REG - ITV PLC - Annual Report and Accounts 2014 <Origin Href="QuoteRef">ITV.L</Origin> - Part 11
26/03/2015 10:31
- Part 11: For the preceding part double click ID:nRSZ5364Ij
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3210363 Carltonco Ninety-Six
2852812 Cosgrove Hall Films Limited
3209058 DTV Limited
3106798 Granada Media Limited
5344772 Granada Screen (2005) Limited
0733063 Granada Television Overseas Limited
1127149 ITV Breathless Limited
6914987 ITV (HC) Limited
4159213 ITV International Channels (Asia) Limited
8534385 ITV Lucan Limited
3916436 ITV News Channel Limited
5518785 Juice Music UK Limited
4201477 Morning TV Limited
ITV plc Company Financial Statements
Company Balance Sheet
As at 31 December Note 2014£m 2014£m 2013£m 2013£m
Fixed assets
Investments in subsidiary undertakings iii 1,705 1,648
Derivative financial instruments 17 41
1,722 1,689
Current assets
Amounts owed by subsidiary undertakings 1,441 1,280
Derivative financial instruments 14 32
Other debtors 20 26
Cash at bank and in hand and short-term deposits 145 319
1,620 1,657
Creditors - amounts falling due within one year
Borrowings v (78) (41)
Amounts owed to subsidiary undertakings (1,795) (1,342)
Accruals and deferred income (19) (22)
Derivative financial instruments (12) (5)
(1,904) (1,410)
Net current assets/(liabilities) (284) 247
Total assets less current liabilities 1,438 1,936
Creditors - amounts falling due after more than one year
Borrowings v (161) (301)
Derivative financial instruments (12) (27)
(173) (328)
Net assets 1,265 1,608
Capital and reserves
Called up share capital vi 403 403
Share premium vii 174 174
Other reserves vii 36 36
Profit and loss account vii 652 995
Shareholders' funds - equity 1,265 1,608
The accounts were approved by the Board of Directors on 4 March 2015 and were signed on its behalf by:
Ian Griffiths
Director
Notes to the ITV plc Company Financial Statements
i Accounting policies
Basis of preparation
These accounts have been prepared in accordance with UK Generally Accepted Accounting Practice (UK GAAP).
As permitted by section 408 (3) of the Companies Act 2006, a separate profit and loss account, dealing with the results of
the parent company, has not been presented.
Under FRS 29 the Company is exempt from the requirement to provide its own financial instruments disclosures, on the
grounds that it is included in publicly available consolidated financial statements which include disclosures that comply
with the IFRS equivalent to that standard.
The Company has taken advantage of the FRS 1 exemption from the requirement to prepare and disclose a cash flow statement.
Subsidiaries
Subsidiaries are entities that are directly or indirectly controlled by the Company. Control exists where the Company has
the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities. The
investment in the Company's subsidiaries is recorded at cost, adjusted for the effect of UITF 41 when it was adopted in
prior years. Annual FRS 20 share-based payment compensation costs are recharged to the subsidiaries through the profit and
loss account.
Foreign currency transactions
Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of the
transaction. Foreign currency monetary assets and liabilities at the balance sheet date are translated into sterling at the
rate of exchange ruling at that date. Foreign exchange differences arising on translation are recognised in the profit and
loss account. Non-monetary assets and liabilities measured at historical cost are translated into sterling at the rate of
exchange on the date of the transaction.
Borrowings
Borrowings are recognised initially at fair value including directly attributable transaction costs, with subsequent
measurement at amortised cost using the effective interest rate method. The difference between initial fair value and the
redemption value is recorded in the profit and loss account over the period of the liability on an effective interest
basis.
Derivatives and other financial instruments
The Company uses a limited number of derivative financial instruments to hedge its exposure to fluctuations in interest and
other foreign exchange rates. The Company does not hold or issue derivative instruments for speculative purposes.
Derivative financial instruments are initially recognised at fair value and are subsequently remeasured at fair value with
the movement recorded in the profit and loss account within net financing costs, except where derivatives qualify for cash
flow hedge accounting. In this case, the effective portion of cash flow hedge is recognised in retained profits within
equity. The cumulative gain or loss is later reclassified to the profit and loss account in the same period as the relevant
hedged transaction is realised. Derivatives with positive fair values are recorded as assets and negative fair values as
liabilities.
The fair value of foreign currency forward contracts is determined by using the difference between the contract exchange
rate and the quoted forward exchange rate at the balance sheet date. The fair value of interest rate swaps is the estimated
amount that the Company would receive or pay to terminate the swap at the balance sheet date, taking into account current
interest rates and the current creditworthiness of swap counterparties.
Third party valuations are used to fair value the Company's derivatives. The valuation techniques use inputs such as
interest rate yield curves and currency prices/yields, volatilities of underlying instruments and correlations between
inputs.
For financial assets and liabilities classified at fair value through profit or loss the fair value change and interest
income/expense are not separated.
Dividends
Dividends are recognised through equity on the earlier of their approval by the Company's shareholders or their payment.
ii Employees
Two (2013: two) Directors of ITV plc were employees of the Company during the year, both of whom remain at the year end.
