Caseware UK (AP4) 2021.0.152 2021.0.152 2021-12-312021-12-31truetrue2021-01-01truetruetruetruetrueGenie Toys International LimitedNo description of principal activityC W Normanfalse44false 03252149 2021-01-01 2021-12-31 03252149 2020-01-01 2020-12-31 03252149 2021-12-31 03252149 2020-12-31 03252149 2020-01-01 03252149 c:PriorPeriodIncreaseDecrease 2021-01-01 2021-12-31 03252149 d:CompanySecretary1 2021-01-01 2021-12-31 03252149 d:Director1 2021-01-01 2021-12-31 03252149 d:Director2 2021-01-01 2021-12-31 03252149 d:Director3 2021-01-01 2021-12-31 03252149 d:Director3 2021-12-31 03252149 d:RegisteredOffice 2021-01-01 2021-12-31 03252149 c:Buildings 2021-01-01 2021-12-31 03252149 c:Buildings 2021-12-31 03252149 c:Buildings 2020-12-31 03252149 c:Buildings c:OwnedOrFreeholdAssets 2021-01-01 2021-12-31 03252149 c:Buildings c:LongLeaseholdAssets 2021-01-01 2021-12-31 03252149 c:FurnitureFittings 2021-01-01 2021-12-31 03252149 c:FurnitureFittings 2020-12-31 03252149 c:FurnitureFittings c:OwnedOrFreeholdAssets 2021-01-01 2021-12-31 03252149 c:OwnedOrFreeholdAssets 2021-01-01 2021-12-31 03252149 c:CurrentFinancialInstruments 2021-12-31 03252149 c:CurrentFinancialInstruments 2020-12-31 03252149 c:CurrentFinancialInstruments c:WithinOneYear 2021-12-31 03252149 c:CurrentFinancialInstruments c:WithinOneYear 2020-12-31 03252149 c:ReportableOperatingSegment1 2021-01-01 2021-12-31 03252149 c:ReportableOperatingSegment1 2020-01-01 2020-12-31 03252149 e:UnitedKingdom 2021-01-01 2021-12-31 03252149 e:UnitedKingdom 2020-01-01 2020-12-31 03252149 e:RestEuropeOutsideUK 2021-01-01 2021-12-31 03252149 e:RestEuropeOutsideUK 2020-01-01 2020-12-31 03252149 e:RestWorldOutsideUK 2021-01-01 2021-12-31 03252149 e:RestWorldOutsideUK 2020-01-01 2020-12-31 03252149 c:UKTax 2021-01-01 2021-12-31 03252149 c:UKTax 2020-01-01 2020-12-31 03252149 c:ForeignTax 2021-01-01 2021-12-31 03252149 c:ForeignTax 2020-01-01 2020-12-31 03252149 c:ShareCapital 2021-12-31 03252149 c:ShareCapital 2020-12-31 03252149 c:ShareCapital 2020-01-01 03252149 c:RetainedEarningsAccumulatedLosses 2021-01-01 2021-12-31 03252149 c:RetainedEarningsAccumulatedLosses 2021-12-31 03252149 c:RetainedEarningsAccumulatedLosses 2020-01-01 2020-12-31 03252149 c:RetainedEarningsAccumulatedLosses 2020-12-31 03252149 c:RetainedEarningsAccumulatedLosses 2020-01-01 03252149 d:OrdinaryShareClass1 2021-01-01 2021-12-31 03252149 d:OrdinaryShareClass1 2021-12-31 03252149 d:OrdinaryShareClass1 2020-12-31 03252149 d:FRS102 2021-01-01 2021-12-31 03252149 d:Audited 2021-01-01 2021-12-31 03252149 d:FullAccounts 2021-01-01 2021-12-31 03252149 d:PublicLimitedCompanyPLCNotQuotedOnAnyExchange 2021-01-01 2021-12-31 03252149 c:Buildings c:PriorPeriodIncreaseDecrease 2021-01-01 2021-12-31 03252149 c:FurnitureFittings c:PriorPeriodIncreaseDecrease 2021-01-01 2021-12-31 03252149 c:Subsidiary1 2021-01-01 2021-12-31 03252149 c:Subsidiary1 1 2021-01-01 2021-12-31 03252149 c:WithinOneYear 2021-12-31 03252149 c:WithinOneYear 2020-12-31 03252149 c:BetweenOneFiveYears 2021-12-31 03252149 c:BetweenOneFiveYears 2020-12-31 03252149 2 2021-01-01 2021-12-31 03252149 6 2021-01-01 2021-12-31 xbrli:shares iso4217:GBP xbrli:pure


