Digital Theatre.com Limited 06570330 false 2023-01-01 2023-12-31 2023-12-31 The principal activity of the company is specialising in the creation, marketing, delivery and distribution of high quality filmed or audio versions of theatrical productions, other productions and related digital content. These productions are wrapped up with Education content that enables teachers to bring the productions to life across a wide range of ages and environments. The company runs a digital service containing the websites and all rights necessary to provide its content on a subscription basis to its end users which are mainly educational institutions and establishments with a small consumer base. Digita Accounts Production Advanced 6.30.9574.0 true true 06570330 2023-01-01 2023-12-31 06570330 2023-12-31 06570330 bus:OrdinaryShareClass1 2023-12-31 06570330 bus:OrdinaryShareClass2 2023-12-31 06570330 bus:Consolidated 2023-12-31 06570330 core:RetainedEarningsAccumulatedLosses 2023-12-31 06570330 core:ShareCapital 2023-12-31 06570330 core:SharePremium 2023-12-31 06570330 core:CurrentFinancialInstruments 2023-12-31 06570330 core:CurrentFinancialInstruments core:WithinOneYear 2023-12-31 06570330 core:Goodwill 2023-12-31 06570330 core:PatentsTrademarksLicencesConcessionsSimilar 2023-12-31 06570330 core:BetweenTwoFiveYears 2023-12-31 06570330 core:WithinOneYear 2023-12-31 06570330 core:OtherPropertyPlantEquipment 2023-12-31 06570330 core:OtherProvisionsContingentLiabilities 2023-12-31 06570330 bus:SmallEntities 2023-01-01 2023-12-31 06570330 bus:Audited 2023-01-01 2023-12-31 06570330 bus:FullAccounts 2023-01-01 2023-12-31 06570330 bus:SmallCompaniesRegimeForAccounts 2023-01-01 2023-12-31 06570330 bus:RegisteredOffice 2023-01-01 2023-12-31 06570330 bus:CompanySecretary1 2023-01-01 2023-12-31 06570330 bus:Director1 2023-01-01 2023-12-31 06570330 bus:Director2 2023-01-01 2023-12-31 06570330 bus:Director4 2023-01-01 2023-12-31 06570330 bus:OrdinaryShareClass1 2023-01-01 2023-12-31 06570330 bus:OrdinaryShareClass2 2023-01-01 2023-12-31 06570330 bus:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 06570330 core:ComputerSoftware 2023-01-01 2023-12-31 06570330 core:DevelopmentCostsCapitalisedDevelopmentExpenditure 2023-01-01 2023-12-31 06570330 core:Goodwill 2023-01-01 2023-12-31 06570330 core:OtherResidualIntangibleAssets 2023-01-01 2023-12-31 06570330 core:PatentsTrademarksLicencesConcessionsSimilar 2023-01-01 2023-12-31 06570330 core:ComputerEquipment 2023-01-01 2023-12-31 06570330 core:OtherPropertyPlantEquipment 2023-01-01 2023-12-31 06570330 countries:EnglandWales 2023-01-01 2023-12-31 06570330 2022-12-31 06570330 core:Goodwill 2022-12-31 06570330 core:PatentsTrademarksLicencesConcessionsSimilar 2022-12-31 06570330 core:OtherPropertyPlantEquipment 2022-12-31 06570330 core:OtherProvisionsContingentLiabilities 2022-12-31 06570330 2022-01-01 2022-12-31 06570330 2022-12-31 06570330 bus:OrdinaryShareClass1 2022-12-31 06570330 bus:OrdinaryShareClass2 2022-12-31 06570330 core:CurrentFinancialInstruments 2022-12-31 06570330 core:CurrentFinancialInstruments core:WithinOneYear 2022-12-31 06570330 core:Goodwill 2022-12-31 06570330 core:PatentsTrademarksLicencesConcessionsSimilar 2022-12-31 06570330 core:BetweenTwoFiveYears 2022-12-31 06570330 core:WithinOneYear 2022-12-31 06570330 core:OtherPropertyPlantEquipment 2022-12-31 iso4217:GBP xbrli:pure xbrli:shares

