Hotwells Productions Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 08381750 (England and Wales)

FINANCIAL STATEMENTS

FOR THE PERIOD 4 APRIL 2018 TO 1 APRIL 2019

FOR

HOTWELLS PRODUCTIONS LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

Mr M S Cowie

Ingenious Media Director Limited

SECRETARY:

FLB Company Secretarial Services Ltd

REGISTERED OFFICE:

150 Wharfedale Road

Winnersh Triangle

Wokingham

Berkshire

RG41 5RB

REGISTERED NUMBER:

08381750 (England and Wales)

INDEPENDENT AUDITORS:

Shipleys LLP, Statutory Auditor

10 Orange Street

Haymarket

London

WC2H 7DQ

FIXED ASSETS

Investments

5

100

101

CURRENT ASSETS

Debtors

6

115,372

2,952,334

Cash at bank

196,617

157,897

311,989

3,110,231

CREDITORS

Amounts falling due within one year

7

(88,542

)

(3,056,709

)

NET CURRENT ASSETS

223,447

53,522

TOTAL ASSETS LESS CURRENT LIABILITIES

223,547

53,623

CAPITAL AND RESERVES

Called up share capital

9

567,360

567,360

Retained earnings

10

(343,813

)

(513,737

)

SHAREHOLDERS' FUNDS

223,547

53,623

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors on 27 March 2020 and were signed on its behalf by:

Ingenious Media Director Limited - Director

1.	STATUTORY INFORMATION

Hotwells Productions Limited is a private company, limited by shares , registered in England and

Wales. The company's registered number and registered office address can be found on the Company

Information page.

The principal activity of the Company is to conduct a film and television development and production

business.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Going Concern

It is the intention of the directors to cease trading in the Company in the foreseeable future and

therefore as required by Financial Reporting Standard 102 Section 1A, the directors have prepared

financial statements on the basis that the Company is no longer a going concern. No material

adjustments arose as a result of ceasing to apply the going concern basis.

Preparation of consolidated financial statements

The financial statements contain information about Hotwells Productions Limited as an individual

company and do not contain consolidated financial information as the parent of a group. The company

is exempt under Section 399(2A) of the Companies Act 2006 from the requirements to prepare

consolidated financial statements.

Significant judgements and estimates

In the application of the Company's accounting policies, the directors are required to make judgments,

estimates and assumptions about the carrying amounts 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 if the revision affects only that

period or in the period of the revision and future periods if the revision affects both current and future

periods. No significant judgements and estimates were made in the period.

Turnover

Turnover is derived from the development and/or production of film and/or television projects, and is

stated net of value added tax. Turnover is recognised at the fair value of the right to consideration and

is not recoginsed until there is certainty over the right to consideration. Turnover which has been

recognised but not invoiced by the balance sheet date is included in debtors. Amounts invoiced in

advance are included in deferred income.

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Financial instruments

The Company enters into basic financial instruments transactions that result in the recognition of

financial assets and liabilities like trade and other debtors and creditors, loans from banks and other

third parties, loans to related parties and investments in non-puttable ordinary shares.

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic

financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract

is entered into and are subsequently re-measured at their fair value. Changes in the fair value of

derivatives are recognised in profit or loss in finance costs or income as appropriate. The company

does not currently apply hedge accounting for interest rate and foreign exchange derivatives.

Short term debtors are measured at transaction price, less any impairment.

Short term creditors are measured at the transaction price. Other financial liabilities, including bank

loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at

amortised cost using the effective interest method.

Taxation

Tax is recognised in the Income Statement, except that a charge attributable to an item of income and

expense recognised as other comprehensive income or to an item recognised directly in equity is also

recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted

or substantively enacted by the balance sheet date in the countries where the Company operates and

generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not

reversed by the Balance sheet date, except that:

The recognition of deferred tax assets is limited to the extent that it is probable that they will be

recovered against the reversal of deferred tax liabilities or other future taxable profits; and

Any deferred tax balances are reversed if and when all conditions for retaining associated tax

allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of

business combinations, when deferred tax is recognised on the differences between the fair values of

assets acquired and the future tax deductions available for them and the differences between the fair

values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined

using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Foreign currencies

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 Profit and loss account except when deferred in other comprehensive

income as qualifying cash flow hedges.

