IRIS Accounts Production v24.1.9.2 05389718 Board of Directors 1.1.23 31.12.23 31.12.23 the manufacture of motion simulators and 4D/5D special effects theatres. true false true true false false false true false Ordinary 0.01000 "A" Ordinary 0.01000 iso4217:GBPiso4217:USDiso4217:EURxbrli:sharesxbrli:pureutr:tonnesutr:kWh053897182022-12-31053897182023-12-31053897182023-01-012023-12-31053897182021-12-31053897182022-01-012022-12-31053897182022-12-3105389718ns15:EnglandWales2023-01-012023-12-3105389718ns14:PoundSterling2023-01-012023-12-3105389718ns10:Director12023-01-012023-12-3105389718ns10:PrivateLimitedCompanyLtd2023-01-012023-12-3105389718ns10:FRS1022023-01-012023-12-3105389718ns10:Audited2023-01-012023-12-3105389718ns10:FullAccounts2023-01-012023-12-310538971812023-01-012023-12-3105389718ns10:OrdinaryShareClass22023-01-012023-12-3105389718ns10:OrdinaryShareClass32023-01-012023-12-3105389718ns10:Director22023-01-012023-12-3105389718ns10:Director32023-01-012023-12-3105389718ns10:CompanySecretary12023-01-012023-12-3105389718ns10:RegisteredOffice2023-01-012023-12-3105389718ns5:CurrentFinancialInstruments2023-12-3105389718ns5:CurrentFinancialInstruments2022-12-3105389718ns5:Non-currentFinancialInstruments2023-12-3105389718ns5:Non-currentFinancialInstruments2022-12-3105389718ns5:SharePremium2023-12-3105389718ns5:SharePremium2022-12-3105389718ns5:RetainedEarningsAccumulatedLosses2023-12-3105389718ns5:RetainedEarningsAccumulatedLosses2022-12-310538971812023-01-012023-12-310538971812022-01-012022-12-3105389718ns5:PatentsTrademarksLicencesConcessionsSimilar2023-01-012023-12-3105389718ns5:DevelopmentCostsCapitalisedDevelopmentExpenditure2023-01-012023-12-3105389718ns5:PlantMachinery2023-01-012023-12-3105389718ns5:FurnitureFittings2023-01-012023-12-3105389718ns5:MotorVehicles2023-01-012023-12-3105389718ns5:ComputerEquipment2023-01-012023-12-3105389718ns15:UnitedKingdom2023-01-012023-12-3105389718ns15:UnitedKingdom2022-01-012022-12-3105389718ns15:Europe2023-01-012023-12-3105389718ns15:Europe2022-01-012022-12-3105389718ns5:TotalGeographicSegmentsIncludingAnyUnallocatedAmount2023-01-012023-12-3105389718ns5:TotalGeographicSegmentsIncludingAnyUnallocatedAmount2022-01-012022-12-3105389718ns10:HighestPaidDirector2023-01-012023-12-3105389718ns10:HighestPaidDirector2022-01-012022-12-3105389718ns5:OwnedAssets2023-01-012023-12-3105389718ns5:OwnedAssets2022-01-012022-12-3105389718ns5:LeasedAssets2023-01-012023-12-3105389718ns5:LeasedAssets2022-01-012022-12-3105389718ns5:PatentsTrademarksLicencesConcessionsSimilar2022-01-012022-12-3105389718ns5:DevelopmentCostsCapitalisedDevelopmentExpenditure2022-01-012022-12-3105389718112023-01-012023-12-3105389718112022-01-012022-12-3105389718ns5:HirePurchaseContracts2023-01-012023-12-3105389718ns5:HirePurchaseContracts2022-01-012022-12-3105389718ns5:NetGoodwill2022-12-3105389718ns5:PatentsTrademarksLicencesConcessionsSimilar2022-12-3105389718ns5:DevelopmentCostsCapitalisedDevelopmentExpenditure2022-12-3105389718ns5:NetGoodwill2023-01-012023-12-3105389718ns5:NetGoodwill2023-12-3105389718ns5:PatentsTrademarksLicencesConcessionsSimilar2023-12-3105389718ns5:DevelopmentCostsCapitalisedDevelopmentExpenditure2023-12-3105389718ns5:NetGoodwill2022-12-3105389718ns5:PatentsTrademarksLicencesConcessionsSimilar2022-12-3105389718ns5:DevelopmentCostsCapitalisedDevelopmentExpenditure2022-12-3105389718ns5:PlantMachinery2022-12-3105389718ns5:FurnitureFittings2022-12-3105389718ns5:MotorVehicles2022-12-3105389718ns5:ComputerEquipment2022-12-3105389718ns5:PlantMachinery2023-12-3105389718ns5:FurnitureFittings2023-12-3105389718ns5:MotorVehicles2023-12-3105389718ns5:ComputerEquipment2023-12-3105389718ns5:PlantMachinery2022-12-3105389718ns5:FurnitureFittings2022-12-3105389718ns5:MotorVehicles2022-12-3105389718ns5:ComputerEquipment2022-12-3105389718ns5:MotorVehiclesns5:LeasedAssetsHeldAsLessee2022-12-3105389718ns5:MotorVehiclesns5:LeasedAssetsHeldAsLessee2023-01-012023-12-3105389718ns5:MotorVehiclesns5:LeasedAssetsHeldAsLessee2023-12-3105389718ns5:MotorVehiclesns5:LeasedAssetsHeldAsLessee2022-12-3105389718ns5:UnlistedNon-exchangeTradedns5:CostValuation2022-12-3105389718ns5:UnlistedNon-exchangeTraded2023-12-3105389718ns5:UnlistedNon-exchangeTraded2022-12-3105389718ns5:CurrentFinancialInstrumentsns5:WithinOneYear2023-12-3105389718ns5:CurrentFinancialInstrumentsns5:WithinOneYear2022-12-3105389718ns5:Non-currentFinancialInstrumentsns5:BetweenOneTwoYears2022-12-3105389718ns5:Non-currentFinancialInstrumentsns5:BetweenTwoFiveYears2023-12-3105389718ns5:Non-currentFinancialInstrumentsns5:BetweenTwoFiveYears2022-12-3105389718ns5:HirePurchaseContractsns5:WithinOneYear2023-12-3105389718ns5:HirePurchaseContractsns5:WithinOneYear2022-12-3105389718ns5:BetweenOneFiveYearsns5:HirePurchaseContracts2023-12-3105389718ns5:BetweenOneFiveYearsns5:HirePurchaseContracts2022-12-3105389718ns5:HirePurchaseContracts2023-12-3105389718ns5:HirePurchaseContracts2022-12-3105389718ns5:HirePurchaseContractsns5:CurrentFinancialInstrumentsns5:WithinOneYear2023-12-3105389718ns5:HirePurchaseContractsns5:CurrentFinancialInstrumentsns5:WithinOneYear2022-12-3105389718ns5:WithinOneYear2023-12-3105389718ns5:WithinOneYear2022-12-3105389718ns5:BetweenOneFiveYears2023-12-3105389718ns5:BetweenOneFiveYears2022-12-3105389718ns5:AllPeriods2023-12-3105389718ns5:AllPeriods2022-12-3105389718ns5:Secured2023-12-3105389718ns5:Secured2022-12-3105389718ns5:OtherProvisionsContingentLiabilities2022-12-3105389718ns5:OtherProvisionsContingentLiabilities2023-01-012023-12-3105389718ns5:OtherProvisionsContingentLiabilities2023-12-3105389718ns10:OrdinaryShareClass22023-12-3105389718ns10:OrdinaryShareClass32023-12-31
REGISTERED NUMBER: 05389718 (England and Wales)


















Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 31st December 2023

for

Simworx Limited

Simworx Limited (Registered number: 05389718)






Contents of the Financial Statements
for the Year Ended 31st December 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 5

Report of the Independent Auditors 7

Statement of Comprehensive Income 11

Balance Sheet 12

Statement of Changes in Equity 13

Cash Flow Statement 14

Notes to the Cash Flow Statement 15

Notes to the Financial Statements 17


Simworx Limited

Company Information
for the Year Ended 31st December 2023







DIRECTORS: T J Monkton
A W Roberts
B P Daniels





SECRETARY: T J Monkton





REGISTERED OFFICE: 37 Second Avenue
The Pensnett Estate
Kingswinford
West Midlands
DY6 7UL





REGISTERED NUMBER: 05389718 (England and Wales)





AUDITORS: Rice & Co Limited
Chartered Accountants
Statutory Auditors
14a Market Place
Uttoxeter
Staffordshire
ST14 8HP

Simworx Limited (Registered number: 05389718)

Strategic Report
for the Year Ended 31st December 2023

The directors present their strategic report for the year ended 31st December 2023.

PRINCIPAL ACTIVITY
The principal activity of the company is the design, manufacture and installation of media-based attractions for theme parks, museums and visitors attractions worldwide. The company has a product portfolio of thirteen media-based attractions, with a diverse range of experiences, prices and passenger capacities to ensure a wide market reach.

REVIEW OF BUSINESS
The Theme Park and Visitor Attractions industry saw strong attendances and secondary spend throughout 2022 increasing confidence that capital investment into new projects would begin in 2023. The strong pipeline continued to build in H1 2023 with £4m converting to orders from new clients in this period.

