World Media Rights
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Notes to the Accounts |
for the year ended 31 March 2021
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1 |
Accounting policies |
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Basis of preparation |
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The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard).
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Going concern |
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The company had net liabilities of £565,435 as at 31 March 2021 (2020: £634,501). The company was provided with a credit facility by their shareholder's bankers which is guaranteed by the shareholder. The company had drawn down £557,193 (of the £556,996 available) on the credit facility at year end. Post year end the shareholder has confirmed that it intends to extend this facility agreement for a period of at least 12 months from the signing date of these financial statements. The directors have reviewed the working capital requirements of the company for a period of at least 12 months from the anticipated date of signing the financial statements. The company’s forecasts are dependent on its ability to secure future production contracts. The financial statements do not include the adjustments that would result if the company were unable to continue as a going concern. |
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Turnover |
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Turnover incorporates licence fees from Broadcasters and production advances for work for hire contract agreements .
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Tangible fixed assets |
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Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows:
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Leasehold land and buildings |
over 5 years |
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Debtors |
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Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.
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Creditors |
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Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.
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Taxation |
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Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably.
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Foreign currency translation |
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Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss.
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Leased assets |
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A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. Operating lease payments are recognised as an expense on a straight line basis over the lease term.
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Pensions |
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Contributions to defined contribution plans are expensed in the period to which they relate.
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2 |
Employees |
2021 |
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2020 |
Number |
Number |
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Average number of persons employed by the company |
5 |
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9 |
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3 |
Tangible fixed assets |
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Leasehold improvements |
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Fixtures, fittings and equipment |
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Total |
£ |
£ |
£ |
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Cost |
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At 1 April 2020 |
61,469 |
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212,594 |
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274,063 |
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Additions |
26,096 |
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9,317 |
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35,413 |
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Disposals |
(55,635) |
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- |
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(55,635) |
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At 31 March 2021 |
31,930 |
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221,911 |
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253,841 |
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Depreciation |
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At 1 April 2020 |
54,887 |
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201,582 |
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256,469 |
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Charge for the year |
5,820 |
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8,900 |
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14,720 |
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On disposals |
(54,887) |
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- |
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(54,887) |
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At 31 March 2021 |
5,820 |
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210,482 |
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216,302 |
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Net book value |
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At 31 March 2021 |
26,110 |
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11,429 |
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37,539 |
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At 31 March 2020 |
6,582 |
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11,012 |
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17,594 |
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4 |
Debtors |
2021 |
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2020 |
£ |
£ |
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Trade debtors |
256,269 |
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8,875 |
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Prepayments and accrued income |
36,104 |
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39,308 |
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Other debtors |
67,870 |
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222,431 |
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360,243 |
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270,614 |
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5 |
Creditors: amounts falling due within one year |
2021 |
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2020 |
£ |
£ |
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Bank loans and overdrafts |
557,193 |
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556,996 |
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Trade creditors |
312,073 |
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319,319 |
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Taxation and social security costs |
24,578 |
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90,347 |
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Other creditors |
1,599,706 |
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228,556 |
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2,493,550 |
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1,195,218 |
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6 |
Other reserves |
2021 |
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2020 |
£ |
£ |
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At 1 April 2020 |
(519,845) |
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(519,845) |
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At 31 March 2021 |
(519,845) |
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(519,845) |
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7 |
Other financial commitments |
2021 |
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2020 |
£ |
£ |
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Total future minimum payments under non-cancellable operating leases |
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314,760 |
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393,450 |
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8 |
Other information |
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World Media Rights is a private company limited by shares and incorporated in England. Its registered office is: |
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5 Hammersmith Grove |
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Hammersmith |
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London |
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W6 0LG |