Registered number:
03556882
WAG ENTERTAINMENT LIMITED
FINANCIAL STATEMENTS
INFORMATION FOR FILING WITH THE REGISTRAR
FOR THE 9 MONTH PERIOD ENDED 31 DECEMBER 2020
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WAG ENTERTAINMENT LIMITED
REGISTERED NUMBER:
03556882
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2020
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Provisions for liabilities
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WAG ENTERTAINMENT LIMITED
REGISTERED NUMBER:
03556882
STATEMENT OF FINANCIAL POSITION
(CONTINUED)
AS AT
31 DECEMBER 2020
The
financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of income and retained earnings in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 5 May 2021
.
The notes on pages 3 to 13 form part of these financial statements.
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WAG ENTERTAINMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 9 MONTH PERIOD ENDED 31 DECEMBER 2020
WAG Entertainment Limited is a private company limited by shares and registered in England and Wales. The address of its registered office and principal place of business is 2D Leroy House, 436 Essex Road, London, N1 3QP.
Subsequent to the reporting date, a controlling interest was acquired by Asacha Media Group, a company registered in France.
2.
Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of
Financial Reporting Standard 102, the Financial Reporting Standard applicable in
the UK and the Republic of Ireland and the Companies Act 2006
.
The following principal accounting policies have been applied:
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Exemption from preparing consolidated financial statements
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The
Company
, and the
Group
headed by it, qualify as small as set out in
section 383 of the Companies Act 2006
and the parent and
Group
are considered eligible for the exemption to prepare consolidated accounts.
The company meets its day to day working capital requirements through the utilisation of its own funds.
After reviewing the company's forecasts and projections, the directors have a good expectation that the company has adequate resources to continue in operational existence for the foreseeable future following the COVID-19 pandemic. The company therefore continues to adopt the going concern basis in preparing its financial statements.
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WAG ENTERTAINMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 9 MONTH PERIOD ENDED 31 DECEMBER 2020
2.
Accounting policies (continued)
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.
Production revenue
Production revenue represents amounts receivable for work carried out in producing commissioned television programmes and is recognised over the period of the production. Gross profit on production activity is recognised over the period of the production and in accordance with the underlying contract. Stage of completion is calculated on external third party costs ignoring any centralised recharges. Overages on productions are recognised as they arise and underages are recognised on completion of the productions.
Distribution revenue
Distribution revenue arises from the distribution or other exploitation by the company of programmes produced by the company, or from the distribution by third parties of programmes produced by the company. Revenue is recognised when receivable.
For programmes distributed by the company, the directors consider turnover to be receivable when the following conditions have been met:
- contractual terms have been agreed
- the programme is complete and delivered or available for delivery
For programmes distributed by third parties, the directors consider that turnover is receivable when the company has been notified of sums due to it.
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell.
Work in progress comprises costs incurred in respect of programmes in the course of production for which the company retains distribution rights. Work in progress is amortised to the Statement of Income and retained Earnings based on current and expected cash flows generated from distribution rights.
Provision is made where the anticipated revenue from these productions is less than anticipated total costs of production.
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WAG ENTERTAINMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 9 MONTH PERIOD ENDED 31 DECEMBER 2020
2.
Accounting policies (continued)
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
Amortisation is provided on the following bases:
Investments in subsidiaries are valued at cost less provision for impairment.
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WAG ENTERTAINMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 9 MONTH PERIOD ENDED 31 DECEMBER 2020
2.
Accounting policies (continued)
The Company only enters into basic financial instrument 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.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received.
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Foreign currency translation
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Functional and presentation currency
The Company's functional and presentational currency is GBP.
Transactions and balances
Monetary assets and liabilitied denominated in foreign currencies are translated into sterling at rates of exchange ruling at the reporting date.
Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction.
Exchange gains and losses are recognised in the profit and loss account.
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Operating leases: the Company as lessee
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Rentals paid under operating leases are charged to profit or loss on a straight line basis over the lease term.
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in the Statement of Income and Retained Earnings when they fall due. Amounts not paid are shown as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.
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WAG ENTERTAINMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 9 MONTH PERIOD ENDED 31 DECEMBER 2020
2.