With Theme Parks fully operational over the busy summer season, new attraction decisions are generally made in the latter part of the year. Order intake of £10m was converted from the pipeline in H2 with the first orders for the two new ride concepts, Pegasus Flying Theatre and AGV, being received in the year. The directors were pleased that a proportion of the order intake came from the US which is seen as a key market for business growth.

The strong order book and pipeline has been the trigger to increase capacity and capability within the team in sales, project management and operations. As the new projects progress through the design phase capacity will be added to build an in-house assembly team which will bring greater control over the timing and quality of project delivery.

The directors are satisfied with the company's performance following the challenges of the pandemic and the impact of the Ukraine crisis. It is believed that the continued investment in the team, specifically in business development and operations are key to continued growth and the positive future of the company.

The company recognises its responsibility for and has taken action to reduce the impact of business activities on the environment. The use of carbon-neutral energy providers and fully recycled waste management underpin business operations. Installation of EV chargers and LED lighting aim to reduce fossil fuel use and encourage the workforce to follow the environmental initiative; 20% of employee vehicles are now EVs. In addition, the use of recycled materials in our products is growing, specifically for the seats in the flying theatres and 4D cinema products.

Review of 2023 Results:
Turnover for the financial year increased by 166% to £7,534k (from £2,836k in 2022).

Staff costs have increased by 0.3% to £1,648k vs 2022. As a percentage of Turnover, staff costs have decreased to 22% (from 58% in 2022) due to the increase in turnover.

Cashflows from operating activities are showing an inflow of £1,316k (2022: £314k outflow) in the current year with the cash at bank at the balance sheet date being £1,544k (2022: £93k). Net cash/debt improved from £1,126k net debt to £948k net cash.

EBITDA was a profit of £458k (2022: £1,726k loss) which was in line with budget. Loss before Taxation £374k - was in line with budget expectations - compared to a loss of £1,958k for 2022.





Simworx Limited (Registered number: 05389718)

Strategic Report
for the Year Ended 31st December 2023

KEY PERFORMANCE INDICATORS
The board of directors recognise Key Performance Indicators as an integral part of monitoring the progress of the business, and are identified in the Annual Budget with appropriate targets set. It is the responsibility of the management team to regularly monitor and review these figures and report the results and any corrective actions to the board.

The key performance indicators used to monitor the financial performance of the company include EBITDA as a % of sales which closed the year on a 6.1% profit, increasing from a 61.9% loss in the previous year.

As a project-based business the monitoring of the performance of the projects from a commercial, financial, and technical perspective is critical. The profitability of each individual project and the comparison to the expected profitability at the time of contract is closely monitored through a series of project reviews with corrective actions being put in place if required. Project debts are also monitored at these meetings.

RESEARCH AND DEVELOPMENT ACTIVITIES
Enhancements to existing rides within the portfolio, along with new product development is part of the ongoing investment by the company into research and development activities.

PRINCIPAL RISKS AND UNCERTAINTIES

Market Competitiveness
Operating in a competitive market segment, it is important that the portfolio of rides remains market leading. New product development and existing product enhancement is a core activity of the group with significant resources devoted to it.

Establishing a proactive sales team to ensure that the group is well placed to secure orders in a truly worldwide market is also key. The group has significantly enhanced its sales network by adding a Business Development Director for the EMEA region to focus on the increasing number of opportunities, with a similar role being added for the US in 2024.

Product Build Quality and Customer Satisfaction
The company focuses on ensuring that its production and safety standards remain of the highest quality which ensures timely delivery of attractions to its customers. Close management of the supply chain along with a multi-sourcing policy ensures the supply of quality components and subassemblies. An in-house quality process together with the involvement of 3rd party safety and quality inspection bodies, such as TUV, further mitigates this risk.

Ensuring that the ride sold to the customer meets their specific requirements is a key focus in pre-contract negotiations and is re-addressed at regular customer meetings throughout the project..

Health and Safety
Health and Safety is a key focus from board level down with the aim of achieving best practice not merely legal compliance. Specialist 3rd parties are used to support where required. The aim is a safe and healthy workplace for employees and visitors. Risk assessments and workplace training is undertaken in all areas of the business.

Cyber
There are clearly external potential threats to critical business systems. Controls over the systems exist with firewalls and virus protection software kept up to date. An In-house IT specialist as well as 3rd party expertise are utilised to support these activities.


Simworx Limited (Registered number: 05389718)

Strategic Report
for the Year Ended 31st December 2023

Other Risks
Other external risks include global, political and economic conditions, foreign exchange, interest rates, credit risk and business continuity. The company seeks to mitigate exposure to all forms of risk, where practicable, and to transfer risk to insurers, where cost effective.

FINANCIAL INSTRUMENTS
The directors are constantly reviewing the objectives of the business operations to identify areas where it can reduce financial risk without hindrance to the business.