Registered number: 03252149












GENIE TOYS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

 

GENIE TOYS LIMITED

CONTENTS



Page
Company Information
 
1
Strategic Report
 
2 - 3
Directors' Report
 
4
Directors' Responsibilities Statement
 
5
Independent Auditor's Report
 
6 - 9
Profit and Loss Account
 
10
Balance Sheet
 
11
Statement of Changes in Equity
 
12
Notes to the Financial Statements
 
13 - 24


 

GENIE TOYS LIMITED
 
COMPANY INFORMATION


Directors
C W Norman 
C J Norman 
V A Norman (appointed 1 January 2022)




Company secretary
C W Norman



Registered number
03252149



Registered office
Genie House
St James Square

Cheltenham

Gloucestershire

GL50 9QG




Trading Address
Genie House
St James Square

Cheltenham

Gloucestershire

GL50 3QG






Independent auditor
Blick Rothenberg Audit LLP
Chartered Accountants & Statutory Auditor

16 Great Queen Street

Covent Garden

London

WC2B 5AH




Page 1

 

GENIE TOYS LIMITED
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021



Business review
 
The directors report a loss for the year but are confident that the company will return to profitability in the future.
The principal activity of the company continued to be that of the designing and licensing of toys and games.

Principal risks and uncertainties
 
As for many businesses of our size which depend upon the worldwide retail sector, the business environment in which we operate continues to be challenging. We are subject to consumer spending patterns, consumers' overall level of disposable income and fashion trends. With these risks and uncertainties in mind, we are constantly developing new products and concepts in order to reduce our exposure.
Treasury operations and financial instruments
The company's principal financial instruments include financial assets and liabilities such as trade debtors and trade creditors arising directly from operations.
Foreign exchange risk
The company's principal foreign exchange exposure arises from trading with overseas companies. The company uses foreign exchange bank accounts and this gives the company control over the remittance of funds to Sterling.
Liquidity risk
The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business.
Credit risk
All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are reviewed on a regular basis and provision is made for doubtful debts when necessary.
Covid-19
The toy design and manufacture sector continues to be mindful of the coronavirus pandemic and the impact this continues to have on the global economic landscape. Throughout 2021, there has been only limited business interruption in the sector. Global restrictions on travel and movement has resulted in the cancellation of toy fairs and trade events, resulting a shift towards digital networking throughout the year. Also, difficult worldwide trading conditions naturally increases the risk of defaults on debt.
The directors will continue to mitigate these risks in a number of ways, notably by continuing to foster long-term relationships with our key clients, maintaining flexibility in our cost base, ensuring that we are not overly reliant on any one part of our supply chain and by continuing to engage regularly with all other key stakeholders across the business. The company will also continue to take advantage of government support where appropriate. 

Page 2

 

GENIE TOYS LIMITED

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021

Financial key performance indicators
 
We consider that our key financial performance indicators are those that communicate the financial performance and strength of the company, those being turnover, net profit margin and cash balances.
The turnover of the company in 2021 was £662,298 (2020: £484,815). Royalty income has increased by 35% compared with 2020, rising to £662,298 (2020: £482,852) as a result of successful development work in previous years leading to high volumes of global toy sales. Income from development work has decreased to £nil (2020: £1,963). This reflects the successful development work in previous years which has led to royalty income in the current year. The directors hope to grow the revenue from development work again in 2022. 
The net loss margin of the company decreased to -20.2% (2020: -23.8%), and the operating loss margin decreased to -22.4% (2020: -30.3%). Included within the operating loss for 2021 were losses on foreign currency exchange totalling £99,125 (2020: £6,252) caused by adverse currency fluctuations during the year. Administration expenses were increased in the year by 6.8%, which is lower than the increase in revenues and so will help future sustainability and improve the margins as sales continue to improve. The directors are confident that the net profit margin will improve in future years and that the sustained expenditure on development costs will continue to expand the customer base and improve the level of income.
Cash at bank stood at £63,774 as at the balance sheet date compared to a year end balance of £107,025 in 2020, which provides the company with the ability to meet its working capital requirements as necessary. Cash is also readily accessible from the parent company as and when required.




