Company Registration No. 12798774 (England and Wales)
LET'S EXPLORE LIMITED
(FORMERLY LET'S EXPLORE MEDIA LIMITED)
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
LET'S EXPLORE LIMITED
(FORMERLY LET'S EXPLORE MEDIA LIMITED)
COMPANY INFORMATION
Directors
Mr D F G Wortley
Mr M J Higginson
Mr D Marks
(Appointed 10 May 2024)
Mr D Strang
(Appointed 10 May 2024)
Mrs K D Fasan
(Appointed 10 May 2024)
Company number
12798774
Registered office
Cumberland Court
80 Mount Street
Nottingham
NG1 6HH
Auditor
Haysmacintyre LLP
10 Queen Street Place
London
EC4R 1AG
LET'S EXPLORE LIMITED
(FORMERLY LET'S EXPLORE MEDIA LIMITED)
CONTENTS
Page
Directors' report
1 - 2
Independent auditor's report
3 - 5
Statement of comprehensive income
6
Statement of financial position
7
Statement of changes in equity
8
Notes to the financial statements
9 - 18
LET'S EXPLORE LIMITED
(FORMERLY LET'S EXPLORE MEDIA LIMITED)
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present their annual report and financial statements for the year ended 31 December 2023.

Principal activities

The principal activity of the company continued to be that of the sale of in-home virtual reality equipment and experiences.

Directors

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

Mr D F G Wortley
Mr M J Higginson
Mr D Marks
(Appointed 10 May 2024)
Mr D Strang
(Appointed 10 May 2024)
Mrs K D Fasan
(Appointed 10 May 2024)
Auditor

The auditors, Haysmacintyre LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

Statement of directors' responsibilities

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:

 

 

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.

LET'S EXPLORE LIMITED
(FORMERLY LET'S EXPLORE MEDIA LIMITED)
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 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 company’s auditor is unaware. Additionally, the director has taken all the necessary steps that he ought to have taken as director in order to make themselves aware of all relevant audit information and to establish that the Company’s auditor is aware of that information.

Small Companies Note

In preparing this report, the director has taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.

On behalf of the board
Mr D F G Wortley
Director
15 August 2024
LET'S EXPLORE LIMITED
(FORMERLY LET'S EXPLORE MEDIA LIMITED)
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF LET'S EXPLORE LIMITED
- 3 -
Opinion

We have audited the financial statements of Let’s Explore Limited (the ‘Company’) for the year ended 31 December 2023 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity and 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 101 ‘Reduced Disclosure Framework’ (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 Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the 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 included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

LET'S EXPLORE LIMITED
(FORMERLY LET'S EXPLORE MEDIA LIMITED)
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF LET'S EXPLORE LIMITED
- 4 -

Opinions on other matters prescribed by the Companies Act 2006

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

 

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 directors’ report.

 

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

 

Responsibilities of directors

As explained more fully in the directors’ responsibilities statement set out on page 1, 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 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.

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:

LET'S EXPLORE LIMITED
(FORMERLY LET'S EXPLORE MEDIA LIMITED)
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF LET'S EXPLORE LIMITED
- 5 -

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

Based on our understanding of the company and industry, we have identified the principal risks of noncompliance with laws and regulations, and we have considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, income tax, payroll tax and sales tax.

 

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to revenue and management bias in accounting estimates. Audit procedures performed by the engagement team included:

 

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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 auditor’s report.

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.

