Company registration number 05977356 (England and Wales)
KINDLE ENTERTAINMENT LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2022
KINDLE ENTERTAINMENT LIMITED
COMPANY INFORMATION
Directors
J N Becamel
M B Stokes
L Taron
(Appointed 3 August 2022)
MYLK
(Appointed 1 January 2023)
Company number
05977356
Registered office
Shepherds Building Central
Charecroft Way
London
United Kingdom
W14 0EE
Auditor
FLB Audit LLP
1010 Eskdale Road
Winnersh Triangle
Wokingham
Berkshire
RG41 5TS
KINDLE ENTERTAINMENT LIMITED
CONTENTS
Page
Directors' report
1 - 2
Independent auditor's report
3 - 5
Group statement of comprehensive income
6
Group statement of financial position
7
Company statement of financial position
8
Group statement of changes in equity
9
Company statement of changes in equity
10
Notes to the financial statements
11 - 24
KINDLE ENTERTAINMENT LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2022
- 1 -

The directors present their annual report and financial statements for the period ended 31 December 2022.

Principal activities

The principal activity of the company and group continued to be that of the development and production of children and family television programmes.

Results and dividends

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the period and up to the date of signature of the financial statements were as follows:

J N Becamel
M B Stokes
L Taron
(Appointed 3 August 2022)
MYLK
(Appointed 1 January 2023)
K Beggs
(Resigned 26 July 2022)
A P Brogan
(Resigned 31 December 2022)
B D Sabatino
(Appointed 3 August 2022 and resigned 31 December 2022)
Qualifying third party indemnity provisions

The company has indemnified one or more of the directors of the company against liability in respect of proceedings brought by third parties, subject to the conditions set out in the companies Act 2006. Such qualifying third-party indemnity provisions are in force at the date of approving the Directors' Report.”

Auditor

FLB Audit LLP were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

Statement of directors' responsibilities

The directors are responsible for preparing the Annual 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are 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. They are 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.

KINDLE ENTERTAINMENT LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2022
- 2 -
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.

Small companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

On behalf of the board
J N Becamel
Director
8 March 2024
KINDLE ENTERTAINMENT LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF KINDLE ENTERTAINMENT LIMITED
- 3 -
Opinion

We have audited the financial statements of Kindle Entertainment Limited (the 'parent company') and its subsidiaries (the 'group') for the period ended 31 December 2022 which comprise the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, the group statement of changes in equity, the company statement of changes in equity 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 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 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 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.

Opinions on other matters prescribed by the Companies Act 2006

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

KINDLE ENTERTAINMENT LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF KINDLE ENTERTAINMENT LIMITED
- 4 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report.

 

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

 

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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 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 directors either intend to liquidate the parent 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:

We obtained an understanding of the legal and regulatory frameworks within which the group and company operate, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006 and UK taxation legislation.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be the override of controls by management and revenue recognition. Our audit procedures to respond to management override risks included inquiries of management about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases and assessing the treatment of non-routine transactions. Our audit procedures to respond to revenue recognition risks included sample testing revenue across the period and deferred revenue as at period end to agree to supporting documentation and reviewing revenue received either side of the period end to ensure this has been recognised correctly.

Owing to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements of the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). We are not responsible for preventing non-compliance and cannot be expected to detect noncompliance with all laws and regulations.

KINDLE ENTERTAINMENT LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF KINDLE ENTERTAINMENT LIMITED
- 5 -

The potential effects of inherent limitations are particularly significant in the case of misstatement resulting from fraud because fraud may involve sophisticated and carefully organised schemes designed to conceal it, including deliberate failure to record transactions, collusion or intentional misrepresentations being made to us.

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.

Other matters which we are required to address

The group and company financial statements include unaudited comparative information as permitted under Section 477 of the Companies Act 2006.

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.

