ELSTREE FILM STUDIOS LIMITED 1 … · ELSTREE FILM STUDIOS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2019 2. Accounting policies (continued) 2.3 Revenue

Registered number: 04975020

ELSTREE FILM STUDIOS LIMITED

FINANCIAL STATEMENTS

INFORNIATION FOR FILING WITH THE REGISTRAR

FOR THE YEAR ENDED 31 MARCH 2019


COMPANY INFORMATION

Directors R W Morris

C H Goldstein (resigned 15 May 2019)M BrightP B MorrisC S ClapperL Selby (appointed 15 May 2019)P D Rutledge (appointed 15 May 2019)S Shah (appointed 15 May 2019)H E Webster (appointed 15 May 2019)C J Kane (appointed 15 May 2019)M P Reeve (appointed 15 May 2019)K E Marsh (appointed 15 May 2019)J J J BenneU (appointed 15 May 2019)S A Smith (appointed 15 May 2019)P J Hodgson-James (appointed 15 May 2019)

Company secretary

Registered number

Registered office

S Bijle

04975020

Civic OfficesElstree WayBorehamwoodHertfordshireWD6 1WA

Independent auditors Berg Kaprow Lewis LLPChartered Accountants & Statutory Auditor35 Ballards LaneLondonN31XW


CONTENTS

Statement of Financial Position

Page

1 -2

Statement of Changes in Equity

Notes to the Financial Statements 4-12

ELSTREE FILM STUDIOS LIMITEDREGISTERED NUMBER: 0497SOZO

STATEMENT OF FINANCIAL POSITIONAS AT 31 MARCH 2019

Note

Fixed assets

Tangible assets

Current assets

Debtors: amounts falling due within one year

Cash at bank and in hand

Creditors: amounts falling due within one year

Net current assets/(liabilities)

Total assets less current liabilities

Creditors: amounts falling due after more thanone year

Provisions for liabilities

Deferred tax

Pension asset

Net assets

Capital and reserves

Called up share capital

Other reserves

Profit and loss account

101111

2019£

2018

(27, 109)

766, 279

841, 615

(250, 000)

(27, 109)

231, 000

795, 506

1

231, 000

564, 505

795, 506

(26, 500)

681, 587

721, 363

362, 060

1,083, 423

(1, 008, 087)

766,

7S,

279

336

727, 535357, 874

1, 085. 409

(1, 090, 474)

681, 567

(s. oes.

676, 522

(250, 000)

(26, 500)

244, 000

644, 022

1

244, 000400, 021

644, 022

Page 1


STATEMENT OF CHANGES IN EQUITYFOR THE YEAR ENDED 31 MARCH 2019

Ati April 2017

Loss for the year

Actuarial gains on pension scheme

Transfer to/from profit and loss account

At 1 April 2018

Profit for the year

Actuarial gains on pension scheme

Transfer to/from profit and loss account

At 31 March 2019

Called upshare capital

£

1

Pensionscheme Profit andreserve loss account Total equity

£ £ £

237, 000

7,000

244, 000

(13, 000)

231, 000

393, 277 630, 278

(40, 256)

54, 000

(7,000)

400, 021

138, 48413,000

13,000

564, 505

(40, 256)

54, 000

644, 022

138, 484

13,000

795, 506

Page3


NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 MARCH 2019

1. General information

The principal activity of Elstree Film Studios Limited ('the Company') is that of the provision of film andtelevision studio space and related production and back office units for hire within the media industry.

The Company is a private company limited by shares and is incorporated in England and Wales.

The address of its registered office is Civic Offices, Elstree Way, Borehamwood, WD6 1WA.

2. Accounting policies

2. 1 Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwisespecified within these accounting policies and in accordance with Section 1A of Financial ReportingStandard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland andthe Companies Act 2006.

The following principal accounting policies have been applied:

2. 2 Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulateddepreciation and any accumulated impairment losses. Historical cost includes expenditure that isdirectly attributable to bringing the asset to the location and condition necessary for it to be capable ofoperating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over theirestimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

20% straight lineImprovements to long-termleasehold propertyPlant and equipmentFixtures and fittingsOffice equipment

20% straight line20-33% straight line20% straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjustedprospectively if appropriate, or if there is an indication of a significant change since the last reportingdate.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amountand are recognised in the Statement of Comprehensive Income.

Page 4



2. Accounting policies (continued)

2.3 Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to theCompany and the revenue can be reliably measured. Revenue is measured as the fair value of theconsideration received or receivable, excluding discounts, rebates, value added tax and other salestaxes. The foliowlng criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services areprovided in accordance with the stage of completion of the contract when all of the followingconditions are satisfied:

. the amount of revenue can be measured reliably;

. it is probable that the Company will receive the consideration due under the contract;

. the stage of completion of the contract at the end of the reporting period can be measuredreliably; and

. the costs incurred and the costs to complete the contract can be measured reliably.

