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Registered number: 02419728
JOHN DOWNER PRODUCTIONS LIMITED
UNAUDITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
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JOHN DOWNER PRODUCTIONS LIMITED
REGISTERED NUMBER: 02419728
BALANCE SHEET
AS AT 30 JUNE 2022
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Debtors: amounts falling due within one 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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Provisions for liabilities
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JOHN DOWNER PRODUCTIONS LIMITED
REGISTERED NUMBER: 02419728
BALANCE SHEET (CONTINUED)
AS AT 30 JUNE 2022
The director considers that the Company is entitled to exemption from audit under section 477 of the Companies Act 2006 and members have not required the Company to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.
The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The Company's financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
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 comprehensive income 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 28 November 2023.
The notes on pages 4 to 14 form part of these financial statements.
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JOHN DOWNER PRODUCTIONS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2022
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At 1 July 2020 (as previously stated)
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At 1 July 2020 (as restated)
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Comprehensive income for the year
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Dividends: Equity capital
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At 1 July 2021* (as previously stated)
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At 1 July 2021 (as restated)
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Dividends: Equity capital
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The notes on pages 4 to 14 form part of these financial statements.
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* The profit and loss account as previously stated at 1 July 2021 includes the prior year adjustment of £111,574. Further detail on this adjustment is provided in note 12.
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JOHN DOWNER PRODUCTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
John Downer Productions Limited is a private company, limited by shares, incorporated in England and Wales. The address of the registered office is The Old Barn, Kennel Lodge Road, Bower Ashton, Bristol, United Kingdom, BS3 2JT.
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 Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies.
The following principal accounting policies have been applied:
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Exemption from preparing consolidated financial statements
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The Company, and the Group headed by it, qualify as small as set out in section 383 of the Companies Act 2006 and the parent and Group are considered eligible for the exemption to prepare consolidated accounts.
The director is satisfied that the company can continue as a going concern for the foreseeable future.
Turnover comprises amounts receivable by the company in respect of television production, distribution income and royalty income, exclusive of Value Added Tax and trade discounts.
Amounts receivable for work carried out in producing television programmes is recognised on the basis of the value of costs incurred related to the production activity. Gross profit on production activity is recognised based upon the stage of completion of the production and in accordance with the underlying contract. Overspends are recognised as soon as they arise and underspends are recognised on completion of the production.
Amounts receivable for distribution income is recognised when receivable.
Amounts receivable for royalty income is recognised when receivable, which is when the company has been notified of sums due to it.
Other income comprises amounts receivable from subsidaries for intercompany recharges in respect of television productions.
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JOHN DOWNER PRODUCTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
2.Accounting policies (continued)
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
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.
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:
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Other property improvements
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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.
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, 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. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
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JOHN DOWNER PRODUCTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
2.Accounting policies (continued)
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 from banks and other third parties, loans to related parties and investments in ordinary shares.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of comprehensive income.
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.
Interest income is recognised in profit or loss using the effective interest method.
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JOHN DOWNER PRODUCTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
2.Accounting policies (continued)
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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 profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.
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Defined contribution pension plan
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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 profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.
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JOHN DOWNER PRODUCTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
2.Accounting policies (continued)
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Current and deferred taxation
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The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss 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.
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The average monthly number of employees, including the director, during the year was as follows:
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JOHN DOWNER PRODUCTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
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JOHN DOWNER PRODUCTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
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Long-term leasehold property
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Charge for the year on owned assets
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Investments in subsidiary companies
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JOHN DOWNER PRODUCTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
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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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Creditors: Amounts falling due within one year
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Other taxation and social security
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Accruals and deferred income
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JOHN DOWNER PRODUCTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
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The provision for deferred taxation is made up as follows:
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Accelerated capital allowances
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Allotted, called up and fully paid
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100 (2021 -100) ordinary shares shares of £1.00 each
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JOHN DOWNER PRODUCTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
During the preparation of the financial statements for the year ended 30 June 2022, it was identified that the stage of completion on contracts within the subsidiary accounts had not been accurately recorded as at 30 June 2021. In order to align the statutory accounts of John Downer Productions Limited with those of the subsidiary at the same date, adjustments have been recorded to increase other income by £251,238, increase retained earnings as at 30 June 2020 by £459,224 and increase amounts owed by group undertakings by £710,462. The net impact on the profit reported for the year ended 30 June 2021 was an increase of £251,238. The impact on net assets at the same date was a increase of £710,462.
During the preparation of the financial statements for the year ended 30 June 2022, it was identified that royalty income recognised within the financial statements had not been accurately recorded as at 30 June 2021. An adjustment has been recorded to increase turnover by £450,492 and recognise accrued income of the same amount. The net impact on the profit reported for the year ended 30 June 2021 and the net assets at the same date was an increase of £450,492.
For clarity, amounts owed by group undertakings at 30 June 2021 totalling £1,230,072 have been reclassified from prepayments and accrued income to amounts owed by group undertakings. This adjustment has had no impact on the profit for the year ended 30 June 2021 or the net assets at the same date.
During the preparation of the financial statements for the year ended 30 June 2022, it was identified that historic intercompany payables had not been accurately recorded in the statutory accounts as at 30 June 2021. An adjustment to decrease amounts owed by group undertakings by £570,798 has been made with an equal adjustment reflected within retained earnings at 1 July 2020.
For consistency, wages and other employee costs of £876,354 have been reclassified as at 30 June 2021 from administrative expenses to cost of sales. This reclassification has been posted to reflect that employees working for John Downer Productions Limited are employed primarily for the production of the various televeision programmes.
During the preparation of the financial statements for the year ended 30 June 2022, it was identified that the stage of completion on the contracts had not been accurately recorded in the statutory accounts as at 30 June 2021. In order to align the statutory accounts with the cost report at the same date, an adjustment has been recorded to reduce the turnover by £151,195, reduce accrued income by £19,739 and increase deferred income £131,456. The net impact on the profit reported for the year ended 30 June 2021 and the net assets at the same date was an decrease of £151,195.
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £62,988 (2021 - £23,033). Contributions totaling £7,376 (2021 - £2,907) were payable to the fund at the reporting date.
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JOHN DOWNER PRODUCTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
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Related party transactions
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During the year the company was charged rent of £27,732 (2021 - £21,350) by a pension scheme of which a director is a trustee and beneficiary.
Included in creditors due under one year is an amount owed to a director of £600 (2021: £654). No interest is charged and the balance is payable on demand.
The company has taken advantage of the exemption from disclosing related party transactions with 100% owned subsidiaries.
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