Company Registration No. 06047620 (England and Wales)
FILMON TV LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
PAGES FOR FILING WITH REGISTRAR
FILMON TV LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 9
FILMON TV LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2019
31 December 2019
- 1 -
2019
2018
Notes
£
£
Assets
Non-current assets
Intangible assets
3
17,296
25,647
Tangible assets
4
5,763
11,095
Total non-current assets
23,059
36,742
Current assets
Debtors
5
8,592,995
6,902,648
Cash at bank and in hand
472,618
204,184
Total current assets
9,065,613
7,106,832
Total assets
9,088,672
7,143,574
Equity and liabilities
Capital and reserves
Called up share capital
8
2
2
Share premium account
2,446,999
2,446,999
Profit and loss reserves
(9,323,301)
(11,017,395)
Total equity
(6,876,300)
(8,570,394)
Creditors: amounts falling due within one year
6
15,964,972
15,713,968
Total liabilities
15,964,972
15,713,968
Total equity and liabilities
9,088,672
7,143,574
FILMON TV LIMITED
BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2019
31 December 2019
- 2 -
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.
true
For the financial year ended 31 December 2019 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
T
he 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 and signed by the director and authorised for issue on 14 September 2020
Mr A David
Director
Company Registration No. 06047620
FILMON TV LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
- 3 -
1
Accounting policies
Company information
FilmOn TV Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
6th Floor, 2 London Wall Place, London, England, EC2Y 5AU.
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 a
mounts
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 December 2019
are the
first
financial statements of FilmOn TV Limited prepared in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland.
The accounts previously were prepared under International Financial Reporting Standards (IFRSs) as adopted by the European Union.
The date of transition to FRS 102 was 1 January 2018.
The reported financial position and financial performance for the previous period are not affected by the transition to FRS 102
.
1.2
Going concern
The financial statements have been prepared on a going concern basis. The Director has considered relevant information and the impact of subsequent events in making their assessment. The COVID-19 pandemic and the ensuing economic shutdown has not had a significant impact on the company’s operations.
true
Notwithstanding the net liability position of the company, the company’s ultimate controlling party, A. A. David, has undertaken to continue to provide financial support for the company’s continued operations.
Based on these assessments and having regard to the resources available to the entity, the director has concluded that there is no material uncertainty in relation to the appropriateness of continuing to adopt the going concern basis in preparing the annual report and accounts.
1.3
Turnover
The company has two revenue streams, advertising supported video streaming and subscriber based video streaming. Revenues are derived from video advertising impressions served and monthly premium subscription packages.
The company recognises revenues when it is realised or realisable and earned. The company considers revenue realised or realisable and earned when all of the following criteria:
(i) persuasive evidence of an arrangement exists;
(ii) the service has been rendered to the customer;
(iii) the sales price is fixed or determinable; and
(iv) collectability is reasonably assured.
FILMON TV LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 4 -
Advertising
Advertising supported video streaming revenues, net of agency commission, are recognised in the period during which underlying advertisements are broadcast or published.
Subscription
Subscription revenues are recognised evenly over the membership period. Revenues are presented net of the taxes that are collected from the member and remitted to governmental authorities. Deferred revenue consists of membership fees billed to members that have not been recognised.
1.4
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Amortisation 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:
Content licences
Straight line over 1 - 10 years, where the company has licence to exploit content for a set period of time.
1.5
Tangible fixed assets
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:
Fixtures and fittings
20% Straight line
Computers
33% Straight line
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 profit or loss
.
1.6
Cash and cash equivalents
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.
1.7
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.
FILMON TV LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 5 -
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
paymen
ts 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. A
m
ounts 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.
1.8
Equity instruments
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.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
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.
FILMON TV LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 6 -
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.
1.10
Employee benefits
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.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
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
in the period
are included in profit or loss.
2
Employees
The average monthly number of persons (excluding directors) employed by the company during the year was 3 (2018 - 3).
FILMON TV LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 7 -
3
Intangible fixed assets
Content licences
£
Cost
At 1 January 2019 and 31 December 2019
687,940
Amortisation and impairment
At 1 January 2019
662,293
Amortisation charged for the year
8,351
At 31 December 2019
670,644
Carrying amount
At 31 December 2019
17,296
At 31 December 2018
25,647
4
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 January 2019
1,162,573
Additions
688
At 31 December 2019
1,163,261
Depreciation and impairment
At 1 January 2019
1,151,478
Depreciation charged in the year
6,020
At 31 December 2019
1,157,498
Carrying amount
At 31 December 2019
5,763
At 31 December 2018
11,095
FILMON TV LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 8 -
5
Debtors
2019
2018
Amounts falling due within one year:
£
£
Trade debtors
8,848
80,654
Amounts owed by group undertakings and undertakings in which the company has a participating interest
8,556,817
6,790,427
Other debtors
27,330
31,567
8,592,995
6,902,648
6
Creditors: amounts falling due within one year
2019
2018
£
£
Trade creditors
730,111
638,666
Amounts owed to group undertakings
14,517,012
14,532,976
Taxation and social security
330,814
227,412
Other creditors
387,035
314,914
15,964,972
15,713,968
7
Retirement benefit schemes
2019
2018
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
3,455
1,287
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.
8
Called up share capital
2019
2018
£
£
Ordinary share capital
Issued and fully paid
2 Ordinary shares of £1 each
2
2
9
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
FILMON TV LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
9
Related party transactions
(Continued)
- 9 -
Expenses settled on behalf
Transfer of funds
2019
2018
2019
2018
£
£
£
£
Connected Companies
100,725
208,297
6,818
100
2019
2018
Amounts due to related parties
£
£
Connected Companies
3,755
838
The following amounts were outstanding at the reporting end date:
2019
2018
Amounts due from related parties
£
£
Connected Companies
578,084
481,260
Other information
In accordance with the requirements in Section 33.1A of FRS 102
The Financial Reporting Standard applicable in the UK and Republic of Ireland
the company has not disclosed transactions with any wholly owned subsidiary undertaking of the group.
10
Parent company
The immediate parent company of which the company is a wholly owned subsidiary is Filmon.TV UK Limited, a company incorporated in England and Wales.
The ultimate parents company is Anakando Limited, a company incorporated in St Vincent and the Grenadines.