Credit
To counteract the risk of bad debts the business has increased the use of credit checking facilities to assess the risk of contracting with each customer. Letters of Credit are also used for significant milestone payments where this can be negotiated with the customer.

Liquidity
The business has a strong relationship with its providers of Finance. This was evidenced by their support in establishing a cash cover facility for the issuing of Advance Payment Guarantees. Throughout the year the company maintained a positive cash balance.

Hedging Forecast Transactions
Currently the company's turnover is denominated in Sterling. Infrequently contracts are awarded in Euros and to a lesser extent US Dollars. These are only partially matched by purchases in these currencies. A significant weakening of the Euro against Sterling could have an impact upon the business's performance. If a contract is awarded in non-Sterling currency forward contracts will be put in place to mitigate this risk.

Cash flow
12-week Cash flow forecasts are prepared weekly. A 12-month Cash Forecast is prepared each month to identify any funding requirements the business may have with a degree of contingency for unforeseen events or potential changes to the assumptions of the forecasts, primarily on the timing of project receipts.

FUTURE DEVELOPMENTS
As stated earlier, enhancements to existing rides within the portfolio, along with new product development is part of the ongoing investment by the company into research and development activities.

The company will continue to expand its global sales representation as appropriate.

ON BEHALF OF THE BOARD:





B P Daniels - Director


6th August 2024

Simworx Limited (Registered number: 05389718)

Report of the Directors
for the Year Ended 31st December 2023

The directors present their report with the financial statements of the company for the year ended 31st December 2023.

DIVIDENDS
No dividends will be distributed for the year ended 31st December 2023.

DIRECTORS
The directors shown below have held office during the whole of the period from 1st January 2023 to the date of this report.

T J Monkton
A W Roberts

Other changes in directors holding office are as follows:

B P Daniels was appointed as a director after 31st December 2023 but prior to the date of this report.

DISCLOSURE IN THE STRATEGIC REPORT
Information regarding financial instruments and future developments is contained within the strategic report included in these financial statements.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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 company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

Simworx Limited (Registered number: 05389718)

Report of the Directors
for the Year Ended 31st December 2023


AUDITORS
The auditors, Rice & Co Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





B P Daniels - Director


6th August 2024

Report of the Independent Auditors to the Members of
Simworx Limited

Opinion
We have audited the financial statements of Simworx Limited (the 'company') for the year ended 31st December 2023 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of 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:
-give a true and fair view of the state of the company's affairs as at 31st December 2023 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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.

Report of the Independent Auditors to the Members of
Simworx Limited


Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

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:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit; or
- the directors were not entitled to take advantage of the small companies' exemption from the requirement to prepare a Strategic Report.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page five, 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 necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Report of the Independent Auditors to the Members of
Simworx Limited


Auditors' 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 a Report of the Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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.

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, 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 performed procedures which included:
- Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud.
- Reviewing minutes of meetings of those charged with governance.
- Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection.
- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
- Performing audit work over the risk of management bias and override of controls including testing of journal entries and other adjustments for appropriateness and reviewing accounting estimates for indicators of potential bias.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to material misstatement in the financial statements or non-compliance with laws and regulations. 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 one resulting from error, as fraud may include collusion, forgery, intentional omissions, misrepresentations, or override of the internal control.

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

Report of the Independent Auditors to the Members of
Simworx Limited


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 a Report of the Auditors 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.




Matthew Gibbs FCA (Senior Statutory Auditor)
for and on behalf of Rice & Co Limited
Chartered Accountants
Statutory Auditors
14a Market Place
Uttoxeter
Staffordshire
ST14 8HP

6th August 2024

Simworx Limited (Registered number: 05389718)

Statement of Comprehensive
Income
for the Year Ended 31st December 2023

2023 2022
Notes £    £   

TURNOVER 4 7,533,779 2,836,214

Cost of sales 5,286,365 2,662,593
GROSS PROFIT 2,247,414 173,621

Administrative expenses 1,952,939 2,076,929
294,475 (1,903,308 )

Other operating income/expenses 5 131,466 91,741
OPERATING PROFIT/(LOSS) 7 425,941 (1,811,567 )

Interest receivable and similar income 5,383 -
431,324 (1,811,567 )

Interest payable and similar expenses 8 57,434 146,669
PROFIT/(LOSS) BEFORE TAXATION 373,890 (1,958,236 )

Tax on profit/(loss) 9 (123,692 ) -
PROFIT/(LOSS) FOR THE
FINANCIAL YEAR

497,582

(1,958,236

)

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE
INCOME FOR THE YEAR

497,582

(1,958,236

)

Simworx Limited (Registered number: 05389718)

Balance Sheet
31st December 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 10 252,984 111,900
Tangible assets 11 43,133 51,348
Investments 12 33,000 33,000
329,117 196,248

