GREENE_LIGHT_STAGE_PLC - Accounts

The directors present the strategic report for the year ended 31 December 2019.

The company profit and loss account for the year is set out on page 11.

The year to 31 December 2019 continued to refocus the business on the development of new shows. In addition, emphasis was made on generating income by general managing and tour booking shows for third party producers.

The directors have reviewed the carrying value of its investment in Rocket Stage Limited. Based on a review of forecasts and a movement in time lines for productions under development, the directors believe the investment is fairly reflected at £751,299.

The risk implications of business decisions affecting the company are considered by the directors. Key operational management will also be involved in day to day management of the business. The directors and the management team re-assess these risks on a regular basis to ensure that any risks arising from changes in the company's operations or the external environment are identified and appropriately managed. The detailed individual risks have been categorised into the following areas:

-taxation;

-management;

-financing;

-economic climate;

-regulatory changes;

-health and safety.

The nature of the specific risk area and related controls are as follows:

Taxation risk

The company is exposed to financial risks from increases in tax rates and changes to the basis of taxation including corporation tax and VAT.

Principal controls

These include regular monitoring of legislative proposals and the engagement of experienced executives and the use of experienced sector-specific professional advisors to mitigate the impact of changes.

Management risk

The company is reliant on its small high calibre team of operational managers and board of directors.

The company has made a significant investment in Rocket Stage, a joint venture arrangement. The company does not have day-to-day operational control of the joint venture and the success of the projects undertaken by the joint venture is therefore dependent on the management of the joint venture and the continued future co-operation and financial support of the partners in the joint venture.

Principal controls

The company recruits and develops high calibre employees. The board have tried to ensure that the knowledge base of the operational management team is shared as much as possible throughout the company. The company also seeks the advice of external consultants who are experts in their field.

Financing risk

The company is reliant on its shareholders to raise convertible loan finance and ordinary share capital to meet its ongoing costs and future liabilities.

See also Financial instruments.

Economic climate

The worldwide coronavirus pandemic declared in March 2020 has given rise to uncertainty relating to future income. The company has taken advantage of various initiatives implemented by Government to support businesses to address short-term income shortfalls, and S A Greene continued financial support should enable the company to continue operationally. 

Theatre industry risk

It is well known in the theatre industry that it is particularly difficult to predict how well a production will perform financially and a principal risk therefore is that losses are made on productions. The potential impact of this risk is mitigated through having co-production partners who take on a commitment to a share in any losses sustained but also a corresponding proportionate share of any profits made.

A further risk to the business is that in rare cases it can be necessary to cancel individual performances, for example as a result of cast illness. To guard against any ensuing losses of income we have insurance cover in place to provide compensation in the event that such unavoidable cancellations arise.

Regulatory changes

Any changes in legislation are investigated and the business model is adapted to take into account any impact.

Health and safety

Health and safety is taken very seriously by the company. The risk of non compliance with health and safety legislation is minimised through comprehensive training and review and through the development of policies and procedures to maintain standards.

Financial instruments

The company uses financial instruments other than derivatives, comprising cash and various other financial assets and liabilities such as trade debtors and trade creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the company's operations. The main risks arising from the company's financial instruments are interest rate risk and liquidity risk.

The directors review and agree policies for managing each of these risks and they are summarised below.

Interest rate risk

The company makes use of money market facilities where funds are available. There are no bank borrowings and hence the company is not exposed to interest rate risk on borrowings.

Liquidity risk

The company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably. The company finances its operations through shareholders funds and other external investors, when required.

Foreign currency risk

The company's principal foreign currency exposures arise from trading operations in overseas companies. Company policy permits but does not demand that these exposures may be hedged in order to fix the cost in sterling. This hedging activity involves the use of foreign exchange forward contracts.

Key performance indicators

The directors measure the success of the company by looking at growth in turnover and gross profit margin and profit before taxation.

