RED BEE MEDIA FINANCE LIMITED - Annual Accounts

Form: AA - Annual Accounts

FULL ACCOUNTS MADE UP TO 30/06/11

Filed on: 28 Oct 2011

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Red Bee Media Finance Limited
ANNUAL REPORT AND FINANCIAL STATEMENTS
for the period ended
## June ####
L#EO#YPE _
g LD# ##,##/#### ## C p y R illustration No ########
COMPANIES HOUSE
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Red Bee Media Finance Limited
COMPANY INFORMATION
DIRECTORS Michael Cook
Marc Perusat
Andrew Cowtey
VWiiiam Patnzlo
COMPANY SECRETARY James Amold
COMPANY NUMBER ########
REGISTERED OFFICE c/o BC#-A#
Broadcast Centre
### Wood Lane
London
United Kingdom
W## #TP
AUDITORS PncewaterhouseCoopers LLP
Chartered Accountants and Statutory Auditors
# Embankment Place
London
WC#N #RH
Page I

Red Bee Media Finance Limited
DIRECTORS’ REPORT FOR THE PERIOD ENDED ## JUNE ####
The Directors submit their report and the audited financial statements of Red Bee Media Finance Limited (the
“Company') for the period ended ## June ####
Pnnclpal artlessness
The principal activity of the Company is a finance vehicle The Company was incorporated on # December ####
The Company is owned by Red Bee Media Limited Its ultimate parent is Macquane Advanced Investment Partners,
L P (“MAiP”)
During the period, In accordance with section ### of the Companies Act ####, Prlcewaterhouse Coopers LLP were
appointed as auditors of the Company
Results and dividends
The results for the Company are set out in the statement of comprehensive income on page # The loss for the
financial period of £# ##m was transferred to reserves The Directors do not propose to pay a dividend for the period
The net assets of the Company were £# ##m as set out in the statement of financial positron on page #
Review of business
The Company has continued to operate as a finance business In the period and will continue to do so for the
foreseeable future With forecaster continuing profitability in the temperate parent company, the Directors believe rt
appropriate to prepare the financial statements on a going concept basis
in the opinion of the Directors, there were no significant developments within the Company
Key performance Inductors
Given the straight forward nature of the investment business, the key performance indicators on which the busyness is
measured are the results and future outlook of the Company’s immediate parent
Future developments
It is the intention of the Company to continue to buy back any debt related to the ultimate group if rt becomes
available to the market at the relevant once
Principal risks and uncertainties and financial risk management
Creative Broadcast Services Holdings Ltmrted and its subsidiaries' C'the Group") manage ask at a Group level, rather
than at an individual business unit level For this reason, the Company’s Directors believe that a discussion of the
Group's asks would not be appropriate for an understanding of the development, performance or positron of the
Company's business The principal asks and uncertainties of the Group which include those of the Company are
discussed on page # of Creative Broadcast Service Holdings Limited annual report which does not form part of this
report
Directors
The following persons held office as Directors of the Company from incorporation and up to the date of this report
Michael Cook
Marc Perusat
Andrew Cowley
Vlhllram Patnzto
Michael Cook, Marc Perusat and Andrew Cowley are employees of a subsidiary of Macquane Group Limited
Vthllram Patnzro is an employee of Red Bee Media Limited
All directors' emoluments were born by their employers
Page #