This report was approved by the board and signed on its behalf.



................................................
C W Norman
Director

Date: 17 June 2022

Page 3

 

GENIE TOYS LIMITED

DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021

The directors present their report and the financial statements for the year ended 31 December 2021.

Results and dividends

The loss for the year, after taxation, amounted to £133,937 (2020 - loss £115,563).

There were declared dividends of £40,500 (2020: £20,250) during the year, to be paid on equity capital.

Directors

The directors who served during the year were:

C W Norman 
C J Norman 

Future developments

The company will continue to focus on growth in its current markets through acquiring new customers, and by developing more toy designs.

Research and development activities

Genie Toys Limited has conducted extensive and eligible R&D to develop new and innovative products in the field of children's toys.

Change of name
On 12 May 2021 Genie Toys Plc Re-registered from a public company to a private company, Genie Toys Limited.

Disclosure of information to auditor

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the company's auditor is unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the company's auditor is aware of that information.

This report was approved by the board and signed on its behalf.
 





................................................
C W Norman
Director

Date: 17 June 2022

Page 4

 

GENIE TOYS LIMITED
 
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2021

The directors are responsible for preparing the Strategic Report, 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 year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), 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 for the company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Page 5

 

GENIE TOYS LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF GENIE TOYS LIMITED
 FOR THE YEAR ENDED 31 DECEMBER 2021

Opinion


We have audited the financial statements of Genie Toys Limited (the 'company') for the year ended 31 December 2021, which comprise the Profit and Loss Account, the Balance Sheet, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the company's affairs as at 31 December 2021 and of its loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


Other information


The other information comprises the information included in the Annual Report other than the financial statements and  our Auditor's Report thereon.  The directors are responsible for the other information contained within the Annual Report.  Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated.  If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves.  If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Page 6

 

GENIE TOYS LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF GENIE TOYS LIMITED (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021

 
Opinion on other matters prescribed by the Companies Act 2006
 

In our opinion, based on the work undertaken in the course of the audit:


the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept, or returns 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 returns; or
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.


Page 7

 

GENIE TOYS LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF GENIE TOYS LIMITED (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021

Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 5, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.


Auditor's responsibilities for the audit of the financial statements
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
 
we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the company's sector; 
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, employment legislation, and health and safety legislation;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
 
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:
 
performed analytical procedures to identify any unusual or unexpected relationships;
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.

 
Page 8

 

GENIE TOYS LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF GENIE TOYS LIMITED (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
 
agreeing financial statement disclosures to underlying supporting documentation;
enquiring of management as to actual and potential litigation and claims; and
reviewing correspondence with HMRC, relevant regulators including the Health and Safety Executive, and the company’s legal advisors.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. 
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's Report.


Use of our report
 

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an Auditor's Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members, as a body, for our audit work, for this report, or for the opinions we have formed.






Daniel Burke (Senior Statutory Auditor)
for and on behalf of
Blick Rothenberg Audit LLP
Chartered Accountants & Statutory Auditor
16 Great Queen Street
Covent Garden
London
WC2B 5AH

 
Date: 
22 June 2022
Page 9

 

GENIE TOYS LIMITED
 
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2021

2021
2020
Note
£
£

  

Turnover
 3 
662,298
484,815

Cost of sales
  
(207,588)
(171,029)

Gross profit
  
454,710
313,786

Administrative expenses
  
(510,783)
(478,038)

Other operating income
 4 
6,805
23,480

Other operating charges
  
(99,603)
(6,252)

Operating loss
 5 
(148,871)
(147,024)

Interest receivable and similar income
  
6
329

Loss before tax
  
(148,865)
(146,695)

Tax on loss
 8 
14,928
31,132

Loss for the financial year
  
(133,937)
(115,563)

The notes on pages 13 to 24 form part of these financial statements.

