Company registration number 12452205 (England and Wales)
MATCHINGHAM GAMES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023
MATCHINGHAM GAMES LIMITED
COMPANY INFORMATION
Director
Ahmet Han
(Appointed 1 August 2023)
Company number
12452205
Registered office
Rutland House
23-25 Friar Lane
Leicester
LE1 5QQ
Auditor
Azets Audit Services
St Davids Court
Union Street
Wolverhampton
West Midlands
United Kingdom
WV1 3JE
MATCHINGHAM GAMES LIMITED
CONTENTS
Page
Strategic report
1 - 2
Director's report
3 - 4
Independent auditor's report
5 - 7
Profit and loss account
8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 32
MATCHINGHAM GAMES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 1 -

The director presents the strategic report for the year ended 28 February 2023.

Review of the business

Our achievements in the gaming industry are a testament to our commitment to quality and innovation. Since our inception, we've maintained an impressive average topline growth rate of 62%, reflecting our consistent success and strategic market positioning. With over 450 million installs, Matchingham Games has made a significant impact on the mobile gaming scene. Our focus on riddle/puzzle, action, and hybrid casual genres has established us as a dominant and innovative player in these areas. Our ability to consistently hit the US Top Charts with 9 games and our extensive portfolio of 20+ published titles showcase our expertise and success in creating games that captivate players worldwide. These milestones, coupled with our genre dominance and leadership in innovation, reflect our dedication to excellence and our ability to stay ahead in a highly competitive market.

Principal risks and uncertainties

In the mobile gaming sector, our success depends on skillfully navigating the industry's dynamic challenges. The market is evolving with a wider range of products, leading to more selective users. This demands innovation in our product offerings and system enhancements to stay appealing.

 

We are capitalizing on our position as early movers, developing strategies to leverage the lowering of AI entry barriers while addressing challenges and opportunities it brings. Our risk mitigation involves diversifying development platforms, enhancing targeted marketing tools in light of privacy concerns, and investing in data analytics, segmentation, and live operations. Actively reducing reliance on specific platforms and ad networks, we are enhancing operational resilience. Simultaneously, we're adapting to broader industry trends to capitalize on new opportunities and sustain our competitive edge.

Development and performance

Our development strategy is marked by consistent success and a strong presence in the gaming market. Each year, we manage to place 2-3 games in the top chart positions, a clear indicator of our team's deep understanding of market trends and player preferences. With the capacity to test and potentially launch over 50 games annually, our development process is both robust and dynamic. This approach has significantly contributed to our year-over-year revenue growth, underscoring our commitment to innovative design and our ability to create games that resonate with a global audience.

Key performance indicators

Our strategic endeavors this year have led to notable progress in key areas within our marketing and monetization efforts. The Lifetime Value (LTV) of our users remains a focal point, with ongoing initiatives poised to enhance its growth in the coming periods. In particular, our User Acquisition (UA) campaigns for select games have successfully driven an increase in organic installs, showcasing the strong market appeal of these titles. In terms of monetization, we've seen a significant rise in Daily Active Users (DAU), a clear indication of the increased number of titles and engaging nature of our content. the diversification of our ad network partnerships has broadened and strengthened our ad revenue streams, contributing to a robust financial performance.

 

Overall, these key performance indicators reflect our company's dynamic approach to market challenges and opportunities, highlighting our adaptability and commitment to sustained growth in the mobile gaming industry.

Other performance indicators

Our focus this year has been on driving innovation, particularly in integrating emerging technologies such as use of AI in production and marketing to keep our game offerings at the best level possible. Concurrently, we are refining our marketing tactics, enhancing the effectiveness of our cross-promotion campaigns and waterfall strategies. This integrated approach ensures we not only lead in game development innovation but also excel in user acquisition and monetization.

MATCHINGHAM GAMES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 2 -

On behalf of the board

Ahmet Han
Director
23 January 2024
MATCHINGHAM GAMES LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 3 -

The director presents his annual report and financial statements for the year ended 28 February 2023.

Principal activities

The principal activity of the company and group continued to be that of technology based advertising services.

Results and dividends

The results for the year are set out on page 8.

No ordinary dividends were paid. The director does not recommend payment of a further dividend.