Red Bee Media Finance Limited
DIRECTORS’ REPORT FOR THE PERIOD ENDED ## JUNE ####
Statement of directors’ responsibilities
The Directors are responsible for preparing the Directors' Report and the financial statements in accordance with
applicable law and regulations
Company law requires the Directors to prepare financial statements for each financial period Under that law the
Directors have prepared the financial statements in accordance with international Financial Reporting Standards
(IFRSs) as adopted by the European Union Under company law the Directors must not approve the financial
statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of
the profit or loss of the Company for that period In preparing these financial statements, the Directors are required
to
~ select suitable accounting policies and then apply them consistently,
¢ make judgements and accounting estimates that are reasonable and prudent, and
# state whether applicable International Financial Reporting Standards (alfresco) as adopted by the
European Union have been followed, subject to any material departures disclosed and explained in the
financial statements
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the
Company’s transactions and disclose with reasonable accuracy at any time the financial position of the Company and
enable them to ensure that the financial statements comply with the Companies Act #### They are also responsible
for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of
fraud and other irregularities
Employees
The Company had no employees during the period
The environment
Although the Company does not operate in an industry where there is potential for serous industrial pollution the
Company recognises its responsibility to be aware of and take steps to control and minimise any damage its business
may cause to the environment
Health and safety
The Company is committed to complying with applicable health & safety legislation, and to continual improvement in
achieving a high standard of health, safety and welfare for its operating environments and for all those in the
organisation and others who may be affected by its activities
Statement as to disclosure of information to auditors
The Directors who were in office on the date of approval of these financial statements have confirmed that, as far as
they are aware, there is no relevant audit Information of which the auditor is unaware Each of the Directors have
confirmed that they have taken all the steps that they ought to have taken as directors in order to make themselves
aware of any relevant audit information and to establish that it has been communicated to the auditor
On behalf of the board
#
Marc Perusat
Director
oz"‘ October, ####
Registered Office
col BC#-A#
Broadcast Centre
### Wood Lane
London
United Kingdom
W## #TP
Page #

Red Bee Media Finance Limited
INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF RED BEE MEDIA
FINANCE LIMITED
We have audited the financial statements of Red Bee Medra Finance Limited for the period ended ## June ####
which compose the statement of comprehensive income, the statement of financial positron, the statement of changes
in equity, the statement of cash flows and the notes to the financial statements The financial reporting framework that
has been applied in their preparation is applicable law and international Financial Reportmg Standards (alfresco) as
adopted by the European Union
Respective responsibilities of directors and auditors
As explained more fully in the Directors’ Report on page #, the Drrectors are responsible for the preparation of the
financial statements and for being satisfied that they give a true and fair view Our responsibility is to audit and
express an opinion on the financial statements in accordance with applicable law and Intematronal Standards on
Auditing (UK and Ireland) Those standards require us to comply with the Auditing Practices Board’s Ethical
Standards for Auditors
This report, including the opinions, has been prepared for and only for the Company’s members as a body in
accordance with Chapter # of Part ## of the Companies Act #### and for no other purpose We do not, in giving
these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is
shown or into whose hands rt may come save where expressly agreed by our prior consent in wintry
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give
reasonable assurance that the financial statements are free from maternal misstatement, whether caused by fraud or
error This includes an assessment of whether the accounting policies are appropriate to the Company’s
circumstances and have been consistently applied and adequately disclosed, the reasonableness of significant
accounting estimates made by the Directors, and the overall presentation of the financial statements In addition, we
read all the financial and non-financial information in the financial statements to identify material inconsistencies with
the audited financial statements If we become aware of any apparent maternal misstatements or consistences we
consider the implications for our report
Opinion on financial statements
In our opinion the financial statements
~ give a true and fair view of the state of the Company’s affairs as at ## June #### and of its loss and cash flows
for the period then ended,
~ have been properly prepared in accordance with alfresco as adopted by the European Union, and
o have been prepared in accordance with the requirements of the Companies Act ####
Opinion on other matter prescribe by the Companies Act ####
In our opinion the information given in the Directors' Report for the financial period for which the financial statements
are prepared is consistent with the financial statements
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Companies Act #### requires us to report to
you if, in our cornrow
¢ adequate accounting records have not been kept, or rectums adequate for our audit have not been received from
branches not visited by us, or
» the financial statements are not in agreement with the accounting records and rectums, or
o certain disclosures of directors‘ remuneration specified by law are not made, or
» we have not received all the information and explanations we require for our audit
haw"
J Booker (Senior Statutory Auditor)
for and on behalf of PricewaterhouseCoopers LLP
Chartered Accountants and Statutory Auditors
# Embankment Place, London, WCZN SRH
##m October ####
Page #

