Scott Free Films Limited
Unaudited Financial Statements
For the period ended 30 September 2021
For Filing with Registrar
Company Registration No. 03015176 (England and Wales)
Scott Free Films Limited
Contents
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 7
Scott Free Films Limited
Balance Sheet
As at 30 September 2021
Page 1
Period
Year
ended
ended
30 September
31 January
2021
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
3
11,370
13,644
Investments
4
2
2
11,372
13,646
Current assets
Debtors
5
848,575
317,365
Cash at bank and in hand
483,367
308,648
1,331,942
626,013
Creditors: amounts falling due within one year
6
(596,230)
(339,832)
Net current assets
735,712
286,181
Total assets less current liabilities
747,084
299,827
Creditors: amounts falling due after more than one year
7
(1,645,695)
(1,375,889)
Net liabilities
(898,611)
(1,076,062)
Capital and reserves
Called up share capital
8
1
1
Profit and loss reserves
(898,612)
(1,076,063)
Total equity
(898,611)
(1,076,062)
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
For the financial period ended 30 September 2021 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
T
he members have not required the company to obtain an audit of its financial statements for the period in question in accordance with section 476
.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
Scott Free Films Limited
Balance Sheet (Continued)
As at 30 September 2021
Page 2
The financial statements were approved by the board of directors and authorised for issue on 1 September 2022 and are signed on its behalf by:
R Nicholas
Director
Company Registration No. 03015176
Scott Free Films Limited
Notes to the Financial Statements
For the period ended 30 September 2021
Page 3
1
Accounting policies
Company information
Scott Free Films Limited is a
private
company
limited by shares
incorporated in
England and Wales
.
The registered office is
42-44 Beak Street, London, United Kingdom, W1F 9RH.
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 as applicable to companies subject to the small companies regime.
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 financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
The company has net liabilities of £894,020 and is dependent on the support of Scott Free Productions Inc, a US incorporated company that has common ownership. Scott Free Productions Inc has confirmed it will not withdraw its support.
true
Consequently, the directors are confident that the company will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements and therefore have prepared the financials statements on a going concern basis.
1.3
Reporting period
These financial statements are prepared for a shortened 8 month period (1st February 21 to 30 September 21) and therefore
comparative amounts presented in the financial statements (including
the related notes) are not entirely comparable.
1.4
Turnover
Revenue is recognised in respect of each production from the point at which the company has obtained the right to consideration in return for performance. This is considered to be when all necessary approvals during the process of pre-production have been obtained from the commissioning agency and normally equates to the date at which the shooting of the film commences, No profit element is recognised until the company is able to estimate the profit on the production reliably.
1.5
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:
Fixtures and fittings
25.00%
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
Scott Free Films Limited
Notes to the Financial Statements (Continued)
For the period ended 30 September 2021
1
Accounting policies
(Continued)
Page 4
1.6
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
The investments are assessed for impairment at each reporting date
and
any
impairment
losses or reversals of impairment losses are recognised immediately in
profit
or
loss
.
A subsidiary is an entity controlled by the company
. Control is
the power to govern the financial and operating policies of
the
entity so as to obtain benefits from its activities.
1.7
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the
company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.8
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.
1.9
Financial instruments
The company only has basic financial instruments measured at amortised cost with no financial instruments classified as other or basic instruments measured at fair value.
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 company after deducting all of its liabilities.
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. A
m
ounts payable 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.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
Scott Free Films Limited
Notes to the Financial Statements (Continued)
For the period ended 30 September 2021
1
Accounting policies
(Continued)
Page 5
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or
fixed assets
.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Leases
Rentals payable under operating leases,
including
any lease incentives received, are charged to
profit or loss
on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease
s
asset are consumed.
1.14
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.
2
Employees
The average monthly number of persons (including directors) employed by the company during the period was:
Period
Year
ended
ended
30 September
31 January
2021
2021
Number
Number
Total
3
Scott Free Films Limited
Notes to the Financial Statements (Continued)
For the period ended 30 September 2021
Page 6
3
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 February 2021 and 30 September 2021
90,032
Depreciation and impairment
At 1 February 2021
76,388
Depreciation charged in the period
2,274
At 30 September 2021
78,662
Carrying amount
At 30 September 2021
11,370
At 31 January 2021
13,644
4
Fixed asset investments
Period
Year
ended
ended
30 September
31 January
2021
2021
£
£
Shares in group undertakings and participating interests
2
2
5
Debtors
Period
Year
ended
ended
30 September
31 January
2021
2021
Amounts falling due within one year:
£
£
Trade debtors
72,351
40,672
Other debtors
776,224
276,693
848,575
317,365
Scott Free Films Limited
Notes to the Financial Statements (Continued)
For the period ended 30 September 2021
Page 7
6
Creditors: amounts falling due within one year
Period
Year
ended
ended
30 September
31 January
2021
2021
£
£
Trade creditors
42,086
33,748
Taxation and social security
59,614
Other creditors
554,144
246,470
596,230
339,832
7
Creditors: amounts falling due after more than one year
Period
Year
ended
ended
30 September
31 January
2021
2021
£
£
Other creditors
1,645,695
1,375,889
8
Called up share capital
Period
Year
Period
Year
ended
ended
ended
ended
30 September
31 January
30 September
31 January
2021
2021
2021
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
100 of £0.01 each of 0p each
100
100
1
1
9
Related party transactions
The following amounts were outstanding at the reporting end date:
Period
Year
ended
ended
30 September
31 January
2021
2021
Amounts due to related parties
£
£
Taboo Productions Limited
(167,559)
(167,559)
Other related parties
(1,478,136)
(1,143,032)