Daniel Faust (Senior Statutory Auditor)
For and on behalf of FLB Audit LLP
Statutory Auditor
1010 Eskdale Road
Winnersh Triangle
Wokingham
Berkshire
RG41 5TS
8 March 2024
KINDLE ENTERTAINMENT LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 DECEMBER 2022
- 6 -
9 month period
12 month year
ended
ended
31 Dec 2022
31 Mar 2022
Notes
£
£
Turnover
1,496,906
5,598,035
Cost of sales
(317,501)
(3,877,259)
Gross profit
1,179,405
1,720,776
Administrative expenses
(1,056,780)
(988,362)
Operating profit
122,625
732,414
Interest receivable and similar income
6
38,877
-
0
Interest payable and similar expenses
(6,118)
(3,951)
Profit before taxation
155,384
728,463
Tax on profit
(1,051)
(2,977)
Profit for the financial period
154,333
725,486
Profit and total comprehensive income for the period is all attributable to the owners of the parent company.
KINDLE ENTERTAINMENT LIMITED
GROUP STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2022
31 December 2022
- 7 -
31 Dec 2022
31 Mar 2022
Notes
£
£
£
£
Fixed assets
Tangible assets
7
14,628
12,883
Current assets
Debtors
11
1,867,697
3,712,748
Cash at bank and in hand
237,248
833,207
2,104,945
4,545,955
Creditors: amounts falling due within one year
12
(649,318)
(3,317,556)
Net current assets
1,455,627
1,228,399
Total assets less current liabilities
1,470,255
1,241,282
Creditors: amounts falling due after more than one year
13
(66,663)
(111,111)
Provisions for liabilities
(2,779)
(2,448)
Net assets
1,400,813
1,127,723
Capital and reserves
Called up share capital
17
289
242
Share premium account
545,929
427,219
Profit and loss reserves
854,595
700,262
Total equity
1,400,813
1,127,723

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

The financial statements were approved by the board of directors and authorised for issue on 8 March 2024 and are signed on its behalf by:
08 March 2024
J N Becamel
Director
Company registration number 05977356 (England and Wales)
KINDLE ENTERTAINMENT LIMITED
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2022
31 December 2022
- 8 -
31 Dec 2022
31 Mar 2022
Notes
£
£
£
£
Fixed assets
Tangible assets
7
14,628
12,883
Investments
8
777
776
15,405
13,659
Current assets
Debtors
11
1,634,436
1,391,794
Cash at bank and in hand
204,018
456,197
1,838,454
1,847,991
Creditors: amounts falling due within one year
12
(426,113)
(662,309)
Net current assets
1,412,341
1,185,682
Total assets less current liabilities
1,427,746
1,199,341
Creditors: amounts falling due after more than one year
13
(66,663)
(111,111)
Provisions for liabilities
(2,779)
(2,448)
Net assets
1,358,304
1,085,782
Capital and reserves
Called up share capital
17
289
242
Share premium account
545,929
427,219
Profit and loss reserves
812,086
658,321
Total equity
1,358,304
1,085,782

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 £153,765 (31 Mar 2022 - £714,828 profit).

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 8 March 2024 and are signed on its behalf by:
08 March 2024
J N Becamel
Director
Company registration number 05977356 (England and Wales)
KINDLE ENTERTAINMENT LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2022
- 9 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 April 2021
242
427,219
(25,224)
402,237
Year ended 31 March 2022:
Profit and total comprehensive income
-
-
725,486
725,486
Balance at 31 March 2022
242
427,219
700,262
1,127,723
Period ended 31 December 2022:
Profit and total comprehensive income
-
-
154,333
154,333
Issue of share capital
17
47
118,710
-
118,757
Balance at 31 December 2022
289
545,929
854,595
1,400,813
KINDLE ENTERTAINMENT LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2022
- 10 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 April 2021
242
427,219
(56,506)
370,955
Year ended 31 March 2022:
Profit and total comprehensive income for the period
-
-
714,827
714,827
Balance at 31 March 2022
242
427,219
658,321
1,085,782
Period ended 31 December 2022:
Profit and total comprehensive income
-
-
153,765
153,765
Issue of share capital
17
47
118,710
-
118,757
Balance at 31 December 2022
289
545,929
812,086
1,358,304
KINDLE ENTERTAINMENT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2022
- 11 -
1
Accounting policies
Company information

Kindle Entertainment Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Shepherds Building Central, Charecroft Way, London, United Kingdom, W14 0EE.

 

The group consists of Kindle Entertainment Limited and all of its subsidiaries.

1.1
Reporting period

The financial statements present a 9 month period from 1 April 2022 to 31 December 2022, following a change in the accounting reference date of the company from 31 March 2023. The prior period presented is that of a full year, and as such, the 2 periods may not be entirely comparable.

1.2
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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. The principal accounting policies adopted are set out below.

1.3
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.

1.4
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Kindle Entertainment 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 31 December 2022. 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.

KINDLE ENTERTAINMENT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 12 -

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

1.5
Going concern

The directors have a reasonable expectation that the group and company has adequate resources to continue in operation for a period of at least 12 months from the date of the signing of these financial statements.

 

The financial statements have therefore been prepared on a going concern basis. The group and company has made a profit in both the current and preceding years and has held a net asset position at both the current and preceding balance sheet date and is expected to trade profitably in the foreseeable future based on forecasts.

 

The company's performance is dependent on its ability to develop, produce and deliver television productions to clients.