2.4 Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penaltyon notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in nomore than three months from the date of acquisition and that are readily convertible to knownamounts of cash with insignificant risk of change in value.

2.5 Finance costs

Finance costs are charged to the Statement of Comprehensive Income over the term of the debtusing the effective interest method so that the amount charged is at a constant rate on the carryingamount. Issue costs are initially recognised as a reduction in the proceeds of the associated capitalinstrument.

PageS




2.6 Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition offinancial assets and liabilities like trade and other debtors and creditors, loans from banks and otherthird 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 loansand other accounts receivable and payable, are initially measured at present value of the future cashflows and subsequently at amortised cost using the effective interest method. Debt instruments thatare payable or receivable within one year, typically trade debtors and creditors, are measured, initiallyand subsequently, at the undiscounted amount of the cash or other consideration expected to be paidor received. However, if the arrangements of a short-term instrument constitute a financingtransaction, like the payment of a trade debt deferred beyond normal business terms or financed at arate of interest that is not a market rate or in the case of an out-right short-term loan not at marketrate, the financial asset or liability is measured, initially, at the present value of the future cash flowdiscounted at a market rate of interest for a similar debt instrument and subsequently at amortisedcost.

Financial assets that are measured at cost and amortised cost are assessed at the end of eachreporting period for objective evidence of impairment. If objective evidence of impairment is found, animpairment loss is recognised in the Statement of Comprehensive Income.

For financial assets measured at amortised cost, the impairment loss is measured as the differencebetween an asset's carrying amount and the present value of estimated cash flows discounted at theasset's original effective interest rate. If a financial asset has a variable interest rate, the discount ratefor measuring any impairment loss is the current effective interest rate determined under thecontract.

For financial assets measured at cost less impairment, the impairment loss is measured as thedifference between an asset's carrying amount and best estimate of the recoverable amount, which isan approximation of the amount that the Company would receive for the asset if it were to be sold atthe reporting date.

Financial assets and liabilities are offset and the net amount reported in the Statement of FinancialPosition when there is an enforceable right to set off the recognised amounts and there is anintention to settle on a net basis or to realise the asset and settle the liability simultaneously.

2. 7 Operating leases: the Company as lessor

Rentals income from operating leases is credited to the Statement of Comprehensive Income on astraight line basis over the term of the relevant lease.

Amounts paid and payable as an incentive to sign an operating lease are recognised as a reductionto income over the lease term on a straight line basis, unless another systematic basis isrepresentative of the time pattern over which the lessor's benefit from the leased asset is diminished.

The Company has taken advantage of the optional exemption available on transition to FRS 102which allows lease incentives on leases entered into before the date of transition to the standard 01

April 2017 to continue to be charged over the period to the first market rent review rather than theterm of the lease.

PageS




2. 8 Pensions

Defined benefit pension plan

The Company operates a defined benefit plan for certain employees. A defined benefit plan definesthe pension benefit that the employee will receive on retirement, usually dependent upon severalfactors including but not limited to age, length of service and remuneration. A defined benefit plan is apension plan that is not a defined contribution plan.

The asset recognised in the Balance Sheet in respect of the defined benefit plan is the present valueof the defined benefit obligation at the end of the balance sheet date less the fair value of plan assetsat the balance sheet date out of which the obligations are to be settled.

The defined benefit obligation is calculated using the projected unit credit method. Annually thecompany engages independent actuaries to calculate the obligation. The present value is determinedby discounting the estimated future payments using market yields on high quality corporate bondsthat are denominated in sterling and that have terms approximating to the estimated period of thefuture payments ('discount rate').

The fair value of plan assets is measured in accordance with the FRS 102 fair value hierarchy and inaccordance with the Company's policy for similarly held assets. This includes the use of appropriatevaluation techniques.

Actuarial gains and losses arising from experience adjustments and changes in actuarialassumptions are charged or credited to other comprehensive income. These amounts together withthe return on plan assets, less amounts included in net interest, are disclosed as 'Actuarial gains ondefined benefit pension scheme'.

The cost of the defined benefit plan, recognised in profit or loss as employee costs, except whereincluded in the cost of an asset, comprises:

a) the increase in net pension benefit liability arising from employee service during the period; and

b) the cost of plan introductions, benefit changes, curtailments and settlements.

The net interest cost is calculated by applying the discount rate to the net balance of the definedbenefit obligation and the fair value of plan assets. This cost is recognised in profit or loss as a'finance expense'.

Page?



Accounting policies (continued)

2.9 Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in the Statementof Comprehensive Income, except that a charge attributable to an item of income and expenserecognised as other comprehensive income or to an item recognised directly in equity is alsorecognised 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 beenenacted or substantively enacted by the reporting date in the countries where the Company operatesand generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but notreversed by the Statement of Financial Position date, except that:

. The recognition of deferred tax assets is limited to the extent that it is probable that they will berecovered against the reversal of deferred tax liabilities or other future taxable profits; and

. Any deferred tax balances are reversed if and when all conditions for retaining associated taxallowances have been met.

