Company Registration No. 11810358 (England and Wales)
Motherland Productions Limited
Report and unaudited financial statements
for the period ended 29 March 2021
Motherland Productions Limited
Company information
Directors
Sharon Horgan
Clelia Mountford
Company number
11810358
Registered office
202 Blackfriars Road
London
SE1 8NJ
Motherland Productions Limited
Contents
Page
Directors' report
1
Profit and loss account
2
Balance sheet
3
Notes to the financial statements
4 - 9
Motherland Productions Limited
Directors' report
For the period ended 29 March 2021
Page 1
The directors present their report and financial statements for the period ended 29 March 2021. The prior period figures relate to the period from 6 February 2019 to 30 September 2019.
Principal activities
The principal activity of the company was that of television programme production.
Directors
The directors who held office during the period and up to the date of signature of the financial statements were as follows:
Sharon Horgan
Clelia Mountford
Statement of directors' responsibilities
The directors are responsible for preparing the 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 company and of the profit or loss of the company 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;
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
On behalf of the board
Clelia Mountford
Director
26 July 2022
Motherland Productions Limited
Profit and loss account
For the period ended 29 March 2021
Page 2
Period
Period
ended
ended
29 March
30 September
2021
2019
Notes
£
£
Turnover
2,704,634
2,516,461
Cost of sales
(3,445,546)
(3,107,946)
Gross loss
(740,912)
(591,485)
Administrative expenses
(9,500)
(9,500)
Other operating income
98,418
Operating loss
(651,994)
(600,985)
Interest payable and similar expenses
(29,485)
(2,035)
Loss before taxation
(681,479)
(603,020)
Tax on loss
4
681,479
603,020
Profit for the financial period
The profit and loss account has been prepared on the basis that all operations are continuing operations.
Motherland Productions Limited
Balance sheet
As at 29 March 2021
Page 3
2021
2019
Notes
£
£
£
£
Current assets
Debtors
5
888,741
624,103
Cash at bank and in hand
14,316
12,270
903,057
636,373
Creditors: amounts falling due within one year
6
(903,056)
(636,372)
Net current assets
1
1
Capital and reserves
-
-
Called up share capital
7
1
1
For the financial period ended 29 March 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 in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 26 July 2022 and are signed on its behalf by:
Clelia Mountford
Director
Company Registration No. 11810358
Motherland Productions Limited
Notes to the financial statements
For the period ended 29 March 2021
Page 4
1
Accounting policies
Company information
Motherland Productions Limited is a
private
company
limited by shares
incorporated in
England and Wales
.
The registered office is
202 Blackfriars Road, London, SE1 8NJ.
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 disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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. The principal accounting policies adopted are set out below.
1.2
Going concern
A
true
t the time of approving the financial statements
,
t
he directors have a reasonable expectation that the
company
has adequate resources to continue in operational existence for the foreseeable future. Thus
t
he directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Reporting period
The current reporting period runs from 1 October 2019 to 29 March 2021, a period of 18 months. The prior reporting period was from 6 February 2019 to 30 September 2019, and therefore figures are not entirely comparable. The longer accounting period was used to align with the stage of completion of the production.
1.4
Turnover
In respect of long-term contracts for on-going services, turnover represents the value of work done in the period, including estimates of amounts not invoiced. Value of work done in respect of long-term contracts for on-going services is determined by reference to the stage of completion.
The "percentage completion method" is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the period in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recovered.
Motherland Productions Limited
Notes to the financial statements (continued)
For the period ended 29 March 2021
1
Accounting policies (continued)
Page 5
1.5
Cash at bank and in hand
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.
1.6
Financial instruments
The company 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 company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
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, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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.
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.
Motherland Productions Limited
Notes to the financial statements (continued)
For the period ended 29 March 2021
1
Accounting policies (continued)
Page 6
1.7
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.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
1.8
Taxation
The tax
credit
represents the sum of the tax currently
recoverable
and deferred tax.
Current tax
The tax currently
recover
able is based on
relievable losses arising in the period as the result of television programme tax relief legislation
.
Relievable losses
differ from net
losses
as reported in the
profit and loss account
because
they
include an additional deduction relating to qualifying television programme development expenditure and exclude items of income or expense that are taxable or deductible
in other years
as well as
items that are never taxable or deductible. The
company’s tax position
is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
1.9
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.
1.10
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Motherland Productions Limited
Notes to the financial statements (continued)
For the period ended 29 March 2021
Page 7
2
Critical accounting judgements and key sources of estimation uncertainty
In the application of the company’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.
3
Employees
The average monthly number of persons (excluding directors) employed by the company during the period was 8 (2019 - 9).
Period ended
Period ended
29 March
30 September
2021
2019
Number
Number
Total
8
9
Motherland Productions Limited
Notes to the financial statements (continued)
For the period ended 29 March 2021
Page 8
4
Taxation
Period ended
Period ended
29 March
30 September
2021
2019
£
£
Current tax
UK corporation tax on profits for the current period
(681,479)
(603,020)
The actual credit for the period can be reconciled to the expected credit for the period based on the profit or loss and the standard rate of tax as follows:
Period ended
Period ended
29 March
30 September
2021
2019
£
£
Loss before taxation
(681,479)
(603,020)
Expected tax credit based on the standard rate of corporation tax in the UK of 19.00% (2019: 19.00%)
(129,481)
(114,574)
Enhanced losses arising from the high-end television tax credit
(515,549)
(453,520)
Difference between the rate of corporation tax and the rate of relief under the high-end television tax credit
(163,555)
(144,724)
Group relief surrendered
127,106
109,798
Taxation credit for the period
(681,479)
(603,020)
5
Debtors
29 March
30 September
2021
2019
Amounts falling due within one year:
£
£
Corporation tax recoverable
681,479
603,020
Amounts owed by group undertakings
197,446
21,083
Other debtors
9,816
888,741
624,103
Motherland Productions Limited
Notes to the financial statements (continued)
For the period ended 29 March 2021
Page 9
6
Creditors: amounts falling due within one year
29 March
30 September
2021
2019
£
£
Bank loans
609,948
Trade creditors
153,468
15,943
Taxation and social security
50,680
21,382
Other creditors
88,960
599,047
903,056
636,372
7
Called up share capital
29 March
30 September
29 March
30 September
2021
2019
2021
2019
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary share of £1 each
1
1
1
1
8
Financial commitments, guarantees and contingent liabilities
Coutts & Co holds two fixed charges over the company's right, title and interest in both series of the programme.
9
Related party transactions
The company has taken advantage of the exemption under paragraph 33.1a of FRS 102 from disclosing transactions between two or more members of a group, where any subsidiary undertaking which is a party to the transaction is the ultimate parent company or wholly owned by a member of that group.
10
Parent company
As of the reporting date, the company is a wholly owned subsidiary of Merman Television Limited, a company registered in England and Wales.