CURRENT ASSETS
Stocks 13 323,231 1,023,231
Debtors 14 5,173,424 4,313,234
Cash at bank 1,544,216 93,458
7,040,871 5,429,923
CREDITORS
Amounts falling due within one year 15 4,363,040 2,677,090
NET CURRENT ASSETS 2,677,831 2,752,833
TOTAL ASSETS LESS CURRENT
LIABILITIES

3,006,948

2,949,081

CREDITORS
Amounts falling due after more than one
year

16

(75,100

)

(487,132

)

PROVISIONS FOR LIABILITIES 20 (52,317 ) (80,000 )
NET ASSETS 2,879,531 2,381,949

CAPITAL AND RESERVES
Called up share capital 21 2,132 2,132
Share premium 22 176,672 176,672
Retained earnings 22 2,700,727 2,203,145
SHAREHOLDERS' FUNDS 2,879,531 2,381,949

The financial statements were approved by the Board of Directors and authorised for issue on 6th August 2024 and were signed on its behalf by:




B P Daniels - Director


Simworx Limited (Registered number: 05389718)

Statement of Changes in Equity
for the Year Ended 31st December 2023

Called up
share Retained Share Total
capital earnings premium equity
£    £    £    £   
Balance at 1st January 2022 2,132 4,161,381 176,672 4,340,185

Changes in equity
Total comprehensive income - (1,958,236 ) - (1,958,236 )
Balance at 31st December 2022 2,132 2,203,145 176,672 2,381,949

Changes in equity
Total comprehensive income - 497,582 - 497,582
Balance at 31st December 2023 2,132 2,700,727 176,672 2,879,531

Simworx Limited (Registered number: 05389718)

Cash Flow Statement
for the Year Ended 31st December 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 1,373,103 (162,484 )
Interest paid (56,602 ) (150,168 )
Interest element of hire purchase
payments paid

(832

)

(875

)
Net cash from operating activities 1,315,669 (313,527 )

Cash flows from investing activities
Purchase of intangible fixed assets (154,671 ) (10,928 )
Purchase of tangible fixed assets (10,305 ) -
Interest received 5,383 -
Net cash from investing activities (159,593 ) (10,928 )

Cash flows from financing activities
Loan repayments in year (615,957 ) (146,533 )
Hire purchase repayments (6,861 ) (21,178 )
Movement in group loans 917,500 90,647
Net cash from financing activities 294,682 (77,064 )

Increase/(decrease) in cash and cash equivalents 1,450,758 (401,519 )
Cash and cash equivalents at beginning
of year

2

93,458

494,977

Cash and cash equivalents at end of
year

2

1,544,216

93,458

Simworx Limited (Registered number: 05389718)

Notes to the Cash Flow Statement
for the Year Ended 31st December 2023

1. RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED
FROM OPERATIONS
2023 2022
£    £   
Profit/(loss) before taxation 373,890 (1,958,236 )
Depreciation charges 32,107 85,332
Decrease in provisions for liabilities (27,683 ) 80,000
Finance costs 57,434 146,669
Finance income (5,383 ) -
430,365 (1,646,235 )
Decrease in stocks 700,000 1,027,269
(Increase)/decrease in trade and other debtors (1,616,848 ) 302,265
Increase in trade and other creditors 1,859,586 154,217
Cash generated from operations 1,373,103 (162,484 )

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31st December 2023
31.12.23 1.1.23
£    £   
Cash and cash equivalents 1,544,216 93,458
Year ended 31st December 2022
31.12.22 1.1.22
£    £   
Cash and cash equivalents 93,458 494,977


Simworx Limited (Registered number: 05389718)

Notes to the Cash Flow Statement
for the Year Ended 31st December 2023

3. ANALYSIS OF CHANGES IN NET (DEBT)/FUNDS

At 1.1.23 Cash flow At 31.12.23
£    £    £   
Net cash
Cash at bank 93,458 1,450,758 1,544,216
93,458 1,450,758 1,544,216
Debt
Finance leases (47,286 ) 6,861 (40,425 )
Debts falling due within 1 year (725,135 ) 210,917 (514,218 )
Debts falling due after 1 year (446,707 ) 405,040 (41,667 )
(1,219,128 ) 622,818 (596,310 )
Total (1,125,670 ) 2,073,576 947,906

Simworx Limited (Registered number: 05389718)

Notes to the Financial Statements
for the Year Ended 31st December 2023

1. STATUTORY INFORMATION

Simworx Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

3. ACCOUNTING POLICIES

Basis of preparing the financial statements
The financial statements have been prepared under the historical cost convention.

Significant judgements and estimates
In preparing these financial statements, the directors have had to make judgements, estimates and assumptions that effect the application of policies and reported amounts of assets, liabilities, income and expenses.

