Freecss Films Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 10416064 (England and Wales)

FINANCIAL STATEMENTS

FOR THE PERIOD 6 APRIL 2019 TO 29 FEBRUARY 2020

FOR

FREECSS FILMS LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

Ingenious Media Director Limited

Mr J A Berger

SECRETARY:

FLB Company Secretarial Services Ltd

REGISTERED OFFICE:

250 Wharfedale Road

Winnersh Triangle

Wokingham

Berkshire

RG41 5TP

REGISTERED NUMBER:

10416064 (England and Wales)

INDEPENDENT AUDITORS:

Shipleys LLP, Statutory Auditor

10 Orange Street

Haymarket

London

WC2H 7DQ

FIXED ASSETS

Investments

5

78

79

CURRENT ASSETS

Stocks

20,909,057

-

Debtors

6

312,230

20,952

Cash at bank

33,937

4,646,007

21,255,224

4,666,959

CREDITORS

Amounts falling due within one year

7

(15,925,905

)

(134,563

)

NET CURRENT ASSETS

5,329,319

4,532,396

TOTAL ASSETS LESS CURRENT LIABILITIES

5,329,397

4,532,475

CREDITORS

Amounts falling due after more than one year

8

(3,134,634

)

-

NET ASSETS

2,194,763

4,532,475

CAPITAL AND RESERVES

Called up share capital

10

49,901

49,901

Share premium

11

4,949,916

4,949,916

Retained earnings

11

(2,805,054

)

(467,342

)

SHAREHOLDERS' FUNDS

2,194,763

4,532,475

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

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 22 October 2020 and were signed on its behalf by:

Ingenious Media Director Limited - Director

1.	STATUTORY INFORMATION

Freecss Films Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The principal activity of the Company is to conduct a film and television development and production business.

The directors have resolved to shorten the current reporting period of the company to align the financial statements reporting period and the valuation reporting period. Therefore, the comparative amounts presented in the current financial statements are not for the same period of time.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Material uncertainty related to going concern

We draw attention to the current Covid-19 pandemic and the potential economic impact the virus will have in the upcoming 12 month period from signing the financial statements. 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 our cash position of a period of minimum activity

We have measures in place to try to ensure the company remains a going concern but due to the potential impact of Covid-19 and how rapidly the responses to Covid-19 are developing we see it as prudent to indicate a material uncertainty exists that may cast doubt on the company's ability to continue as a going concern by virtue of future timing and recoverability of film receipts.

Preparation of consolidated financial statements

The financial statements contain information about Freecss Films Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 399(2A) of the Companies Act 2006 from the requirements to prepare consolidated financial statements.

Significant judgements and estimates

In the application of the Company's accounting policies, the directors are required to make judgments, estimates and assumptions about the carrying amounts 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 if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.No significant judgements and estimates have been made in the year.

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Stocks

Stock and work in progress other than long term contracts, are stated at the lower of cost and net realisable value. Cost comprises contractual expenditure in respect of the film and/or television projects being developed and/or produced. Net realisable value is based on estimated selling price less all further costs to completion and all relevant marketing, selling and distribution costs.

Financial instruments

The Company enters into basic financial instruments 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 non-puttable ordinary shares.

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or income as appropriate. The company does not currently apply hedge accounting for interest rate and foreign exchange derivatives.

Short term debtors are measured at transaction price, less any impairment.

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.

Taxation

Tax is recognised in the Income Statement, 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.

Foreign currencies

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 the Profit and loss account except when deferred in other comprehensive income as qualifying cash flow hedges.

Loans

Non-derivative financial liabilities with fixed or determinable repayments that are not quoted in an active market are classified as loans. Loans are initially recognised at fair value of the consideration received plus directly related transaction costs. They are subsequently measured at amortised cost using the effective interest method. Arrangement fees and interest payable on financial liabilities that are classified as loans, are charged to the profit and loss account.

The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating the interest payable over the expected life of the liability. The effective interest rate is the rate that exactly discounts estimated future cashflows to the instrument's initial carrying amount. Calculation of the effective interest rate takes into account fees payable, that are an integral part of the instrument yield and transaction costs. All contractual terms of a financial instrument are considered when estimating future cash flows.

A financial liability is removed from the balance sheet when the obligation is discharged, or cancelled, or expires.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the period was NIL (2019 - NIL).

4.	AUDITORS' REMUNERATION

Period

6.4.19

to

Year Ended

29.2.20

5.4.19

£

£

Fees payable to the company's auditors for the audit of the company's financial statements

2,000

2,506

5.	FIXED ASSET INVESTMENTS

Shares in

group

undertakin

£

COST

At 6 April 2019

79

Disposals

(1

)

At 29 February 2020

78

NET BOOK VALUE

At 29 February 2020

78

At 5 April 2019

79

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Other debtors

312,230

20,952

Contained within the above is a balance of £82,495 (2019: £nil) in relation to foreign exchange contracts held at fair value. During the year, £82,495 was charged to the profit and loss (2019: £nil).

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Bank loans and overdrafts

1

-

Trade creditors

-

126,131

Other creditors

15,925,904

8,432

15,925,905

134,563

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2020

2019

£

£

Other creditors

3,134,634

-

9.	SECURED DEBTS

The following secured debts are included within creditors:

2020

2019

£

£

Other creditors

15,794,457

-

Other creditors due > one year

3,134,634

-

18,929,091

-

Aperture Media Partners LLC holds fixed and floating charges dated 25 June 2019 covering all the property or undertaking of the company, the outstanding charge contains a negative pledge.

Ingenious Media Finance Limited holds fixed and floating charges dated 21 May 2019 covering all the property or undertaking of the company, the outstanding charge contains a negative pledge.

FILM4 a Division of Channel Four Television Corporation holds fixed and floating charges dated 21 May 2019 covering all the property or undertaking of the company, the outstanding charge contains a negative pledge.

10.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2020

2019

value:

£

£

4,990,107

Ordinary

£0.01

49,901

49,901

11.

RESERVES

Retained

Share

earnings

premium

Totals

£

£

£

At 6 April 2019

(467,342

)

4,949,916

4,482,574

Deficit for the period

(2,337,712

)

(2,337,712

)

At 29 February 2020

(2,805,054

)

4,949,916

2,144,862

Share premium account

The Share Premium reserve records the amount above the nominal value received for shares issued.

Profit and loss account

The Profit and Loss Account represents the cumulative profits or losses, net of dividends paid and other adjustments.

12.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006