3DD Entertainment Ltd - Limited company accounts 20.1

REGISTERED NUMBER: 02957521 (England and Wales)

Report of the Directors and

Unaudited Financial Statements

for the Year Ended 31 March 2021

for

3DD Entertainment Ltd

Page

Company Information

1

Report of the Directors

2

Income Statement

4

Statement of Financial Position

5

Notes to the Financial Statements

7

DIRECTORS:

Mrs L A Saville

D Saville

SECRETARY:

D Saville

REGISTERED OFFICE:

Suite 3.20 344-354 Gray's Inn Road

London

WC1X 8BP

REGISTERED NUMBER:

02957521 (England and Wales)

ACCOUNTANTS:

SKS Business Services Limited

3 Sheen Road

Richmond upon Thames

Richmond

Surrey

TW9 1AD

The directors present the report together with the unaudited financial statements for the year ended 31 March 2021.

PRINCIPAL ACTIVITY

The principal activity of the company continued to be that of distributors of television programmes and series, for sale worldwide on traditional and new media channels.

REVIEW OF BUSINESS

There was a profit for the year after taxation amounting to £503,684 (2020: £224,475). The directors do not recommend the payment of a dividend.

DIRECTORS

The directors during the year under review were:

Mrs L A Saville

D Saville

The directors holding office at 31 March 2021 did not hold any beneficial interest in the issued share capital of the company at 1 April 2020 or 31 March 2021.

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The company uses various financial instruments which include cash, trade debtors, trade creditors and amounts due to group undertakings that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the company's operations. The existence of these financial instruments exposes the company to a number of financial risks, which are described in more detail below.

The main risks arising from the company's financial instruments are currency risk, interest rate risk, credit risk and liquidity risk. The directors review and agree policies for managing each of these risks and they are summaries below. These policies have remained unchanged from previous years.

CURRENCY RISK

The company is exposed to translation and transaction foreign exchange risk.

Approximately a fifth of the company's purchases are from mainland USA and are transacted in US dollars. The company does not adopt a prescribed policy to eliminate currency exposures but does purchase US dollars to hold for the purpose of settling these liabilities from time to time when rates are favourable.

LIQUIDITY RISK

The company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably.

The company's policy throughout the year has been to achieve this objective through management's day to day involvement in business decisions rather than through setting maximum or minimum liquidity ratios.

DIRECTORS' RESPONSIBILITIES STATEMENT

The directors are responsible for preparing the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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 2006. 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.

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

BY ORDER OF THE BOARD:

D Saville - Director

29 March 2022

TURNOVER

2

2,559,282

2,486,692

Cost of sales

(1,450,200

)

(1,690,951

)

GROSS PROFIT

1,109,082

795,741

Other Operating Charges

(344,475

)

(357,963

)

OPERATING PROFIT

4

764,607

437,778

Interest payable and similar expenses

5

(193,648

)

(206,047

)

PROFIT BEFORE TAXATION

570,959

231,731

Tax on profit

6

(67,275

)

(7,256

)

PROFIT FOR THE FINANCIAL YEAR

503,684

224,475

FIXED ASSETS

Tangible assets

7

5,732

9,579

CURRENT ASSETS

Debtors

8

2,849,439

2,495,740

Cash at bank and in hand

65,824

82,777

2,915,263

2,578,517

CREDITORS

Amounts falling due within one year

9

(1,846,964

)

(1,095,498

)

NET CURRENT ASSETS

1,068,299

1,483,019

TOTAL ASSETS LESS CURRENT
LIABILITIES

1,074,031

1,492,598

CREDITORS

Amounts falling due after more than one year

10

(1,039,937

)

(1,563,187

)

NET ASSETS/(LIABILITIES)

34,094

(70,589

)

CAPITAL AND RESERVES

Called up share capital

11

1,000

Retained earnings

12

33,094

(71,589

)

SHAREHOLDERS' FUNDS

34,094

(70,589

)

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2021.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2021 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Board of Directors and authorised for issue on 29 March 2022 and were signed on its behalf by:

D Saville - Director

1.	ACCOUNTING POLICIES

BASIS OF PREPARING THE FINANCIAL STATEMENTS

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

RELATED PARTY EXEMPTION

The company has taken advantage of the exemption available in FRS 8 from disclosing transactions with entities that are part of the 3DD Holdings Limited group of companies.

TURNOVER

Turnover (which excludes VAT) represents revenue that the company has earned in respect of programme sales.

Revenue is recognised when all of the following criteria are met:

a) a licence agreement has been signed by both parties

b) the arrangement is fixed and determinable

c) collection is reasonably assured

TANGIBLE FIXED ASSETS

Depreciation is calculated to write down the cost less estimated residual value of all tangible fixed assets by equal annual instalments over their expected useful lives. The rates generally applicable are:

Leasehold properties

Straight line over the life of the lease

Fixtures and fittings

25% pa straight line basis

Computer software

25% pa straight line basis

DEFERRED TAXATION

Deferred tax is recognised on all timing differences where the transactions or events that give the group an obligation to pay more tax in the future, or a right to pay less tax in the future, have occurred by the balance sheet date. Deferred tax on defined benefit pension scheme surpluses or deficits is adjusted against these surpluses. Deferred tax assets are recognised when it is more likely than not that they will be recovered. Deferred tax is measured using rates of tax that have been enacted or substantively enacted by the balance sheet date.