The estimates and associated assumptions are based on historic experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities. Actual results may differ from these estimates. The judgements, estimates and assumptions are:

Tangible assets
Tangible fixed assets are depreciated over their useful economic lives taking into account residual values where appropriate. The actual lives of these assets are assessed annually and may vary depending on a number of factors. In assessing asset lives, factors such as life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as the remaining life of the asset and projected disposal values.

Trade debtors
At each reporting date, trade debtors are assessed for recoverability. If there is any evidence of impairment, the carrying amount is reduced to its recoverable amount. The impairment loss is recognised immediately in the statement of comprehensive income.

Project accounting
Project revenue and costs are recognised in the statement of comprehensive income by reference to the stage of completion of the project. At each reporting date, total project costs are projected to allow the correct proportion of profit to be recognised.

Simworx Limited (Registered number: 05389718)

Notes to the Financial Statements - continued
for the Year Ended 31st December 2023

3. ACCOUNTING POLICIES - continued

Going concern
The return to 'normality' within the theme park Industry following the pandemic and economic impact of the Ukraine crisis 2020-2022 has continued into 2024 with investment into new attractions at pre-pandemic levels.

2024 began with a strong order book from secured sales of its major products including Flying Theatre, AGV Dark Ride, Metro of Time, and Immersive Tunnel to a number of overseas clients. The order book has been further bolstered with new contracts from new and existing overseas customers. There is confidence in the pipeline of opportunities with a number of prospects at the contract stage.

The directors have prepared cash flow forecasts up to December 2025 which indicate that the company will have sufficient liquidity to meet its working capital requirements for a period of at least 12 months from the date of signing these financial statements. These forecasts have been prepared to reflect the current order book and the promising signs for 2024 and beyond. The key assumptions in the forecasts relate to the timing of contractual cashflows which are made in line with the experience of the business.

The directors of the company have reviewed the overall position and outlook in respect of these matters and are of the opinion that on the basis of the forecasts prepared and actions taken they are satisfied that the going concern basis is appropriate.

These financial statements do not include adjustments relating to the recoverability and classification of recorded asset amounts or to the amounts and classification of liabilities that might be necessary should the company not continue as a going concern.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Turnover in respect of long-term contracts is recognised when a set stage, as specified in the contract for sale, has been completed.

All other turnover is recognised either when goods have been delivered to customers or services completed, such that risks and rewards of ownership have passed to them.

Project contracts
Project revenue and costs are recognised in the statement of comprehensive income by reference to the stage of completion of the project, to the extent that the project outcome can be estimated reliably. The stage of completion is measured by reference to set stages, as specified in the contract. An expected loss on a project is recognised immediately in the statement of comprehensive income.

Amounts recoverable on contracts are included in debtors and represent revenue recognised in excess of amounts invoiced. Amounts invoiced in excess of revenue recognised and costs recognised in excess of expenses incurred are included in creditors due within one year.

Ride films
Expenditure incurred on developing new ride films is capitalised in the balance sheet and amortised over its estimated useful life of five years. Amortisation is reported in the statement of comprehensive income under administrative expenses.

Simworx Limited (Registered number: 05389718)

Notes to the Financial Statements - continued
for the Year Ended 31st December 2023

3. ACCOUNTING POLICIES - continued

Development costs
Expenditure incurred on new products and improvements to the company's products is capitalised in the balance sheet as development costs and amortised over its estimated useful life of two to five years. Amortisation commences with the commercial introduction of the new product or incorporation of the improvement into the product and is reported in the statement of comprehensive income under administrative expenses.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Plant and machinery - Straight line over 2 - 5 years
Fixtures and fittings - Straight line over 2 - 4 years
Motor vehicles - 25% on reducing balance
Office equipment - Straight line over 2 - 4 years

Tangible fixed assets are capitalised at historical cost and net book values are reviewed annually to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in the statement of comprehensive income.

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Financial instruments
Fixed asset investments in unlisted shares are initially recognised at cost with any impairment losses being reported in the statement of comprehensive income under administrative expenses.

Derivative financial instruments are recognised at fair value with any gains or losses being reported in the statement of comprehensive income under other operating income/expenses.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


Simworx Limited (Registered number: 05389718)

Notes to the Financial Statements - continued
for the Year Ended 31st December 2023

3. ACCOUNTING POLICIES - continued
Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

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

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the reporting date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives and those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to statement of comprehensive income over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to the statement of comprehensive income on a straight
line basis over the period of the lease.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Debtors
Short term debtors are measured at transaction price, less any impairment.

Creditors
Short term creditors are measured at transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Simworx Limited (Registered number: 05389718)

Notes to the Financial Statements - continued
for the Year Ended 31st December 2023

4. TURNOVER

The turnover and profit (2022 - loss) before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

2023 2022
£    £   
United Kingdom 833,925 522,338
Europe 2,609,066 251,365
North America 2,896,876 2,264
Rest of the World 1,193,912 2,060,247
7,533,779 2,836,214

Turnover includes project contract revenue recognised during the financial year of £7,134,874 (2022 - £2,370,216).