 

Banijay Group SAS, the intermediate parent undertaking, has performed cashflow forecasting on the wider Banijay Group and is in a favourable liquidity position. One or more of the company's directors holds a group management position with visibility of the group's position. Based on this information and on enquiries, the directors believe that Banijay Group SAS has the ability to provide financial support to the company for a period of at least 12 months from the date of the signing of these financial statements.

1.6
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for the production and development of television programmes, 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.

 

Turnover and related costs from television production are generally recognised when programmes are delivered and in some cases are recognised on a time/cost weighted basis.

 

If a contract includes a significant financing component, the revenue is discounted at revenue recognition date to reflect the credit facility granted to the customer.

 

The company recognises revenue from the following major sources:

 

 

The nature, timing of satisfaction of performance obligations and significant payment terms of the company's major sources of revenue are as follows:

 

Production revenues (from production televisions programs)

Production revenues are recognised when the programs are delivered to the client. Standard criteria to establish revenue recognition are:

 

 

In a case of partial deliver of the same program of several periods of time (series etc) revenue, costs and margin are recognised according to episodic delivery.

 

Production revenues are booked net of grants, subsidies and co-producers' contributions.

KINDLE ENTERTAINMENT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 13 -

Revenue not meeting these conditions is a contract liability. Revenue recognised in the statement of comprehensive income but not yet received is held on the statement of financial position as a contract asset. Revenue invoiced but not yet recognised in the statement of comprehensive income is held on the statement of financial position as a contract liability.

Royalty income

Intra-group royalty income is recognised in the financial statements on an accrual basis.

 

Royalty income from third party distributors is recognised on a statement receipt basis as this is when the revenue is measurable.

Revenue from other rights and services

Other rights and services includes merchandising, music rights, other ancillary revenues and digital services.

 

Merchandising revenues are recognised when the rights are transferred to the client:

 

The full revenue is recognised on delivery (it is not spread over the license period) as it is an access to the right. Advanced payments are recognised as revenue when the above criteria are met.

1.7
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:

Fixtures and fittings
25% on reducing balance basis

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 income statement.

1.8
Fixed asset investments

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.

1.9
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible 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.

KINDLE ENTERTAINMENT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 14 -

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.

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.

1.10
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.

1.11
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 statement of financial position 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.

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.

KINDLE ENTERTAINMENT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 15 -
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 and loans from fellow group companies, 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 assets/(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.

Derecognition of financial liabilities

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

1.12
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.

1.13
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

KINDLE ENTERTAINMENT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 16 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

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

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

 

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. Amounts not paid are shown in accruals as a liability in the statement of financial position. The assets of the plan are held separately from the company in independently administered funds.

1.16
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

KINDLE ENTERTAINMENT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 17 -
1.17
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

 

Consolidated within the group financial statements are the results and financial position of a foreign subsidiary undertaking. Items included in the financial statements of each of the entities in the group are measured using the currency of the primary economic environment in which the group operates (the functional currency). The functional currency is British Pounds Sterling. The company financial statements are presented in sterling.

(i) 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 the profit and loss account.

(ii) Translation

The trading results of group undertakings that have a different functional currency from that of the group are translated into sterling at the average exchange rate for the year. Their assets and liabilities, including goodwill and fair value adjustments arising on acquisition, are translated at the exchange rate as at the year end.

Exchange adjustments arising from the retranslation of opening net investments and from the translation of the profits or losses at average rates are recognised in ‘Other comprehensive income’.

2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

 

Management do not believe there are any critical judgements or key sources of estimation uncertainty, which materially affect the transactions or balances presented within these financial statements.

KINDLE ENTERTAINMENT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2022
- 18 -
3
Auditor's remuneration
31 Dec 2022
31 Mar 2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
11,500
-
Audit of the financial statements of the company's subsidiaries
4,000
-
15,500
-
4
Employees

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

Group
Company
31 Dec 2022
31 Mar 2022
31 Dec 2022
31 Mar 2022
Number
Number
Number
Number
Total
13
10
13
10
5
Directors' remuneration
31 Dec 2022
31 Mar 2022
£
£
Remuneration paid to directors
236,191
300,000

The directors who served during the period are remunerated by other group entities. It is not practical to determine the proportion of their emoluments which relate to their services as directors of this company.