There are no items of other comprehensive income for either the year or the prior year other than the loss for the year. Accordingly, no statement of other comprehensive income has been presented.

Page 10


 
REGISTERED NUMBER:03252149
GENIE TOYS LIMITED

BALANCE SHEET
AS AT 31 DECEMBER 2021

2021
2020
Note
£
£

Fixed assets
  

Tangible assets
 10 
325,621
325,808

Investments
 11 
1
1

  
325,622
325,809

Current assets
  

Debtors: amounts falling due within one year
 12 
734,517
846,035

Cash at bank and in hand
 13 
63,774
107,025

  
798,291
953,060

Creditors: amounts falling due within one year
 14 
(155,414)
(135,933)

Net current assets
  
 
 
642,877
 
 
817,127

Total assets less current liabilities
  
968,499
1,142,936

  

Net assets
  
968,499
1,142,936


Capital and reserves
  

Called up share capital 
 15 
502,000
502,000

Profit and loss account
 16 
466,499
640,936

  
968,499
1,142,936


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




................................................
C W Norman
Director

Date: 17 June 2022


The notes on pages 13 to 24 form part of these financial statements.

Page 11

 

GENIE TOYS LIMITED

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2021


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 January 2020
502,000
776,749
1,278,749



Loss for the year
-
(115,563)
(115,563)

Dividends: Equity capital
-
(20,250)
(20,250)



At 1 January 2021
502,000
640,936
1,142,936



Loss for the year
-
(133,937)
(133,937)

Dividends: Equity capital
-
(40,500)
(40,500)


At 31 December 2021
502,000
466,499
968,499


The notes on pages 13 to 24 form part of these financial statements.

Page 12

 

GENIE TOYS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

1.


General information

Genie Toys Limited develops and licences new products in the field of children's toys.
On 12 May 2021 Genie Toys Plc re-registered from a public company to a private company, Genie Toys Limited.
The company is a public company limited by shares and registered in England and Wales. The address of its registered office and principal place of business is Genie House, St. James Square, Cheltenham, Gloucestershire, GL50 3QG.
The financial statements are presented in Sterling (£).

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland ('FRS 102') and the Companies Act 2006.

The company was, at the end of the year, a wholly-owned subsidiary of Genie Toys International Limited, a company incorporated in the EEA, whose registered address is 16 Great Queen Street, Covent Garden, London, WC2B 5AH. In accordance with the exemption given in Section 400 of the Companies Act 2006, the company is not required to produce, and has not published, consolidated accounts.
The following principal accounting policies have been applied: 

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Genie Toys International Limited as at 31 December 2021 and these financial statements may be obtained from Registrar of Companies in England and Wales.

 
2.3

Going concern

After making enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence and meet its liabilities as they fall due for the foreseeable future, being a period of at least twelve months from the date these financial statements were approved. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

Page 13

 

GENIE TOYS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

2.Accounting policies (continued)

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following 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 are provided in accordance with the stage of completion of the contract when all of the following conditions 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 measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

Turnover from the rendering of services represents amounts receivable from royalties and development services, net of value added tax and trade discounts.

 
2.5

Tangible fixed assets

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

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

Depreciation is provided on the following basis:

Freehold property
-
100 years with 50% residual value
Freehold land
-
No depreciation
Fixtures and fittings
-
4 years

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

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.6

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment. Where merger relief is applicable, the cost of the investment in a subsidiary undertaking is measured at the nominal value of the shares issued together with the fair value of any additional consideration paid.