Red Bee Media Finance Limited
STATEMENT OF COMPREHENSIVE INCOME
for the period ended ## June ####
Notes ####
£'too
Administrative expenses (#,###)
OPERATING Loss # T%#)
Finance income # ##
Loss BEFORE TAX TE)
Taxation # (#)
TOTAL COMPREHENSIVE Loss FoR THE PERIOD ## )
The financial statements and related notes on pages # to ## form part of these Hnancral statements
The above results before taxation relate wholly to contributor operations dung the period
Page #

Red Bee Medra Finance Lrmrted
(Company Registration No ########)
STATEMENT OF FINANCIAL POSITION
as at ## June ####
Note ####
£'###
CURRENT ASSETS
Receivables # ##
##
TOTAL ASSETS ##
CURRENT LIABILITIES
Payables # (#)
(#)
TOTAL LIABILITIES (#)
NET ASSETS ##
EQUITY
Ordinary share capital ## #,###
Retained earnings ## (#,###)
TOTAL EQUITY ##
The financial statements and related notes on pages # to ## form part of these financial statements and were
ppr the board of directors on ##” October #### and signed on its behalf by
EL Perusat
Drrector
Page #

Red Bee Media Finance Limited
STATEMENT OF CHANGES IN EQUITY
for the period ended ## June ####
Note
TOTAL COMPREHENSIVE INCOME
Issue of share capital ##
Loss for the period ##
## June ####
Ordinary share capital consists of #,###,### ordinary shares of £# each
Ordinary
share
capital
£’###
#,###
#,###
Retained
earrings
£'###
(#,###)
(#,###)
Total
Equity
£’###
#,###
(#,###)
##
The retained earnings reserve consists of the brought forward losses with the addition of any loss or profit
made in the respective period
Page #

Red Bee Media Finance Limited
STATEMENT OF CASH FLOWS
for the period ended ## June ####
####
Note £’###
CASH FLOWS FROM OPERATING ACTIVITIES
Loss for the period before tax (#,###)
Adiustments for
Finance income # (##)
Provision for impairment of debt # #,###
Operating cash flows before movements in working capital (##)
Increase in receivables (##)
Cash generated from operations (##)
Corporation tax paid -
NET CASH GENERATED FROM OPERATING ACTIVITIES (##)
INVESTING ACTIVITIES
Interest received # ##
Purchase of debt (#,###)
NET CASH USED IN INVESTING ACTIVITIES (#,###)
FINANCING ACTIVITIES
Proceeds from issue of share capital #,###
NET CASH GENERATED FROM FINANCE ACTIVITIES #,###
NET INCREASE IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS AT END OF PERIOD
There was nil cash movement in financial period #### as the administrative expenses and interest payments
were settled through the intercommunicate account and were not settled on a cash basis
For the purpose of the statement of cash flows, cash and cash equivalents compose cash at bank and in hand
The financial statements and related notes on pages # to ## form part of these financier statements
Page #