6
Interest receivable and similar income
31 Dec 2022
31 Mar 2022
£
£
Other interest income
1,247
-
Gains on financial instruments measured at fair value through profit or loss
37,630
-
0
Total income
38,877
-
0
KINDLE ENTERTAINMENT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2022
- 19 -
7
Tangible fixed assets
Group and company
Fixtures and fittings
£
Cost
At 1 April 2022
17,012
Additions
4,407
At 31 December 2022
21,419
Depreciation and impairment
At 1 April 2022
4,129
Depreciation charged in the period
2,662
At 31 December 2022
6,791
Carrying amount
At 31 December 2022
14,628
At 31 March 2022
12,883
8
Fixed asset investments
Group
Company
31 Dec 2022
31 Mar 2022
31 Dec 2022
31 Mar 2022
£
£
£
£
Shares in group undertakings and participating interests
-
-
777
776
-
0
-
0
777
776
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 April 2022
776
Additions
1
At 31 December 2022
777
Carrying amount
At 31 December 2022
777
At 31 March 2022
776
KINDLE ENTERTAINMENT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2022
- 20 -
9
Subsidiaries

Details of the company's subsidiaries at 31 December 2022 are as follows:

Name of undertaking
Address
Class of
% Held
shares held
Direct
Hank Zipzer Productions Limited
1
Ordinary
100.00
Kindle Entertainment (Hank Zipzer) Limited
1
Ordinary
100.00
The A List (KEL) Limited
1
Ordinary
100.00
Kindle Entertainment (Big And Small) Limited
1
Ordinary
100.00
Kindle (Little Darlings) Limited
1
Ordinary
100.00
The A List 2 (KEL) Limited
1
Ordinary
100.00
KEL Entertainment LLC
2
Ordinary
100.00
Dinopaws UK Limited
1
Ordinary
50.00
Kiss Me First Limited
1
Ordinary
50.00
FKAI Productions Limited
1
Ordinary
50.00
Graypoole Films Limited
1
Ordinary
50.00
Kindle Entertainment Productions Limited
1
Ordinary
100.00

Registered office addresses (all UK unless otherwise indicated):

1
Shepherds Building Central, Charecroft Way, London, England, W14 0EE
2
27 Mortimer Street, London, W1T 3BL (TBC)

The following subsidiaries have claimed exemption under section 479A of the Companies Act 2006 not to be audited individually for the year ended 31 December 2022:

 

 

Kindle Entertainment Limited as parent of the group and the entities listed has given a statutory guarantee under section 479C of the Companies Act 2006, guaranteeing all of the outstanding liabilities to which the subsidiaries are subject to at the year end.

10
Financial instruments
Group
Company
31 Dec 2022
31 Mar 2022
31 Dec 2022
31 Mar 2022
£
£
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
1,811,874
3,585,225
1,580,699
1,264,271
Instruments measured at fair value through profit or loss
37,630
-
37,630
-
Carrying amount of financial liabilities
Measured at amortised cost
693,760
3,334,377
469,540
650,650
KINDLE ENTERTAINMENT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2022
10
Financial instruments
(Continued)
- 21 -

The company enters into forward exchange contracts to hedge certain portions of forecasted cash flows denominated in foreign currencies.

 

At the year end the company had one (31 March 2022: two contracts) contract with a value totaling $558,333 (31 March 2022: $1,893,333).

These contracts can be exercised by 31 March 2023 ( 31 March 2022: 31st August 2022).

11
Debtors
Group
Company
31 Dec 2022
31 Mar 2022
31 Dec 2022
31 Mar 2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
-
0
758,158
-
0
600,755
Amounts owed by group undertakings
912,820
-
987,451
-
Derivative financial instruments
37,630
-
37,630
-
Other debtors
137,841
12,079
135,745
11,824
Prepayments and accrued income
779,406
2,942,511
473,610
779,215
1,867,697
3,712,748
1,634,436
1,391,794

The company entered into a Cash Pool Agreement with Banijay Entertainment SASU. The amount is repayable on demand, with interest shared at 1-month EURIBOR plus 0.5%. The balance of £912,812 (31 March 2022: nil) is included within amounts owed by group undertakings.

 

All other amounts included in the amounts owed by parent, group undertakings and related parties are unsecured, repayable on demand and interest free.

12
Creditors: amounts falling due within one year
Group
Company
31 Dec 2022
31 Mar 2022
31 Dec 2022
31 Mar 2022
£
£
£
£
Bank loans
66,671
72,222
66,671
72,222
Trade creditors
9,922
602,850
9,922
4,950
Amounts owed to group undertakings
-
0
-
0
95,792
97,174
Taxation and social security
22,221
41,883
23,236
71,157
Other creditors
550,504
2,600,601
230,492
416,806
649,318
3,317,556
426,113
662,309

The amounts owed by parent, group undertakings and related parties are unsecured, repayable on demand and interest free.