Accounting policies (continued)
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Current and deferred taxation
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The tax expense for the 9 month period comprises current and deferred tax. Tax is recognised in profit or loss 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 reporting date in the countries where the Company operates and generates income.
Full provision is made for deferred tax assets and liabilities arising from all timing differences between the recognition of gains and losses in the financial statements and recognition in the tax computation.
A net deferred tax asset is recognised only if it can be regarded as more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.
Deferred tax assets and liabilities are calculated at the tax rates expected to be effective at the time the timing differences are expected to reverse.
Deferred tax assets and liabilities are not discounted.
When the company is commissioned to make a programme by a broadcaster and the broadcaster is unable to cover the full cost of the programme's budget, the company acts as a co-producer and co-financier by deferring its income from the project (for example, production fees, hire of company's kit, etc), and does so in exchange for a share of rights in the programme.
Typically, the broadcaster will then own the rights to the programme and all rights in all the remaining territories worldwide. When the programme is finished, the company then recoups its deferred fees, and any profit, from sales made in the territories controlled by the company.
Grants are accounted under the accruals model as permitted by FRS 102. Grants of a revenue nature are recognised in the Statement of Income and Retained Earnings in the same period as the related expenditure.
The comparative information reflects a 12 month year ended 31 March 2020. The Accounting Reference Date was shortened to 31 December 2020 to align the reporting date with the calendar year end and also the reporting date of other group companies.
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WAG ENTERTAINMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 9 MONTH PERIOD ENDED 31 DECEMBER 2020
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Judgments in applying accounting policies and key sources of estimation uncertainty
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The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the reporting date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates.
Tangible assets
Tangible assets are depreciated over their useful lives taking into account residual values where appropriate. The actual lives of assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing the assets' lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account.
Impairment of debtors
The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment, management considers factors including the current credit rating of the debtor, the ageing profile and historical experience.
Accruals
The company makes an estimate of accruals at the reporting date based on invoices received after the reporting date and work undertaken which has not been invoiced based on quotations or estimates of amounts that may be due for payment.
Work in progress
These costs are held as assets on the Statement of Financial Position and amortised over the estimated life of the production on an expected revenue basis.
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The average monthly number of employees, including directors, during the 9 month period/year was
39
(2020 -
41
)
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WAG ENTERTAINMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 9 MONTH PERIOD ENDED 31 DECEMBER 2020
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Charge for the 9 month period on owned assets
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WAG ENTERTAINMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 9 MONTH PERIOD ENDED 31 DECEMBER 2020
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Charge for the 9 month period on owned assets
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Investments in subsidiary companies
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The company owns 1, Ordinary share of £1, in WAG TV Limited and 100, Ordinary shares of £1 each, in Fast Car Films Limited. Both subsidiaries are 100% owned by WAG Entertainment Limited. Both subsidiaries were dormant in the period to 31 December 2020.
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WAG ENTERTAINMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 9 MONTH PERIOD ENDED 31 DECEMBER 2020
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Finished goods and goods for resale
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Prepayments and accrued income
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Creditors: Amounts falling due within one year
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Other taxation and social security
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Accruals and deferred income
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WAG ENTERTAINMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 9 MONTH PERIOD ENDED 31 DECEMBER 2020
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At beginning of the period/year
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Charged to profit or loss
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The provision for deferred taxation is made up as follows:
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Accelerated capital allowances
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Allotted, called up and fully paid
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500
(2020 -
500
)
Ordinary
shares of £
1.00
each
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One employee has an option to purchase 100 shares at a value of £864 per share. The option was exercised on 8 February 2021.
The company operates a defined contributions pension scheme. Contributions payable by the company for the year amounted to £56,782 (31 March 2020: £116,993). At the reporting date no amounts were owed to the scheme.
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WAG ENTERTAINMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 9 MONTH PERIOD ENDED 31 DECEMBER 2020
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Commitments under operating leases
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At 31 December 2020 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
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Later than 1 year and not later than 5 years
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Related party transactions
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The company has not entered into any transactions with related parties that are material and that have not been concluded under normal market conditions.
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The auditors' report on the financial statements for the 9 month period ended 31 December 2020 was unqualified.
The audit report was signed on 5 May 2021 by
Anthony Pins
(Senior Statutory Auditor) on behalf of
Nyman Libson Paul LLP
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