Deferred tax balances are not recognised in respect of permanent differences. Deferred tax isdetermined using tax rates and laws that have been enacted or substantively enacted by thereporting date.

Employees

The average monthly number of employees, including directors, during the year was 15 (201 8-15).

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4. Tangible fixed assets

improvementto Long-term

leasehold Plant and Fixtures and Office

Cost or valuation

Ati April 2018Additions

Disposals

At 31 March 2019

Depreciation

Ati April 2018

Charge for the year onowned assets

Disposals

At 31 March 2019

Net book value

At 31 March 2019

At 31 March 2018

property£

357, 26355, 851

413, 114

44, 491

76, 330

120, 821

292, 293

312, 772

equipment£

1, 327, 262

272, 786

1,600, 048

1, 088, 810

122, 358

1, 211, 168

388, 880

238, 452

£

549, 5623,995

(115, 416)

438, 141

451, 887

38,449

(115, 416)

374, 920

63, 221

97, 675

equipment£

127, 532

(65, 150)

62, 382

94, 844

10,803

(65, 150)

40, 497

21,885

32, 688

Total£

2, 361, 619332, 632

(180, 566)

2, 513, 685

1,680, 032

247, 940

(180, 566)

1, 747, 406

766, 279

681, 587

The net book value of land and buildings may be further analysed as follows;

Long leasehold

2019£

292, 294

292, 294

2018£

312, 771

312, 771

Page 9


Debtors

Trade debtors

Other debtors

Prepayments and accrued income

2019£

334, 35910,000

377, 004

721, 363

2018£

175, 610

173, 460378, 465

727, 535

6. Creditors: Amounts falling due within one year

Trade creditors

Corporation tax

Other taxation and social security

Other creditors

Accruals and deferred income

2019£

510, 594

34, 15647, 123

200, 846

215, 368

1,008, 087

2018£

516, 040

16, 950182, 383375, 101

1, 090, 474

7. Creditors; Amounts falling due after more than one year

Other loans

2019£

250, 000

250, 000

2018£

250, 000

250, 000

Page 10



Loans

Analysis of the maturity of loans is given below:

Amounts falling due 1-2 years

Other loans

2019£

2018£

250, 000 250, 000

9. Deferred taxation

250, 000 250, 000

2019£

2018£

At beginning of year

Charged to profit or loss

At end of year

Accelerated capital allowances

(26, 500)(609)

(27, 109)

2019£

(26, 500)

(26, 500)

2018£

(27, 109) (26, 500)

(27, 109) ('26, 500^

10. Share capital

Allotted, called up and fully paid

1 Ordinary Share share of £1. 00

2019£

2018£

11. Reserves

Other reserves

The pension scheme reserve representsdefined benefit pension scheme as

the net amount of unrealised gains and losses in relation to theto in accounting policy 2. 8.

Page 11



12. Transactions with directors

Included within other debtors is an amount of £10, 000 (2018; £15, 827) due from a director. This balanceis unsecured, interest free and is repayable over 3 years.

13. Related party transactions

A balance of £395, 040 (2018: £301, 635) is owed to the parent entity. Interest of £12, 500 (2018: £13, 542)was paid to the parent during the year in respect of a long term loan. The amount of £1, 870, 040 (2018:£1, 910,297) was also charged to the company by the parent during the year mainly in respect of rent,rates, building insurance and health and safety costs.

During the year the company received rent of £750 (2018: NIL) from the parent entity.

During the year the company received rent of £4, 695 (2018: £3, 757) from BHE Limited, a company ofwhich P Morris is the sole director and shareholder. This rent was in relation to an office used by SHE inthe course of its business and the Studio's management consider this to be a fair market rent.

14. Board remuneration

During the year the following remuneration, comprised of salary and benefits in kind, was paid tomembers of the board who were both elected members and employees of Hertsmere Borough Council,the ultimate parent entity, for their services as directors.

M Bright

S Bijle

P B Morris

C H Goldstein

C S Clapper

2019£

13,0871,072

1, 0721, 072

1,072

17, 375

2018£

13, 2761,051

1,0511,0511,051

17, 480

15. Controlling party

The parent entity is Hertsmere Borough Council whose principal place of business is Civic Offices, ElstreeWay, Borehamwood, Hertfordshire, W06 1WA.

16. Auditors'information

The auditors' report on the financial statements for the year ended 31 March 2019 was unqualified.

The audit report was signed on by Howard Graff FCA (Senior Statutory Auditor) on behalf of Berg KaprowLewis LLP.

Page 12

Documents

ELSTREE FILM STUDIOS LIMITED 1 … · ELSTREE FILM STUDIOS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2019 2. Accounting policies (continued) 2.3 Revenue