Company registration number 07842430 (England and Wales)
THE TOLKIEN ESTATE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
THE TOLKIEN ESTATE LIMITED
COMPANY INFORMATION
Directors
B J Tolkien
M G R Tolkien
S M R Tolkien
S A Maier
Secretary
C Blackburn
Company number
07842430
Registered office
Prama House
267 Banbury Road
Oxford
OX2 7HT
Auditor
Critchleys Audit LLP
Beaver House
23-38 Hythe Bridge Street
Oxford
OX1 2EP
THE TOLKIEN ESTATE LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Profit and loss account
7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 18
THE TOLKIEN ESTATE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021
- 1 -
The directors present the strategic report for the year ended 31 December 2021.
Fair review of the business
The Company has had a very good year, with increased income across the key areas of its activities, including book publishing, film and video games. Overall, its income was somewhat lower than in 2020, reflecting only that certain income flows into the Company at intervals greater than one year and bank interest was reduced. Administrative expenses were slightly higher than in 2020 but within the range of fluctuation which generally occurs from year to year. In general, the Company has benefited from the increased demand for home entertainment during the period of the pandemic, though it is expected that this will normalise as businesses and workplaces reopen.
Principal risks and uncertainties
The principal risks and uncertainties affecting the Company arise from its ownership of copyright assets. It is necessary from time to time to engage in defensive action to protect these assets or to ensure that the Company receives appropriate value from them, which can increase the Company’s operating costs. The income earned from these assets may also fluctuate from year to year, often to a significant extent. At present, however, interest in Tolkien’s works and their various adaptations remains high
.
M G R Tolkien
Director
14 September 2022
THE TOLKIEN ESTATE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021
- 2 -
The directors present their annual report and financial statements for the year ended 31 December 2021.
Principal activities
The principal activity of the company continued to be that of the active management and exploitation of the copyrights and other intellectual property of the late J R R Tolkien, including the publishing of new works and new editions of works in conjunction with publishers worldwide, the development and protection of the Tolkien brand and the management and protection of Tolkien as author and artist.
Results and dividends
The results for the year are set out on page 7.
Ordinary dividends were paid amounting to £10,260,000. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
B J Tolkien
M G R Tolkien
S M R Tolkien
S A Maier
P M A R Tolkien
(Deceased 28 February 2022)
Financial instruments
The company manages its cash in order to ensure the company has sufficient liquid resources to meet the operating needs of the business.
Statement of directors' responsibilities
The directors are responsible for preparing the annual 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.
THE TOLKIEN ESTATE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 3 -
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s
auditor
is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s
auditor
is aware of that information.
On behalf of the board
M G R Tolkien
Director
14 September 2022
THE TOLKIEN ESTATE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF THE TOLKIEN ESTATE LIMITED
- 4 -
Opinion
We have audited the financial statements of The Tolkien Estate Limited (the 'company') for the year ended 31 December 2021 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies.
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102
The Financial Reporting Standard applicable in the UK and Republic of Ireland
(United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
-
give a true and fair view of the state of the company's affairs as at 31 December 2021 and of its profit for the year then ended;
-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the
Auditor's
responsibilities for the audit of the
financial statements
section of our report. We are independent of the
company
in accordance with the ethical requirements that are relevant to our audit of the
financial statements
in the UK, including the FRC’s Ethical Standard
, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit
:
-
the information given in the strategic report and the directors'
r
eport for the financial year for which the financial statements are prepared is consistent with the financial statements
; and
-
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
THE TOLKIEN ESTATE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF THE TOLKIEN ESTATE LIMITED
- 5 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identifie
d
material misstatements in the strategic report or the directors'
r
eport
. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
-
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
-
the financial statements are not in agreement with the accounting records and returns; or
-
certain disclosures of
remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors'
r
esponsibilities
s
tatement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of
financial statements
that are free from material misstatement, whether due to fraud or error. In preparing the
financial statements
, the
directors are
responsible for assessing the company
'
s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have
no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the
financial statements
as a whole are free from material misstatement, whether due to fraud or error, and to issue an
auditor's
report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with
ISAs (UK)
will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these
financial statements
.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below
.
-
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
-
we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our knowledge and experience;
-
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company.
-
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence where applicable; and
-
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
-
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
-
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations
.
