned tangible fixed assets
3,833
3,366
5
Auditor's remuneration
2021
2020
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
23,500
25,500
Audit of the financial statements of the company's subsidiaries
20,500
17,500
44,000
43,000
6
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2021
2020
2021
2020
Number
Number
Number
Number
Total
7
Interest receivable and similar income
2021
2020
£
£
Interest income
Interest on bank deposits
836
53,957
Other interest income
24,494
9,870
Total income
25,330
63,827
QUEEN PRODUCTIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2021
- 18 -
8
Interest payable and similar expenses
2021
2020
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
3,350
3,433
Other interest on financial liabilities
-
87
3,350
3,520
Other finance costs:
Other interest
5,514
3,379
Total finance costs
8,864
6,899
9
Taxation
2021
2020
£
£
Current tax
UK corporation tax on profits for the current period
3,024,928
3,280,271
Adjustments in respect of prior periods
(32,210)
29
Total UK current tax
2,992,718
3,280,300
Foreign current tax on profits for the current period
268,103
366,310
Total current tax
3,260,821
3,646,610
Deferred tax
Origination and reversal of timing differences
2,699
22,031
Total tax charge
3,263,520
3,668,641
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2021
2020
£
£
Profit before taxation
16,835,252
19,179,528
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2020: 19.00%)
3,198,698
3,644,110
Tax effect of expenses that are not deductible in determining taxable profit
14,791
1,427
Change in unrecognised deferred tax assets
2,699
22,031
Adjustments in respect of prior years
(32,210)
29
Permanent capital allowances in excess of depreciation
(3,196)
(38,773)
Other permanent differences
82,738
39,817
Taxation charge
3,263,520
3,668,641
QUEEN PRODUCTIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2021
- 19 -
10
Dividends
2021
2020
Recognised as distributions to equity holders:
£
£
Final paid
17,066,000
20,172,200
11
Tangible fixed assets
Group
Plant and equipment
£
Cost
At 1 October 2020
2,092,143
Additions
2,333
At 30 September 2021
2,094,476
Depreciation and impairment
At 1 October 2020
2,078,679
Depreciation charged in the year
3,833
At 30 September 2021
2,082,512
Carrying amount
At 30 September 2021
11,964
At 30 September 2020
13,464
Company
Plant and equipment
£
Cost
At 1 October 2020
2,088,032
Additions
2,333
At 30 September 2021
2,090,365
Depreciation and impairment
At 1 October 2020
2,074,568
Depreciation charged in the year
3,833
At 30 September 2021
2,078,401
Carrying amount
At 30 September 2021
11,964
At 30 September 2020
13,464
QUEEN PRODUCTIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2021
- 20 -
12
Fixed asset investments
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 October 2020 and 30 September 2021
109
Carrying amount
At 30 September 2021
109
At 30 September 2020
109
13
Subsidiaries
Details of the company's subsidiaries at 30 September 2021 are as follows:
Nature of
Class of
% Held
Name of undertaking
business
shares held
Direct
Indirect
Queen Touring Limited
Production of concert tours
Ordinary
100.00
-
Raincloud Productions Limited
Promotion of non-UK compositions of certain musicians
Ordinary
100.00
-
We Will Rock You Limited
Licensing of musicals and hiring of theatrical equipment
Ordinary
100.00
-
Queen Theatrical Productions Limited
Production of musicals
Ordinary
100.00
-
Queen Films Limited
Licensing in connection with film production
Ordinary
100.00
-
Queen Online Limited
Dormant
Ordinary
100.00
-
We Will Rock You Films Limited*
Dormant
Ordinary
-
100.00
Queen Extravaganza, Inc.**
Promotion of concert tours
Ordinary
-
100.00
Bohemian Theatrical Productions Limited
Dormant
Ordinary
100.00
-
* held indirectly via Queen Theatrical Productions Limited
** held indirectly via Queen Touring Limited
All subsidiary undertakings of the Company are incorporated in England & Wales, other than Queen Extravaganza Inc., which is incorporated in the USA.
The registered office for all subsidiary companies excluding Queen Extravaganza Inc. is 7 Savoy Court, London, WC2R 0EX. The registered office of Queen Extravaganza Inc. is 21255 Burbank Blvd #320, Woodland Hills, CA 91367.
QUEEN PRODUCTIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2021
- 21 -
14
Financial instruments
Group
Company
2021
2020
2021
2020
£
£
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
7,385,358
7,306,934
7,189,525
7,463,299
Instruments measured at fair value through profit or loss
3,302,833
6,053,155
2,452,797
4,087,899
Carrying amount of financial liabilities
Measured at amortised cost
9,127,074
14,742,156
7,743,463
9,419,408
Financial assets measured at fair value through profit or loss comprise of cash and cash equivalents.
Financial assets that are debt instruments measured at amortised cost comprise of trade and other debtors and amounts receivable from both group undertakings and related parties.
Financial liabilities measured at amortised cost comprise of trade and other creditors, accruals, amounts receivable by both group undertakings and related parties.
