Registration number:
The Empire Film Company Limited
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The Empire Film Company Limited
Contents
Company Information |
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Statement of Financial Position |
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Notes to the Unaudited Financial Statements |
The Empire Film Company Limited
Company Information
Directors |
N R Wood S C Burdge |
Company secretary |
D R Blight |
Registered office |
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Accountants |
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The Empire Film Company Limited
Statement of Financial Position as at 31 December 2021
Note |
2021 |
2020 |
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Fixed assets |
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Tangible assets |
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Current assets |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
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Net current assets |
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Total assets less current liabilities |
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Creditors: Amounts falling due after more than one year |
( |
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Provisions |
(210,435) |
(210,435) |
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Net assets |
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Capital and reserves |
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Called up share capital |
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Capital redemption reserve |
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Profit and loss account |
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Total equity |
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For the financial year ending 31 December 2021 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
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The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts. |
These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006 and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Statement of Income and Retained Earnings has been taken.
The Empire Film Company Limited
Statement of Financial Position as at 31 December 2021
Approved and authorised by the
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S C Burdge
Director
Company registration number: 04467199
The Empire Film Company Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 December 2021
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
The principal activity of the company continued to be that of the production of film trailers.
Accounting policies |
Statement of compliance
These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.
Basis of preparation
These financial statements have been prepared using the historical cost convention and are presented in sterling, which is the functional currency of the entity.
Going concern
The company has net assets at the year end date of £3,137,078, including cash at bank of £619,391. During the year the company remained profitable.
The directors have considered the potential effect of the COVID-19 pandemic and, with the removal of all restrictions, the directors are hopeful that the worst of the crisis is over. The company has continued to operate and the company continues to trade profitably with an increase in revenue. The company has accessed government grant assistance where available and appropriate.
Unaudited management accounts and forecasts show that the company has continued to and will continue to trade profitably for the period subsequent to the year end. The company operates in a sector where, although overall activity has reduced, its services remain in demand and the directors are optimistic that this demand will increase as the film industry recovers. The directors have produced cashflow forecasts over the next twelve months and are confident that the company has sufficient resources to continue its operations for the foreseeable future.
The company's working capital requirements are currently met via a combination of trade creditors, bank facilities, hire purchase, and funds from related undertakings. The directors have no reason to believe that any of these facilities will be discontinued. As a consequence, the directors believe that the company is well placed to continue to manage its business risks successfully.
On the basis of the above, and after making enquires and taking into account the combination of those circumstances outlined above, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the directors continue to adopt the going concern basis in preparing the financial statements.
The Empire Film Company Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 December 2021
Revenue recognition
Turnover is the amounts receivable for services provided and is stated net of VAT.
Revenues from design services are normally recognised when design services are complete and the company has a right to consideration. Occasionally design services are sold on a fixed price basis, and under these circumstances revenue is recognised according to the percentage of work performed.
If circumstances arise that may change the original estimates of revenues or extent of progress towards completion, estimates are revised. These revisions may result in increases or decreases in estimated revenues and are reflected in income in the period in which the circumstances that gave rise to the revision become known by management.
Government grants
Government grants are recognised when it is reasonable to expect that the grants will be received and that all related conditions will be met, usually on submission of a valid claim for payment.
Grants of a revenue nature are credited to income so as to match them with the expenditure to which they relate.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.
Tangible assets
Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
The Empire Film Company Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 December 2021
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Leasehold Improvements |
Over the term of the lease |
Editing Equipment |
20% straight line |
Fixtures & Fittings |
25% straight line |
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.
For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, as estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Hire purchase agreements
Assets held under hire purchase agreements are capitalised and disclosed under tangible fixed assets at cost. The asset is then depreciated over its useful life. Future payments are apportioned between finance costs in the income statement and reduction of the liability so as to achieve a constant periodic rate of interest on the remaining balance of the liability using the effective interest method.
Provisions
Provisions are recognised when the company has an obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
Operating leases and finance leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease. Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Statement of Financial Position as a finance lease obligation.
Lease payments are apportioned between finance costs in the Income Statement and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
The Empire Film Company Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 December 2021
Dividends
Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Share based payments
Equity-settled arrangements are measured at fair value at the date of the grant. The fair value is expensed on a straight-line basis over the vesting period. The amount recognised as an expense is adjusted to reflect the actual number of shares or options that will vest.
Staff numbers |
The average number of persons employed by the company during the year, was
Tangible assets |
Leasehold Improvements |
Editing Equipment |
Fixtures & Fittings |
Total |
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Cost or valuation |
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At 1 January 2021 |
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Additions |
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At 31 December 2021 |
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Depreciation |
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At 1 January 2021 |
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Charge for the year |
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At 31 December 2021 |
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Carrying amount |
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At 31 December 2021 |
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At 31 December 2020 |
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The Empire Film Company Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 December 2021
Debtors |
2021 |
2020 |
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Trade debtors |
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Other debtors |
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Creditors |
Creditors: amounts falling due within one year
Note |
2021 |
2020 |
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Due within one year |
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Loans and borrowings |
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Trade creditors |
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Taxation and social security |
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Other creditors |
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Creditors: amounts falling due after more than one year
Note |
2021 |
2020 |
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Due after one year |
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Loans and borrowings |
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Loans and borrowings |
2021 |
2020 |
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Current loans and borrowings |
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Hire purchase agreements |
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2021 |
2020 |
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Non-current loans and borrowings |
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Hire purchase agreements |
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Liabilities under hire purchase agreements are secured on the assets concerned.
The Empire Film Company Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 December 2021
Deferred tax and other provisions |
Dilapidation provisions |
Total |
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At 1 January 2021 |
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At 31 December 2021 |
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Financial commitments, guarantees and contingencies |
The total amount of financial commitments not included in the statement of financial position is £
Related party transactions |
Included within debtors is a balance of £206,006 (2020: £228,272) due from directors. During the year advances of £207,734 and repayments of £230,000 were made. Interest of £8,284 (2020: £13,910) has been charged at 2.25% until 5 April 2021, and at 2% thereafter. There are no set terms in place.
Non adjusting events after the financial period |
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