Loans

Non-derivative financial liabilities with fixed or determinable repayments that are not quoted in an active

market are classified as loans. Loans are initially recognised at fair value of the consideration received

plus directly related transaction costs. They are subsequently measured at amortised cost using the

effective interest method. Arrangement fees and interest payable on financial liabilities that are

classified as loans, are charged to the profit and loss account.

The effective interest method is a method of calculating the amortised cost of a financial liability and of

allocating the interest payable over the expected life of the liability. The effective interest rate is the rate

that exactly discounts estimated future cashflows to the instrument's initial carrying amount.

Calculation of the effective interest rate takes into account fees payable, that are an integral part of the

instrument yield and transaction costs. All contractual terms of a financial instrument are considered

when estimating future cash flows.

A financial liability is removed from the balance sheet when the obligation is discharged, or cancelled,

or expires.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the period was NIL (2018 - NIL).

4.	AUDITORS' REMUNERATION

Period

Period

4.4.18

5.4.17

to

to

1.4.19

3.4.18

as

restated

£

£

Fees payable to the company's auditors for the audit of the company's financial statements

2,000

-

5.	FIXED ASSET INVESTMENTS

Shares in

group

undertakin

£

COST

At 4 April 2018

101

Disposals

(1

)

At 1 April 2019

100

NET BOOK VALUE

At 1 April 2019

100

At 3 April 2018

101

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

as

restated

£

£

Trade debtors

32,331

1,852,612

Other debtors

83,041

1,099,722

115,372

2,952,334

Contained within the above is a balance of £nil (2018: £107,365) in relation to foreign exchange

contracts held at fair value. During the year, £107,365 was charged to the profit and loss (2018:

£348,539 credited) in respect of these.

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

as

restated

£

£

Taxation and social security

5,830

622

Other creditors

82,712

3,056,087

88,542

3,056,709

8.	SECURED DEBTS

The following secured debts are included within creditors:

2019

2018

as

restated

£

£

Other creditors

75,863

2,067,885

Ingenious Project Finance Limited holds fixed and floating charges dated 5 December 2016 covering

all the property or undertaking of the company, the outstanding charge contains a negative pledge.

9.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2019

2018

value:

as restated

£

£

4,052,573

A Ordinary

£0.14

567,360

567,360

10.

RESERVES

Retained

earnings

£

At 4 April 2018

(447,682

)

Prior year adjustment

(66,055

)

(513,737

)

Profit for the period

169,924

At 1 April 2019

(343,813

)

Profit and loss account

The Profit and Loss Account represents the cumulative profits or losses, net of dividends paid and

other adjustments.

11.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified. The report drew attention to the following matter:

In forming our opinion, we have considered the adequacy of the disclosures made in the notes of the

financial statements regarding the Company's ability to continue as a going concern. These

disclosures indicate the existence of material uncertainties that cast significant doubt on the

Company's ability to continue as a going concern. In view of the significance of this uncertainty, we

consider that it should be drawn to your attention but our opinion is not qualified in this respect.

The prior period financial statements to 3 April 2018 have not been audited.

Stephen Joberns (Senior Statutory Auditor)

for and on behalf of Shipleys LLP, Statutory Auditor

12.	POST BALANCE SHEET EVENTS

On 14 May 2019 the issued share capital of the Company was reduced from £567,360 to £14 by

cancelling and extinguishing 4,052,473 A Ordinary shares of £0.14.

13.	PRIOR YEAR ADJUSTMENTS

The prior period has been restated due to a material error identified within loan interest totalling

£66,055.