Director

The director who held office during the year and up to the date of signature of the financial statements was as follows:

Onur Demirbas
(Resigned 1 August 2023)
Ahmet Han
(Appointed 1 August 2023)
Statement of director's responsibilities

The director is responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:

 

 

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

MATCHINGHAM GAMES LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 4 -
On behalf of the board
Ahmet Han
Director
23 January 2024
MATCHINGHAM GAMES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MATCHINGHAM GAMES LIMITED
- 5 -
Opinion

We have audited the financial statements of Matchingham Games Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 28 February 2023 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The 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:

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 group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’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 director's 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 group's and parent 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 director 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 director is 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.

Opinions on other matters prescribed by the Companies Act 2006

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

MATCHINGHAM GAMES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MATCHINGHAM GAMES LIMITED
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's 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:

Responsibilities of director

As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is responsible for assessing the parent 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 director either intends to liquidate the parent company or to cease operations, or has 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.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

MATCHINGHAM GAMES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MATCHINGHAM GAMES LIMITED
- 7 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Other matters which we are required to address

Comparitve figures for the year ended 28 February 2022 were unaudited.

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 2006. Our 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.

Lee Meredith BFP ACA (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
24 January 2024
Chartered Accountants
Statutory Auditor
St Davids Court
Union Street
Wolverhampton
West Midlands
United Kingdom
WV1 3JE
MATCHINGHAM GAMES LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 8 -
2023
2022
as restated
Notes
£
£
Turnover
3
25,686,046
18,407,006
Cost of sales
(24,692,830)
(18,877,079)
Gross profit/(loss)
993,216
(470,073)
Administrative expenses
(3,266,331)
(1,123,449)
Other operating income
2,482,758
2,314
Operating profit/(loss)
4
209,643
(1,591,208)
Interest receivable and similar income
6
10,246
565
Interest payable and similar expenses
7
(21,576)
(71,948)
Fair value movement on intangible assets
8
(343,240)
-
Loss before taxation
(144,927)
(1,662,591)
Tax on loss
9
-
0
-
0
Loss for the financial year
(144,927)
(1,662,591)
Loss for the financial year is attributable to:
- Owners of the parent company
(147,937)
(1,718,747)
- Non-controlling interests
3,010
56,156
(144,927)
(1,662,591)

The notes on pages 15 to 32 form part of these financial statements.

MATCHINGHAM GAMES LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 9 -
2023
2022
as restated
£
£
Loss for the year
(144,927)
(1,662,591)
Other comprehensive income
-
-
Total comprehensive income for the year
(144,927)
(1,662,591)
Total comprehensive income for the year is attributable to:
- Owners of the parent company
(147,937)
(1,718,747)
- Non-controlling interests
3,010
56,156
(144,927)
(1,662,591)

The notes on pages 15 to 32 form part of these financial statements.

MATCHINGHAM GAMES LIMITED
GROUP BALANCE SHEET
AS AT 28 FEBRUARY 2023
28 February 2023
- 10 -
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Goodwill
10
23,226
-
0
Other intangible assets
10
473,026
3,084
Total intangible assets
496,252
3,084
Tangible assets
11
133,778
85,383
630,030
88,467
Current assets
Debtors
15
4,463,606
3,637,017
Cash at bank and in hand
892,977
1,085,568
5,356,583
4,722,585
Creditors: amounts falling due within one year
16
(7,741,300)
(6,358,207)
Net current liabilities
(2,384,717)
(1,635,622)
Total assets less current liabilities
(1,754,687)
(1,547,155)
Creditors: amounts falling due after more than one year
17
(23,423)
(91,621)
Net liabilities
(1,778,110)
(1,638,776)
Capital and reserves
Called up share capital
22
100
100
Foreign currency reserve
(26,415)
(25,769)
Profit and loss reserves
(1,817,200)
(1,669,263)
Equity attributable to owners of the parent company
(1,843,515)
(1,694,932)
Non-controlling interests
65,405
56,156
(1,778,110)
(1,638,776)

The notes on pages 15 to 32 form part of these financial statements.