Page 14

 

GENIE TOYS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

2.Accounting policies (continued)

 
2.7

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

  
2.8

Financial instruments

The company has elected to apply Sections 11 and 12 of FRS 102 in respect of financial instruments.
Financial assets and financial liabilities are recognised when the company becomes party to the contractual provisions of the instrument. 
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. 
The company’s policies for its major classes of financial assets and financial liabilities are set out below. 
Financial assets
Basic financial assets, including trade and other debtors, cash and bank balances, intercompany working capital balances, and intercompany financing are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate.
Such assets are subsequently carried at amortised cost using the effective interest method, less any impairment.
Financial liabilities
Basic financial liabilities, including trade and other creditors, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Impairment of financial assets
Financial assets measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the profit and loss account. 
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between the asset's carrying amount and the best estimate of the amount the company would receive for the asset if it were to be sold at the reporting date. 


 
Page 15

 

GENIE TOYS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

2.Accounting policies (continued)

Financial instruments (continued)
For financial assets measured at amortised cost, the impairment loss is measured as the difference between the asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If the financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract. 
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets and financial liabilities
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires. 
Offsetting of financial assets and financial liabilities
Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

 
2.9

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Profit and Loss Account in the same period as the related expenditure.

Page 16

 

GENIE TOYS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

2.Accounting policies (continued)

 
2.10

Foreign currency translation

Functional and presentation currency

The company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

  
2.11

Share capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares or options are shown in equity as a deduction, net of tax, from the proceeds.

 
2.12

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

 
2.13

Operating leases: the company as lessee

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

 
2.14

Pensions

Defined contribution pension plan

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the company in independently administered funds.

 
2.15

Interest income

Interest income is recognised in profit or loss using the effective interest method.

Page 17

 

GENIE TOYS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

2.Accounting policies (continued)

  
2.16

Taxation

The tax expense for the year comprises current tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
Current tax is the amount of income tax payable in respect of taxable profit for the year or prior years.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the company operates and generates income.


3.


Turnover

An analysis of turnover by class of business is as follows:


2021
2020
£
£

Royalties recievable
662,298
484,815


Analysis of turnover by country of destination:

2021
2020
£
£

United Kingdom
67,253
12,436

Rest of Europe
40,791
12,615

Rest of the world
554,254
459,764

662,298
484,815



4.


Other operating income

2021
2020
£
£

Other operating income
3,205
1,930

Government grants receivable
3,600
21,550

6,805
23,480


Page 18

 

GENIE TOYS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

5.


Operating loss

The operating loss is stated after charging:

2021
2020
£
£

Exchange differences
99,603
6,252

Other operating lease rentals
4,339
6,272

Audit fees payable to the company's auditor
9,700
8,500

The company has taken advantage of the exemption not to disclose amounts paid for non audit services as these are disclosed in the group accounts of the parent company.


6.


Employees

Staff costs, including directors' remuneration, were as follows:


2021
2020
£
£

Wages and salaries
396,000
360,571

Social security costs
48,902
42,971

Cost of defined contribution scheme
4,000
20,000

448,902
423,542


The average monthly number of employees, including the directors, during the year was as follows:


        2021
        2020
            No.
            No.







Management
1
1



Administration
3
3

4
4

Page 19

 

GENIE TOYS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

7.


Directors' remuneration

2021
2020
£
£

Directors' emoluments
382,000
346,571

Company contributions to defined contribution pension schemes
4,000
20,000

386,000
366,571


The highest paid director received remuneration of £389,888 (2020 - £339,571).

The value of the company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £4,000 (2020 - £20,000).


8.


Taxation


2021
2020
£
£

Corporation tax


Current tax on profits for the year
(38,504)
(43,881)


Witholding tax suffered
23,576
12,749

Total current tax
(14,928)
(31,132)

Factors affecting tax charge for the year

The tax assessed for the year is lower than (2020 - lower than) the standard rate of corporation tax in the UK of 19% (2020 - 19%). The differences are explained below:

2021
2020
£
£


Loss on ordinary activities before tax
(148,865)
(146,695)


Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2020 - 19%)
(28,284)
(27,872)

Effects of:


Capital allowances for year in excess of depreciation
-
(25)

Depreciation for year in excess of capital allowances
35
-

Unrelieved tax losses carried forward
28,249
27,897

R&D tax credit
(38,504)
(43,881)

Other differences leading to an increase (decrease) in the tax charge
23,576
12,749

Total tax charge for the year
(14,928)
(31,132)



Page 20

 

GENIE TOYS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
 
8.Taxation (continued)


Factors that may affect future tax charges

The main UK corporation tax rate for both the current year and prior period is 19%. In the Spring Budget 2021, the UK government announced that corporation tax rates will rise to 25% from 1 April 2023. This announcement does not constitute substantive enactment.