THE TOLKIEN ESTATE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF THE TOLKIEN ESTATE LIMITED
- 6 -
To address the risk of fraud through management bias and override of controls, we:
-
performed analytical procedures to identify any unusual or unexpected relationships;
-
tested journal entries to identify unusual transactions;
-
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
-
investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
-
agreeing financial statement disclosures to underlying supporting documentation;
-
reading the minutes of meetings of those charged with governance;
-
enquiring of management as to actual and potential litigation and claims;
-
reviewing relevant correspondence.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion
.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Robert Kirtland (Senior Statutory Auditor)
For and on behalf of Critchleys Audit LLP
20 September 2022
Chartered Accountants
Statutory Auditor
Beaver House
23-38 Hythe Bridge Street
Oxford
OX1 2EP
THE TOLKIEN ESTATE LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2021
- 7 -
2021
2020
Notes
£
£
Turnover
3
10,344,627
12,749,813
Cost of sales
(494,190)
(615,680)
Gross profit
9,850,437
12,134,133
Administrative expenses
(887,721)
(824,186)
Operating profit
4
8,962,716
11,309,947
Interest receivable and similar income
6
9,584
56,544
Interest payable and similar expenses
(1,207)
(7,242)
Profit before taxation
8,971,093
11,359,249
Tax on profit
7
(1,751,528)
(2,207,294)
Profit for the financial year
7,219,565
9,151,955
The profit and loss account has been prepared on the basis that all operations are continuing operations.
THE TOLKIEN ESTATE LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2021
- 8 -
2021
2020
£
£
Profit for the year
7,219,565
9,151,955
Other comprehensive income
-
-
Total comprehensive income for the year
7,219,565
9,151,955
THE TOLKIEN ESTATE LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2021
31 December 2021
- 9 -
2021
2020
Notes
£
£
£
£
Fixed assets
Intangible assets
9
226,683
473,975
Investments
10
360
360
227,043
474,335
Current assets
Debtors
12
8,928,398
4,847,549
Cash at bank and in hand
4,646,034
11,654,195
13,574,432
16,501,744
Creditors: amounts falling due within one year
13
(2,029,768)
(2,163,937)
Net current assets
11,544,664
14,337,807
Net assets
11,771,707
14,812,142
Capital and reserves
Called up share capital
14
270,000
270,000
Share premium account
8,443,270
Profit and loss reserves
11,501,707
6,098,872
Total equity
11,771,707
14,812,142
The financial statements were approved by the board of directors and authorised for issue on 14 September 2022 and are signed on its behalf by:
M G R Tolkien
Director
Company Registration No. 07842430
THE TOLKIEN ESTATE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2021
- 10 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2020
270,000
8,443,270
996,917
9,710,187
Year ended 31 December 2020:
Profit and total comprehensive income for the year
-
-
9,151,955
9,151,955
Dividends
8
-
-
(4,050,000)
(4,050,000)
Balance at 31 December 2020
270,000
8,443,270
6,098,872
14,812,142
Year ended 31 December 2021:
Profit and total comprehensive income for the year
-
-
7,219,565
7,219,565
Dividends
8
-
-
(10,260,000)
(10,260,000)
Other movements
-
(8,443,270)
8,443,270
-
Balance at 31 December 2021
270,000
11,501,707
11,771,707
The share premium reserve was converted to a distributable reserve by resolution of the members in July 2021.
THE TOLKIEN ESTATE LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2021
- 11 -
2021
2020
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
17
4,791,112
3,233,499
Interest paid
(1,207)
(7,242)
Income taxes paid
(1,547,650)
(1,732,291)
Net cash inflow from operating activities
3,242,255
1,493,966
Investing activities
Interest received
9,584
56,544
Net cash generated from investing activities
9,584
56,544
Financing activities
Dividends paid
(10,260,000)
(4,050,000)
Net cash used in financing activities
(10,260,000)
(4,050,000)
Net decrease in cash and cash equivalents
(7,008,161)
(2,499,490)
Cash and cash equivalents at beginning of year
11,654,195
14,153,685
Cash and cash equivalents at end of year
4,646,034
11,654,195
THE TOLKIEN ESTATE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
- 12 -
1
Accounting policies
Company information
The Tolkien Estate Limited is a
private
company
limited by shares
incorporated in
England and Wales
.
The registered office is
Prama House, 267 Banbury Road, Oxford, OX2 7HT.
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.
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.
The company has not prepared group accounts as its only subsidiary is dormant and immaterial.
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
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for
royalties and other trading income, and
is shown net of VAT and other sales related taxes
. This includes an estimate of the amount earned up until the balance sheet date which is included in debtors.
1.4
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date
where
it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the
fair
value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Copyrights
over 10 years
1.5
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
The investments are assessed for impairment at each reporting date
and
any
impairment
losses or reversals of impairment losses are recognised immediately in
profit
or
loss
.
A subsidiary is an entity controlled by the company
. Control is
the power to govern the financial and operating policies of
the
entity so as to obtain benefits from its activities.
THE TOLKIEN ESTATE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 13 -
1.6
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.
1.7
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.
Basic financial assets
Basic financial assets, which include
debtors
and cash and bank balances, are initially measured at transaction price including transaction costs
.