The financial statements were approved by the board of directors and authorised for issue on 23 January 2024 and are signed on its behalf by:
23 January 2024
Ahmet Han
Director
Company registration number 12452205 (England and Wales)
MATCHINGHAM GAMES LIMITED
COMPANY BALANCE SHEET
AS AT 28 FEBRUARY 2023
28 February 2023
- 11 -
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Intangible assets
10
470,419
-
0
Tangible assets
11
10,831
11,356
Investments
12
33,288
8,419
514,538
19,775
Current assets
Debtors
15
4,080,912
3,275,555
Cash at bank and in hand
797,050
1,081,525
4,877,962
4,357,080
Creditors: amounts falling due within one year
16
(7,065,056)
(6,011,486)
Net current liabilities
(2,187,094)
(1,654,406)
Total assets less current liabilities
(1,672,556)
(1,634,631)
Creditors: amounts falling due after more than one year
17
(32,500)
(91,621)
Net liabilities
(1,705,056)
(1,726,252)
Capital and reserves
Called up share capital
22
100
100
Profit and loss reserves
(1,705,156)
(1,726,352)
Total equity
(1,705,056)
(1,726,252)

The notes on pages 15 to 32 form part of these financial statements.

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £21,196 (2022 - £1,775,836 loss).

These 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 23 January 2024 and are signed on its behalf by:
23 January 2024
Ahmet Han
Director
Company registration number 12452205 (England and Wales)
MATCHINGHAM GAMES LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 12 -
Share capital
Currency translation reserve
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
£
£
£
£
£
£
As restated for the period ended 28 February 2022:
Balance at 1 March 2021
100
-
0
49,484
49,584
-
49,584
Year ended 28 February 2022:
Loss and total comprehensive income
-
-
(1,718,747)
(1,718,747)
56,156
(1,662,591)
Other movements
-
(25,769)
-
(25,769)
-
(25,769)
Balance at 28 February 2022
100
(25,769)
(1,669,263)
(1,694,932)
56,156
(1,638,776)
Year ended 28 February 2023:
Loss and total comprehensive income
-
-
(147,937)
(147,937)
3,010
(144,927)
Other movements
-
(646)
-
(646)
6,239
5,593
Balance at 28 February 2023
100
(26,415)
(1,817,200)
(1,843,515)
65,405
(1,778,110)

The notes on pages 15 to 32 form part of these financial statements.

MATCHINGHAM GAMES LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 13 -
Share capital
Profit and loss reserves
Total
£
£
£
As restated for the period ended 28 February 2022:
Balance at 1 March 2021
100
49,484
49,584
Year ended 28 February 2022:
Loss and total comprehensive income for the year
-
(1,775,836)
(1,775,836)
Balance at 28 February 2022
100
(1,726,352)
(1,726,252)
Year ended 28 February 2023:
Profit and total comprehensive income
-
21,196
21,196
Balance at 28 February 2023
100
(1,705,156)
(1,705,056)

The notes on pages 15 to 32 form part of these financial statements.

MATCHINGHAM GAMES LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 14 -
2023
2022
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
784,752
1,222,874
Investing activities
Payments to acquire intangible fixed assets
(1,065,448)
(3,084)
Receipts from sales of intangible fixed assets
241,190
-
Payments to acquire tangible fixed assets
(97,842)
(106,949)
Purchase of subsidiary undertaking
(23,226)
-
Interest received
10,246
565
Hire purchase interest paid
(21,576)
(71,948)
Net cash used in investing activities
(956,656)
(181,416)
Financing activities
Proceeds from new bank loans
-
50,000
Repayment of bank loans
(18,198)
(8,379)
Net cash (used in)/generated from financing activities
(18,198)
41,621
Net (decrease)/increase in cash and cash equivalents
(190,102)
1,083,079
Cash and cash equivalents at beginning of year
1,083,079
-
0
Cash and cash equivalents at end of year
892,977
1,083,079
Relating to:
Cash at bank and in hand
892,977
1,085,568
Bank overdrafts included in creditors payable within one year
-
(2,489)

The notes on pages 15 to 32 form part of these financial statements.

MATCHINGHAM GAMES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 15 -
1
Accounting policies
Company information

Matchingham Games Limited (“the company”) is a private limited company domiciled in England and incorporated in England and Wales. The registered office is Rutland House, 23-25 Friar Lane, Leicester, United Kingdom, LE1 5QQ.

 

The group consists of Matchingham Games Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

MATCHINGHAM GAMES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 16 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Matchingham Games Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 28 February 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.4
Going concern

At the time of approving the financial statements, the director has a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

MATCHINGHAM GAMES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 17 -
1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.7
Intangible fixed assets other than goodwill

Intangible assets acquired separately from business combinations are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Patents & licences
not amortised

Cryptocurrency is accounted for under the revaluation model, being its fair value on the date of revaluation less any subsequent accumulated amortisation and impairment losses, as the fair value can be determined by reference to an active market.

