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Registration number: 12509624

Soul Assembly Ltd

Annual Report and Unaudited Financial Statements

for the Year Ended 30 September 2023

 

Soul Assembly Ltd

Contents

Company Information

1

Balance Sheet

2

Notes to the Unaudited Financial Statements

3 to 9

 

Soul Assembly Ltd

Company Information

Directors

Mr A Wafer

Mr A Zoro

Mr D Osbourn

Mr AR Williams

Mr D Solari

Registered office

Regent Square House
Regent Street
Leamington Spa
Warwickshire
CV32 4NS

Accountants

Ballards LLP
Chartered Accountants
Oakmoore Court
11C Kingswood Road
Hampton Lovett
Droitwich
Worcestershire
WR9 0QH

 

Soul Assembly Ltd

(Registration number: 12509624)
Balance Sheet as at 30 September 2023

Note

2023
£

2022
£

Fixed assets

 

Intangible assets

4

820,922

936,995

Tangible assets

5

64,529

40,568

 

885,451

977,563

Current assets

 

Debtors

6

1,071,467

671,666

Cash at bank and in hand

 

570,072

88,058

 

1,641,539

759,724

Creditors: Amounts falling due within one year

7

(2,015,868)

(1,538,655)

Net current liabilities

 

(374,329)

(778,931)

Net assets

 

511,122

198,632

Capital and reserves

 

Called up share capital

1

1

Retained earnings

511,121

198,631

Shareholders' funds

 

511,122

198,632

For the financial year ending 30 September 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Profit and Loss Account.

Approved and authorised by the Board on 31 January 2024 and signed on its behalf by:
 

.........................................
Mr A Zoro
Director

.........................................
Mr AR Williams
Director

 
 

Soul Assembly Ltd

Notes to the Unaudited Financial Statements for the Year Ended 30 September 2023

1

General information

The company is a private company limited by share capital, incorporated in England.

The address of its registered office is:
Regent Square House
Regent Street
Leamington Spa
Warwickshire
CV32 4NS
England

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

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

Going concern

The financial statements have been prepared on a going concern basis.

Judgements

In the application of the company’s accounting policies, the directors are 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.

 

Soul Assembly Ltd

Notes to the Unaudited Financial Statements for the Year Ended 30 September 2023

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Computer Equipment

33.3% on cost

 

Soul Assembly Ltd

Notes to the Unaudited Financial Statements for the Year Ended 30 September 2023

Development costs

Costs relating to the development of new products are capitalised and disclosed as an intangible asset once the company has determined that:
– the product is technically and commercially feasible
– the project is clearly defined, and associated costs are separately identifiable
– future revenues are expected to exceed current and future costs of the product
– the Group has the intention, ability and resources to complete development of the product.

Development costs will include advances payable to external developers under development agreements and the direct payroll and overhead costs of the internal development teams. Capitalised development costs are those that are directly attributable to a game, such as internal labour or external costs incurred on that title. Studio overheads such as those relating to certain general and administrative overheads are allocated on the proportion of development staff time spent working on a product as a total of all staff time in that studio.

Capitalised development expenditure for each unreleased product is reviewed at the end of each accounting period and where the circumstances which have justified the initial capitalisation of the expenditure, as set out above, no longer apply, or are considered doubtful, the previously capitalised development expenditure, to the extent to which it is considered to be irrecoverable, is immediately impaired on a project by project basis. In addition, where the forecast revenue for a product does not exceed the current and future costs of the product, a provision for impairment is recognised immediately.

On product release, capitalised development costs are amortised on a straight line over an 18-month period commencing in the month of release.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Development costs

SL over 18 month period

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

 

Soul Assembly Ltd

Notes to the Unaudited Financial Statements for the Year Ended 30 September 2023

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 54 (2022 - 32).

 

Soul Assembly Ltd

Notes to the Unaudited Financial Statements for the Year Ended 30 September 2023

4

Intangible assets

Internally generated software development costs
 £

Other intangible assets
 £

Total
£

Cost or valuation

At 1 October 2022

1,236,995

777,769

2,014,764

Additions internally developed

245,624

-

245,624

At 30 September 2023

1,482,619

777,769

2,260,388

Amortisation

At 1 October 2022

300,000

777,769

1,077,769

Amortisation charge

361,697

-

361,697

At 30 September 2023

661,697

777,769

1,439,466

Carrying amount

At 30 September 2023

820,922

-

820,922

At 30 September 2022

936,995

-

936,995

5

Tangible assets

Furniture, fittings and equipment
 £

Total
£

Cost or valuation

At 1 October 2022

67,573

67,573

Additions

50,583

50,583

Disposals

(1,338)

(1,338)

At 30 September 2023

116,818

116,818

Depreciation

At 1 October 2022

27,005

27,005

Charge for the year

25,767

25,767

Eliminated on disposal

(483)

(483)

At 30 September 2023

52,289

52,289

Carrying amount

At 30 September 2023

64,529

64,529

At 30 September 2022

40,568

40,568

 

Soul Assembly Ltd

Notes to the Unaudited Financial Statements for the Year Ended 30 September 2023

6

Debtors

2023
£

2022
£

Trade debtors

266,800

300,851

Prepayments

102,901

92,362

Other debtors

701,766

278,453

 

1,071,467

671,666

The company has tax losses of £2,517,980 (2022 - £2,338,301) available to be offset against future trading profits. Of this amount, the company has recognised a deferred tax asset on losses of £Nil (2022 - £493,312) based on future projected profits. This amounts to a deferred tax asset of £Nil (2022 - £108,529). In addition, the company has a potential deferred tax liability related to accelerated capital allowances and capitalised development costs of £221,363 (2022:£244,391). Therefore, the company has an unprovided net deferred tax asset of £408,132 (2022: £236,856). The directors have not recognised a deferred tax asset on this element due to the inherent uncertainty over the timing of future profits.

7

Creditors

Creditors: amounts falling due within one year

Note

2023
£

2022
£

Due within one year

 

Trade creditors

 

75,229

144,088

Amounts owed to related parties

8

1,291,294

1,303,710

Taxation and social security

 

81,647

51,759

Other creditors

 

567,698

39,098

 

2,015,868

1,538,655

 

Soul Assembly Ltd

Notes to the Unaudited Financial Statements for the Year Ended 30 September 2023

8

Related party transactions

Summary of transactions with other related parties

Soul Assembly Limited and Soul Assembly Holdings Limited are companies with common directors with Pixel Toys Limited. Soul Assembly Limited was a subsidiary of Pixel Toys Limited before the sale of the company to Soul Asembly Holdings Limited on 1 April 2022.

Soul Assembly Limited have incurred invoiced expenses totalling £300,926 (2022 - £159,532) for finance and other professional services perfomed on their behalf by Pixel Toys Limited.
In addition, Soul Assembly Limited were charged by Pixel Toys Limited for other expenses of £Nil (2022 - £1,093,188) relating to staff costs and various other administrative expenditure.

9

Parent and ultimate parent undertaking

During the period the company’s immediate parent was Soul Assembly Holdings Limited, incorporated in United Kingdom.

These financial statements are available upon request from Companies House.