Registered number:
10381441
LABEL1 TELEVISION LIMITED
UNAUDITED
FINANCIAL STATEMENTS
INFORMATION FOR FILING WITH THE REGISTRAR
FOR THE YEAR ENDED 31 DECEMBER 2020
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LABEL1 TELEVISION LIMITED
REGISTERED NUMBER:
10381441
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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Creditors: amounts falling due after more than one year
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LABEL1 TELEVISION LIMITED
REGISTERED NUMBER:
10381441
STATEMENT OF FINANCIAL POSITION
(CONTINUED)
AS AT
31 DECEMBER 2020
The directors consider that the company is entitled to exemption from audit under section 477 of the Companies Act 2006 and members have not required the company to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.
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
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 comprehensive income 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 by
:
The notes on pages 3 to 7 form part of these financial statements.
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LABEL1 TELEVISION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
Label1 Television Limited is a private company limited by shares incorporated in the United Kingdom and registered in England & Wales. The address of its registered office is 55 New Oxford Street, 1st Floor, London, England, WC1A 1BS.
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
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The company's functional and presentational currency is GBP.
The following principal accounting policies have been applied:
The company had net liabilities of £477,506 (2019: £667,918) at the reporting date. The company has long term loan facilities provided by one of its shareholders, of which £800,000 (2019: £800,000) was drawn at the balance sheet date.
The directors have considered the impact that Covid-19 has had on the business and have a reasonable expectation that the company will continue in operational existence for the foreseeable future.
On the basis of the loan facilities and the increased activity forecast for the company, the directors believe that the company will have sufficient funds to settle all of its debts as they fall due for at least 12 months from signing the accounts and therefore consider it appropriate to prepare the financial statements on a going concern basis. The financial statements do not include any adjustments that would result from the repayment of the loan facilities.
Turnover comprises of revenues receivable by the company in respect of television programme development and production services supplied during the period, exclusive of Value Added Tax, and is recognised on an 'episodic basis' once delivery of the completed development or production to the customer has been made in accordance with the delivery pattern as outlined in the underlying contractual agreement.
Both under and overspends are accounted for once known and are recognised in accordance with the delivery pattern.
Provisions are made for any loss making contracts (i.e. expected overspend is in excess of originally anticipated margin) as soon as identified.
Production costs incurred in producing a television programme are recognised in the Statement of comprehensive income as cost of sales in the period in which they are incurred.
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LABEL1 TELEVISION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
2.
Accounting policies (continued)
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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.
Grants are accounted for under the accruals model as permitted by FRS 102.
Grants of a revenue nature are recognised in the Statement of comprehensive income in the same period as the related expenditure.
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:
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Short-term leasehold property
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Over the life of the lease
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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.
Stocks comprise of costs incurred up to the reporting date on developments and productions yet to be delivered as at the balance sheet date and are valued at the lower of cost and net realisable value.
Net realisable value is based on estimated selling price less any further costs to completion expected to be incurred.
Short term debtors are measured at transaction price, less any impairment.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.
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LABEL1 TELEVISION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
2.
Accounting policies (continued)
Short term creditors are measured at the transaction price
The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the statement of income and retained earnings.
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The average monthly number of employees, including directors, during the year was 27
(2019 -
37
)
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Short-term leasehold property
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Charge for the year on owned assets
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LABEL1 TELEVISION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
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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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Creditors: Amounts falling due after more than one year
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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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LABEL1 TELEVISION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
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Related party transactions
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A shareholder in the company has provided the company with a loan facility. The company borrowed £nil in the year (2019: £600,000) but was charged interest at an average rate of 1.662% on the facility. The loan is unsecured and repayable in 2024 and at the reporting date £800,000 (2019: £800,000) was owed by the company.
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Post balance sheet events
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On 2 March 2021 Fremantle Media Limited exercised Call Options to acquire an aggregate total of 3,852 A Ordinary shares and 9 C Ordinary shares from other shareholders in the company. This option exercise took Fremantle Media Limited's interest in the company to a holding of 51% of the issued share capital.
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