 

Increases in market value are recognised through other comprehensive income and accumulate in a revaluation reserve. The increase would however be recognised in profit or loss to the extent that it reverses a revaluation decrease of the same asset previously recognised in profit or loss.

 

Decreases in market value are recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset, any excess is recognised in profit or loss.

1.8
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Plant and equipment
Straight Line over 3 years
Fixtures and fittings
Straight Line over 3 years
Computers
Straight Line over 3 years

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

MATCHINGHAM GAMES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 18 -
1.9
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.10
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

MATCHINGHAM GAMES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 19 -

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.11
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.12
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally 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.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

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.

MATCHINGHAM GAMES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 20 -
Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

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 group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.13
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

MATCHINGHAM GAMES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 21 -
1.14
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.15
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

 

There are not deemed to be any key estimates or judgements.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
In-app purchases and advertisement revenue
25,686,046
18,407,006
2023
2022
£
£
Turnover analysed by geographical market
UK
1,130,186
846,722
USA
10,300,105
8,485,630
Europe (excluding UK)
5,060,151
3,497,331
Non-Europe (excluding UK and USA)
9,195,604
5,577,323
25,686,046
18,407,006
2023
2022
£
£
Other revenue
Interest income
10,246
565
MATCHINGHAM GAMES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 22 -
4
Operating profit/(loss)
2023
2022
£
£
Operating profit/(loss) for the year is stated after charging/(crediting):
Exchange gains
(389,344)
(37,664)
Depreciation of owned tangible fixed assets
31,176
1,273
Audit fees
57,700
-
Profit on disposal of intangible assets
(183)
-
5
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
13
8
13
8

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
542,574
304,604
542,574
304,604
Social security costs
52,552
28,505
52,552
28,505
Pension costs
7,072
4,099
7,072
4,099
602,198
337,208
602,198
337,208
6
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
10,246
565
7
Interest payable and similar expenses
2023
2022
£
£
Other interest on financial liabilities
21,461
71,948
Other interest
115
-
Total finance costs
21,576
71,948
MATCHINGHAM GAMES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 23 -
8
Fair value movement on intangibles
2023
2022
£
£
Fair value gains/(losses) on intangibles
Fair value movement on intangibles
(343,240)
-
MATCHINGHAM GAMES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 24 -
9
Taxation

The actual charge for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Loss before taxation
(144,927)
(1,662,591)
Expected tax credit based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
(27,536)
(315,892)
Tax effect of expenses that are not deductible in determining taxable profit
22
840
Change in unrecognised deferred tax assets
(101,897)
470,779
Effect of change in corporation tax rate
24,455
(112,987)
Research and development tax credit
-
0
(20,532)
Other permanent differences
(102)
-
0
Effect of super deduction
(202)
(691)
Impairment of related party loan
73,697
-
0
Foreign subsidiary profits/(losses) not subject to UK tax
31,563
(21,517)
Taxation charge
-
-
10
Intangible fixed assets
Group
Goodwill
Patents & licences
Crypto currency
Total
£
£
£
£
Cost
At 1 March 2022
-
0
3,084
-
0
3,084
Additions
23,226
-
0
1,065,448
1,088,674
Amounts converted to cash
-
0
-
0
(241,190)
(241,190)
Exchange adjustments
-
0
(477)
(11,321)
(11,798)
Fair value movements
-
0
-
0
(342,518)
(342,518)
At 28 February 2023
23,226
2,607
470,419
496,252
Amortisation and impairment
At 1 March 2022 and 28 February 2023
-
0
-
0
-
0
-
0
Carrying amount
At 28 February 2023
23,226
2,607
470,419
496,252
At 28 February 2022
-
0
3,084
-
0
3,084
MATCHINGHAM GAMES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
10
Intangible fixed assets
(Continued)
- 25 -
Company
Crypto currency
£
Cost
At 1 March 2022
-
0
Additions
1,065,448
Amounts converted to cash
(241,190)
Exchange adjustments
(11,321)
Fair value movements
(342,518)
At 28 February 2023
470,419
Amortisation and impairment
At 1 March 2022 and 28 February 2023
-
0
Carrying amount
At 28 February 2023
470,419
At 28 February 2022
-
0
11
Tangible fixed assets
Group
Plant and equipment
Fixtures and fittings
Computers
Total
£
£
£
£
Cost
At 1 March 2022
9,298
94,320
3,331
106,949
Additions
-
0
92,499
5,343
97,842
Disposals
-
0
(2,957)
-
0
(2,957)
Exchange adjustments
-
0
(19,087)
-
0
(19,087)
At 28 February 2023
9,298
164,775
8,674
182,747
Depreciation and impairment
At 1 March 2022
905
20,293
368
21,566
Depreciation charged in the year
3,002
25,308
2,866
31,176
Exchange adjustments
-
0
(3,773)
-
0
(3,773)
At 28 February 2023
3,907
41,828
3,234
48,969
Carrying amount
At 28 February 2023
5,391
122,947
5,440
133,778
At 28 February 2022
8,393
74,027
2,963
85,383
MATCHINGHAM GAMES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
11
Tangible fixed assets
(Continued)
- 26 -
Company
Plant and equipment
Computers
Total
£
£
£
Cost
At 1 March 2022
9,298
3,331
12,629
Additions
-
0
5,343
5,343
At 28 February 2023
9,298
8,674
17,972
Depreciation and impairment
At 1 March 2022
905
368
1,273
Depreciation charged in the year
3,002
2,866
5,868
At 28 February 2023
3,907
3,234
7,141
Carrying amount
At 28 February 2023
5,391
5,440
10,831
At 28 February 2022
8,393
2,963
11,356
12
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
13
-
0
-
0
33,288
8,419
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 March 2022
8,419
Additions
24,869
At 28 February 2023
33,288
Carrying amount
At 28 February 2023
33,288
At 28 February 2022
8,419
MATCHINGHAM GAMES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 27 -
13
Subsidiaries