The costs relating to these Directors are disclosed in the Remuneration Report.
iii Investments in subsidiary undertakings
The principal subsidiary undertakings are listed in note xi. The balance at 31 December 2014 was £1,705 million (2013:
£1,648 million). During the year, the Company increased its investment in its direct subsidiary, Carlton Communications
Limited, by £57 million.
iv Amounts owed (to)/from subsidiary undertakings
The Group operates an intra-group cash pool policy with certain 100% owned UK subsidiaries. The pool applies to bank
accounts where there is an unconditional right of set off and involves the daily closing cash position for participating
subsidiaries whether positive or negative, being cleared to £nil via daily bank transfers to/from ITV plc. These daily
transactions create a corresponding intercompany creditor or debtor which can result in significant movements in amounts
owed to and from subsidiary undertakings in the Company balance sheet.
v Borrowings
Loans repayable in less than one year
Loans repayable within one year as at 31 December 2014 comprise an unsecured £78 million Eurobond which has a coupon of
5.375% maturing in October 2015.
Loans repayable after more than one year
Loans repayable after more than one year as at 31 December 2014 comprise an unsecured £161 million Eurobond which has a
coupon of 7.375% maturing in January 2017.
vi Called up share capital
Authorised2014 & 2013£m Allotted,issuedand fullypaid2014 & 2013£m
Ordinary shares of 10 pence each
Authorised:
8,000,000,000 800
Allotted, issued and fully paid:
4,025,409,194 403
Total 800 403
The Company's ordinary shares give shareholders equal rights to vote, receive dividends and to the repayment of capital.
vii Reconciliation of movements in shareholders' funds
Sharecapital£m Sharepremium£m Otherreserves£m Profit and lossaccount£m Total£m
At 1 January 2013 391 122 58 326 897
Movement for year 12 52 (22) 669 711
At 1 January 2014 403 174 36 995 1,608
Retained loss for year for equity shareholders - - - (44) (44)
Share-based compensation - - - 14 14
External dividend paid - - - (313) (313)
At 31 December 2014 403 174 36 652 1,265
The loss after tax for the year dealt with in the accounts of ITV plc is £44 million (2013: £996 million profit).
The profit and loss account reserves of £652 million at 31 December 2014 are all distributable.
The Company received no dividends from subsidiaries in 2014 (2013: £1,117 million).
The Directors of the Company propose a final dividend of 3.3p per share and a special dividend of 6.25p per share.
viii Contingent liabilities
Under a Group registration, the Company is jointly and severally liable for VAT at 31 December 2014 of £58 million (31
December 2013: £51 million). The Company has guaranteed certain finance and operating lease obligations of subsidiary
undertakings.
There are contingent liabilities in respect of certain litigation and guarantees, broadcasting issues, and in respect of
warranties given in connection with certain disposals of businesses. None of these items are expected to have a material
effect on the Group's results or financial position.
Where the Company enters into financial guarantee contracts to guarantee the indebtedness of other companies within its
Group, the Company considers these to be insurance arrangements, and accounts for them as such. In this respect, the
Company treats the guarantee contract as a contingent liability until such time as it becomes probable that the Company
will be required to make a payment under the guarantee.
ix Capital and other commitments
There are no capital commitments at 31 December 2014 (2013: none).
x Related party transactions
Transactions with key management personnel
Key management consists of ITV plc Executive Directors.
Key management personnel compensation, on an accounting basis, is as follows:
2014£m 2013£m
Short-term employee benefits 3 3
Share-based compensation 2 2
5 5
Total emoluments and gains on share options received by key management personnel in the year were:
2014£m 2013£m
Emoluments 3 3
Gains on exercise of share options 2 7
Gains on release of restricted share awards 3 -
8 10
xi Principal subsidiary undertakings and investments
Principal subsidiary undertakings
The principal subsidiary undertakings of the Company at 31 December 2014, all of which are wholly owned (directly or
indirectly) and incorporated and registered in England and Wales except where stated, are:
Name Principal activity
ITV Broadcasting Limited Broadcast of television programmes
ITV Network Limited Scheduling and commissioning of television programmes
ITV Rights Limited Rights ownership
ITV2 Limited Operation of digital television channels
ITV Digital Channels Limited Operation of digital television channels
ITV Consumer Limited Development of platforms, broadband, transactional and mobile services
SDN Limited Operation of Freeview Multiplex A
ITV Studios Limited Production of television programmes
ITV Studios, Inc.1 Production of television programmes
ITV Global Entertainment Limited Rights ownership and distribution of television programmes and films
ITV Services Limited Provision of services for other companies within the Group
Carlton Communications Limited Holding company
Leftfield Entertainment, Inc.1,2 Production of television programmes
1. Incorporated and registered in the USA.
2. 80% owned.
A list of all subsidiary undertakings will be included in the Company's annual return to Companies House.
Principal joint ventures, associated undertakings and investments
The Company indirectly held at 31 December 2014 the following interests in significant joint ventures, associates and
investments:
Name Interest in ordinary share capital 2014% Interest in ordinary share capital 2013% Principal activity
Joint ventures
Freesat (UK) Limited 50.0 50.0 Provision of a standard and high definition enabled digital satellite proposition
Digital 3 & 4 Limited 50.0 50.0 Operates the Channel 3 & 4 digital terrestrial multiplex
Associates
Independent Television News Limited (ITN) 40.0 40.0 Supply of news services to broadcasters in the UK and elsewhere
Mammoth Screen Limited 25.0 25.0 Production of scripted content
Tomorrow ITV Studios 1 - - Production of scripted content
Indigenous Media 2 - - Production of content for digital distribution
Fixed asset investments
Believe Entertainment 3 - -Recent news on ITV
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