Christopher Cork (Senior Statutory Auditor)
For and on behalf of Haysmacintyre LLP
Chartered Accountants
Statutory Auditor
10 Queen Street Place
London
EC4R 1AG
16 August 2024
LET'S EXPLORE LIMITED
(FORMERLY LET'S EXPLORE MEDIA LIMITED)
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
2023
2022
Notes
£
£
Revenue
3
312,529
386,458
Cost of sales
(349,035)
(508,827)
Gross loss
(36,506)
(122,369)
Administrative expenses
(687,509)
(364,995)
Loss before taxation
4
(724,015)
(487,364)
Intercompany debts waived
8
1,256,577
-
0
Profit/(loss) before taxation
532,562
(487,364)
Tax on loss
9
-
0
-
0
Loss and total comprehensive income for the financial period
532,562
(487,364)
There was no other comprehensive income for 2023 (2022: £NIL).
The notes on pages 9 to 19 form part of these financial statements.
The above results relate in their entirety to continuing operations.
LET'S EXPLORE LIMITED
(FORMERLY LET'S EXPLORE MEDIA LIMITED)
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2023
31 December 2023
- 7 -
2023
2022
Notes
£
£
£
£
Non-current assets
Intangible assets
10
122,081
199,880
Property, plant and equipment
11
5,151
-
127,232
199,880
Current assets
Inventories
13
28,293
35,292
Trade and other receivables
14
545,306
729,211
Cash and cash equivalents
12
8,024
21,012
581,623
785,515
Current liabilities
Trade and other payables
15
1,460,720
2,269,822
Net current liabilities
(879,097)
(1,484,307)
Net liabilities
(751,865)
(1,284,427)
Equity
Called up share capital
16
1
1
Retained earnings
17
(751,866)
(1,284,428)
Total equity
(751,865)
(1,284,427)
The financial statements were approved by the board of directors and authorised for issue on 15 August 2024 and are signed on its behalf by:
Mr D F G Wortley
Director
Company registration number 12798774

The notes on pages 9 to 18 form part of these financial statements.

LET'S EXPLORE LIMITED
(FORMERLY LET'S EXPLORE MEDIA LIMITED)
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
Share capital
Retained earnings
Total
£
£
£
Balance at 1 January 2022
1
(797,064)
(797,063)
Year ended 31 December 2022:
Loss and total comprehensive income for the year
-
(487,364)
(487,364)
Balance at 31 December 2022
1
(1,284,428)
(1,284,427)
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
532,562
532,562
Balance at 31 December 2023
1
(751,866)
(751,865)
The notes on pages 9 to 19 form part of these financial statements.
LET'S EXPLORE LIMITED
(FORMERLY LET'S EXPLORE MEDIA LIMITED)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
1
Accounting policies
Company information

Let's Explore Limited is a private company limited by shares incorporated in England and Wales. The registered office is Cumberland Court, 80 Mount Street, Nottingham, NG1 6HH. The company's principal activities and nature of its operations are disclosed in the directors' report.

1.1
Accounting convention

The financial statements have been prepared in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework (FRS 101) and in accordance with applicable accounting standards and the Companies Act 2006.

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

The financial statements have been prepared prepared under the historical cost convention. The principal accounting policies adopted are set out below.

As permitted by FRS 101, the company has taken advantage of the following disclosure exemptions from the requirements of IFRS:

 

1.2
Going concern

As at the year end the company had net liabilities of £751,865 (2022: £1,284,427). The directors have prepared a cash flow assessment for 12 months from the date of this report. The cash flow projections show that throughout the period the company generates positive cashflows. However, there are instances throughout the period whereby the company will need external funding for working capital purposes. The directors of the company's ultimate controlling parent, Huddled Group Plc, have therefore confirmed their intention to provide support to allow the company to pay its liabilities as they fall due throughout the 12 month period from the date of signing. As such, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.true

1.3
Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts and value added tax.

 

The Company does not expect to have any contracts where the period between the transfer of the promised goods to the customer and payment by the customer exceeds one year. As a consequence the Company does not adjust any of the transaction prices for the time value of money. The following criteria must also be met before revenue is recognised.

LET'S EXPLORE LIMITED
(FORMERLY LET'S EXPLORE MEDIA LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 10 -

Revenue is recognised on sales of the Let's Explore and Vodiac products in the period in which the order is delivered to the customer. A provision for future refunds is deducted from revenue each period.

1.4
Intangible assets other than goodwill

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

 

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

 

Software                 33% straight line

Website                 33% straight line

Trademarks                50% straight line

1.5
Property, plant and equipment

Property, plant and equipment 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
33% straight line

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.

1.6
Impairment of tangible and intangible assets

At each reporting end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

Recoverable amount is the higher of fair value less costs to sell and value in use. If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset 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.

1.7
Inventory

Inventory is stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition.

1.8
Cash and cash equivalents

Cash and cash equivalents 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.

LET'S EXPLORE LIMITED
(FORMERLY LET'S EXPLORE MEDIA LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 11 -
1.9
Financial assets

Financial assets are recognised in the company's Statement of Financial Position when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.

 

At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.