Details of the company's subsidiaries at 28 February 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Masal Games Game Software and Technology Joint Stock Company
Fatih Sultan Mehmet Mah. Balkan Cad. Meydan, Istanbul Avm Blok No: 62A Ümraniye / Istanbul
Ordinary
100.00
Teos Game and Technology Joint Stock Company
Adatepe Mah. Dogus Cad. No: 207AG IÇ Kapi No: 1 Buca / Izmir
Ordinary
50.02
Bolga Games Software Technology amd Game Joint Stock Company
Esentepe Mah. Talat Pasa Cad. No: 5 IÇ Kapi No: 1 Sisli / Istanbul
Ordinary
100.00
Mangorama Game and Technology Joint Stock Company
Fatih Sultan Mehmet Mah. Balkan Cad. No: 62A Ümraniye / Istanbul
Ordinary
50.00
Radiant Cat Studio Game and Technology Joint Stock Company
Maslak Mah.Tasyoncasi SK. Maslak 1453 ST.No:1G/77 Besiktas / Istanbul
Ordinary
85.00
Kidding Box Game Studio Technologies Joint Stock Company
Osmanaga Mah. Gaziosmanoasa SK. No: 12 Kadikoy / Istanbul
Ordinary
80.00
14
Financial instruments
Group
Company
2023
2022
2023
2022
£
£
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
3,983,817
3,270,917
n/a
n/a
Carrying amount of financial liabilities
Measured at amortised cost
3,045,446
6,408,643
n/a
n/a

As permitted by the reduced disclosure framework within FRS 102, the company has taken advantage of the exemption from disclosing the carrying amount of certain classes of financial instruments, denoted by 'n/a' above.

15
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
3,866,566
3,015,285
3,556,624
2,880,036
Other debtors
411,349
618,903
512,633
395,519
Prepayments and accrued income
185,691
2,829
11,655
-
0
4,463,606
3,637,017
4,080,912
3,275,555
MATCHINGHAM GAMES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 28 -
16
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
18
-
0
2,489
-
0
-
0
Trade creditors
1,050,486
1,536,704
1,005,230
1,529,699
Other taxation and social security
81,810
41,185
13,890
12,789
Deferred income
20
4,637,467
-
0
4,637,467
-
0
Other creditors
914,826
3,831,454
369,876
3,522,623
Accruals
1,056,711
946,375
1,038,593
946,375
7,741,300
6,358,207
7,065,056
6,011,486

Within other creditors are amounts due to related parties totalling £349,613 (2022 - £2,299,915).