9.


Dividends

2021
2020
£
£


Dividends paid
40,500
20,250


10.


Tangible fixed assets





Freehold property
Fixtures and fittings
Total

£
£
£



Cost or valuation


At 1 January 2021
324,558
63,167
387,725



At 31 December 2021
324,558
63,167
387,725



Depreciation


At 1 January 2021
-
61,917
61,917


Charge for the year on owned assets
-
187
187



At 31 December 2021
-
62,104
62,104



Net book value



At 31 December 2021
324,558
1,063
325,621



At 31 December 2020
324,558
1,250
325,808




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


2021
2020
£
£

Freehold
324,558
324,558


Page 21

 

GENIE TOYS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

11.


Fixed asset investments





Investments in subsidiary companies

£



Cost or valuation


At 1 January 2021
1



At 31 December 2021
1


Subsidiary undertaking


The following was a subsidiary undertaking of the company:

Name

Registered office

Principal activity

Class of shares

Holding

GTH Genie Ltd
Genie House, St. James Square, Cheltenham, Gloucestershire, GL50 3QG
Dormant company
Ordinary
100%


12.


Debtors

2021
2020
£
£


Trade debtors
2,466
4,909

Amounts owed by group undertakings
303,339
610,943

Other debtors
40,198
54,474

Prepayments and accrued income
388,514
175,709

734,517
846,035



13.


Cash and cash equivalents

2021
2020
£
£

Cash at bank and in hand
63,774
107,025


Page 22

 

GENIE TOYS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

14.


Creditors: Amounts falling due within one year

2021
2020
£
£

Trade creditors
13,034
40,465

Amounts owed to group undertakings
1
1

Other taxation and social security
94,150
69,716

Other creditors
208
201

Accruals and deferred income
48,021
25,550

155,414
135,933



15.


Share capital

2021
2020
£
£
Allotted, called up and fully paid



502,000 (2020 - 502,000) Ordinary shares shares of £1.00 each
502,000
502,000


There are no restrictions on the distribution of dividends or the repayment of capital to ordinary shareholders.



16.


Reserves

Profit and loss account

Profit and loss account represents accumulated comprehensive income for the year and prior periods less dividends paid.


17.


Pension commitments

The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £4,000 (2020: £20,000). 

Page 23

 

GENIE TOYS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

18.


Commitments under operating leases

At 31 December 2021 the company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2021
2020
£
£


Not later than 1 year
3,845
439

Later than 1 year and not later than 5 years
4,486
-

8,331
439


19.


Related party transactions

During the year, directors paid for expenses on behalf of the company totalling £447 (2020: £992) and were repaid £426 (2020: £4,476) by the company. At the balance sheet date, the company was owed £192 by the directors (2020: £213).
The company has taken advantage of the disclosure exemption regarding the requirements of Section 33 Related Party Disclosures paragraph 33.7 in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland". As at the balance sheet date, the company was owed £303,339 by parent company Genie Toys International Limited (2019: £610,943).
All related party balances are interest free, unsecured, and repayable on demand. 


20.


Controlling party

The ultimate parent company and the parent undertaking of the smallest group of undertakings for which group financial statements are drawn up and of which the company is a member is , a company incorporated in England & Wales and whose registered office is 16 Great Queen Street, Covent Garden, London, WC2B 5AH. Copies of these group financial statements are available to the public from its registered office.
 
In the opinion of the driectors the ultimate controlling party is  by virtue of his majority
shareholding in Genie Toys International Limited.

 
Page 24