Registration number: 06570330

Digital Theatre.com Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2023

 

Digital Theatre.com Limited

Contents

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3 to 9

 

Digital Theatre.com Limited

Company Information

Directors

F Hyman

C Turner

N Patel

Company secretary

C Lambert

Registered office

51 Eastcheap
London
EC3M 1JP

Auditors

Hazlewoods LLP
Staverton Court
Staverton
Cheltenham
GL51 0UX

 

Digital Theatre.com Limited

(Registration number: 06570330)
Balance Sheet as at 31 December 2023

Note

2023
 £

2022
 £

Fixed assets

 

Intangible assets

4

1,402,197

1,427,287

Tangible assets

5

13,541

26,472

 

1,415,738

1,453,759

Current assets

 

Debtors

6

726,746

723,008

Cash at bank and in hand

 

214,146

416,927

 

940,892

1,139,935

Creditors: Amounts falling due within one year

7

(4,836,065)

(16,135,490)

Net current liabilities

 

(3,895,173)

(14,995,555)

Total assets less current liabilities

 

(2,479,435)

(13,541,796)

Provisions

8

(1,627)

(1,627)

Net liabilities

 

(2,481,062)

(13,543,423)

Capital and reserves

 

Called up share capital

9

1,339

1,339

Share premium reserve

6,475,136

6,475,136

Profit and loss account

(8,957,537)

(20,019,898)

Total equity

 

(2,481,062)

(13,543,423)

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

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 26 July 2024 and signed on its behalf by:
 


C Turner
Director

 

Digital Theatre.com Limited

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

 

1

General information

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

The address of its registered office is:
51 Eastcheap
London
EC3M 1JP
England

 

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

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

Statement of compliance

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

Basis of preparation

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

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Going concern

The company is reporting a profit for the year of £10,124,858 (2022 - £2,934,874) and at the balance sheet date the company had net current liabilities of £4,832,676 (2022 - £14,995,555). The company is supported by amounts provided by related parties amounting to £2,674,042 (2022 - £13,605,905). These related parties have indicated that they will continue to financially support the company for the twelve months from the date of approval of these financial statements, however there is no written agreement to such effect.

The directors have prepared the financial statements on a going concern basis and therefore these statements do not include any adjustments which would arise if support from related parties were to be withdrawn.

Critical accounting judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
 

Judgements

The directors have applied judgement in assessing

- the useful economic life of intangible assets

- the recoverability of the inter-company balances

 

Digital Theatre.com Limited

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

Key sources of estimation uncertainty

No key sources of estimation uncertainty have been identified by management in preparing these financial statements other than those detailed in these accounting policies.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax. The company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity, and specific criteria have been met for each of the company's activities.

Foreign currency transactions and balances

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

Tax

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

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

Tangible assets

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

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

Depreciation

Depreciation is charged so as to write off the cost of assets over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Computer equipment

25% per year straight line

Intangible assets

Where full theatrical productions are produced in house, these costs are capitalised on the balance sheet as intangible fixed assets. These are written off using the policy below.

Capitalised production costs are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.

These costs are stated at the lower of or net realisable value on a catalogue basis. The nature of the company’s business, the contracts it has in place and the markets it operates in do not yet make an ongoing individual production evaluation feasible with reasonable certainty.

Production and post production costs incurred in delivering supplementary content, as well as post production costs in respect of third party owned content is charged to the profit and loss in the period in which it is incurred.

Development costs

Research expenditure is written off to the profit and loss account in the year in which it is incurred. Development expenditure is written off in the same way unless the directors are satisfied as to the technical, commercial and financial viability of individual projects. In this situation, the expenditure is deferred and amortised over the period during which the company is expected to benefit.

