Registered number:
01094956
DLT ENTERTAINMENT UK LTD
FINANCIAL STATEMENTS
INFORMATION FOR FILING WITH THE REGISTRAR
FOR THE YEAR ENDED 31 DECEMBER 2019
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DLT ENTERTAINMENT UK LTD
REGISTERED NUMBER:
01094956
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2019
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Debtors due within 1 year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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The
financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of income and retained earnings in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
18 December 2020
.
The notes on pages 2 to 9 form part of these financial statements.
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DLT ENTERTAINMENT UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
DLT Entertainment UK Limited is a private company limited by shares and is incorporated in England and Wales. The address of its registered office is 10 Bedford Square, London WC1B 3RA.
2.
Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of
Financial Reporting Standard 102, the Financial Reporting Standard applicable in
the UK and the Republic of Ireland and the Companies Act 2006
.
The following principal accounting policies have been applied:
At the reporting date the company had net current liabilities of £2,867,099 (2018:£1,657,437) and net liabilities of £1,951,091 (2018:£1,322,436) and is reliant on a loan from its parent company, DLT Entertainment Limited (USA) of £2,915,015 (2018: £1,731,241).
The directors have a reasonable expectation that the company has adequate resources to continue as a going concern. The company has made further acquisitions of talent agencies in view of streamlining costs and broadening the contracts available to the company's clients, which will generate management fees for the company. The company is working with its agency clients to develop ideas and giving the company first refusal as the production company.
The company has incurred a further loss in 2020 and has continued to be financed by the parent company, which has not withdrawn support. Whilst the loans provided are repayable on demand, the parent company has confirmed its intention to continue to support the company for at least the next twelve months from the date of approval of these financial statements. The company is accordingly able to continue in operation and is able to pay its debts as they fall due.
On this basis the directors consider it appropriate to prepare the financial statements on the going concern basis. The Financial Statements do not include any adjustments that would result from the withdrawal of the aforementioned support.
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Exemption from preparing consolidated financial statements
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The Company is the parent undertaking of a small group and as such is not required by the Companies Act 2006 to prepare group accounts. These financial statements therefore present information about the company as an individual undertaking and not about its group.
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DLT ENTERTAINMENT UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
2.
Accounting policies (continued)
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts and rebates.
Production fees comprise amounts receivable in respect of the development, filming and editing of television programmes. Production fees are recognised in accordance with the stage of completion as defined in the contracts.
Overheads recoverable and fees comprise amounts charged to television productions for use of the company's assets and for expenditure that the production would ordinarily incur during the course of the production.
Royalties comprise amounts receivable in respect of secondary distribution rights of previously developed television programmes. Royalties are recognised in the period in which the television programme is distributed.
Distribution income comprises amounts receivable from distribution of television productions and is recognised in the period in which the relevant production has been aired or downloaded.
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Investments in subsidiaries are measured at cost less accumulated impairment.
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DLT ENTERTAINMENT UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
2.
Accounting policies (continued)
Short term debtors are measured at transaction price, less any impairment.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans to and from related parties and other creditors.
Short term creditors are measured at the transaction price.
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Foreign currency translation
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Functional and presentation currency
The Company's functional and presentational currency is GBP.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Statement of Income and Retained Earnings.
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in Statement of Income and Retained Earnings when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.
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DLT ENTERTAINMENT UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
2.
Accounting policies (continued)
Interest income is recognied in the Statement of Income and Retained Earnings using the effective interest method.
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Associates and joint ventures
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Associates and Joint Ventures are held at cost less impairment.
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The average monthly number of employees, including directors, during the year was 5
(2018 -
4
)
.
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Charge for the year on owned assets
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DLT ENTERTAINMENT UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
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Investments in subsidiary companies
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Investments in associates
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Amounts owed by group undertakings
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Prepayments and accrued income
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Cash and cash equivalents
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DLT ENTERTAINMENT UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Other taxation and social security
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The bank overdraft is secured by way of a first legal charge over the assets of the company and other companies within the group.
