Scott Free Films Limited
Unaudited Financial Statements
For the year ended 30 September 2022
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 - 8
Scott Free Films Limited
Balance Sheet
As at 30 September 2022
Page 1
Year
Period
ended
ended
30 September
30 September
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
4
8,576
11,370
Investments
5
86
2
8,662
11,372
Current assets
Debtors
6
846,997
848,575
Cash at bank and in hand
591,971
483,367
1,438,968
1,331,942
Creditors: amounts falling due within one year
7
(835,072)
(596,230)
Net current assets
603,896
735,712
Total assets less current liabilities
612,558
747,084
Creditors: amounts falling due after more than one year
8
(421,022)
(1,645,695)
Net assets/(liabilities)
191,536
(898,611)
Capital and reserves
Called up share capital
9
1
1
Profit and loss reserves
191,535
(898,612)
Total equity
191,536
(898,611)
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 year ended 30 September 2022 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.
The members have not required the company to obtain an audit of its financial statements for the year 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 2022
Page 2
The financial statements were approved by the board of directors and authorised for issue on 22 August 2023 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 year ended 30 September 2022
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 amounts 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
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.
1.3
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.
1.4
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.
Scott Free Films Limited
Notes to the Financial Statements (Continued)
For the year ended 30 September 2022
1
Accounting policies
(Continued)
Page 4
1.5
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.
1.6
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 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 payments 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. Amounts 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.
1.8
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.
1.9
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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Scott Free Films Limited
Notes to the Financial Statements (Continued)
For the year ended 30 September 2022
1
Accounting policies
(Continued)
Page 5
1.10
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.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
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 leases asset are consumed.
1.13
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
Exceptional item
2022
2021
£
£
Expenditure
Write off of Intercompany balances
(1,310,877)
-
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
Year
Period
ended
ended
30 September
30 September
2022
2021
Number
Number
Total
4
4
Scott Free Films Limited
Notes to the Financial Statements (Continued)
For the year ended 30 September 2022
Page 6
4
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 October 2021 and 30 September 2022
90,032
Depreciation and impairment
At 1 October 2021
78,662
Depreciation charged in the year
2,794
At 30 September 2022
81,456
Carrying amount
At 30 September 2022
8,576
At 30 September 2021
11,370
5
Fixed asset investments
Year
Period
30 September
30 September
2022
2021
£
£
Shares in group undertakings and participating interests
86
2
Movements in fixed asset investments
Shares in subsidiaries
£
Cost or valuation
At 1 October 2021
2
Additions
85
Disposals
(1)
At 30 September 2022
86
Carrying amount
At 30 September 2022
86
At 30 September 2021
2
Scott Free Films Limited
Notes to the Financial Statements (Continued)
For the year ended 30 September 2022
Page 7
6
Debtors
Year
Period
ended
ended
30 September
30 September
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
331,948
72,351
Other debtors
515,049
776,224
846,997
848,575
7
Creditors: amounts falling due within one year
Year
Period
ended
ended
30 September
30 September
2022
2021
£
£
Trade creditors
2,076
42,086
Taxation and social security
35,914
Other creditors
797,082
554,144
835,072
596,230
8
Creditors: amounts falling due after more than one year
Year
Period
ended
ended
30 September
30 September
2022
2021
£
£
Other creditors
421,022
1,645,695
9
Called up share capital
Year
Period
Year
Period
ended
ended
ended
ended
30 September
30 September
30 September
30 September
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
100 of £0.01 each of 1p each
100
100
1
1
Scott Free Films Limited
Notes to the Financial Statements (Continued)
For the year ended 30 September 2022
Page 8
10
Related party transactions
During the year Scott Free Films Limited made purchases of £97,747 (2021: £27,943) from RSA Films Limited, a related party by virtue of common directorship. During the year Scott Free Films Limited also was charged a license fee of £nil (2021: £5,834) by RSA Films Limited. At the year end a balance of £95,083 (2021:£28,790) was owed to RSA Films Limited.
During the year Scott Free Productions Inc. made sales of £577,500 (2021: £27,943) to Scott Free Films Limited, a related party by virtue of common directorship. At the year end a balance of £299,864 (2021:£1,442,987) was owed to Scott Free Productions Inc. In the year £1,143,032 was written off of the intercompany balance between the two entities.
At the year end a balance of £4,849 (2021:£167,559 owed to) was owed from Taboo Productions Limited, a related party by virtue of common directorship. During the year, there was £167,825 written off of the intercompany balance between the two entities.