The company considers its main key performance indicators to be:

-shows that we manage over the coming twelve months to continue running for number of weeks specified in cash flow;

-shows that we produce within the next three years to cover their running costs each week and contribute to paying back any capitalisation; and

-overhead expenditure over next 12 months not to increase above level forecast in budget unless more contracts are won.

The position of the company at the year end

As shown in the company profit and loss account on page 11, the reported loss of £537,380 after tax (2018: £148,126) represents the company's results of the year's activities. The balance sheet on page 13 of the financial statements show the company's financial position, net liabilities of £502,371 (2018: £35,009 net assets).

On behalf of the board

The directors present their annual report and financial statements for the year ended 31 December 2019.

The principal activity of the company continued to be that of staging, managing and investing in theatrical productions.

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

The results for the year are set out page 11.

No ordinary dividends were paid. The directors do not recommend payment of a dividend.

Greene Light Stage Plc maintains insurance policies on behalf of all the directors against liability arising from negligence, breach of duty and breach of trust in relation to the company.

In accordance with the company's articles, a resolution proposing that Gerald Edelman be reappointed as auditor of the company will be put at a General Meeting.

Section 656 - Companies Act 2006

As required by section 656 of the Companies Act 2006, the directors are required to point out that the net assets of the company at 31 December 2019 were less than 50 per cent of its called up share capital. The board has taken steps to rectify this position soon, most notably through imminent injection of further capital by way of a convertible loan.

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

•     select suitable accounting policies and then apply them consistently;

•     make judgements and accounting estimates that are reasonable and prudent;

•     prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Having reviewed the company's financial forecasts and expected future cash flows, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Given the current coronavirus pandemic, announcements by Government of various initiatives to support businesses to address short-term income shortfalls, together with the continued financial support of S A Greene should enable the company to continue operationally. Thus the going concern basis has been adopted in preparing the financial statements for the year ended 31 December 2019.

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

We have audited the financial statements of Greene Light Stage plc (the 'company') for the year ended 31 December 2019 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

•     give a true and fair view of the state of the company's affairs as at 31 December 2019 and of its loss for the year then ended;

•     have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

•     have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Material uncertainty relating to going concern

In forming our opinion, we have considered the adequacy of the disclosure made in note 1.2 to the financial statements, which we consider should be brought to your attention. The events that have taken place indicate that a material uncertainty exists that may cast significant doubt on the entity's ability to continue as a going concern. Our opinion is not qualified in this respect.

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

• the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

• the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

• the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and the directors' report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

•     adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

•     the financial statements are not in agreement with the accounting records and returns; or

•     certain disclosures of directors' remuneration specified by law are not made; or

•     we have not received all the information and explanations we require for our audit; or

•     the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the directors' report.

As explained more fully in the Directors' Responsibilities Statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intends to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members, as a body, for our audit work, for this report, or for the opinions we have formed.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

Greene Light Stage plc is a public company limited by shares incorporated in England and Wales. The registered office is Edelman House, 1238 High Road, London, N20 0LH. The principal place of business is 47 Frith Street, Soho, London, W1D 4HT.

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.

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 £.

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

The company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the company as an individual entity and not about its group.

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

The company is expected to return to generate positive cash flows on its own account following fruition of its current investment in productions in development. In the meantime, the company is reliant on the continued support of S A Greene, the ultimate controlling party and the convertible loan note holder, in order to meet its obligations as they fall due. The company has also taken advantage of the Government initiatives available to support the adverse impact the coronavirus has had on their short-term cash flow.

The directors have no reason to believe that a material uncertainty exists that may cast significant doubt about the ability of the company to continue as a going concern.

On the basis of their assessment of the company's financial position, the company's directors have an expectation that the company will continue in operational existence for the foreseeable future. As such, the directors continue to adopt the going concern basis in preparing the financial statements.

Turnover represents income from the company's activities net of VAT. Income from productions, royalties and managerial services are recognised in the period to which they relate.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to the profit and loss account.

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 the profit and loss account.

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.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

At each reporting period end date, the company reviews the carrying amounts of its tangible 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 the profit and loss account, 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 the profit and loss account, 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 and cash equivalents 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 has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Financial assets, other than those held at fair value through the profit and loss account, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in the profit and loss account.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in the profit and loss account.