5. OTHER OPERATING INCOME/EXPENSES
2023 2022
£    £   
Rents receivable 47,910 51,640
Sundry income 96,714 36,000
Government grants 9,000 -
Foreign exchange gains/losses (22,158 ) 4,101
131,466 91,741

6. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 1,287,706 1,351,420
Social security costs 142,511 161,107
Other pension costs 217,452 130,348
1,647,669 1,642,875

The average number of employees during the year was as follows:
2023 2022

Directors 2 2
Direct 13 11
Sales and administration 11 13
26 26

Simworx Limited (Registered number: 05389718)

Notes to the Financial Statements - continued
for the Year Ended 31st December 2023

6. EMPLOYEES AND DIRECTORS - continued

2023 2022
£    £   
Directors' remuneration 201,105 205,526
Directors' pension contributions to money purchase schemes 143,252 66,121

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 2 2

Information regarding the highest paid director is as follows:
2023 2022
£    £   
Emoluments etc 103,273 105,726
Pension contributions to money purchase schemes 71,297 27,014

During the year ended 31st December 2023 a total of key management personnel compensation of £388,436 (2022 - £319,647) was paid.

7. OPERATING PROFIT/(LOSS)

The operating profit (2022 - operating loss) is stated after charging/(crediting):

2023 2022
£    £   
Depreciation - owned assets 1,404 34,396
Depreciation - assets on hire purchase contracts 17,116 17,116
Ride films amortisation 1,200 19,200
Development costs amortisation 12,387 14,618
Auditors' remuneration 10,000 9,750
Auditors' remuneration for
non audit work 13,495 13,145
Foreign exchange differences 22,158 (4,101 )
Operating lease payments 48,095 134,903

8. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Loan interest 42,179 120,065
Other interest payable 14,423 25,729
Hire purchase interest 832 875
57,434 146,669

Simworx Limited (Registered number: 05389718)

Notes to the Financial Statements - continued
for the Year Ended 31st December 2023

9. TAXATION

Analysis of the tax credit
The tax credit on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
Research and development relief (123,692 ) -
Tax on profit/(loss) (123,692 ) -

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

Reconciliation of total tax credit included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£    £   
Profit/(loss) before tax 373,890 (1,958,236 )
Profit/(loss) multiplied by the standard rate of corporation tax in the
UK of 19% (2022 - 19%)

71,039

(372,065

)

Effects of:
Expenses not deductible for tax purposes 3,925 4,889
Capital allowances in excess of depreciation (293 ) (5,462 )
Utilisation of tax losses (90,829 ) -
Losses carried forward - 372,638
Other timing differences 16,158 -
Research and development tax relief (123,692 ) -
Total tax credit (123,692 ) -

Simworx Limited (Registered number: 05389718)

Notes to the Financial Statements - continued
for the Year Ended 31st December 2023

10. INTANGIBLE FIXED ASSETS
Ride Development
Goodwill films costs Totals
£    £    £    £   
COST
At 1st January 2023 118,000 545,470 525,674 1,189,144
Additions - - 154,671 154,671
At 31st December 2023 118,000 545,470 680,345 1,343,815
AMORTISATION
At 1st January 2023 118,000 543,270 415,974 1,077,244
Amortisation for year - 1,200 12,387 13,587
At 31st December 2023 118,000 544,470 428,361 1,090,831
NET BOOK VALUE
At 31st December 2023 - 1,000 251,984 252,984
At 31st December 2022 - 2,200 109,700 111,900

Additions to development costs are internally generated.

Development costs include three improvements in entertainment attraction technology with net book values at 31st December 2023 of £112,336 (2022 - £nil), £89,255 (2022 - £89,255) and £40,180 (2022 - £nil). Amortisation commences when the improvement is incorporated into the commercial production of the company's products.

11. TANGIBLE FIXED ASSETS
Fixtures
Plant and and Motor Office
machinery fittings vehicles equipment Totals
£    £    £    £    £   
COST
At 1st January 2023 565,884 149,028 68,464 152,317 935,693
Additions - - - 10,305 10,305
At 31st December 2023 565,884 149,028 68,464 162,622 945,998
DEPRECIATION
At 1st January 2023 565,884 149,028 17,116 152,317 884,345
Charge for year - - 17,116 1,404 18,520
At 31st December 2023 565,884 149,028 34,232 153,721 902,865
NET BOOK VALUE
At 31st December 2023 - - 34,232 8,901 43,133
At 31st December 2022 - - 51,348 - 51,348

Simworx Limited (Registered number: 05389718)