17
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
18
23,423
41,621
32,500
41,621
Other creditors
-
0
50,000
-
0
50,000
23,423
91,621
32,500
91,621
18
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
23,423
41,621
32,500
41,621
Bank overdrafts
-
0
2,489
-
0
-
0
23,423
44,110
32,500
41,621
Payable within one year
-
0
2,489
-
0
-
0
Payable after one year
23,423
41,621
32,500
41,621
19
Deferred taxation

A deferred tax asset has been recognised to the extent to reduce the net deferred tax position to £Nil. At the year end there was an unprovded deferred tax asset of £368,882 (2022 - £470,779)

MATCHINGHAM GAMES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 29 -
20
Deferred income
Group
Company
2023
2022
2023
2022
£
£
£
£
Other deferred income
4,637,467
-
4,637,467
-
21
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
7,072
4,099

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

22
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 0.01p each
1,000,000
1,000,000
100
100
23
Related party transactions
Transactions with related parties
Cost of sales
2023
2022
£
£
Company
Entities over which the entity has control, joint control or significant influence
2,004,292
-

The following amounts were outstanding at the reporting end date:

Amounts due to related parties
2023
2022
£
£
Company
Entities over which the company has control, joint control or significant influence
218,007
-
MATCHINGHAM GAMES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
23
Related party transactions
(Continued)
- 30 -

The following amounts were outstanding at the reporting end date:

Amounts due from related parties
2023
2022
Balance
Balance
£
£
Company
Entities over which the company has control, joint control or significant influence
349,613
2,299,915
24
Cash generated from group operations
2023
2022
£
£
Loss for the year after tax
(144,927)
(1,662,591)
Adjustments for:
Interest paid
21,576
71,948
Interest received
(10,246)
(565)
Depreciation and impairment of tangible fixed assets
31,176
21,566
Profit or loss on disposal of fixed assets
2,957
-
Other gains and losses
342,518
-
Exchange loss on consolidation
32,705
(25,769)
Movements in working capital:
Increase in debtors
(826,589)
(3,587,433)
(Decrease)/increase in creditors
(3,301,885)
6,405,718
Increase in deferred income
4,637,467
-
Cash generated from operations
784,752
1,222,874
25
Analysis of changes in net funds - group
1 March 2022
Cash flows
28 February 2023
£
£
£
Cash at bank and in hand
1,085,568
(192,591)
892,977
Bank overdrafts
(2,489)
2,489
-
0
1,083,079
(190,102)
892,977
Borrowings excluding overdrafts
(41,621)
18,198
(23,423)
1,041,458
(171,904)
869,554
MATCHINGHAM GAMES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 31 -
26
Prior period adjustment
Reconciliation of changes in equity - group
1 March
28 February
2021
2022
Notes
£
£
Adjustments to prior year
Unrecorded costs
1
-
(311,285)
Equity as previously reported
49,584
(1,327,491)
Equity as adjusted
49,584
(1,638,776)
Analysis of the effect upon equity
Profit and loss reserves
-
(311,285)
Reconciliation of changes in loss for the previous financial period
2022
Notes
£
Adjustments to prior year
Unrecorded costs
1
(311,285)
Loss as previously reported
(1,351,306)
Loss as adjusted
(1,662,591)
Reconciliation of changes in equity - company
1 March
28 February
2021
2022
£
£
Adjustments to prior year
Unrecorded costs
-
(311,285)
Equity as previously reported
49,584
(1,414,967)
Equity as adjusted
49,584
(1,726,252)
Analysis of the effect upon equity
Profit and loss reserves
-
(311,285)
Reconciliation of changes in loss for the previous financial period
2022
£
Adjustments to prior year
Unrecorded costs
(311,285)
Loss as previously reported
(1,464,551)
Loss as adjusted
(1,775,836)
MATCHINGHAM GAMES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
26
Prior period adjustment
(Continued)
- 32 -
Notes to reconciliation
Unrecorded costs

During the preparation of the 28 February 2023 year end accounts, unrecorded costs were identified which relate to the year ended 28 February 2022 accounts. These costs have been recognised as a prior period adjustment.

Investment in subsidiaries

The financial statements include a prior period adjustment to recognise the investment in subsidiaries as at 28 February 2022. There has been no adjustment to the profit or loss from this adjustment.

Reclassification of other creditors

The financial statements include a prior period adjustment to reclassify other creditor balances which were included within amounts owed to group undertakings and other participating interests in the financial statements for the period ending 28 February 2022. There has been no adjustment to the profit or loss from this adjustment.

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