Principal Film Finance Limited - Period Ending 2018-03-31

Registration number: 09562871

Principal Film Finance Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 31 March 2018

Leslie Dark & Co
Chartered Accountants
Dynamic House
2 Serbert Road
PORTISHEAD
Bristol
BS20 7GF

Principal Film Finance Limited

Contents

Company Information	1
Balance Sheet	2 to 3
Notes to the Financial Statements	4 to 8

Principal Film Finance Limited

Company Information

Directors

T C George A Thompson

Registered office

The Picture House 4 Lower Park Road BRISTOL BS1 5BJ

Accountants

Leslie Dark & Co Chartered Accountants Dynamic House 2 Serbert Road PORTISHEAD Bristol BS20 7GF

Page 1

Principal Film Finance Limited

(Registration number: 09562871)
Balance Sheet as at 31 March 2018

	Note	2018 £	2017 £
Fixed assets
Intangible assets	4	4,750	7,125
Current assets
Debtors	5	80,226	45,291
Cash at bank and in hand		3,917	19,615
		84,143	64,906
Creditors: Amounts falling due within one year	6	(1,009)	(3,096)
Net current assets		83,134	61,810
Total assets less current liabilities		87,884	68,935
Creditors: Amounts falling due after more than one year	6	(117,822)	(95,823)
Net liabilities		(29,938)	(26,888)
Capital and reserves
Called up share capital	7	2	2
Profit and loss account		(29,940)	(26,890)
Total equity		(29,938)	(26,888)

The notes on pages 4 to 8 form an integral part of these financial statements.

Page 2

Principal Film Finance Limited

(Registration number: 09562871)
Balance Sheet as at 31 March 2018

For the financial year ending 31 March 2018 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

•	The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and
•	The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 21 December 2018 and signed on its behalf by:
 

.........................................

T C George
Director

The notes on pages 4 to 8 form an integral part of these financial statements.

Page 3

Principal Film Finance Limited

Notes to the Financial Statements for the Year Ended 31 March 2018

1	General information

The company is a private company limited by share capital, incorporated in England.

The address of its registered office is:
The Picture House
4 Lower Park Road
BRISTOL
BS1 5BJ

The principal place of business is:
The Picture House
4 Lower Park Road
BRISTOL
BS1 5BJ

These financial statements were authorised for issue by the Board on 21 December 2018.

2	Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class	Amortisation method and rate
Intangible assets: Film rights	25% straight line

Page 4

Principal Film Finance Limited

Notes to the Financial Statements for the Year Ended 31 March 2018

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

3	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 0 (2017 - 0).

Page 5

Principal Film Finance Limited

Notes to the Financial Statements for the Year Ended 31 March 2018

4	Intangible assets

	Other intangible assets : Film rights  £	Total £
Cost or valuation
At 1 April 2017	9,500	9,500
At 31 March 2018	9,500	9,500
Amortisation
At 1 April 2017	2,375	2,375
Amortisation charge	2,375	2,375
At 31 March 2018	4,750	4,750
Carrying amount
At 31 March 2018	4,750	4,750
At 31 March 2017	7,125	7,125

The aggregate amount of research and development expenditure recognised as an expense during the period is £Nil (2017 - £Nil).
 

5

Debtors

	2018 £	2017 £
Prepayments	-	2,137
Other debtors	80,226	43,154
	80,226	45,291

Page 6

Principal Film Finance Limited

Notes to the Financial Statements for the Year Ended 31 March 2018

6

Creditors

Creditors: amounts falling due within one year

	2018 £	2017 £
Due within one year
Trade creditors	79	59
Accruals and deferred income	930	3,037
	1,009	3,096

Creditors: amounts falling due after more than one year

	Note	2018 £	2017 £
Due after one year
Loans and borrowings	8	117,822	95,823

7	Share capital

Allotted, called up and fully paid shares

	2018		2017
	No.	£	No.	£
Ordinary Shares of £1 each	2	2	2	2

8	Loans and borrowings

	2018 £	2017 £
Non-current loans and borrowings
Other borrowings	117,822	95,823

Page 7

Principal Film Finance Limited

Notes to the Financial Statements for the Year Ended 31 March 2018

9	Related party transactions

Summary of transactions with other related parties

Happy Hour Productions Limited (HH)
(The director T C George is the controlling shareholder and sole director of HH.)
During the period, the company has borrowed loan finance from HH on repayment terms of three years interest free. The FRS102 treatment of these loans under the amortised cost/effective interest method has been adopted. At the balance sheet date the carrying amount of these loans owed to HH is £117,822 (2017:£95,822).

 Gaia Media Management Limited (GM)
(The director A Thompson is the controlling shareholder and sole director of GM.)
GM has provided management services to the company throughout the period totalling £624. At the balance sheet date the amount due to GM was £Nil (2017: £nil)
 

Page 8