 

The company recognises lifetime expected credit losses for trade receivables and amounts due on contracts with customers. Expected credit losses are estimated based on historical credit loss, adjusted for facts that are specific to the counterparties, general economic conditions and an assessment of both the current as well as the forecasted conditions at the reporting date, including the time value of money where appropriate. Lifetime expected credit losses are losses which will result from all possible default events over the expected life of a financial instrument.

Impairment of financial assets

Financial assets, other than those measured at fair value through profit or loss, are assessed for indicators of impairment at each reporting 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 of the investment have been affected.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.

1.10
Financial liabilities

The company recognises financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.

Derecognition of financial liabilities

Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.

1.11
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs.

1.12
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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

LET'S EXPLORE LIMITED
(FORMERLY LET'S EXPLORE MEDIA LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -
Deferred tax

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary 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 when the company has 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.

1.13
Employee benefits
A defined contribution plan is a pension plan under which a company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations.
The contributions are recognised as an expense in the Statement of Comprehensive Income when 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.
1.14

Receivables

Short term receivables are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

1.15

Payables

Payables are obligations to pay for goods or services that have been acquired in the ordinary course of business, from suppliers. Payables are recognised initially at fair value and subsequently at amortised cost using the effective interest method.

1.16

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.

LET'S EXPLORE LIMITED
(FORMERLY LET'S EXPLORE MEDIA LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
2
Critical accounting estimates and judgements

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

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, 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.

 

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.

Amortisation and impairment of intangible assets

The company's amortisation policy requires judgement to be made when estimating the useful economic life of intangible assets to determine an appropriate amortisation rate.

 

Capitalised development costs are amortised straight line over the period during which economic benefits are expected to be received. The directors have adopted an amortisation policy of 3 years.

 

The carrying value of intangible assets are assessed for impairment which requires judgement and estimation of forecasted future cash flows, including future sales, to be received from each asset respectively.

3
Revenue
2023
2022
£
£
Revenue analysed by class of business
Sale of in-home virtual reality products
312,529
386,458
2023
2022
£
£
Revenue analysed by geographical market
United Kingdom
312,529
386,458
4
Operating loss
2023
2022
£
£
Operating loss for the year is stated after charging:
Inventories recognised as an expense
222,936
349,830
Exchange gains
(3,240)
(459)
Defined contribution pension cost
2,409
1,639
Depreciation of property, plant and equipment
1,406
22
Amortisation of intangible assets
175,386
88,137
Intercompany provision expense
288,088
-
0
LET'S EXPLORE LIMITED
(FORMERLY LET'S EXPLORE MEDIA LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
5
Auditor's remuneration
Auditors' remuneration in respect of the Company: £14,300 (2022: £14,300).
6
Employees

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

2023
2022
Number
Number
Directors
2
2
Management & administration
-
1
Operations
-
1
Sales & marketing
1
1
Software development
1
-
Total
4
5

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
77,321
120,947
Social security costs
7,951
14,990
Pension costs
2,409
1,639
87,681
137,576
7
Directors' remuneration

The directors received remuneration of £nil (2022: £nil) in the period. The directors were remunerated via the parent company Huddled Group Plc, which charges the company a management fee inclusive of an appropriate proportion of the directors' remuneration.

 

Key management personnel received remuneration of £nil (2022: £nil) in the period.

8
Intercompany debt provisions
2023
2022
£
£
Intercompany debts waived
1,256,577
-
1,256,577
-
0

Intercompany payables were formally waived in the period as part of a restructuring exercise which took place prior to the disposal of several group entities. The amounts waived were as follows: Immotion VR Limited: £748,776, Immotion Studios Limited: £502,298 and Uvisan Limited: £5,503.

LET'S EXPLORE LIMITED
(FORMERLY LET'S EXPLORE MEDIA LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
9
Taxation

The charge for the year can be reconciled to the profit/(loss) per the income statement as follows:

2023
2022
£
£
Profit/(loss) before taxation
532,562
(487,364)
Expected tax charge/(credit) based on a corporation tax rate of 23.52% (2022: 19.00%)
125,259
(92,599)
Intercompany debts waived
(295,547)
-
0
Intercompany debt provisions
67,758
-
Deferred tax on losses not recognised
102,530
92,599
Taxation charge for the year
-
-

The standard rate of tax applied to reported profit on ordinary activities is 23.52% (2022: 19%). The Finance Act 2021, which was substantively enacted on 24 May 2021, created a 25% main rate, 19% small profits rate and a marginal rate effective from 1 April 2023.

