3DD Entertainment Ltd - Limited company accounts 23.2

REGISTERED NUMBER: 02957521 (England and Wales)

Report of the Directors and

Unaudited Financial Statements

for the Year Ended 31 March 2023

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 £265,097 (2022: £202,327). 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 2023 did not hold any beneficial interest in the issued share capital of the company at 1 April 2022 or 31 March 2023.

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.

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

27 December 2023

TURNOVER

2

2,208,416

2,233,935

Cost of sales

(1,306,800

)

(1,502,002

)

GROSS PROFIT

901,616

731,933

Other Operating Charges

(413,909

)

(444,446

)

OPERATING PROFIT

4

487,707

287,487

Interest payable and similar expenses

5

(160,279

)

(37,552

)

PROFIT BEFORE TAXATION

327,428

249,935

Tax on profit

6

(62,331

)

(47,608

)

PROFIT FOR THE FINANCIAL YEAR

265,097

202,327

FIXED ASSETS

Tangible assets

7

2,233

3,157

CURRENT ASSETS

Debtors

8

2,972,806

2,931,892

Cash in hand

267,639

215,821

3,240,445

3,147,713

CREDITORS

Amounts falling due within one year

9

(834,226

)

(746,518

)

NET CURRENT ASSETS

2,406,219

2,401,195

TOTAL ASSETS LESS CURRENT LIABILITIES

2,408,452

2,404,352

CREDITORS

Amounts falling due after more than one year

10

(1,989,003

)

(2,250,000

)

NET ASSETS

419,449

154,352

CAPITAL AND RESERVES

Called up share capital

11

1,000

1,000

Retained earnings

12

418,449

153,352

SHAREHOLDERS' FUNDS

419,449

154,352

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2023.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2023 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 27 December 2023 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:

2023

2022

£

£

United Kingdom

968,817

864,373

Overseas

1,239,599

1,369,562

2,208,416

2,233,935

3.	EMPLOYEES AND DIRECTORS

2023

2022

£

£

Wages and salaries

205,048

253,541

Other pension costs

3,621

4,717

208,669

258,258

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

2023

2022

Sales, production and marketing

2

3

4.	OPERATING PROFIT

The operating profit is stated after charging:

2023

2022

£

£

Depreciation - owned assets

2,047

3,450

Foreign exchange differences

1,561

22,265

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

2023

2022

£

£

Loan

160,279

37,552

6.

TAXATION

Analysis of the tax charge

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

2023

2022

£

£

Current tax:

UK corporation tax

62,331

47,608

Tax on profit

62,331

47,608

UK corporation tax has been charged at 19% (2022 - 19%).

RECONCILIATION OF TOTAL TAX CHARGE INCLUDED IN PROFIT AND LOSS

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

2023

2022

£

£

Profit before tax

327,428

249,935

Profit multiplied by the standard rate of corporation tax in the UK of 19% (2022 - 19%)

62,211

47,488

Effects of:

Depreciation and Capital Allowances

120

120

Total tax charge

62,331

47,608

7.	TANGIBLE FIXED ASSETS

Short Leasehold Property

Office Equipment Fixtures & Fittings

Computer Hardware

Total

Cost

At 1 April 2022

86,634

49,917

139,764

276,315

Additions

1,374

1,374

Disposals

At 31March 2023

86,634

49,917

141,138

277,689

Depreciation

At 1 April 2022

86,383

49,917

136,858

273,158

Additions

251

2,047

2,298

Disposals

At 31March 2023

86,634

49,917

138,905

275,456

Net book amount at 31 March 2023

-

-

2,233

2,233

Net book amount at 31 March 2022

251

-

2,906

3,157

8.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023

2022

£

£

Trade debtors

650,125

809,470

Amounts owed by group undertakings

2,210,578

1,970,151

Other debtors

68,778

68,778

Prepayments

43,325

83,493

2,972,806

2,931,892

9.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023

2022

£

£

Trade creditors

245,108

142,886

Other Creditors

(12,332

)

(6,224

)

Corporation tax

102,355

136,644

Social security and other tax

76,996

89,619

VAT

71,128

10,354

Other loan

673

4,837

Directors' loan accounts

350,298

368,402

834,226

746,518

10.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2023

2022

£

£

Thin Cats Loan

1,989,003

2,250,000

11.	CALLED UP SHARE CAPITAL

2023

2022

Authorised

£

£

1,250,000 ordinary shares of £0.001 each

1,250

1,250

Allotted, called up and fully paid

1,000,000 ordinary shares of £0.001 each

1,000

1,000

12.

RESERVES

Retained

earnings

£

At 1 April 2022

153,352

Profit for the year

265,097

At 31 March 2023

418,449

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.	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.