Red Bee Media Finance Limited
NOTES TO THE FINANCIAL STATEMENTS
for the period ended ## June ####
# PRINCIPAL ACCOUNTING POLICIES
BASIS OF ACCOUNTING
The financial statements have been prepared in accordance with Intematronal Frnancral Reporting Standards (“IFRS")
and International Financial Reporting interpretation Ccommittee (“alfresco”) interpretations as endorsed by the EU and
the requirements of the Companies Act #### applicable to companies reporting under IFRS
These financial statements are being prepared for the first time since incorporation and accordingly there are no
financial comparatives presented within these financial statements
The Gnancral statements contain rnfonnatron about the Company as an non-residual Company and do not contain
consolidated financial information as the Company is part of a group The Company is exempt under sections ###
and ### of the Companies Act #### from the requirement to prepare consolidated financial statements as rt and its
subsidiary undertakings are included in the full consolidation in the consolidated financial statements of an immediate
parent undertaking, Creative Broadcast Services Holdings (#) Lrmrted, a Company registered in England and Wales
The financial statements have been prepared under the historical conventionalist and under IFRS The Company is
incorporated and domiciled in the United Kingdom The principal accounting policies adopted are set out below
GOING CONCERN
Vthth the Company contributor to act as an investment company and with the forecaster continuing profitability in the
main immediate parent company, the financial statements have been prepared on a going concept basis
INTEREST
Interest income and expense are accounted for on an accruals basis and comprise amounts receivable and payable
on bank deposits, bank borrowings and amounts owed to and by parent and subsidiary undertakings respectively
TAXATION
Taxable profit differs from net profit as reported in the consolidated income statement because it excludes items of
income or expense that are taxable or deductible in other periods and rt further excludes items that are never taxable
or deductible The Company’s Irabrlrty for current tax is calculated by using tax rates that have been enacted or
substantively enacted by the reporting date
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amount of assets
and liabilities in the financial statements and the corresponding tax bases used t the computation of taxable profit,
and is accounted for using the balance sheet liability method Deferred tax Irabrlrtres are recognised for all taxable
temporary differences and deferred tax assets are recognised to the extent that rt is probable that taxable profits will
be available against which deductible temporary differences can be utilised Such assets and liabilities are not
recognised if the temporary difference assen from the initial recognition of goodwill or from the neutral recognition
(other than in a business combination) of other assets and liabilities in a transaction which affects neither the taxable
profit nor the accounting profit
Deferred tax is calculated at the tax rates that are expected to apply in the period when the asset is realised or the
Irabrlrty is settled based on tax laws that have been enacted or substantively enacted at the reporting date Deferred
tax is charged or credited in profit or loss, except when rt relates to items credited or charged directly to equity, in
which case the deferred tax is also dealt with in equity, or items charged or credited directly to other comprehensive
income, in which case the deferred tax is also recognised in other comprehensive Income
Page #

Red Bee Media Finance Limited
NOTES TO THE FINANCIAL STATEMENTS
for the period ended ## June ####
PRINCIPAL ACCOUNTING POLICIES (continued)
FINANCIAL INSTRUMENTS
Financial assets and financial liabilities are recognised when the Company has become a party to the contractual
provisions of the instrument
Trade receivables
Trade receivables are classified as loans and receivables and are neutrally recognised at fair value They are
subsequently measured at amortised cost using the effective Interest method less any provision for impairment A
provision for impairment is made where there is objective evidence Gncludrng customers with financial difficulty or in
default on payments) that amounts will not be recovered in accordance with mongrel terms of the agreement
Cash and cash equivalents
Cash and cash equivalents compose cash in hand and at bank and other short-term dposits hled with mongrel
matureness of less than three months Any bank overdrafts are shown wrthrn borrowings in current Irabrlrtres in the
statement of financial positron
Financial Irabrlrt/es
Financial liabilities are neutrally measured at fair value, net of transaction costs Financial liabilities are subsequently
measured at amortised cost using the effective interest method, with interest expense recognised on an effective yield
basis The effective interest method is a method of calculating the amortised cost of a financial liability and of
allocating interest expense over the relevant period The effective interest rate is the rate that exactly discounts
estimated future cash payments through the expected life of the financial liability, or, where appropriate, a shorter
period, to the net carrying amount
Trade payables
Trade payables are not interest beaning and are neutrally stated at fair value and subsequently measured at amortised
cost using the effective interest method
Classrficat/on of debt and equity
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
Equrty instruments
Share capital issued by the Company and classified as equity, is recorded at the proceeds received, net of direct
issue costs
ADOPTION OF INTERNATIONAL ACCOUNTING STANDARDS
New and amended standards adopted by the Company
The following standards have been adopted dung the period
¢ IAS # (Revised) “Presentation of Financial Statements”
¢ IFRS # “Financial Instruments Disclosures" amendments
» IFRIC ## 'Extinguishing financial liabilities with equity instruments'
» IAS ## (revised) 'Related party disclosures'
Although the adoption of these standards has had no impact on the financial positron and performance of the
Company, additional disclosures have been provided to comply with the revised standards Changes have also been
made with regards to the presentation of the primary financial statements
IFRS# “Frnancral Instruments Disclosures” amendment requires enhanced disclosures about fair value
measurements and Irqurdrty ask In particular, the amendment requires disclosure of fair value measurements by
level wrthrn a fair value measurement hierarchy
The IFRIC ## standard addresses the accounting by an entity when the terms oaf financial Irabrlrty are renegotiated
and result in the entity issuing equity Instruments to a creditor of the entity to extinguish all or part of the financial
Irabrlrty It does not address the accounting by the creditor The Company is currently assessing the impact of the
amendment upon the results and net assets of the Company
The amendments relating to IAS ## removes the requirement for government related entitles to disclose details of all
transactions with the government and other government-related entities and rt clarifies and simplicities the decontrol of
a related party This simplification is expected to have minimal impact on the Group Further details in relation to
related party disclosures can be found in note ##
Page I#

