UMF Extinction Ltd Filleted accounts for Companies House (small and micro)

UMF EXTINCTION LTD - Company Information

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COMPANY REGISTRATION NUMBER: 12328596

UMF Extinction Ltd

Filleted Financial Statements

31 December 2021

UMF Extinction Ltd

Statement of Financial Position

31 December 2021

	2021	2020
Note	£	£

Current assets

Debtors	6	5,911,200	848,823
Cash at bank and in hand		27,564	575,679
		------------	------------
		5,938,764	1,424,502

Creditors: amounts falling due within one year	7	( 5,938,763)	( 1,424,501)
		------------	------------
Net current assets		1	1
		----	----
Total assets less current liabilities		1	1
		----	----
Net assets		1	1
		----	----

Capital and reserves

Called up share capital	1	1
	----	----
Shareholders funds	1	1
	----	----

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

In accordance with section 444 of the Companies Act 2006, the statement of income and retained earnings has not been delivered.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

These financial statements were approved by the board of directors and authorised for issue on 24 March 2022 , and are signed on behalf of the board by:

J E Capps

Director

Company registration number: 12328596

UMF Extinction Ltd

Notes to the Financial Statements

Year ended 31 December 2021

1. General information

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 5a Praed Street, 2nd Floor (Rear), Mimet House, London, W2 1NJ, United Kingdom.

2. Statement of compliance

These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of the transaction. Exchange differences are taken into account in arriving at the operating profit.

Going concern

After making enquiries, the Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the financial statements. We draw attention to the current Covid-19 pandemic and the potential economic impact the virus will have in the coming months. In establishing whether to continue to report under the going concern assumption we have considered the following points: - The impact on the day to day trade of the business - The impact on the ability of our suppliers to meet our needs - The impact of our staff’s ability to perform their duties - The impact on our cash position of a period of minimum activity A detailed budget and cashflow have been prepared for the production and delivery of the television series. Funds to meet the cashflow requirements are contractually in place and the directors do not anticipate any material overspend. A large proportion of the production has been completed by period end including all of the principal photography. The directors are anticipating completion and formal delivery in the forthcoming period. After considering all factors, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the accounts.

Disclosure exemptions

The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. As such, advantage has been taken of the following disclosure exemptions available under section 1A of FRS 102: (a) Disclosures in respect of each class of share capital have not been presented. (b) No cash flow statement has been presented for the Company. (c) Disclosures in respect of financial instruments have not been presented.

Judgements and key sources of estimation uncertainty

Accruals are estimated by reference to purchase orders raised at the period end and estimates to complete. Payments received on account are estimated by reference to percentage of completion of the television production, as noted in "Revenue recognition" below.

Revenue recognition

Turnover relates to the production of the television series entitled "Extinction". It represents the value of the work done in the period, including estimates of amounts not invoiced and is stated after trade discounts, other taxes and net of VAT. Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that expenses recognised are recoverable.

Income tax

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Financial instruments

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 entity after deducting all of its financial liabilities.

4. Employees

The company has been incorporated to produce a high-end television series entitled "Extinction". In common with the film and television industry the majority of crew are hired on short term contracts for the duration of principal photography or are self-employed.

None of the directors received any form of remuneration.

5. Tax on loss

Major components of tax income

	2021	2020
	£	£

Current tax:

UK current tax income	( 4,567,215)	( 602,776)
	------------	---------
Tax on loss	( 4,567,215)	( 602,776)
	------------	---------

Reconciliation of tax income

The tax assessed on the loss on ordinary activities for the year is lower than (2020: lower than) the standard rate of corporation tax in the UK of 19 % (2020: 19 %).

	2021	2020
	£	£
Loss on ordinary activities before taxation	( 4,567,215)	( 602,776)
	------------	---------
High-end television tax relief	(4,567,215)	(602,776)
	------------	---------

6. Debtors

	2021	2020
	£	£
Prepayments and accrued income	568,257	–
VAT recoverable	64,042	–
Corporation tax recoverable	5,168,937	602,776
Other debtors	109,964	246,047
	------------	---------
	5,911,200	848,823
	------------	---------

7. Creditors: amounts falling due within one year

	2021	2020
	£	£
Trade creditors	113,694	285,600
Accruals and deferred income	653,213	39,323
Social security and other taxes	–	473,979
Production Loan	5,168,937	602,776
Other creditors	2,919	22,823
	------------	------------
	5,938,763	1,424,501
	------------	------------

The loan has been secured against the anticipated future high-end television tax credit.

8. Summary audit opinion

The auditor's report for the year dated 24 March 2022 was unqualified.

The senior statutory auditor was Stephen Joberns , for and on behalf of Shipleys LLP .

9. Related party transactions

The company has taken advantage of Section 33 of FRS 102 from disclosing transactions entered into between two or more members of a group, where any subsidiary undertaking which is a party to the transaction is wholly owned by a member of that group. No transactions with related parties were undertaken such as are required to be disclosed under FRS 102.

10. Controlling party

In the opinion of the directors the parent undertaking is Urban Myth Films Limited , a company incorporated in England and Wales. On March 1, 2021 following a share transfer in Urban Myth Films Ltd, StudioCanal SAS became the ultimate controlling party. The smallest group in which the results of the Company are consolidated is that headed by Urban Myth Films Limited and are publicly available.