Wishful Thinking Limited - Period Ending 2023-03-31

Wishful Thinking Limited

Contents

Company Information	1
Statement of Financial Position	2 to 3
Notes to the Unaudited Financial Statements	4 to 9

Wishful Thinking Limited

Company Information

Director

S L Vaughan

Registered office

130 Shaftesbury Avenue 2nd Floor London W1D 5EU

Accountants

Brebners Chartered Accountants 130 Shaftesbury Avenue London W1D 5AR

Wishful Thinking Limited

Statement of Financial Position as at 31 March 2023

	Note	2023 £	2022 £
Fixed assets
Tangible assets	4	22,269	51,345
Investments	5	44,684	7,275
		66,953	58,620
Current assets
Debtors	6	862,879	804,400
Cash at bank and in hand		5	36,368
		862,884	840,768
Creditors: Amounts falling due within one year	7	(1,170,338)	(1,056,900)
Net current liabilities		(307,454)	(216,132)
Net liabilities		(240,501)	(157,512)
Capital and reserves
Called up share capital		7,274	7,274
Retained earnings		(247,775)	(164,786)
Shareholders' deficit		(240,501)	(157,512)

For the financial year ending 31 March 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Director's 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 director acknowledges his 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 and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

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 Statement of Income and Retained Earnings has been taken.

Wishful Thinking Limited

Statement of Financial Position as at 31 March 2023

Approved and authorised by the director on 4 December 2023
 

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

S L Vaughan

Director

Company registration number: 07842045

Wishful Thinking Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2023

1	General information

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

The address of its registered office is:
130 Shaftesbury Avenue
2nd Floor
London
W1D 5EU

The principal activity of the company is that of the production of musicals and other media.

2	Accounting policies

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 any items disclosed in the accounting policies as being shown at fair value and are presented in sterling, which is the functional currency of the entity.

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.

Group accounts not prepared

In the opinion of the directors, the company and its subsidiary undertakings comprise a small group. The company has therefore taken advantage of the exemption provided by Section 399 of the Companies Act 2006 to not prepare group accounts.

Going concern

The company made a loss for the year ended 31 March 2023 and had a deficiency of net current assets of £307,454 and total deficiency of net assets at that date amounting to £240,501. At that date an amount of £1,041,487 was due to the directors, who have confirmed they will not call for repayment until such time as the company has sufficient working capital and have also agreed to advance further funds if required, to enable the company to meet its future obligations.

The directors have considered the current inflationary increases and economic uncertainty and the directors' view is that the impact on the company will be manageable, as the company continues to operate and has few fixed overheads.

After making enquiries and taking into account the above, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the directors continue to adopt the going concern basis in preparing the financial statements.

Wishful Thinking Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2023

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for media production services rendered. Turnover is shown net of value added tax, returns, rebates and discounts.

The company recognises revenue based upon the contractual stage of completion.

Government grants

Government grants are recognised when it is reasonable to expect that the grants will be received and that all related conditions will be met, usually on submission of a valid claim for payment.

Grants of a revenue nature are credited to income so as to match them with the expenditure to which they relate.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

Tax is recognised in profit or loss, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when 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 and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Leasehold improvements	33% straight line
Furniture, fittings and equipment	20% straight line

Wishful Thinking Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2023

Investments

Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Investments in artworks where fair value cannot be measured reliably are measured at cost less impairment.

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.

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 income statement 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.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3	Staff numbers

The average number of persons employed by the company during the year, was 3 (2022 - 3).

Wishful Thinking Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2023

4	Tangible assets

	Leasehold improvements £	Furniture, fittings and equipment  £	Total £
Cost or valuation
At 1 April 2022	35,504	54,406	89,910
Additions	2,619	1,955	4,574
Transfer to investments	-	(19,961)	(19,961)
At 31 March 2023	38,123	36,400	74,523
Depreciation
At 1 April 2022	18,569	19,996	38,565
Charge for the year	7,639	6,050	13,689
At 31 March 2023	26,208	26,046	52,254
Carrying amount
At 31 March 2023	11,915	10,354	22,269
At 31 March 2022	16,935	34,410	51,345

Wishful Thinking Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2023

5	Investments

	2023 £	2022 £
Investments in subsidiaries	2	2
Investments in associates	7,273	7,273
Artwork	37,409	-
	44,684	7,275

	Associates £	Subsidiaries £
Cost or valuation
At 1 April 2022 and 31 March 2023	7,273	2
Carrying amount
At 31 March 2023	7,273	2
At 31 March 2022	7,273	2

Artwork	£
Cost
At 1 April 2022	-
Transfer from fixed assets	19,961
Additions	17,448
At 31 March 2023	37,409
Carrying amount
At 1 April 2022 and 31 March 2023	37,409

6

Debtors

	2023 £	2022 £
Trade debtors	15,690	-
Amounts owed by group undertakings	818,027	770,573
Other debtors	29,162	33,827
	862,879	804,400

Wishful Thinking Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2023

7

Creditors

Creditors: amounts falling due within one year

	Note	2023 £	2022 £
Bank loans and overdrafts	8	99,564	-
Trade creditors		6,000	10,052
Amounts owed to group undertakings		2,400	-
Taxation and social security		5,633	11,241
Other creditors		1,056,741	1,035,607
		1,170,338	1,056,900

8	Loans and borrowings

	2023 £	2022 £
Current loans and borrowings
Bank overdrafts	99,564	-

Bank overdrafts are secured by a fixed and floating charge over the assets and undertakings of the company.