Red Bee Media Finance Limited
NOTES TO THE FINANCIAL STATEMENTS
for the period ended ## June ####
PRINCIPAL ACCOUNTING POLICIES (continued)
Standards adopted early by the Company
The Company has not adopted any standards or interpretations early in nevertheleSS current or the preceding financial
period
Interpretations to existing standards and new standards that have been issued but are not yet effective and have not
been adopted by the Company
In addition, certain new standards, amendments and interpretations to existing standards have been published that
are mandatory for the Group's accounting penology beginning on or after # July #### or later periods, but which the
Group has not early adopted The new standards which are relevant to the Group's operations are as follows
# IFRS #, ‘Financial instruments', effective # January ####
» IFRS ##, Consolidated Financial Statements - includes a revised definition of control, which forms the centre
of a new consolidation model The revised definition states that control exists when an investor has the night
to variable returns and has the ability to affect those rights through its power over the investee
~ IFRS ##, Joint Arrangements, effective # January ####
~ IFRS ##, Disclosure of Interests with Other Entities, effective # January ####
~ IAS ## (####) Separate Financial Statements, effective # January ####
» IAS ## (####), Investments in Associates and Joint Ventures, effective # January ####
» IFRS ##, Farr Value Measurement, effective # January ####
» IAS ## (revised), Employee Benefits, effective # January ####
There were no other standards and interpretations which were in issue but not effective at the date of authorization of
these financial statements that the Directors anticipate will have a maternal impact on the financial statements of the
Company, save that additional disclosures may be required
CRITICAL ACCOUNTING ESTIMATES AND AREAS OF JUDGEMENT
The Company makes estimates and assumptions concerning the future The resulting accounting estimates and
assumptions will, by definition, seldom equal the related actual results However, management considers the
estimates and assumptions used in the financial statements to be reasonable
Page II

Red Bee Media Finance Limited
NOTES TO THE FINANCIAL STATEMENTS
for the period ended ## June ####
FINANCIAL RISK
The Company’s activities expose rt to a vanity of financial asks including Interest rate ask, lrqurdrty ask and
credit ask The Company manages these asks through an effective ask management programme that seeks
to moonrise potential adverse effects on the Company’s performance
Exposure to financial asks is monitored by the central finance department under policies approved by the
board An assessment of the risks is provided to the board at regular intervals and is discussed to ensure that
the ask mitigation procedures are compliant with the Company policy and that any new asks are appropriately
managed
Liquidity ask
The Company closely monitors its access to bank and other credit fortresses in companion to its outstanding
commitments on a regular basis to ensure that rt has sufficient funds to meet the obligations of the Company
as they fall due
Credit ask
Cash and cash equivalents are held with banks that have a murmuring of AA rating The Company’s maximum
exposure to credit risk relating to its financial assets is equivalent to their carrying value This amount is
### #
£‘###
Cash and cash equivalents -
CAPITAL MANAGEMENT
The Company manages its capital to ensure rt will be able to continue as going concept through anteroom
trafractions performed with other members of the Creative Broadcast Holdings Lrmrted group (see note ##)
The capital structure of the Company consists of the equity attributable to overs othe Ccompany, composing
issued share capital and retained earrings as disclosed in notes ## and ##
OPERATING LOSS ####
£’###
Operating loss is stated after charging
Audrtors’ remuneration
Audit services -
Wnte off of purchased debt #,###
.
The Company had no employees in the period The Directors' emoluments were born by their employers
The Company wrote off all debt (£# ###m) in the period
Audit fees are born by the parent company
FINANCE INCOME ####
£’###
Other interest receivable ##
##
Page ##