FOREIGN CURRENCIES

Transactions in foreign currencies are translated at the exchange rate ruling at the date of the transaction. Monetary assets and liabilities in foreign currencies are translated at the rates of exchange ruling at the balance sheet date. Any gain or loss arising from a change in exchange rates subsequent to the date of the transaction is included as an exchange gain or loss in the profit and loss account.

LEASED ASSETS

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Assets held under finance leases and hire purchase contracts are capitalised in the balance sheet and depreciated over their expected useful lives. The interest element of leasing payments represents a constant proportion of the capital balance outstanding and is charged to the profit and loss account over the period of the lease.

CONTRIBUTIONS TO PENSION SCHEMES

Defined Contribution Scheme

The pension costs charged against profits represent the amount of the contributions payable to the scheme under auto-enrolment rules in respect of the accounting period.

GOING CONCERN

The Directors have prepared the accounts under the assumption that the company is a going concern on the basis that the company has the support of Business Loan Network Limited t/a ThinCats Participations Limited in the form of a fully secured loan that provide sufficient funding to meet the company's projected cash requirements for a period of at least twelve months from the date of approval of these financial statements.

2.

TURNOVER

The turnover of the company has been derived from its principal activity and is split as follows:

2021

2020

£

United Kingdom

1,316,692

1,150,358

Overseas

1,242,590

1,336,334

2,559,282

2,486,692

3.	EMPLOYEES AND DIRECTORS

2021

2020

£

Wages and salaries

219,563

180,135

Other pension costs

4,786

4,314

224,349

184,449

The average number of employees during the year was as follows:

2021

2020

Sales, production and marketing

4

5

Administration

-

2

4

7

4.	OPERATING PROFIT

The operating profit is stated after charging:

2021

2020

£

Depreciation - owned assets

4,345

18,040

Foreign exchange differences

11,338

25,061

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

2021

2020

£

Loan

193,648

206,047

6.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2021

2020

£

Current tax:

UK corporation tax

67,275

7,256

Tax on profit

67,275

7,256

UK corporation tax has been charged at 19% (2020 - 19%).

RECONCILIATION OF TOTAL TAX CHARGE INCLUDED IN PROFIT AND LOSS

The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2021

2020

£

Profit before tax

570,959

231,731

Profit multiplied by the standard rate of corporation tax in the UK of 19%
(2020 - 19%)

108,482

44,029

Effects of:

Depreciation and Capital Allowances

280

2,201

Double taxation relief

(15,845

)

(38,974

)

Group Relief

(25,642

)

-

Total tax charge

67,275

7,256

7.	TANGIBLE FIXED ASSETS

Short Leasehold
Property

Office Equipment
Fixtures & Fittings

Computer
Hardware

Total

Cost

At 1 April 2020

86,634

49,917

138,391

274,942

Additions

498

Disposals

At 31March 2021

86,634

49,917

138,889

275,440

Depreciation

At 1 April 2020

84,375

49,917

131,097

265,389

Additions

1,004

3,341

4,345

Disposals

At 31March 2021

85,379

49,917

134,438

269,734

Net book amount at 31
March 2021

1,255

-

4,451

5,706

Net book amount at 31
March 2020

2,259

-

7,294

9,579

8.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

Trade debtors

588,277

446,616

Amounts owed by group undertakings

2,095,486

1,807,573

Other debtors

57,928

57,547

Corporation tax receivable

-

12,295

Prepayments

107,748

171,709

2,849,439

2,495,740

9.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

Peer to Peer Loans

1,423,095

564,973

Trade creditors

187,332

456,544

Other Creditors

55,565

-

Corporation tax

29,560

-

Social security and other tax

29,814

18,603

VAT

97,131

506

Other loan

9,020

-

Directors' loan accounts

15,447

54,872

1,846,964

1,095,498

10.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR

2021

2020

£

Peer to peer loans

591,263

1,422,170

Director loans

448,674

141,017

1,039,937

1,726,753

The company's sole lender remains The Business Loan Network, trading as ThinCats Participations Ltd, who hold a floating charge on all existing and future assets of the company for securing all existing and future debts via a cross guarantee principally between 3DD Productions and 3DD Holdings with the company.

11.	CALLED UP SHARE CAPITAL

2021

2020

Authorised

£

1,250,000 ordinary shares of £0.001 each

1,250

Allotted, called up and fully paid

1,000,000 ordinary shares of £0.001 each

1,000

12.

RESERVES

Retained

earnings

£

At 1 April 2020

(71,589

)

Profit for the year

503,684

Previous years adjustment

(399,001

)

At 31 March 2021

33,094

13.	PENSION COMMITMENTS

Money Purchase Scheme

The company operates an auto-enrolment compliant money purchase pension scheme for the benefit of the employees. The assets of the scheme are administered by trustees in a fund maintained by Scottish Widows independent from those of the company.

14.	LEASING COMMITMENTS

Operating lease payments commitments are £ 10,992 (2020: 11,162 ). The leases to which these amounts relate expire as follows:

2021

2020

£

Within one year

10,992

11,162

Between one and five years

-

15.	CONTROLLING RELATED PARTY

The directors consider that the ultimate parent undertaking of this company is 3DD Holdings Limited (registration number 05102800), incorporated in England and Wales. Copies of the parent undertakings' accounts are available from the company from the company's registered offices. The company is controlled by D T Saville by virtue of his majority shareholding in the ultimate parent company. The company is exempt from disclosing related party transactions with other entities within the group structure.