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 company after deducting all of its liabilities.

Basic financial liabilities, including creditors and a convertible unsecured loan note classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

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

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and 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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Rentals payable under operating leases, including any lease incentives received, are charged to profit and loss account on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

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 directors are 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.

Fixed asset investments includes capital invested in future productions, stated at their fair value as at the reporting date. The directors have used their experience of the theatre industry to assess an appropriate value, which they feel is reliable and on a conservative basis.

An analysis of the company's turnover is as follows:

The average monthly number of persons (excluding directors) employed by the company during the year was:

Their aggregate remuneration comprised:

Investment income includes the following:

The actual (credit)/charge for the year can be reconciled to the expected credit for the year based on the profit and loss account and the standard rate of tax as follows:

The company has estimated losses of £1,149,000 (2018: £1,056,000) available for carry forward against future trading profits.

The company has unprovided deferred tax assets of £218,000 (2018: £180,000) relating to tax losses.

These investments are held directly by the company and voting rights are in proportion to the percentage of shares held, as disclosed above.

The following subsidiaries were dissolved 14 January 2020 and share capital held in these investments has been impaired as part of financial statements for year ended 31 December 2019;

Greene Light Stage (USA) Limited

Gregbay Limited

Monologues Limited

Old Vic Productions Tour Limited

Old Vic Productions US Second Tour Ltd

OVP Tour Investments Ltd

OVP US Second Tour Investments Ltd

Within other creditors is an amount of £999,800 (2018: £908,000) being the balance drawn down on S A Greene's £1,000,000, 7% convertible, redeemable loan note. The loan is secured by way of a fixed charge over the 2,650 B shares of Rocket Stage Limited held by the company in favour of S A Greene. During the year, interest of £66,978 (2018: £57,782) was charged on the loan notes.

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

The Ordinary shares have full voting and capital distribution rights. The deferred shares have no rights to distributions or to receive notice, attend or vote at any general meetings.

As part of the subscription of shares in Rocket Stage Limited, there is an obligation for Greene Light Stage plc to make additional payments aggregating £1.2m on satisfying certain milestones, with a long stop date of 31 December 2019. As these milestones have not been met, discussions are in place to extend the long stop date.

Given the delays in development and movement in the time lines for the production, the potential obligation is classified as a contingent liability.

Creditors includes £396,279. This amount was no longer payable with effect from 10 February 2020 and will be released in the 2020 financial statements.

The company has taken advantage of the exemption available under FRS 102 section 1A whereby it has not disclosed any transactions and balances with any wholly owned group companies.

At the year end and included within creditors due within one year is a director's current account balance of £21,091 (2018: £1,460 debtor) due to this director. The balance is provided unsecured, interest free and is effectively repayable on demand.

During 2015, S A Greene exercised the option on a convertible loan resulting in an issue of 2m ordinary 10p shares at a share price of 25p each. In December 2015 the company arranged a £500,000, 7% convertible unsecured loan note facility from S A Greene. In June 2017, this was amended to a £1,000,000, 7% convertible, redeemable, secured loan note. Any loans or part thereof advanced under this facility can be converted to fully paid ordinary share capital of the company at the net asset value per share of the audited financial statements for the year ended 31 December 2016. The loan note is secured by way of a fixed charge over the 2,650 B shares of Rocket Stage Limited held by the company in favour of S A Greene. Interest of £66,978 (2018: £57,782) has been charged on the loan notes at a rate of 7% per annum. The company has drawn down £999,800 (2018: £908,000) of this loan facility as at 31 December 2019.

At the year end an amount of £148,305 (2018: £197,740) was due from Rocket Stage Limited, an entity in which Greene Light Stage plc has a 25% shareholding. This balance is provided interest free.

These financial statements include a prior year adjustment relating to transactions taken to a director's loan which have now been stated as an accrual. The effect of restating the prior year has no effect on the profit and loss account.