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
, are
initially recognised at transaction price
.
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
.
1.8
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.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the
profit and loss account
because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
1.10
Foreign exchange
Transactions in currencies other than
pounds sterling
are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation
in the period
are included in profit or loss.
THE TOLKIEN ESTATE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 14 -
2
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.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant
effect on amounts recognised in the financial statements.
Amortisation
Amortisation period for copyrights
3
Turnover and other revenue
2021
2020
£
£
Turnover analysed by class of business
Income from copyrights and intellectual property
10,344,627
12,749,813
2021
2020
£
£
Other revenue
Interest income
9,584
56,544
4
Operating profit
2021
2020
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
8,305
7,710
Amortisation of intangible assets
247,292
247,293
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
Total
THE TOLKIEN ESTATE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 15 -
6
Interest receivable and similar income
2021
2020
£
£
Interest income
Interest on bank deposits
9,584
56,245
Other interest income
299
Total income
9,584
56,544
Investment income includes the following:
Interest on financial assets not measured at fair value through profit or loss
9,584
56,245
7
Taxation
2021
2020
£
£
Current tax
UK corporation tax on profits for the current period
1,751,493
2,206,965
Adjustments in respect of prior periods
35
329
Total current tax
1,751,528
2,207,294
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2021
2020
£
£
Profit before taxation
8,971,093
11,359,249
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2020: 19.00%)
1,704,508
2,158,257
Tax effect of expenses that are not deductible in determining taxable profit
46,985
48,708
Under/(over) provided in prior years
35
329
Taxation charge for the year
1,751,528
2,207,294
8
Dividends
2021
2020
£
£
Interim paid
10,260,000
4,050,000
THE TOLKIEN ESTATE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 16 -
9
Intangible fixed assets
Copyrights
£
Cost
At 1 January 2021 and 31 December 2021
2,472,925
Amortisation and impairment
At 1 January 2021
1,998,950
Amortisation charged for the year
247,292
At 31 December 2021
2,246,242
Carrying amount
At 31 December 2021
226,683
At 31 December 2020
473,975
These consist of the copyrights to certain titles by J R R Tolkien. The cost above is the purchase consideration attributed to copyrights when the assets of The J R R Tolkien Estate Limited were sold to this company.
10
Fixed asset investments
2021
2020
Notes
£
£
Investments in subsidiaries
11
360
360
11
Subsidiaries
Details of the company's subsidiaries at 31 December 2021 are as follows:
Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
The J R R Tolkien Estate Limited
England and Wales
Dormant
Ordinary
100.00
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
The J R R Tolkien Estate Limited
360
THE TOLKIEN ESTATE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 17 -
12
Debtors
2021
2020
Amounts falling due within one year:
£
£
Other debtors
22,385
20,147
Prepayments and accrued income
8,906,013
4,827,402
8,928,398
4,847,549
13
Creditors: amounts falling due within one year
2021
2020
£
£
Trade creditors
704
2,766
Amounts owed to group undertakings
360
360
Corporation tax
1,364,843
1,160,965
Other creditors
7,920
261,046
Accruals and deferred income
655,941
738,800
2,029,768
2,163,937
14
Share capital
2021
2020
2021
2020
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
270,000
270,000
270,000
270,000
15
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Legal and professional services
Royalties payable
2021
2020
2021
2020
£
£
£
£
Entities jointly controlled by a director
447,984
359,669
-
-
Key management personnel
-
-
18,120
9,372
2021
2020
Amounts due to related parties
£
£
Entities jointly controlled by a director
115,334
90,676
Key management personnel
18,120
9,372
THE TOLKIEN ESTATE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 18 -
16
Directors' transactions
Dividends totalling £4,488,750 (2020 - £1,771,875) were paid in the year in respect of shares held by the company's directors.
17
Cash generated from operations
2021
2020
£
£
Profit for the year after tax
7,219,565
9,151,955
Adjustments for:
Taxation charged
1,751,528
2,207,294
Finance costs
1,207
7,242
Investment income
(9,584)
(56,544)
Amortisation and impairment of intangible assets
247,292
247,293
Decrease in provisions
(7,285,780)
Movements in working capital:
Increase in debtors
(4,080,849)
(962,467)
Decrease in creditors
(338,047)
(75,494)
Cash generated from operations
4,791,112
3,233,499
18
Analysis of changes in net funds
1 January 2021
Cash flows
31 December 2021
£
£
£
Cash at bank and in hand
11,654,195
(7,008,161)
4,646,034
2021-12-31
2021-01-01
false
CCH Software
CCH Accounts Production 2022.200
B J Tolkien
M G R Tolkien
S M R Tolkien
S A Maier
P M A R Tolkien
C Blackburn
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