KINDLE ENTERTAINMENT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2022
- 22 -
13
Creditors: amounts falling due after more than one year
Group
Company
31 Dec 2022
31 Mar 2022
31 Dec 2022
31 Mar 2022
£
£
£
£
Bank loans and overdrafts
66,663
111,111
66,663
111,111
14
Loans and overdrafts
Group
Company
31 Dec 2022
31 Mar 2022
31 Dec 2022
31 Mar 2022
£
£
£
£
Bank loans
133,334
183,333
133,334
183,333
Other loans
134,190
1,867,916
-
-
267,524
2,051,249
133,334
183,333
Payable within one year
200,861
1,940,138
66,671
72,222
Payable after one year
66,663
111,111
66,663
111,111

As at 11 June 2020, the parent company received a bank loan of £200,000 as part of The Coronavirus Business Interruption Loan Scheme (CBILS). It has a annual interest rate of base rate plus 3.65% over the base interest rate and both principal and interest accruing are repayable on a monthly basis commencing 11 June 2021 with the final instalment due to be repaid by 10 June 2024. The loan were secured by a fixed and floating charge over all assets of the company. The loan was repaid fully after the yearend.

 

As at 18 August 2020, a subsidiary of the group received a loan of £4,909,000 against the television series from the Bank of Montreal . It has a annual interest rate of 3 month GBP LIBOUR plus 1.75% and due to be repaid by 30 September 2023. Charges have been made against the television series to secure their interests in the copyright of and title to the television series.

15
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
31 Dec 2022
31 Mar 2022
Group
£
£
Accelerated capital allowances
2,779
2,448
Liabilities
Liabilities
31 Dec 2022
31 Mar 2022
Company
£
£
Accelerated capital allowances
2,779
2,448
KINDLE ENTERTAINMENT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2022
15
Deferred taxation
(Continued)
- 23 -
Group
Company
31 Dec 2022
31 Dec 2022
Movements in the period:
£
£
Liability at 1 April 2022
2,448
2,448
Charge to profit or loss
331
331
Liability at 31 December 2022
2,779
2,779

The deferred tax liability set out above is expected to reverse in accordance with the depreciation policy of the assets to which it relates, being tangible fixed assets which are depreciated on a 25% reducing balance basis, or until the assets are disposed of.

16
Deferred income
Group
Company
31 Dec 2022
31 Mar 2022
31 Dec 2022
31 Mar 2022
£
£
£
£
Other deferred income
-
52,407
-
51,613
17
Share capital
Group and company
31 Dec 2022
31 Mar 2022
31 Dec 2022
31 Mar 2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 1p each
19,428
867
195
9
Deferred shares (previously A Ordinary shares) of 1p each
9,350
9,350
94
94
B Ordinary shares of 1p each
-
9,350
-
94
C Ordinary shares of 1p each
-
1,040
-
10
D Ordinary shares of 1p each
-
867
-
35
28,778
21,474
289
242

The Ordinary shares have attached to them full voting, dividend and capital distribution (including on winding up) rights. They do not confer any rights of redemption.

 

The Deferred shares rank pari passu in all respects and form one class with any other deferred shares then in issue. They have no right to receive dividends or other income distributions declared, made or paid. The shares have no voting rights, but entitle the holder to £1.00 in aggregate for all the deferred shares held by the relevant shareholder on an exit event prior to any distribution to the holders of Ordinary shares.

 

During the period, the following share events took place:

 

KINDLE ENTERTAINMENT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2022
- 24 -
18
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

Group
Company
31 Dec 2022
31 Mar 2022
31 Dec 2022
31 Mar 2022
£
£
£
£
Total lease commitments
49,834
26,250
49,834
26,250
19
Related party transactions

Inter-group guarantees

As at 31 December 2022 and 31 March 2022, the company held a cash pool arrangement with Banijay Entertainment SASU under which the company has issued an unlimited inter-company guarantee to the entity, as well as given the entity right of set-off against debit balances of other Banijay Group companies based in the United Kingdom.

Other information

The group and company has taken advantage of the exemption, under the terms of FRS 102 Paragraph 33.1A, not to disclose related party transactions with wholly owned subsidiaries within the same group.

20
Controlling party

The immediate parent undertaking is Banijay Kids & Family (Holding) Limited, for which the registered office is Shepherds Building Central, Charecroft Way, London, United Kingdom, W14 0EE.

 

The parent undertaking of the smallest and largest group which includes the company and for which publically available group financial statements are prepared is Banijay Group SAS. Copies of these financial accounts can be obtained from 5 Rue Francois 1er, 75008 Paris, France.

 

At the reporting date the ultimate parent undertaking and controlling party is Stéphane Courbit’s LOV Group who controls Banijay Group.

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