Company Registration No. 14116780 (England and Wales)
Mary & George Production Ltd
Unaudited financial statements
for the year ended 31 August 2023
Pages for filing with the registrar
Mary & George Production Ltd
Contents
Page
Statement of financial position
1
Notes to the financial statements
2 - 6
Mary & George Production Ltd
Statement of financial position
As at 31 August 2023
1
2023
2022
Notes
£
£
£
£
Current assets
Debtors
5
12,804,497
1
Cash at bank and in hand
112,487
12,916,984
1
Creditors: amounts falling due within one year
6
(12,907,283)
Net current assets
9,701
1
Capital and reserves
Called up share capital
1
1
Profit and loss reserves
9,700
Total equity
9,701
1
The director of the company has elected not to include a copy of the income statement within the financial statements.true
For the financial year ended 31 August 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The director acknowledges her responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The member has 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.
The financial statements were approved and signed by the director and authorised for issue on 20 December 2023
Liza Marshall
Director
Company Registration No. 14116780 (England and Wales)
Mary & George Production Ltd
Notes to the financial statements
For the year ended 31 August 2023
2
1
Accounting policies
Company information
Mary & George Production Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Unit 18 Nw Works, 135 Salusbury Road, London, NW6 6RJ.
1.1
Reporting period
The current reporting period is for 12 months. The prior period, from 19 May 2022 to 31 August 2022, was 3 months and therefore is not entirely comparable.
1.2
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 amounts 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.
1.3
Turnover
In respect of long-term contracts for ongoing services, turnover represents the value of work done in the period, including estimates for amounts not invoiced. Value of work done in respect of long-term contracts and contracts for ongoing services is determined by reference to the stage of completion.
The "percentage of completion" method is used to determine the appropriate amount to recognise is 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 year 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 they will be recovered.
1.4
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.
1.5
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 statement of financial position 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.
Mary & George Production Ltd
Notes to the financial statements (continued)
For the year ended 31 August 2023
1
Accounting policies (continued)
3
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 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.
1.6
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.
1.7
Taxation
The tax credit represents the sum of the tax currently recoverable.
Current tax
The tax currently recoverable is based on receivable losses arising in the year as the result of high-end television tax relief legislation. Relievable losses differ from net losses as reported in the income statement because they include an additional deduction relating to qualifying high-end television development expenditure and exclude items of income 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 date.
1.8
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.
Mary & George Production Ltd
Notes to the financial statements (continued)
For the year ended 31 August 2023
1
Accounting policies (continued)
4
1.9
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
2
Critical accounting judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the director is 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.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Tax credit estimate
The key accounting estimate within the financial statements for this company is the valuation of the HETV tax credit available. The estimate is based on the assessment of the value of qualifying expenditure as per HMRC legislations and guidance plus assessment of the qualification of the underlying production as eligible for the tax relief.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
93
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
5,435,404
Social security costs
631,073
Pension costs
39,937
6,106,414
Mary & George Production Ltd
Notes to the financial statements (continued)
For the year ended 31 August 2023
5
4
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
(9,029,121)
The actual credit for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
Loss before taxation
(9,019,421)
Expected tax credit based on the standard rate of corporation tax in the UK of 21.52% (2022: 19.00%)
(1,940,979)
Enhanced losses arising from the high end television tax credit
(7,917,539)
Difference between the rate of corporation tax and the rate of relief under the high end television tax credit
(1,256,854)
Losses carried forward
2,086,251
Taxation credit for the period
(9,029,121)
-
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
7,391
Corporation tax recoverable
9,029,121
Amounts owed by group undertakings
3,355,853
1
Other debtors
412,132
12,804,497
1
6
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
8,555,887
Trade creditors
72,417
Taxation and social security
1,188,075
Other creditors
3,090,904
12,907,283
Mary & George Production Ltd
Notes to the financial statements (continued)
For the year ended 31 August 2023
6
7
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
39,937
-
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
8
Charges
Bank of Montreal hold a fixed charge, a floating charge and negative pledge over all right, title and interest in the series owned by the Company in respect of amounts owed to them.
9
Related party transactions
The company has taken advantage of the exemption available in accordance with paragraph 33.1a of FRS 102, whereby it is not required to disclose transactions entered into between two or more members of the group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member.
10
Parent company
The immediate parent company is Hera Pictures Limited. Its registered address is Unit 18 Quadrant Business Centre, 135 Salusbury Road, London, NW6 6RJ.