PANIC_HOUSE_FILMS_LIMITED - Accounts


Company Registration No. 09138175 (England and Wales)
PANIC HOUSE FILMS LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2017
PAGES FOR FILING WITH REGISTRAR
PANIC HOUSE FILMS LIMITED
COMPANY INFORMATION
Directors
Mr P Kirtley
Mr A Fjellman
Company number
09138175
Registered office
6th Floor
Blackfriars House
Parsonage
Manchester
M3 2JA
Accountants
White & Company (UK) Limited
6th Floor
Blackfriars House
Parsonage
Manchester
M3 2JA
Business address
32A Guildford Road
Lightwater
Surrey
GU18 5SN
PANIC HOUSE FILMS LIMITED
CONTENTS
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 7
PANIC HOUSE FILMS LIMITED
BALANCE SHEET
AS AT
31 JULY 2017
31 July 2017
- 1 -
2017
2016
Notes
£
£
£
£
Current assets
Debtors
5
70,296
26,423
Cash at bank and in hand
12,782
118,557
83,078
144,980
Creditors: amounts falling due within one year
6
(14,761)
(12,479)
Net current assets
68,317
132,501
Capital and reserves
Called up share capital
7
3,973
3,838
Share premium account
340,127
216,162
Profit and loss reserves
(275,783)
(87,499)
Total equity
68,317
132,501

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

For the financial year ended 31 July 2017 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

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

The financial statements were approved by the board of directors and authorised for issue on 30 April 2018 and are signed on its behalf by:
Mr P Kirtley
Director
Company Registration No. 09138175
PANIC HOUSE FILMS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2017
- 2 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 August 2015
3,735
120,665
(78,517)
45,883
Year ended 31 July 2016:
Loss and total comprehensive income for the year
-
-
(8,982)
(8,982)
Issue of share capital
7
103
95,497
-
95,600
Balance at 31 July 2016
3,838
216,162
(87,499)
132,501
Year ended 31 July 2017:
Loss and total comprehensive income for the year
-
-
(188,284)
(188,284)
Issue of share capital
7
135
123,965
-
124,100
Balance at 31 July 2017
3,973
340,127
(275,783)
68,317
PANIC HOUSE FILMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2017
- 3 -
1
Accounting policies
Company information

Panic House Films Limited is a private company limited by shares incorporated in England and Wales. The registered office is 6th Floor, Blackfriars House, Parsonage, Manchester, M3 2JA.

1.1
Accounting convention

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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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.

These financial statements for the year ended 31 July 2017 are the first financial statements of Panic House Films Limited prepared in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland. The date of transition to FRS 102 was 1 August 2015. The reported financial position and financial performance for the previous period are not affected by the transition to FRS 102.

1.2
Going concern

As at 31 July 2017, the company's balance sheet showed a negative profit and loss account. Despite making a loss for the year, financial support has been provided by investors to meet the day to day running costs of the business. It has been confirmed that this will continue for the foreseeable future. The film is expected to be released by the end of the year. The directors therefore feel that it is appropriate to prepare the accounts on the going concern basis.

1.3
Turnover

We record sales of goods and services only when a film sales agreement is in place, delivery has occurred, or services have been rendered and collectability of the fixed or determinable sales price is reasonably assured.

 

Turnover relates to the production of the film entitled "The S.H.U". It represents the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

 

Turnover is recognised once the feature film is delivered to the distributors, providing that a signed contract with the distributor exists and the amount of revenue can be measured reliably, the significant risks and rewards of ownership of distribution have been transferred to the distributor, and it is probable that the economic benefits associated with the transaction will flow to the entity. Furthermore, it is at the distributors discretion to request repayment on demand of any deposits collected in relation to this film if the project is to be delayed further.

PANIC HOUSE FILMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2017
1
Accounting policies
(Continued)
- 4 -
1.4
Cash at bank and in hand

Cash at bank and in hand 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.

1.5
Financial instruments

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

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.

Classification of financial liabilities

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

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are 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.

1.6
Equity instruments

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

1.7
Taxation

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

PANIC HOUSE FILMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2017
1
Accounting policies
(Continued)
- 5 -
Current 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

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.

1.8
Foreign exchange

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.

2
Judgements and key sources of estimation uncertainty

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.

 

There have been no critical judgements, estimates or assumptions made in the preparation of these financial statements.

 

3
Employees

The average monthly number of persons (including directors) employed by the company during the year was 2 (2016 - 2).

4
Taxation
2017
2016
£
£
PANIC HOUSE FILMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2017
4
Taxation
(Continued)
- 6 -
Deferred tax
Origination and reversal of timing differences
(42,282)
(3,161)

The actual credit for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:

2017
2016
£
£
Loss before taxation
(230,566)
(12,143)
Expected tax credit based on the standard rate of corporation tax in the UK of 19.00% (2016: 20.00%)
(43,808)
(2,429)
Tax effect of expenses that are not deductible in determining taxable profit
386
-
Deferred tax
1,140
(732)
Taxation credit for the year
(42,282)
(3,161)

The company has estimated losses of £342,344 (2016; £113,812) available to carry forward against future trading profits.

 

The deferred tax asset of £65,045 calculated at 19%, has been recognised as the directors believe that the related tax benefit through future taxable profits is probable.

A change to the UK Corporation Tax rate was announced in the Chancellor’s Budget on 16 March 2016. The change announced is to reduce the main rate to 17% from 1 April 2020.

5
Debtors
2017
2016
Amounts falling due within one year:
£
£
Other debtors
5,252
3,661
Deferred tax asset
65,044
22,762
70,296
26,423
6
Creditors: amounts falling due within one year
2017
2016
£
£
Trade creditors
-
1,500
Other creditors
14,761
10,979
14,761
12,479
PANIC HOUSE FILMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2017
- 7 -
7
Called up share capital
2017
2016
£
£
Ordinary share capital
Issued and not fully paid
3,973Ordinary shares of £1 each
3,973
3,838
3,973
3,838

Share capital of 3,600 remains unpaid, with the remaining 973 being fully paid as at 31 July 2017.

During the year, the company issued a further 135 (2015: 103) ordinary £1 shares at a premium of £999 per share.

 

Financing fees of £10,900 (2016; £7,400) were deducted from the share premium total of £134,865 (2016: £102,987) to leave a balance of £340,127 (2016: £216,162) as at the balance sheet date.

8
Related party transactions

During the year, the company operated a loan account with its Director, P Kirtley. P Kirtley introduced £33 to the company. At the balance sheet date, £173 (2016: £140) was the amount due from the company to the Director P Kirtley and is included within other creditors.

 

During the year, the company operated a loan account with director related entity Little Fish Entertainment Limited. At the balance sheet date, £2,188 (201: £2,188) was due to Little Fish Entertainment Limited and is included within other creditors.

 

These loans are repayable on demand and no interest was charged on the balance.

 

 

9
Control

The controlling party is that of the directors due to their majority shareholding.

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