 

Digital Theatre.com Limited

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

Amortisation

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

Asset class

Amortisation method and rate

Web development

25% per year straight line

Production costs - captures

10% per year straight line

Production costs - captioning and subtitling

20% per year straight line

Trade debtors

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

Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtors.

Trade creditors

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

Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Provisions

Provisions are recognised when the company has an obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments.

Defined contribution pension obligation

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

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

 

Digital Theatre.com Limited

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

Financial instruments


Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.
 

Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Financial assets and liabilities are only offset in the balance sheet when, and only when, there exists a legally enforceable right to set off the recognised amounts and the company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
 

Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

Non-financial assets:
An asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised. Where a reversal of impairment occurs in respect of a CGU, the reversal is applied first to the assets (other than goodwill) of the CGU on a pro-rata basis and then to any goodwill allocated to that CGU.

Financial assets:
For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.

For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.

Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

 

3

Staff numbers

The average number of persons employed by the company during the year, was as follows:

 

Digital Theatre.com Limited

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

 

4

Intangible assets

Production costs
 £

Trademarks, patents and licenses
£

Total
£

Cost

At 1 January 2023

405,845

1,827,104

2,232,949

Additions

-

508,375

508,375

At 31 December 2023

405,845

2,335,479

2,741,324

Amortisation

At 1 January 2023

138,028

667,634

805,662

Amortisation charge

48,677

484,788

533,465

At 31 December 2023

186,705

1,152,422

1,339,127

Carrying amount

At 31 December 2023

219,140

1,183,057

1,402,197

At 31 December 2022

267,817

1,159,470

1,427,287

 

5

Tangible assets

Computer equipment
 £

Cost

At 1 January 2023

82,281

Additions

5,720

At 31 December 2023

88,001

Depreciation

At 1 January 2023

55,809

Charge for the year

18,651

At 31 December 2023

74,460

Carrying amount

At 31 December 2023

13,541

At 31 December 2022

26,472

 

Digital Theatre.com Limited

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

 

6

Debtors

2023
 £

2022
 £

Trade debtors

408,112

237,263

Amounts owed by related parties

268

15,030

Other debtors

110,849

69,453

Prepayments

127,086

94,450

Corporation tax asset

80,431

306,812

726,746

723,008

 

7

Creditors

Note

2023
 £

2022
 £

Due within one year

 

Trade creditors

 

226,424

163,770

Amounts due to related parties

11

1,736,539

13,605,905

Outstanding defined contribution pension costs

 

16,246

11,975

Other creditors

 

52,811

2,813

Accrued expenses

 

836,388

652,800

Deferred income

 

1,967,657

1,698,227

 

4,836,065

16,135,490

 

8

Provisions

Other provisions
£

Total
£

At 1 January 2023

1,627

1,627

At 31 December 2023

1,627

1,627

 

Digital Theatre.com Limited

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

 

9

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary shares of £0.01 each

123,180

1,232

123,180

1,232

Ordinary A2 shares of £0.01 each

10,700

107

10,700

107

 

133,880

1,339

133,880

1,339

The different classes of share referred to above carry separate rights to dividends but, in all other significant respects, rank pari passu.

 

10

Operating leases

The total of future minimum lease payments is as follows:

2023
 £

2022
 £

Not later than one year

259,200

106,244

Later than one year and not later than five years

129,600

-

388,800

106,244

The amount of non-cancellable operating lease payments recognised as an expense during the year was £215,958 (2022 - £220,774).

 

11

Related party transactions

The company has taken advantage of the exemption provided by FRS 102 s33.1A whereby disclosures need not be given of transactions entered into between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member.

 

12

Audit report

The Independent Auditor's Report was unqualified. The name of the Senior Statutory Auditor who signed the audit report on 26 July 2024 was Ryan Hancock, who signed for and on behalf of Hazlewoods LLP.