Company Registration No. 06047620 (England and Wales)
FILMON TV LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
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 2020
31 December 2020
- 1 -
2020
2019
as restated
Notes
£
£
Assets
Non-current assets
Intangible assets
4
10,928
17,296
Tangible assets
5
2,714
5,763
Total non-current assets
13,642
23,059
Current assets
Debtors
6
10,023,708
8,889,899
Cash at bank and in hand
391,642
175,714
Total current assets
10,415,350
9,065,613
Total assets
10,428,992
9,088,672
Equity and liabilities
Capital and reserves
Called up share capital
9
2
2
Share premium account
2,446,999
2,446,999
Profit and loss reserves
(8,061,560)
(9,323,301)
Total equity
(5,614,559)
(6,876,300)
Creditors: amounts falling due within one year
7
16,043,551
15,964,972
Total liabilities
16,043,551
15,964,972
Total equity and liabilities
10,428,992
9,088,672
FILMON TV LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2020
31 December 2020
- 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 2020 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 22 September 2021
Mr A David
Director
Company Registration No. 06047620
FILMON TV LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2020
31 December 2020
- 3 -
1
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the director is 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.
2
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.
2.1
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.
2.2
Prior period reclassification
During the current year, the director identified that an intercompany
receivable
balance was incorrectly included within cash at bank as at 31 December 2019. This has been reclassified, reducing cash at bank and increasing amounts owed by group undertakings by £296,904. This reclassification has had no impact on profit, nor gross or current net assets of the company.
2.3
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.
FILMON TV LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
2
Accounting policies
(Continued)
- 4 -
2.4
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.
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.
2.5
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.
2.6
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
.
2.7
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.
FILMON TV LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
2
Accounting policies
(Continued)
- 5 -
2.8
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
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.
2.9
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.
2.10
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 2020
2
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.
2.11
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.
2.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
2.13
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.
3
Employees
The average monthly number of persons (excluding directors) employed by the company during the year was 3 (2019 - 3
).
FILMON TV LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
- 7 -
4
Intangible fixed assets
Content licences
£
Cost
At 1 January 2020 and 31 December 2020
687,940
Amortisation and impairment
At 1 January 2020
670,644
Amortisation charged for the year
6,368
At 31 December 2020
677,012
Carrying amount
At 31 December 2020
10,928
At 31 December 2019
17,296
5
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 January 2020
1,163,261
Additions
1,317
At 31 December 2020
1,164,578
Depreciation and impairment
At 1 January 2020
1,157,498
Depreciation charged in the year
4,366
At 31 December 2020
1,161,864
Carrying amount
At 31 December 2020
2,714
At 31 December 2019
5,763
FILMON TV LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
- 8 -
6
Debtors
2020
2019
As restated
Amounts falling due within one year:
£
£
Trade debtors
2,161
8,848
Amounts owed by group undertakings and undertakings in which the company has a participating interest
10,021,098
8,853,721
Other debtors
449
27,330
10,023,708
8,889,899
7
Creditors: amounts falling due within one year
2020
2019
£
£
Trade creditors
725,142
730,111
Amounts owed to group undertakings
14,513,067
14,517,012
Taxation and social security
447,231
330,814
Other creditors
358,111
387,035
16,043,551
15,964,972
8
Retirement benefit schemes
2020
2019
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
2,659
3,455
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.
9
Called up share capital
2020
2019
2020
2019
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
2
2
2
2
10
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 2020
10
Related party transactions
(Continued)
- 9 -
Purchases
2020
2019
£
£
Connected Companies
53,647
-
Expenses settled on behalf
Transfer of funds
2020
2019
2020
2019
£
£
£
£
Connected Companies
106,531
100,725
-
6,818
2020
2019
Amounts due to related parties
£
£
Connected Companies
53,647
3,755
The following amounts were outstanding at the reporting end date:
2020
2019
Amounts due from related parties
£
£
Connected Companies
680,860
578,084
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.
11
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.