Found_London_Investor_Lim - Accounts

The director of the company have elected not to include a copy of the profit and loss account within the financial statements.true

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

Found London Investor Limited is a private company limited by shares incorporated in England and Wales. The registered office is 6th Floor Charlotte Building, 17 Gresse Street, London, United Kingdom, W1T 1QL.

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 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 pound.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The group of which the company is the UK parent of produces the show 'Dear Evan Hansentrue'. During the period under review the company made a loss of £2,836,021 and had net liabilities at 27 December 2020 of £3,672,640. All performances are currently cancelled due to government restrictions. There is an expectation that UK theatres will be allowed to re-open in July 2021 however this may not happen and so the director has no certainty that the theatre will reopen at that time.

The company's subsidiary Waving Windows London Productions Limited will continue to invoice the company for its services while the show is not open as it has costs which continue to be incurred in order that the production is able to reopen once the current restrictions are lifted.  However the director is aware that the company has no income while the show remains closed and that this will impact on its ability to pay for the company’s production services.  The director understands that the company has sufficient resources to enable it to continue to pay for the services of Waving Windows London Productions Limited for at least the next 6 months which will in turn allow the company to meet its liabilities as they fall due for the same period. Further funding may be required to finance the reopening of the show if it remains closed for an extended period but the timing of that expenditure and the recommencing of normal trade cannot currently be predicted.

The director is taking steps to minimise discretionary cash outflows and is in continual discussion with the company’s subsidiary as to the future of the show however the uncertainty of the situation is such that the director is not able to predict with any certainty if or when the show will reopen and therefore whether trading will continue.

At the present time all cast and crew remain contracted to the show, with the crew currently on furlough, and the intention is to enable the production to reopen once theatres are allowed to open.  On that basis that director considers it appropriate to prepare the accounts on the going concern basis while recognising that an extended shut down of the theatre would cast doubt on this assertion.

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Turnover from theatrical productions, including theatre tickets, programmes and merchandise, are recognised by reference to the performance date.

Pre-production costs

Intangible assets represent capitalised pre-production costs, which are those development expenses incurred before a theatrical production is played before a live, paying audience for the first time.  Such costs are initially recognised at cost and amortised over the expected lifetime of the production, subject to any impairment losses being recognised.

Capitalised pre-production costs have been impaired in full during the period due to the uncertainty of assessing future economic benefit that can be derived from the use of these assets, rather than reflecting the expected lifetime of the production. At a later date when the production reopens and more certainty exists around future cash flows some of the impairments recognised in this period may be reversed.

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.

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Cash at bank and in hand 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.

The company only has basic financial instruments measured at amortised cost, with no financial instruments classified as other or basic instruments measured at fair value.

Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

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 are included in the profit and loss account for the period.

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.

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.

At the balance sheet date the production had yet to finalise several contract negotiations with some of its suppliers. As the eventual outcome and amounts resulting from these could not be estimated with certainty, any related transactions have been recognised in these accounts based on the last agreed contracts.

The average monthly number of persons (including director) employed by the company during the period was: 0 (2019: 0).

Key management personnel include the director of the company who has authority and responsibility for planning, directing and controlling the activities of the company.

More information on the impairment arising in the period is given in note .

Investments in subsidiary undertakings are recognised at cost.

The company holds 100% of the voting rights of the Ordinary share capital of Waving Windows London Productions Limited.

Details of the company's subsidiaries at 27 December 2020 are as follows:

6th Floor Charlotte Building, 17 Gresse Street, London, W1T 1QL

100 Ordinary share of £1 each was allotted and fully paid for cash at par during the period.

As the income statement has been omitted from the filing copy of the financial statements the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

The company has taken advantage of the exemption from disclosing related party transactions with wholly owned subsidiaries of the group in accordance with FRS102, Section 33 'Related Parties'.

Waving Windows London Productions Ltd

During the period Waving Windows London Productions Ltd charged the company £4,618,534 (2019: £6,672,757) for services provided under a commissioning agreement. As at the balance sheet date the company owed Waving Windows London Productions Ltd £223,567 (2019: £485,194). Waving Windows London Productions Ltd is a subsidiary of the company.

The Ambassador Theatre Group Ltd

As at the balance sheet date The Ambassador Theatre Group Limited was owed £727,500 (2019: £727,500) by the company. The Ambassador Theatre Group Ltd is a shareholder in the company's subsidiary Waving Windows London Productions Ltd.

The immediate parent company is For Forever London LLC, a company incorporated in the USA.

The ultimate parent company is Stacey Mindich Productions LLC, a company incorporated in the USA.

The ultimate controlling party is Stacey Mindich.