 

There were unused tax losses of £1,671,430 at 31 December 2023 (31 December 2022: £1,269,230). No deferred tax asset has been recognised due to the uncertainty surrounding future profits.

LET'S EXPLORE LIMITED
(FORMERLY LET'S EXPLORE MEDIA LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
10
Intangible fixed assets
Software
Website
Trademarks
Total
£
£
£
£
Cost
At 31 December 2022
454,089
5,000
-
0
459,089
Additions
70,187
12,400
15,000
97,587
At 31 December 2023
524,276
17,400
15,000
556,676
Amortisation and impairment
At 31 December 2022
255,875
3,334
-
259,209
Charge for the year
162,754
5,132
7,500
175,386
At 31 December 2023
418,629
8,466
7,500
434,595
Carrying amount
At 31 December 2023
105,647
8,934
7,500
122,081
At 31 December 2022
198,214
1,666
-
199,880
11
Property, plant and equipment
Fixtures and fittings
£
Cost
At 31 December 2022
-
0
Additions
6,557
At 31 December 2023
6,557
Accumulated depreciation and impairment
At 31 December 2022
-
0
Charge for the year
1,406
At 31 December 2023
1,406
Carrying amount
At 31 December 2023
5,151
At 31 December 2022
-
0
12
Cash and cash equivalents
2023
2022
£
£
Cash and cash equivalents
8,024
21,012
LET'S EXPLORE LIMITED
(FORMERLY LET'S EXPLORE MEDIA LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
13
Inventories
2023
2022
£
£
Finished goods for resale
28,293
35,292

Inventories recognised in cost of sales during the year was £222,936 (2022: £349,830). The Directors consider that no impairment of inventory is necessary as at 31 December 2023 (2022: £Nil).

14
Receivables
2023
2022
£
£
Trade receivables
318,557
391,345
Amounts owed by fellow group undertakings
223,944
196,707
Prepayments
2,805
127,875
Contract assets
-
336
VAT recoverable
-
12,948
545,306
729,211
15
Payables
2023
2022
£
£
Trade payables
131,795
277,106
Amount owed to parent undertaking
1,295,802
644,142
Amounts owed to fellow group undertakings
-
1,291,058
Accruals
25,395
54,304
Provisions
-
204
VAT liability
4,223
-
Other payables
3,505
3,008
1,460,720
2,269,822
16
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1
1
1
1
17
Reserves

Profit and loss account

Includes all current and prior period retained profit and losses.

LET'S EXPLORE LIMITED
(FORMERLY LET'S EXPLORE MEDIA LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
18
Related party transactions

The Company has taken advantage of the exemption provided by FRS 101 from disclosing transactions entered into between group companies.

 

M J Higginson and D F G Wortley, both directors of the company, were directors and shareholders in Huddled Holdings Limited prior to its acquisition by Huddled Group PLC, the company's ultimate parent company, on 16 October 2023. Prior to the acquisition, services to the value of £3,378 were invoiced in the period by Huddled Holdings Limited to the company (year to 31 December 2022: £278,316). At 31 December 2022 the company owed £196,248 to Huddled Holdings Limited.

 

M J Higginson, a director of the company, owed the company £9,978 at the reporting date (2022: £10,714).

 

S J Higginson, the son of M J Higginson, a director of the company, charged consultancy fees of £82,500 to the company during the period (2022: £5,000). At the period end the company owed £nil to S J Higginson (2022: £nil).

 

Intercompany receivables were released in the period as part of a restructuring exercise which took place prior to the disposal of several group entities. The amounts released were as follows: Immotion VR Limited: £748,776, Immotion Studios Limited: £502,298 and Uvisan Limited: £5,503.

19
Ultimate Controlling Party

The immediate parent company and ultimate parent company of Let's Explore Limited is Huddled Group Plc, a company registered in England & Wales.

 

The largest and smallest group in which the results of the Company are consolidated is that of which Huddled Group Plc is the parent company. The consolidated financial statements of Huddled Group Plc may be obtained from Cumberland Court, 80 Mount Street, Nottingham, NG1 6HH.

20
Post balance sheet events

On 10 May 2024, Wicked Vision Limited were issued 25% of the company's equity. Wicked Vision Limited's shareholding will increase to 50% subject to the company repaying an inter-company loan of circa £400,000 to Huddled Group PLC.

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