Notes to the Financial Statements - continued
for the Year Ended 31st December 2023

11. TANGIBLE FIXED ASSETS - continued

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Motor
vehicles
£   
COST
At 1st January 2023
and 31st December 2023 68,464
DEPRECIATION
At 1st January 2023 17,116
Charge for year 17,116
At 31st December 2023 34,232
NET BOOK VALUE
At 31st December 2023 34,232
At 31st December 2022 51,348

12. FIXED ASSET INVESTMENTS
Unlisted
investments
£   
COST
At 1st January 2023
and 31st December 2023 33,000
NET BOOK VALUE
At 31st December 2023 33,000
At 31st December 2022 33,000

13. STOCKS
2023 2022
£    £   
Finished goods 323,231 1,023,231

Simworx Limited (Registered number: 05389718)

Notes to the Financial Statements - continued
for the Year Ended 31st December 2023

14. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 2,446,343 784,001
Amounts owed by group undertakings 2,485,931 3,366,281
Other debtors 123,692 -
VAT - 659
Prepayments and accrued income 117,458 162,293
5,173,424 4,313,234

All amounts shown under debtors fall due for payment within one year.

Impairments of debtors recognised in the income statement during the financial year amounted to £nil (2022 - £156,000).

Provisions for bad and doubtful debts at 31st December 2023 amounted to £nil (2022 - £156,000).

15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Loans (see note 17) 514,218 725,135
Hire purchase contracts (see note 18) 6,992 6,861
Project accruals and deferred income 2,932,482 511,505
Trade creditors 227,136 671,810
Amounts owed to group undertakings 87,992 50,842
Social security and other taxes 363,926 522,170
VAT 834 -
Accruals and deferred income 229,460 188,767
4,363,040 2,677,090

16. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN
ONE YEAR
2023 2022
£    £   
Loans (see note 17) 41,667 446,707
Hire purchase contracts (see note 18) 33,433 40,425
75,100 487,132

Simworx Limited (Registered number: 05389718)

Notes to the Financial Statements - continued
for the Year Ended 31st December 2023

17. LOANS

An analysis of the maturity of loans is given below:

2023 2022
£    £   
Amounts falling due within one year or on demand:
Loans 514,218 725,135

Amounts falling due between one and two years:
Loans 41,667 405,040

Amounts falling due between two and five years:
Loans - 41,667

18. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
2023 2022
£    £   
Gross obligations repayable:
Within one year 7,693 7,693
Between one and five years 33,537 41,230
41,230 48,923

Finance charges repayable:
Within one year 701 832
Between one and five years 104 805
805 1,637

Net obligations repayable:
Within one year 6,992 6,861
Between one and five years 33,433 40,425
40,425 47,286

Simworx Limited (Registered number: 05389718)

Notes to the Financial Statements - continued
for the Year Ended 31st December 2023

18. LEASING AGREEMENTS - continued

Non-cancellable operating leases
2023 2022
£    £   
Within one year 219,028 135,848
Between one and five years 765,600 8,067
984,628 143,915

19. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Loans 555,885 1,171,842
Hire purchase contracts 40,425 47,286
596,310 1,219,128

Loans amounting to £555,885 (2022 - £1,171,842) are secured by a charge over all assets of the company.

20. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Other provisions 52,317 80,000

Other
provisions
£   
Balance at 1st January 2023 80,000
Credit to Statement of Comprehensive Income during year (27,683 )
Balance at 31st December 2023 52,317

Other provisions relate to an estimate of the cost of warranties provided to customers over the company's projects. Claims are usually settled within three years.

Simworx Limited (Registered number: 05389718)

Notes to the Financial Statements - continued
for the Year Ended 31st December 2023

21. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
112,567 Ordinary 1p 1,126 1,126
100,643 "A" Ordinary 1p 1,006 1,006
2,132 2,132

All shares rank pari passu in all respects.

22. RESERVES
Retained Share
earnings premium Totals
£    £    £   

At 1st January 2023 2,203,145 176,672 2,379,817
Profit for the year 497,582 497,582
At 31st December 2023 2,700,727 176,672 2,877,399

Retained earnings consists of all current and prior period retained profits and losses.

Share premium represents amounts paid for the company's share capital in excess of the nominal value of the corresponding shares.

23. CONTINGENT LIABILITIES

The company has provided a guarantee over creditors of Media Based Attractions Limited, the company's parent undertaking, amounting to £2,666,000 (2022- £1,666,000).

24. PARENT AND ULTIMATE PARENT COMPANY

The company's parent and ultimate parent undertaking is Media Based Attractions Limited, a company registered in England and Wales. Consolidated financial statements are prepared for the group controlled by Media Based Attractions Limited and that company's registered office is 37 Second Avenue, The Pensnett Estate, Kingswinford, West Midlands DY6 7UL.