15
Debtors
Group
Company
2021
2020
2021
2020
Amounts falling due within one year:
£
£
£
£
Trade debtors
7,082,850
7,112,696
6,887,629
7,082,648
Corporation tax recoverable
1,729,468
1,675,292
Amounts owed by group undertakings
186,995
Amounts owed by undertakings in which the company has a participating interest
13
13
Other debtors
800,537
416,070
695,120
346,486
Prepayments and accrued income
2,911,498
7,853,208
2,080,542
3,457,909
10,794,885
17,111,455
9,663,291
12,749,343
Deferred tax asset
11,321
14,020
11,321
14,020
10,806,206
17,125,475
9,674,612
12,763,363
Included within the group accrued income is an amount of £195,369 (2020: £4,268,925) due from related parties in respect of royalties and service fees.
Included within the company accrued income is an amount of £16,556 (2020: £201,204) due from related parties in respect of royalties and service fees.
QUEEN PRODUCTIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2021
- 22 -
16
Creditors: amounts falling due within one year
Group
Company
2021
2020
2021
2020
£
£
£
£
Trade creditors
133,628
224,190
131,861
221,424
Amounts owed to group undertakings
2
2
Amounts owed to undertakings in which the group has a participating interest
588
588
Corporation tax payable
381,994
344,108
104,541
Other taxation and social security
14,088
13,715
Other creditors
289,950
342,482
Accruals and deferred income
8,703,496
14,174,896
7,611,600
9,197,394
9,523,156
15,099,979
7,848,004
9,419,408
Included within the group accruals is an amount of £4,043,148 (2020: £7,849,130) due to related parties in respect of royalties and service fees. Also included within the group accruals is £91,038 (2020: £114,330) due to key management personnel.
Included within the company accruals is an amount of £3,202,949 (2020: £3,303,127) due to related parties in respect of royalties and service fees. Also included within the company accruals is £91,038 (2020: £114,330) due to key management personnel.
17
Share capital
Group and company
2021
2020
2021
2020
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A Ordinary shares of £1 each
25
25
25
25
B Ordinary shares of £1 each
25
25
25
25
C Ordinary shares of £1 each
25
25
25
25
D Ordinary shares of £1 each
25
25
25
25
100
100
100
100
The different classes of shares carry equal rights in respect of dividends and capital. The holders can receive dividends at differing rates with the unanimous agreement of all shareholders.
18
Reserves
Own shares
Called up share capital represents the nominal value of share
s
that have been issued.
Profit and loss reserves
Profit and loss account includes all current and prior period
distributable
retained profits and losses.
QUEEN PRODUCTIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2021
- 23 -
19
Related party transactions
Transactions with related parties
The company has taken advantage of the exemption as provided by Section 33, Related Party Disclosures, not to disclose transactions with fellow wholly owned group companies included within the group financial statements.
During the year the group entered into the following transactions with related parties:
Sales
Purchases
2021
2020
2021
2020
£
£
£
£
Group
Key management personnel
-
-
244,768
4,198
Other related parties
8,951,620
11,247,683
18,081,075
18,943,408
Company
Key management personnel
-
-
244,768
4,198
Other related parties
82,908
459,911
8,050,510
6,409,229
The other related parties are related by virtue of common control held by the directors. During the year other related party sales were mainly in respect of royalties received, furthermore other related party purchases were predominately in respect of royalties payable and service charges.
The following amounts were outstanding at the reporting end date:
Amounts due to related parties
2021
2020
£
£
Group
Other related parties
28,967
4,319
Company
Other related parties
28,967
588
The following amounts were outstanding at the reporting end date:
Amounts due from related parties
2021
2020
Balance
Balance
£
£
Group
Other related parties
44,491
1,769
Company
Other related parties
44,491
1,679
All related party balances are unsecured, interest free and repayable on demand.
QUEEN PRODUCTIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2021
- 24 -
20
Directors' transactions
Dividends totalling £12,807,000 (2020: £15,148,700) were paid in the year in respect of shares held by the company's directors.
21
Controlling party
The shareholders, as a body, are considered to be the controlling party of the group.
22
Cash generated from group operations
2021
2020
£
£
Profit for the year after tax
13,571,732
15,510,887
Adjustments for:
Taxation charged
3,263,520
3,668,641
Finance costs
8,864
6,899
Investment income
(25,330)
(63,827)
Depreciation and impairment of tangible fixed assets
3,833
3,366
Movements in working capital:
Decrease/(increase) in debtors
4,587,102
(3,102,314)
Decrease in creditors
(5,614,709)
(6,743,070)
Cash generated from operations
15,795,012
9,280,582
23
Analysis of changes in net funds - group
1 October 2020
Cash flows
30 September 2021
£
£
£
Cash at bank and in hand
6,053,155
(2,750,322)
3,302,833
24
Analysis of changes in net funds - company
1 October 2020
Cash flows
30 September 2021
£
£
£
Cash at bank and in hand
4,087,899
(1,635,102)
2,452,797
2021-09-30
2020-10-01
false
CCH Software
CCH Accounts Production 2022.100
No description of principal activity
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2020-10-01
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