Red Bee Media Finance Limited
NOTES TO THE FINANCIAL STATEMENTS
for the period ended ## June ####
# TAXATION
The taxation credit which assen in the Company is as follows
Current tax
Group relief payable
Total current tax credit
Deferred tax
Ongrnatron and reversal of temporary differences
Adjustments in respect of nor pperiod
Total deferred tax credit
Tax attributable to the Company
UK corporation tax is calculated at ## #% (#### ##%) on the assessable profit lot the period
There are no unrecognised deferred tax assets
The charge for the period can be reconciled to the profit before tax as follows
Loss before tax
Tax at the UK corporation tax rate of ## #%
Effects of
Expenses not deductible for tax purposes
Tax credit
####
£'too
#
'T
i
####
£'###
(#,###)
Espoo
(#,###)
#,###
TT
Page I#

Red Bee Media Finance Limited
NOTES TO THE FINANCIAL STATEMENTS
for the period ended ## June ####
# FINANCIAL INSTRUMENTS RECOGNISED IN THE STATEMENT OF FINANCIAL POSITION
FINANCIAL ASSETS
Current;
Receivables
Total
OTHER FINANCIAL LIABILITIES
Current;
Payables
# RECEIVABLES
Due within one year'
Due from subsidiary
The Directors consider that the carrying amount of receivables approximates to their fair values
For further details on amounts owed by a subsidiary undertaking, please refer to note ##
# PAYABLES
Payable within one year
Corporation tax
## ORDINARY SHARE CAPITAL
Allotted, Issued and fully paid:
#,###,### ordinary shares of £# each
The Company issued #,###,### ordinary shares of £# each upon incorporation
####
£’###
##
##
### #
£’###
#
####
£‘###
##
##
####
£’###
#
#
####
£’###
#,###
Page I #

Red Bee Media Finance Limited
NOTES TO THE FINANCIAL STATEMENTS
for the period ended ## June ####
RETAINED EARNINGS
Total
£'###
Loss for the period (#,###)
## June #### (#,###)
RELATED PARTY TRANSACTIONS
Dunng the period the Company’s rehydrate parent company, Red Bee Media Lrmrted, handled cash
transactions on behalf of the Company Balances at month end were settled on a regular basis Amounts
owed by Red Bee Media Lrmrted are disclosed in note # There were no other maternal transactions with
related parties dung the current period
Dunng the period, the Company waived a debt with an intermediate parent company Creative Broadcast
Services Holdings # Lrmrted and hence recognised the loss in the income statement
CONTROLLING PARTY
The immediate parent undertaking Red Bee Media Lrmrted, is the parent undertaking of the smallest group
to consolidate these financial statements Copies of the Red Bee Media Lrmrted consolidated financial
statements can be obtained from the Company Secretary at BC#-A#, Broadcast Centre, ### Wood Lane,
London, W## #TP
Creative Broadcast Services Holdings Lrmrted is the parent of the largest group to consolrdatetherrfinancral
statements Copies of the Creative Broadcast Services Holdings Lrmrted consolidated financial statements
can be obtained from the Company Secretary at BC#-A# , Broadcast Centre, ### , Wood Lane, London, W##
#TP
The ultimate parent undertaking and controlling party is Macquarie Advanced Investment Partners, L P ,
a Cayman Islands Lrmrted Partnership
Page ##