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The company operates a defined contributions pension scheme. The assets of the schemes are held separately from those of the group in an independently administered funds. The pension cost charge represents contributions payable by the company to the funds. The contributions made during the year amounted to £2,427 (2018: £1,044). Contributions totalling £2,561 (2018: £104) were due to the fund at the reporting date and included in the creditors.
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DLT ENTERTAINMENT UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
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Related party transactions
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During the year the company received cash funding by way of additional interest free loans totalling £1,247,594 (2018: £799,784) from DLT Entertainmement Limited (USA), the parent company. Turnover includes £81,622 (2018: £Nil) received from DLT Entertainment Limited (USA) in respect of contributions towards wages and salaries for certain development projects. The total amount due to DLT Entertainment Limited (USA) at the reporting date was £2,915,015 (2018: £1,749,043).
During the year recharged expenses, royalties and fees totalling £94,742 (2018: £74,863) were due to The Theatre of Comedy Company Limited, a fellow subsidiary. At the reporting date £158,939 (2018: £74,864) was due to The Theatre of Comedy Company Limited.
During the year the company paid service charges of £51,700 (2018: £49,800) to 31 West 56th Street Property Incorporated. At the reporting date the balance due to this company was £Nil (2018: £Nil).
During the year, the company provided loan funding of £23,195 (2018: £42,273) to The Galton Agency Limited, its 90% subsidiary. At the reporting date £174,350 (2018: £151,155) was due from The Galton Agency Limited.
During the year, the company provided loan funding of £Nil (2018: £10,514) to DLT Entertainment Development Limited, a company in which D L Taffner Jnr and J Cotugno are also directors. At the reporting date £12,164 (2018: £32,871) was due from DLT Entertainment Development Limited.
During the year, the company provided loan funding of £49,188 (2018: £74,090) to Vera Productions Limited, its 100% subsidary. During the year, fees of £58,250 (2018: £41,700) were received from Vera Productions Limited. At the reporting date £206,903 (2018: £74,090) was due from Vera Productions Limited.
During the year, the company provided loan funding of £41,388 (2018: £Nil) to Andrew Roach Talent Limited, a company in which the company holds 50% of the ordinary share capital. During the year, fees of £20,000 (2018: £Nil) were received from Andrew Roach Talent Limited. At the reporting date £61,388 (2018: £Nil) was due from Andrew Roach Talent Limited.
During the year, the company provided loan funding of £68,442 (2018: £Nil) to Blue Book Artist management Limited, a company in which the company holds 50% of the ordinary share capital. At the reporting date £68,442 (2018: £Nil) was due from Blue Book Artist Management Limited.
The company is part of a Composite Accounting Agreement with The Theatre of Comedy Company Limited whereby each company has provided a guarantee to the bank, which is authorised to allow setoff for interest purposes and to use credit balances to offset debit balances. A cross guarantee and debenture exists between the two companies and The Theatre of Comedy Company Limited has provided an unlimited guarantee.
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The immediate and ultimate parent undertaking is DLT Entertainment Limited, a company registered in the United States of America.
The ultimate controling party is Mr D L Taffner Jnr.
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DLT ENTERTAINMENT UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
The auditors' report on the financial statements for the year ended 31 December 2019 was unqualified.
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In their report, the auditors emphasised the following matter without qualifying their report:
Material uncertainty related to going concern
We draw attention to note 2.2 in the financial statements. At the balance sheet date, the company has net current liabilities of £2,867,099 and net liabilities of £1,951,091 and is dependent on its parent entity for support. This indicates that a material uncertainty exists that may cast significant doubt on the Company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.
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The audit report was signed on
18 December 2020
by
Jennifer Pope
(Senior Statutory Auditor) on behalf of
Nyman Libson Paul
.
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